The Hidden Costs Of On-Premise Solutions vs. The Cloud

Many companies are migrating to the Cloud in a bid to gain efficiency, have access to cutting edge technology, and remain competitive. If you are contemplating doing the same, but aren’t sure of the promising future Cloud offers as compared to your on-premise systems? The decision is entirely up to the business considering such a move to the cloud. However, we would like to help you make an informed decision by reviewing some of the hidden costs about on-premise solutions you might be paying for right now.

Infrastructure Expenses

Costs for setting up an on-premise legacy system include hardware and software expenditures, which can add up to substantial amounts. And then come the upgrades to aging in-house systems. It requires huge investments to set up these systems, including technology like SaaS, IaaS, and PaaS, and are simply not sensible for smaller companies to manage. Furthermore, the cost of trained resources to maintain and utilize these technologies is also huge.

In a Cloud environment, costs are usually in the form of monthly subscriptions that are much easier to track, and allow companies to use their surplus finances for much more critical business initiatives focused on growths and profits. Costs of infrastructure, personnel, upgrades and updates, etc., are handled by the cloud services provider. The biggest advantage is that you can suspend the subscriptions whenever you want.

Seamless Use of Technology

As previously mentioned, on-premise applications come with associated hardware and installation costs. These include experienced IT personnel to install, maintain, and train your employees. The fast changing dynamics of the technological world mean there are routine upgrades that come with costs attached, as well as time. Besides, you may not be able to utilize the systems until upgrades are complete, bringing most business activity to a halt. This also means loss of man-hours and additional costs.

With Cloud-based technologies provided by vendors such as Salesforce, all the hassle of hardware or software licensing is eliminated with the use of technology that is seamless, efficient and easy. And there is no noticeable disruption to routine work.


Although the debate on the security of data between cloud and on-prem is an ongoing one, the Cloud does seem to have an edge when it comes to data security and safety. Many prefer the traditional on-premise set-up when it comes to the safety of their data.

However, companies must understand that for Cloud vendors, it is in the interest of their own business that the customer data remain safe. They know this is one aspect of their service that is critical, such as in the event of a breach of data, their clients can simply switch to a more reliable Cloud services provider.


On-premise software integration is complicated and time-consuming given the sheer number of parameters to run for accurate results. Cloud-based software comes with built-in functionality to support integrations easily and seamlessly. iPaaS, for example, is a set of automated tools for integrating software applications deployed in different environments, such as on-premises data with cloud data.

Commercient SYNC expertly integrates ERP and CRM systems, such as Sage, SYSPRO, Epicor, and many more, with Salesforce, Zoho CRM, etc. Commercient can easily support seamless integration for on-premises and cloud applications. With SYNC integration, your business will have a full view of sales and accounting, helping you streamline your processes. You’ll be able to view data through desktop, Smartphone, or any smart device-anytime, anywhere, and make informed decisions. Check out our SYNC integrations page to get started.

In addition, Commercient’s IoT Pulse brings you the benefits of integration and the cloud by connecting many popular ERP systems such as QuickBooks Desktop, SYSPRO, NetSuite, Microsoft Dynamics, Sage, Acumatica, etc., to over 1,100 apps. These include HubSpot CRM, Magento eCommerce, Mailchimp, Gmail, WordPress, social media apps, and many others. To learn more, please visit our IoT Pulse integrations page.


As a business grows and hires more employees, there is an increased burden on IT’s overall budget, as the department has to buy more hardware to meet increased demand with an on-premise system. Once the demand reduces, you are then forced to retain with the additional infrastructure.

This is where the cloud has a bigger advantage, and customers can continue to add users without worrying about infrastructure costs. Scalability is one of the crucial necessities in a fast-evolving IT scenario, and can attract savings or costs in the form of time and money.

Customer Satisfaction

The agility and seamlessness that comes with the Cloud are simply not possible to replicate within the traditional on-prem legacy systems. Loss of time, need for additional resources, and the ability to retain a greater number of customers are all costs to a company.

Such a cost is much higher when working with older on-premise systems. However, deploying most of your services to the Cloud can give you a competitive advantage. This will allow your team the flexibility to directly address some of the issues of customers.

If you’d like to learn more about how Commercient’s cloud integration solutions can help streamline your business, please contact us today for a demo.

SYNC Demo integrate CRM ERP