Cloud hosted software solutions are becoming increasingly popular amongst businesses of all sizes. The cloud offers many benefits to businesses, such as increased security, reduced infrastructure overheads and carbon footprint, amongst many others. Here, we compare the 8 key benefits of cloud deployment for SAP Business One versus on-premise when considering various key business concerns.
- Cost
- Deployment
- Control
- Security & Compliance
- Backup & Recovery
- Flexibility
- Adaptability & Responsiveness
- Sustainability
Cost
On-Premise - "it is very challenging to design an on-prem system that fits the needs of the company exactly and resources are often over-provisioned."
Companies that choose to host their infrastructure on-premise bear the full costs of installation as capital expenditure, along with the ongoing operational expenses of power consumption, space, maintenance, and personnel costs associated with the management of hardware. Dedicated on-site servers are expensive and often require multiple purchases. To ensure data accessibility, security, and compatibility with other systems, on-premise hardware needs to be consistently updated, which results in recurring expenditure. It is very challenging to design an on-prem system that fits the needs of the company exactly and resources are often over-provisioned. Expensive hardware may sit idle waiting for spikes in resource demand to occur.
Cloud - "budgeting is a simpler process and importantly, you only pay for the resources you need now, not for what you need in a few years’ time."
One of the primary benefits of the AWS cloud is that enterprises bear costs only for the resources they use as OpEx. Cloud costs are straightforward, predictable, and easy to track. Companies that choose to migrate to the AWS cloud need not worry about the CapEx and hassle associated with the procurement, installation, and maintenance of infrastructure. Budgeting is a simpler process and importantly, you only pay for the resources you need now, not for what you need in a few years’ time.
Deployment
On-Premise – "it is essential that hardware is installed in suitable environments as its lifespan can be significantly reduced if conditions aren’t suitable."
Companies that choose to host infrastructure on-premise need to deploy their resources in-house. This may take time since hardware needs to be ordered and delivered, and then the infrastructure needs to be physically installed on-site. It Is also essential that on-site hardware is installed in suitable environments. If infrastructure isn’t installed in suitable conditions, it can greatly reduce its lifespan, adding costs to fix or replace hardware before you expected to. In addition, installation and deployment require expertise in the form of qualified staff and/or external contractors. Additionally, changes or upgrades to infrastructure may result in additional delays for similar reasons.
Cloud – "resources are housed in optimum conditions and can be deployed and scaled rapidly and cost-effectively to meet business needs."
The AWS cloud provides ready access to resources that companies can deploy rapidly and with minimum friction at a scale that matches their requirements. AWS offers numerous services and configuration options, and Cloud4Partners’ expertise provides assistance and assurance that the most cost-effective and secure deployment is built. As and when an upgrade is required, as use of the solution increases, our technical team can switch on the additional resource almost immediately, reducing downtime and keeping your employees’ productivity high.
Control
On-Premise – "many business leaders believe they have greater control over their systems if they host their infrastructure on-premise, but this relies on a suitable environment to house those resources and sufficient qualified staff to support them."
One of the key reasons enterprises choose to host their infrastructure on-premises is that it enables them to maintain complete control over their data and resources. The proximity of on-premise servers gives companies additional control over operations and provides them with a sense of confidence, assuming they have sufficient IT support to maintain their on-premise servers.
Cloud – "AWS guarantees uptime of 99.995%, which on-premise infrastructure will never compete with, while removing on-prem maintenance and support overheads."
AWS Cloud offers similar access and control as on-premise infrastructure without the inconvenience of having to maintain on-premise servers. Companies that choose Cloud4Partners have complete control of their computing resources and have a guaranteed uptime of 99.995%, which an on-premise solution simply can’t compete with.
Security & Compliance
On-Premise – "poorly built or poorly managed on-premise servers can be vulnerable to modern cyber-attacks, creating a serious risk to the business."
Security is one of the key concerns for modern-day enterprises and is especially important for highly regulated sectors such as healthcare and finance where enterprises need to ensure that they are meeting security and compliance standards. Poorly built or poorly managed on-premise servers can be vulnerable to complex modern cyber-attacks and the physical proximity of the servers to the company often makes them an easier target.
Cloud – "AWS invests heavily to offer industry-leading security measures, such as end-to-end encryption, identity management, and continuous monitoring, to protect businesses against potential threats."
Data stored on the AWS cloud is hosted in secure data centres on servers that are not localised to the users themselves, therefore making the possibility of a physical breach less likely. Additionally, AWS invests heavily in security. For example, all data flowing across the AWS global network is encrypted at the physical layer before leaving AWS facilities.
AWS has a Shared Responsibility Model with its customers for security and compliance. AWS states that it bears “the burden of operating, managing, and controlling the components from the host operating system and virtualisation layer down to the physical security of the facilities in which it operates.” Cloud4Partners assumes responsibility for the guest OS, application software, firewall configuration, and choice of services and ensures that they align with security and compliance requirements. With cyber criminality on the rise, the move to cloud over an on-premise configuration is growing at an exponential rate. Companies used to worry about their data alone but are now having to be concerned about access to their business systems overall. Cloud4Partners (AWS) reduces risk and can further enhance your system security.
Scalability
On-Premise – "scaling on-premise servers requires the purchase of new servers; if demands are low, physical resources sit idle and overall system efficiency is reduced."
