On-Premises Data Centres vs. Cloud Computing

On-premises data centres, commonly referred to as “on prem,” allow you to have full control of your infrastructure, while cloud infrastructure is cost-efficient and easy to scale up and down.

On-prem and cloud computing defined

An on-premises data centre is a group of servers that you privately own and control. Traditional cloud computing (as opposed to hybrid or private cloud computing models) involves essentially leasing data centre resources from a third-party service provider.

On-prem definition

"On-prem"refers to private data centres that companies house in their own facilities and maintain themselves. On-prem infrastructure can be used to run private clouds, in which compute resources are virtualised in much the same way as those of public clouds (note however, that private clouds can also be run leased third-party hardware.)

Cloud computing definition

When people speak of cloud computing, they’re most often referring to "traditional" or "public" cloud, a model in which a third-party service provider makes computing resources available for consumption on an as-needed basis. Public cloud is a multi-tenant environment, meaning that these computing resources are shared by multiple individuals or companies, with all data secured by state-of-the-art encryption.
On-prem definition

On-prem and cloud compared

Both on-prem and cloud computing can provide your business with the IT infrastructure it needs. The model you choose will likely depend on the level of security you need in order to meet compliance standards, and on the cost structure you prefer. Here’s a look at how the two models compare.

Business need


Public cloud

Data-centre single tenancy (for compliance)

Highly secure data encryption

Customizable hardware, purpose-built systems

Capacity easy to scale up and down

Infrastructure requires large, regular investments

Pay-as-you-go, usage-based pricing

Complete data visibility and control

Built-in, automated data backups and recovery

Near-zero downtime risk

Hybrid cloud

Hybrid cloud

Use HPE to power your apps and services, placing workloads in on-prem data centres or in the cloud, as appropriate.

Learn More

Composable infrastructure

Composable infrastructure

Empower your IT to create and deliver value instantly, continuously and at the speed and flexibility of cloud – within your own secure data centre.

Learn More

HPE SimpliVity

HPE SimpliVity

Use HPE SimpliVity hyperconverged infrastructure to create an on-prem or hybrid cloud solution.

Learn More

Let’s talk

Speak with a cloud computing expert about how HPE can help address your business challenges.


Analyst Report : 451 Report: Critical Security and Compliance Considerations for Hybrid Cloud Deployments

Analyst Report | PDF | 350 kb

The greatest barrier to cloud migrations is security and compliance in the hybrid cloud space. Organisations often struggle with practical considerations, which can prevent them from achieving some of the most valuable benefits of hybrid cloud deployments. This report details a number of steps organisations can take to move towards a secure and compliant hybrid cloud.


business white paper | application/pdf | 351 KB

Learn how to deliver Azure consistent services for your data center using hybrid IT and hybrid cloud with HPE ProLiant for Microsoft Azure Stack solution.

Article : Cloud or on-premises? For Dropbox, the answer Is yes


Dropbox's hybrid IT strategy moves data on-premises in the U.S., while the cloud still reigns in Europe. If you're weighing on-prem vs cloud, each might be right, depending on data being stored and user needs.

Software : HPE OneView: Simplify and Accelerate Infrastructure Management


HPE OneView: Simplify and Accelerate Infrastructure Management