On-Premises Data Centers vs. Cloud Computing

On-premises data centers, 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.

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On-prem and cloud computing defined

An on-premises data center 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 center resources from a third-party service provider.

On-prem definition

"On-prem"refers to private data centers 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 virtualized 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: Data-center single tenancy (for compliance)

On-premises: ✔

Public Cloud: X

Business need: Highly secure data encryption

On-premises: ✔

Public Cloud: ✔

Business need: Customizable hardware, purpose-built systems

On-premises: ✔

Public Cloud: X

Business need: Capacity easy to scale up and down

On-premises: X

Public Cloud: ✔

Business need: Infrastructure requires large, regular investments

On-premises: ✔

Public Cloud: X

Business need: Pay-as-you-go, usage-based pricing

On-premises: X

Public Cloud: ✔

Business need: Complete data visibility and control

On-premises: ✔

Public Cloud: X

Business need: Built-in, automated data backups and recovery

On-premises: X

Public Cloud: ✔

Business need: Near-zero downtime risk

On-premises: X

Public Cloud: ✔

Products & Solutions

Hybrid cloud
Use HPE to power your apps and services, placing workloads in on-prem data centers or in the cloud, as appropriate.
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 center.
HPE SimpliVity
Use HPE SimpliVity hyperconverged infrastructure to create an on-prem or hybrid cloud solution.