Demand For On-Premises Software Is Equal To The Cloud, According To New Research

There’s been a lot of chatter about digital transformation and migration to the cloud over the last year, however a recent report from Dimensional Research reveals that the demand for on-premises software is equal to that of the cloud.

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The survey revealed that 65% of companies cited privacy compliance as the top reason for using on-premises software delivery. This is an indication that the market is being influenced by cybersecurity issues more than any other factor. However, 54% also stated uptime and reliability were a primary driver for on-premises solutions, while 45% noted the importance of integration.

Some businesses have grown from the ground up with the cloud as their base infrastructure, while others have adopted cloud on top of their on-premises foundation, but it seems that all these businesses are discovering the benefits now of moving varying amounts of those workloads to on-premises infrastructure.

While configuration options are almost unlimited, today's enterprise computing is based primarily on two fundamental structures: on-premises servers and computers owned and operated by each individual business, and the cloud, an off-site computing center that connects users through the Internet to a variety of programs and services.

Almost all companies already have on-premises systems that have been installed incrementally over time as computing capacities and corporate demands evolved. While the numbers have been trending toward the cloud for a decade, it seems that just as many companies are choosing on-prem software.

The global pandemic did lead to many companies moving to the cloud much faster than they might have without COVID-19’s acceleration. There’s a perceived complexity that comes with on-prem software, because servers, computers, and other components need dedicated physical space and often need to be located in climate-controlled environments. Additionally, there can be a need for additional staff, larger systems, and consideration for future requirements.

Conversely, cloud computing is accessible from any device that can access the internet and can be installed much faster than on-prem software.

There are other studies and surveys, including a recent report from Synergy Research Group that posits cloud computing is growing at a much faster rate than on-prem software is, but with cybersecurity becoming a key issue for enterprises, trends may continue to fluctuate.