1-2 Activity Christensen
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School
Southern New Hampshire University *
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Course
423
Subject
Information Systems
Date
Dec 6, 2023
Type
docx
Pages
4
Uploaded by SuperHumanDolphin2076
Jennifer Christensen
IT-423 – Computing as a Science
1-2 Activity: Analyzing Cloud vs. On-Premise Solutions
July 3, 2022
On-Premise System vs. Cloud-based System
Before our company moves its systems to a cloud-based structure, it is important to compare and
analyze specific business requirements within each structure.
This will allow us to have a better
understanding of how our company will be affected, what we should consider, and the cost of
these considerations.
Personnel:
On-premise systems require an IT team to maintain the functionality of the system.
Staff
positions could include a system administrator, database administrator, network administrator,
and support staff.
These positions will work together to configure and maintain the system in
house.
The system administrator can determine employee access to the system based on roles.
The support team can arrange support for proxy authorization.
The network administrator can
ensure data is encrypted during transmission.
Cloud-based systems require less staff as
maintenance, upgrades, and support are included from providers.
An IT administrator will be
required to configure the cloud-based solutions to suit our needs and establish connection to the
cloud.
The IT administrator will establish employee access based on roles, while security is
handled by the cloud provider.
Hardware and Software:
On-premise systems require all hardware and software needs to be purchased, installed,
and maintained by our IT team.
Servers, network equipment, desktops, and software licenses are
typical purchases.
Any items needed must be purchased by us.
This is a large upfront cost.
Hardware and software also require ongoing maintenance costs for upgrades, continued licensing
fees, and support.
Cloud-based systems don’t require as much hardware and software needs.
The cloud provider provides the resources an organization requires and allows access based on a
subscription fee.
Resources are scaled based on our needs so we can access more resources or
less at any time.
To utilize the cloud-based system we will require an internet connection,
network, and devices to access the cloud.
Utilities:
On-premise systems require a building, optimal environment, and security.
The hardware
will be housed in a physical building requiring a resource budget for leasing or owning the place.
The servers work best in a cool environment protected from the elements.
Ongoing costs would
be for electricity, cooling system, air filtration system, and internet access.
These costs can be
estimated but are determined by usage and the rate of the provider.
Security is also an ongoing
cost as the on-premise system requires constant security for our company’s protection.
Cloud-
based systems require much less ongoing costs other than the subscription fee and internet
access.
The provider incurs the ongoing utility costs and security costs, while we only pay to
access their offered resources.
The subscription fee is a necessary ongoing cost and determined
by our choice of plan and how much resources we use.
Internet access is a necessary cost too so
we can access the cloud.
Security:
On-premise systems are secured by the organization who owns it.
Security and privacy
policies are written by us to ensure our data is protected from within.
We assume all
responsibility for the security of our servers, data, and building.
This includes using firewalls,
encryption, security policies for employees, badge access, etc.
We would determine the best way
to protect our data, systems, and network.
We also determine when our system is maintained or
upgraded, backed-up, and plan for redundancy and failures.
Cloud-based systems’ securities are
handled by the provider.
We have no control of how a provider protects their in-house resources.
Data is transferred over the internet and stored in the provider’s servers.
An important
consideration is what security protections a provider has in place for their environment.
Potential Costs:
Estimate provided by Centerbase.com shows the difference between the up-front costs of
an on-premise system and a cloud-based system.
The up-front costs are greater with an on-
premise system due to purchasing requirements of hardware and software.
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Estimate provided by Centerbase.com also shows the ongoing monthly expenses with
each system.
Maintenance is the largest ongoing cost with on-premise system while the cloud-
based system requires the subscription fee.
Resources:
Huss, C. (2021, March 4).
Cost Breakdown of Cloud and On-Premise Software
. Centerbase.
https://centerbase.com/blog/cost-breakdown-of-cloud-and-on-premise-software/