02: OCI ‐ OnPrem vs Cloud - pavankumarchittajallu/OCI_DOC GitHub Wiki
1.Infrastructure Location
On-Prem: The hardware (servers, storage) is physically located at organization’s premises. They manage and maintain everything themselves. Example: A company has its own data center with servers in its office building.
Cloud: The infrastructure is hosted by a cloud provider (e.g., AWS, Azure, Google Cloud, Oracle cloud) and accessed over the internet. Example: A business uses cloud to store files and run applications without owning physical servers.
2.Cost Model
On-Prem: Requires upfront investment in hardware, software licenses, and ongoing maintenance costs. Example: Buying servers and hiring IT staff to maintain them.
Cloud: Operates on a pay-as-you-go model, where you pay only for the resources you use (e.g., storage, computing power). Example: Paying monthly for Cloud storage based on the amount of data stored.
3.Scalability
On-Prem: Scaling requires purchasing additional hardware, which can be time-consuming and expensive. Example: Adding more servers to handle increased website traffic during peak seasons.
Cloud: Easily scalable; you can increase or decrease resources instantly based on demand. Example: Automatically scaling up resources on cloud during Black Friday sales.
4.Maintenance Responsibility
On-Prem: Your IT team is responsible for maintaining hardware, software updates, security patches, and backups. Example: An IT team manually installs updates on company-owned servers.
Cloud: The cloud provider handles maintenance, updates, and backups. Example: cloud automatically updates its infrastructure for security and performance.
5.Accessibility
On-Prem: Access is limited to the local network or VPNs; remote access can be complex to set up. Example: Employees need to connect to the office network via VPN to access company systems.
Cloud: Accessible from anywhere with an internet connection, enabling flexibility for remote work. Example: Teams can access cloud applications from laptops while working remotely.