When it comes to choosing an ITSM tool, you might be wondering whether an on-premise or cloud-based solution is right for you. There are pros and cons to each, and the decision ultimately depends on your unique needs and preferences.
In this article, we'll help you figure out which one is the best fit for your business. Let’s consider some advantages and disadvantages to consider when making this decision:
| Pros | Cons |
|---|---|
| Controlled growth: On-premise ITSM allows organisations to rationalise and control demands for expansion against cost benefits analysis. | Scalability: If your business grows, you may need to invest in additional hardware and software to scale the system. |
| Complete control: With an on-premise ITSM system, you have full control over the software and hardware, allowing you to customise and configure it to your exact needs. | Maintenance: You're responsible for maintaining the system, which can be time-consuming and require specialised knowledge. |
| One-time cost: With an on-premise system, you pay a one-time cost upfront and then own the software. Maintenance costs thereafter are smaller than cloud-based solutions and are optional. |
High upfront costs: On-premise systems require expensive hardware and software, making them more costly to set up initially. |
| Security: Your data is stored locally, giving you more control over security and compliance. | Security: Security is only as good as good as your internal security procedures. |
| Pros | Cons |
|---|---|
| Flexibility: Cloud-based ITSM systems are highly scalable, allowing you to add or remove users and features as needed. | Growth by ‘stealth’: Multiple small incremental licence increases can create budget deficits without corporate awareness. |
| Easy maintenance: The provider is responsible for maintaining the system, reducing your workload and ensuring the system is always up to date. | Control: With a cloud-based system, you have less control over the software and hardware configuration and performance. |
| Lower upfront costs: Cloud-based systems typically have lower upfront costs and are more affordable for small and medium-sized businesses. | Ongoing costs: Cloud-based systems are rentals and typically you effectively re-buy the system every three years. |
| Security: Customers can benefit from the security expertise of cloud vendors. | Security: Your data is stored in the cloud, which can be a concern for some businesses. |
Ultimately, the choice between on-premise and cloud-based ITSM systems comes down to your specific needs and preferences. Take into account the pros and cons listed here, as well as your budget, scalability needs, and security concerns, to make the right choice for your business.