What's the difference between cloud and on-premises?

In our documentation you can come across articles about LMS365 cloud version and LMS365 on-premises functionality and capabilities. In this guide we provide you with the explanation what LMS365 cloud and LMS365 on-premises are, what the difference is and how they are used.

Note: After Dec. 31, 2021 we will be ending support for the On-Premises (Non-Cloud) version of LMS365. For more information please follow Announcing sunset for LMS365 On-Premises (Non-Cloud) .

In this article


Cloud and on-premises definitions


Cloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. This means that computing services are delivered over the internet and users do not need to have local servers or personal devices handle applications. Computing services can include servers, storage, databases, networking, software, analytics, and intelligence. These services are moved outside an organization’s firewall and can be accessed via the web.


On-premises is the software and technology that is located within the physical confines of an enterprise often in the company’s data centers opposed to running remotely on hosted servers or in the cloud. By installing and running software on hardware located within the premises of the company, IT staff has physical access to the data and can directly control the configuration, management, and security of the computing infrastructure and data. On-premises software requires purchasing of a license or a copy of the software to use it. 


Cloud and on-premises differences



On-Premises: Resources are deployed in-house and within an enterprise’s IT infrastructure. An enterprise is responsible for maintaining the solution and all its related processes.

Cloud: Resources are hosted on the premises of the service provider, but enterprises are able to access those resources and use as much as they want at any given time.


On-Premises: Ongoing costs of the server hardware, power consumption, and space.

Cloud: Costs of the resources used, with none of the maintenance and upkeep costs, and the price adjusts up or down depending on how much is consumed.


On-Premises: All data is retained and the organization has full control of what happens to it.

Cloud: Data and encryption keys reside within your third-party provider, so in some cases you may be unable to access the data.


On-Premises: its level depends on the security level of cloud server provider.

Cloud: its level depends on the security level provided by the organization.


On-Premises: its level is determined by organization. 

Cloud: its level is determined by cloud server provider.


Hybrid solutions

A third option that has become more popular in recent years are hybrid solutions like Microsoft's Azure Stack that enable enterprises to run some workloads and applications on-premises while utilizing the cloud for other workloads.

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