On-premise servers are scalable, but the scalability comes at a cost. Scaling with on-premise servers requires the purchase of new servers and may even require the purchase of property on which to host the servers. On premise scaling usually only goes in one direction - up. It is very difficult to scale down when demands for resources are low, leaving physical resources to sit idle and diminishes the overall system efficiency.
Cloud – "scaling cloud resources is quick and easy, requiring only a subscription adjustment to access additional resources and meaning the scaling can go up, or down, according to business needs."
Scaling on the AWS cloud is effortless and requires nothing more than an adjustment of the subscription to gain access to additional resources. This scaling can go up or down depending on system needs. This is why we partner with AWS, the leading hyperscaler available. This ability to scale with your business requirements is a big reason why companies are moving away from on-premise set-ups and embracing the AWS cloud.
Backups & Data Recovery
On-Premise – "companies relying on on-premise infrastructure face significant risks of data loss in the event of hardware failures, cyberattacks or natural disasters, which can result in lengthy and costly data recovery processes and can be crippling for companies without effective backup processes in place."
Having data backups on-site does provide some piece of mind, but losing information and dealing with data recovery can be crippling for companies with on-premise infrastructure. Backup data storage is not only expensive, but recovery takes time, energy, and expertise.
Cloud - "AWS cloud deployment provides secure, automated backups and fast data recovery, ensuring business continuity and protection against data loss."
Data backups on the AWS cloud are simple and straightforward. Cloud4Partners provides companies with numerous options for Disaster Recovery (DR) of varying degrees of complexity. Companies choose between cost-effective approaches such as simple backups and more complex strategies such as the usage of multiple active Regions, plus the use of state of the art ‘Disaster as a Recovery’ services to minimise downtime.
Flexibility, Adaptability, & Responsiveness
On-Premise – "on premise infrastructure can be very restrictive and businesses are bound by the limitations of resources available to them."
Companies hosting their infrastructure on-premises are bound by the limitations of the resources that are available to them and may not be able to adapt to sudden and unforeseen changes in market conditions such as the COVID-19 pandemic. Rapid expansions in infrastructure require fast deployment of CapEx spending which may not be readily available.
Cloud – "the cloud offers flexibility and responsiveness to adapt to changing market conditions and business requirements, while supporting business continuity cost-effectively."
The cloud provides companies with the flexibility and responsiveness they need to adapt to ever-changing market conditions. Flexible resource provisioning enables companies to scale up or down based on their current requirements. The AWS cloud provides companies with additional benefits such as the ability to:
- Embrace flexible remote working schedules and ensure seamless collaboration between employees even when they are working remotely.
- Experiment cost-effectively by trying out innovative ideas at a smaller scale on the cloud.
- Consistently adapt and innovate by taking advantage of an ever-increasing range of services.
- Simplify the upgrade and testing processes, whilst still operating on a day-to-day basis.
Sustainability
On-premise – "on-premise infrastructure is counterproductive to today’s sustainability goals, contributing to increased CO2 emissions caused by energy usage, staff travel and disposal of waste IT equipment when its useful lifespan has passed."
Traditional on-premise infrastructure has a set lifespan and needs replacing when that timeframe has passed, which causes issues with disposal and recycling of waste IT equipment. On-premise hardware also requires a cool environment, which increases energy consumption to power air-conditioning, and which can have a significant impact on CO2 emissions, particularly in older and poorly insulated buildings. The nature of on-premise deployment means that it’s likely that most employees will be commuting to the workplace, which also has an impact on CO2 emissions if they are mostly travelling by car.
Cloud - "AWS has committed to using renewable energy sources for their energy-efficient datacentres, investing in renewable energy projects, and offering tools for businesses to optimise their resource usage and reduce carbon footprints."
AWS has committed to using renewable energy sources for their datacentres, which reduces their carbon emissions and environmental impact. In 2022, 90% of the electricity consumed by Amazon was attributable to renewable energy sources and they have committed to powering their operations with 100% renewable energy by 2025 as part of their commitment to reaching net-zero carbon emissions by 2040. Multiple studies carried out by 451 Research have found that by moving on-premise workloads to AWS can reduce customers’ workload carbon footprints by nearly 80%, and up to 96% once AWS is powered by 100% renewable energy. Consolidating computing resources and high utilisation rates enables large cloud datacentres to achieve greater energy efficiency and reduce their environmental impact. The adoption of cloud technology facilitates remote work, as employees can work from anywhere, reducing the need for commuting, which results in lower fuel consumption and reduced vehicle emissions. This then contributes to improved air quality and decreased traffic congestion.
The global drive towards sustainability is not going to slow down and with large companies increasingly having to report on their emissions and meet sustainability targets, which we fully expect will be rolled out to smaller companies over time, migrating to the cloud will only help this. Using a global hyperscaler, such as AWS, gives companies confidence in the knowledge that they are striving towards a more sustainable and eco-friendly future as a direct benefit of the investment that they put into sustainability.
Conclusion
There are many compelling reasons why companies should consider cloud deployment for their essential business systems. Cloud4Partners works closely with our partners and their customers to migrate their SAP Business One solutions to our purpose-built AWS cloud platform, enabling them to reap the benefits of cloud deployment. These include reduced infrastructure overheads, increased security, compliance, and decreased risk of data loss, as well as contributing to longer-term sustainability goals. To find out more about why cloud is a good choice for your customers and how Cloud4Partners can support them to migrate to the cloud, please don’t hesitate to contact us.