A company that wants to grow and stand out in the market needs to invest in digital transformation . But, from then on, a question arises: relying on on-premise or cloud software This question is quite valid, after all, this choice is made based on the specific reality of your business.

Both on-premise and cloud computing are beneficial, but there are differences that may make a particular model better fit your proposal. In this text we will address both, going through criteria such as safety, cost reduction and efficiency . Good reading and good choice!

On-premise vs cloud computing: assessing the differences

The migration of the file storage format to digital or the automation of a system to the cloud, the cloud format, leaves many doubts about which model to adhere to. That's why we're going to consider here what characterizes each of the models most used today, so that your company can evaluate which is the best option: on-premise or cloud.  

The cloud computing format offers cloud services on a platform managed by a specialized company , with full access to files by the contracting company. Storage is all online and virtual in the database without physical support. Some models offer the possibility of staged migration.

In turn, in the on-premise model, the data storage infrastructure keeps the servers physically located in the company itself .

Let's understand the distinction.

Read also: Public cloud: why is it ideal for your company?


In the on-premise model, the deployment is done within the company, internally, using the IT infrastructure . This infrastructure is also responsible for maintaining the associated flow development solution .

On the other hand, the cloud computing format hosts all files on the service provider's premises, without local physical storage, but with full access to everything and anytime.


The maintenance process also weighs in on a choice between on-premise vs cloud. That's because the first format lays out the maintenance costs for the company, in relation to server hardware, space and energy consumption. After all, these servers need to be running 24/7 in a cool, secure location.

The second model goes according to the format chosen by the company, which can also be hybrid, however, in the cloud storage format, the costs of maintenance, conservation and updates are the responsibility of the company that offers the support, thus reducing costs. costs .


On-premise, with the files stored in the company itself, there is control done by the employees themselves and this also demands technical knowledge to solve some problems , in addition to effort and routine tasks from your IT team , keeping them always busy with tasks that are not strategic for the growth of the business.

The cloud format, on the other hand, offers the data and encryption key under the control of the third-party provider who is the one who monitors all activities and is responsible for providing solutions in unexpected cases.

In this case, the cloud allows the IT infrastructure to act in a much more strategic way within the organization, while the contracted company performs, through specialized monitoring tools , most of these routine tasks.

Read also: LGPD and its reflections on IT: everything you need to know to comply


Security is now a requirement for any digital service , so the choice between on-premise or cloud must be made considering the security demands of the business and the features that each model offers.

In this sense, the on-premise option makes it possible to control the storage of extra confidential information in physical environments, which for some companies may seem more reliable. However, this view is limited, as physical systems are more prone to electrical and digital security failures than is commonly thought.

The cloud computing format, on the other hand, has advanced encryption resources to prevent the advance of hackers , as well as a modern and structured access control to guarantee the deposited data


As previously mentioned, the on-premise model requires a higher investment in hardware purchases and maintenance and local storage capacity, in addition to other expenses typical of physical files: cabling, equipment, repairs, updates, energy consumption.

The costs for the cloud format, on the other hand, are included in the supplier's contract package and it pays for maintenance and infrastructure , with no additional expenses over the course of use.

On-premise or cloud server: what is the best alternative for my retail ERP?

The choice of the ideal model will be defined by the needs of each business. However, the more we observe that the reality of the consumption model has changed in recent times, the more ERP in the cloud gains preference in the market .

Much because of the mass adherence of customers to virtual stores and online services , needing to guarantee faster, more interactive, intuitive and security-certified access.

In addition, having the files in the cloud under the control of a specialized company guarantees the constant updating of processes and flows, according to the reality of the business, promoting greater interactivity between employees, collaborators and customers, reducing costs with the information technology team.

Let's look at other advantages.

Read also: Why is cloud software

Advantages of migrating ERP to the cloud

1) Governance and Compliance

The regulatory frameworks defined by the General Data Protection Law , the LGPD, regardless of the sector, require international certifications and ISOs that increase data security and guarantee visibility with quality seals for the companies that maintain them.

