Cloud Based Application Hosting

Cloud Based Application Hosting – A lot has changed since companies valued on-premises infrastructure as the best option for their business applications. Nowadays, with cloud solutions on the rise, most companies prefer off-premises solutions like cloud and co-location.

Forrester Inc. reports that global spending on cloud services has grown exponentially from $17 billion in 2009 to $208 billion in 2019, much of it in the past five years.

Cloud Based Application Hosting

Cloud Based Application Hosting

On-site hosting is the traditional method where all the necessary infrastructure, hardware and software for any business application are hosted on the company’s premises on their servers.

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On-site hosting requires physical space and a dedicated IT team to monitor and maintain the servers, infrastructure and security.

Based on the size of the organization and the number of users, there is a one-time license fee with recurring costs for support, training and software updates.

Cloud computing or cloud hosting, on the other hand, refers to computer services via the Internet, rather than on-site infrastructure.

Cloud-based software, also known as Software-as-a-Service (SaaS), is hosted on the software provider’s servers and accessed through a web browser. The service provider is responsible for storage, database, monitoring, security, network, analysis and maintenance.

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Being an ongoing service, cloud software has a monthly or annual subscription fee. Depending on the plan chosen, there may be additional costs for support, training and upgrades.

The cost of entry is low with a recurring monthly or annual cost, and is therefore considered an operating cost.

The low barrier to entry, including savings on space, maintenance and IT teams, has contributed to the immense popularity of solutions offered through the cloud.

Cloud Based Application Hosting

According to one recent study, 93 percent of enterprises currently use cloud software solutions or systems architecture.

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Most SaaS providers also offer better infrastructure, services and security than most SMBs can set up in-house.

Organizations have more control over applications on site. Changes are easier to implement, especially for businesses in niche industries with unique processes that require high levels of customization.

With complete autonomy, the organization’s responsibility is the security of their data and sensitive information. Mobility also poses a problem with third-party integrations required to access the local software on mobile devices.

On-site applications are therefore best suited for large businesses with higher budgets and a requirement to adapt systems and infrastructure.

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The biggest concern for cloud software buyers is data security. Credible cloud-hosted SaaS providers prioritize the security of their platform to protect sensitive customer data and have strict procedures, audits and standards in place to keep data safe.

They also have fraud detection systems and web application firewalls to detect and mitigate fraudulent and malicious attacks.

Buyers can seek third-party advice and a security audit from the SaaS provider they are considering to alleviate their security concerns.

Cloud Based Application Hosting

Most cloud-hosted solutions are accessible on mobile devices, with some even offering native mobile apps. While accessibility is convenient, security becomes a concern if employees are accessing company files on their personal cell phones.

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High customization is sometimes a problem for companies with specialized needs, but some solutions offered by the cloud, such as VARStreet, are highly customizable and offer customized customizations and capabilities even for large enterprise buyers looking for for lower initial costs but heavy customization.

Let’s take a closer look at some important factors such as cost, security, scalability and more to help you make an informed decision about which applications are best suited for your business.

The core difference between on-premises and cloud applications is the hosting, and this affects the cost of implementing any solution.

On-site systems require a significant upfront investment to operate. Dedicated servers, software licenses, related hardware, administrators, software, and experienced IT staff are needed to manage and maintain and regularly upgrade the system on site software.

What Is Cloud Computing?

With a cloud-based system, your initial costs are much lower as the infrastructure, security and maintenance are provided by the SaaS company. A SaaS company operates the software and you access it via the Internet.

Cloud computing is a pay-as-you-go model with a monthly or annual subscription fee. You only pay for the services and features you use, reducing liabilities and scaling as your business scales.

Comparison: Cloud software has the highest edge over on-premises applications. The subscription-based model requires a low initial investment. In-house hosting is cost-effective for large enterprises with dedicated IT departments and in-house servers.

Cloud Based Application Hosting

On-premises software requires the full technical involvement of a team of IT experts in setting up and maintaining servers, as well as physical on-site resources. These are additional costs that affect the company’s bottom line.

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Cloud solutions are fully managed by the SaaS provider and require no technical expertise from the buyer. This gives you enough time and resources to focus on your core business without being bogged down in infrastructure maintenance and security tasks.

Comparison: Cloud solutions are convenient and a better option for organizations that lack the expertise and resources to deploy in-house infrastructure

The modern software industry is constantly evolving and innovating to meet market demand and changing customer requirements. Users prefer infrastructure that can be scaled at minimal cost rather than applications that require the use of additional servers.

When a business experiences massive growth or expansion into new regions, on-premises software requires a significant investment in infrastructure and human resources.

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On-premise software does not offer the flexibility to scale up or down depending on usage. Scaling up is an investment because it requires buying new servers rather than cloud servers where the bandwidth can be increased to scale up. Downsizing leads to dead investment for unused infrastructure.

You would think that on-premises software is more secure since it is inside the company’s property. But when data is stored on company servers internally, there is less control over who can access it. Reports say that most security breaches occur as a result of employees with malicious intent, and such breaches are often harder to detect.

Cloud servers are usually located in multiple locations, and in the event of a security breach, it is difficult to identify the compromised server. SaaS companies are very quick to alert their customers and take countermeasures as their main focus is to keep their platform secure.

Cloud Based Application Hosting

Providers of cloud-hosted solutions prioritize the security of their applications with biometric security measures, multi-layered security, access restrictions and CCTV cameras.

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VARStreet’s cloud infrastructure uses a firewall and other advanced technology to prevent intrusion or access by unauthorized users. WAF security filters, block and monitor incoming and outgoing HTTP/HTTPS traffic for the web application. It is designed to analyze all HTTPS requests at the deepest level of communication protocols that help prevent types of DDoS attacks, OWASP.

These levels of security measures are an additional cost to companies, along with hiring technical staff to monitor the data center. SaaS providers also take care of disaster management and recovery and compliance, which adds another layer of protection.

Comparison: SaaS providers take care of both hardware and software security. They also carry out regular risk assessments and security audits to ensure that sensitive data is secure.

Organizations can choose on-premise applications if they have sufficient technical and financial resources to ensure the security levels offered by SaaS companies. But for most businesses, from small enterprises to large enterprises, cloud-hosted solutions like VARStreet are the best, more secure option.

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Another deciding factor before choosing an on-premise or cloud application is how much control you need over a system installation.

When you use an on-premise solution, you have control over the type of servers you want, the software and the architecture. All these decisions take a lot of time, and as a result the implementation can take longer. In comparison, cloud computing is quick to implement, but you are not in control of the underlying infrastructure.

Also, on-site apps give you control over upgrades. Many SaaS providers release daily, weekly or monthly product upgrades, which can disrupt your business.

Cloud Based Application Hosting

Comparison: On-premises software gives you more control over the program, how it’s run and maintained, so if that’s important to you, there may not be a solution that’ n be hosted in the cloud to suit you.

Why Cloud Computing Is Ideal For Small Businesses

Cloud-hosted solutions and on-premise systems have their pros and cons and are equally promising. Your decision will need to be based on your business needs and the software you are considering, as not all solutions work optimally in a cloud or on-premises application.

An additional concern that businesses with cloud solutions have is trusting a third party to maintain their data and the risk of a security breach, as well as a SaaS company shutting down.

Although the benefits of cloud computing outweigh the risks, researching the SaaS provider before implementing their solution eliminates most of the risks involved, as a reputable SaaS company will have much better security measures than the an individual business on the site can operate it.

For help with your decision-making process, contact one of our experts today. Our cloud-hosted business management solutions include an advanced sales quote application, a world-class e-commerce platform, a catalog management tool and a FREE CRM.

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