What is the difference between on-premise vs cloud platforms for ecommerce solutions?

With the vast choice available of ecommerce options, platforms and software, understanding what might be right for you and your business isn’t easy.

However as any online retailer knows, ease of use, speed and user experience are key to sales completion, along with the overheads associated with maintaining the site and it’s payments technology.

There are a few ways that an ecommerce solution can be set up, whether that’s using on-premise or the cloud. Both have advantages and disadvantages, and the choice between the two will depend on a number of factors, including the needs of the business, the level of control required, and the budget.

Advantages of a cloud-based e-commerce system

Cloud-based e-commerce platforms are hosted by third-party providers and accessed over the internet. Businesses by storage space but any maintenance, tech problems, back-ups etc, are the responsibility of the provider.

Usually designed for larger businesses or those that are looking to scale quickly, however with the huge shift in digitisation and the expectations of customers for a faster performance, this is becoming far more common.

Some of the advantages of cloud-based e-commerce platforms include:

• Easy setup: Cloud-based e-commerce platforms can be set up quickly and easily, often with no technical expertise required
• Scalability: It’s easy to for cloud-based solutions to scale up or down as needed, making it easy for businesses to grow without having to invest in new hardware and software
• Maintenance: Because this is on the provider to look after, there’s no need to worry about performance or tech. Typically updates are applied automatically without affecting their customers.
• Lower costs: There’s no need for an in-house IT team to look after servers, to pay for updates and maintenance, and no long term investment in expensive hardware and software.

Advantages of an on-premise e-commerce system

On-premise e-commerce solutions, on the other hand, are hosted on software which is installed on a server on the business’ premises.

The benefits of an on-premise solution include:

• Greater control: Businesses have greater control over their data and applications, and potentially your ecommerce platforms code, enabling you to optimise and modify your site yourself.
• Infrastructure: the hardware is owned by the business, giving you control. In addition, this means your company can optimise performance directly.
• Customisation: on-premise solutions can be customised to meet the specific needs of the business
• Security: Organisations have complete control over their security, which can give peace of mind, particularly if you hold or transfer sensitive information.

What suits your organisation?

In summary, both cloud-based and on-premise e-commerce solutions have advantages and disadvantages, and the choice between the two will depend on a number of factors.

Digitisation is only going to get more prevalent and sophisticated, so ultimately you should carefully consider your needs and budget before choosing between the right solution for you.