Thus, confidential data must be protected and customers, partners and employees must have their privacy guaranteed.

By relying on Auto.Sky , a cloud solution from Sky.One , your retailers will benefit from cybersecurity by specialists in managing ERPs in the Cloud . This service has Auto.Sky Defender, a brute-force attack monitoring and mitigation tool, and anti-malware that adds another layer of security to the client.

In addition to 24×7 infrastructure monitoring, looking at all servers in terms of performance, disks, alerts and security. 

Thus, by ensuring the security of business data, an ERP in the cloud also contributes to the governance and compliance required by Brazilian law. 

Migrate your SAP Business One to the cloud with Auto.Sky

2) Scalability

A company from small to large, especially retail, produces a high volume of data. And the benefit stated here concerns the flexibility of cloud storage , with the feature of always being able to hire more space in a simple way and without bureaucracy.

3) Flexibility and availability

With the possibility of accessing files on the cloud platform from different devices, users now have mobility , as well as being able to check data anywhere in the world , with an internet connection available.

This also includes other features such as data synchronization and backup without interruption of access, immediate restore, mirroring and continuous improvement.

Read also: Server virtualization: what it is, what it is for and its advantages

4) Best value for money

Another great benefit of cloud computing is its cost-effectiveness, which can be optimized. The first reason for this is the predictability of expenses , because in the cloud you pay exactly for the service you use .

So you choose a plan that offers what you need, knowing from the start how much you'll pay for it, no surprises! Adding scalability here, whenever there is a new demand you can update the service, keeping its value predictable.

In addition, working with cloud computing also reduces the cost of IT infrastructure. With this service, you save on :

  • hardware , as it does not need its own server and computers to store its applications;
  • software , as it can rely on applications made available by its provider;
  • staff , who do not need to focus on maintenance and updates, being assigned to more important tasks in managing their cloud.

5) Increased productivity

As the cloud has improved and grown a lot, the providers that stand out in this market provide a high quality service. With these providers, your company has a stable and fast system , which can handle high demands.

It is worth mentioning that in the cloud, your employees have the mobility to work outside the company's space and business hours , allowing the service to be carried out for much longer. Here, your business is not limited by time or space!

Another reason that ensures increased productivity with the cloud is the ability to free your IT staff from tasks such as updates, maintenance and backup . With a cloud provider that handles these jobs, your people can do more important and difficult jobs, making your business even more effective.

Also read: Understand how to migrate your SAP applications to the cloud

Auto.Sky : a solution capable of extending the benefits of an ERP in the cloud to retailers

The cloud is really beneficial for your business, but to make the most of its benefits, you need professional cloud migration and management . To ensure that everything goes as expected, how about betting on a partner that specializes in the subject?

Auto.Sky is a reference in the market, offering the most diverse solutions that can solve your different demands in terms of the cloud Auto.Sky With us, you can count on:

  • scalability to count on a service that always meets your demands;
  • availability to work with all its resources at any time and from any place;
  • cost reduction with both hardware and software and IT staff;
  • update and maintenance carried out by the server itself;
  • cybersecurity with the most advanced cloud security measures such as backup, user authentication, firewall protection, data encryption and more;
  • cost predictability , paying exactly for what you use and being able to modify this value; It is
  • Multi-cloud , being able to combine the best services available, such as AWS, Google Cloud, Microsoft Azure and Oracle.

Auto.Sky : contact us

At Auto.Sky we offer three different solutions. Being them:

  1. Auto.Sky Platform : service for those who need to migrate applications and data, with fast and transparent scalability and payment per user.
  2. Auto.Sky Services : solution that improves costs for those who already have the advantages of the cloud, with support and management of environments and migration of workloads.
  3. Auto.Sky Business One : solution that transfers your SAP B1 to the cloud, with added Addons.

We hope this text has been useful for you to understand the differences between on premise and cloud, so that you can now choose the best option for your business. If you have any questions about this or want to know more about Auto.Sky , talk to one of our experts !

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.

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