On-premises software

Location On-premises software is established within the organisation's internal system along with the hardware and other infrastructure necessary for the software to function. Cloud-based software is usually served via internet and it can be accessed by users online regardless of the time and their location. Unlike on-premises software, cloud-based software users only need to install an application or a web browser in order to access its services. Costs needed for access to services For on-premises software, there are several costs expected to incur until the software and its services would be fully available for use. First of all, the construction of on-premises software within the organisation requires high initial costs, including costs incurred for the purchase of hardwares and other infrastructures as well as costs required for software installation and examination. In addition to this, the entity is entitled to the purchase of the license particular to the software, which involves costs and time for the preparation and required procedures. Furthermore, in order to maintain the software functionality, sustainable maintenance and operations are required and the entity will be subjected to the costs incurred for these as well. On the other hand, in general, the initial costs required for the use of software services are considered relatively low for cloud-based software and thus suitable to small enterprises without a large amount of capital. Moreover, cloud-based software users are not subjected to license fees as well as maintenance and operation costs since these are on hands of software vendors. Furthermore, costs incurred for infrastructures are expected to be smaller compared to on-premises software as users only need their electronic devices to be able to get access to the services. Although initial costs for the access to services are usually low for cloud-based software, total costs required for the use of software over a specific time period are unsure as cloud-based software requires routine payment (i.e. monthly subscription fee) for the use of services whereas on-premises software does not. Operation and maintenance The entity using on-premises software are fully responsible for the daily operation and maintenance of the system by itself. This results in more time and costs required for the system operation as well as IT personnel who have specialization in managing the system. On the other hand, for cloud-based software, it is a software provider who is responsible for the system operations and maintenance. Thus, no IT professionals need to be hired within the entity specifically for the purpose of operating the software. Backup and data storage As for the maintenance and operations, the entity using on-premises software is also responsible for backup and storage of software data. This implies the ability of the entity to have a full control over its data and its security. For cloud-based software, the entity has no requirement of data backup by itself, as this is also a responsibility of the software provider and data backup is perquisite for the provider in offering their services. On the other hand, the control of data by software providers suggests that users have no control over the data and software system performance. This may result in some security issues, especially for those who are subject to high level of regulation standards against data security, such as financial institutions. Data security As discussed, users are responsible of data management for on-premises software while for cloud-based software, the responsibility is on the software provider. However, the difference in the level of safety over data security between on-premises and cloud-based software is arguable. Some experts claim that cloud-based software is likely to be more secure as they have more amount of capital and other resources to invest in data security system than normal business entities. While others argue that this is questionable as software vendors are usually more exposed to being targeted by cyberattacker as they hold vast amount of data within the system. ==Development of software from on-premises to cloud-based==

On-premises software was invented first mainly for the purpose of corporate-wide process automation of large entities in advance to the evolvement of cloud-based software, SaaS. SaaS emerged in the early 2000s, and some of businesses that published SaaS products have experienced a failure, as customers wanted SaaS particularly for the purpose of the automation of single specific corporate functions rather than a corporate-wide system. • Oracle • Sage • Microsoft • SAP • Salesforce For instance, SAP was originally an on-premises software vendor. In accordance with the change in technologies and customer preferences in the software market, the company has turned itself into cloud-based ERP provider that are available both in public cloud and private clouds depending on the customer's needs. Salesforce offers a business CRM process through its cloud-based software service, including Sales Cloud that offers standardized business processes regarding the customer relation to the businesses. == Access Control Deployment from On-premises to Cloud-Based ==

Modern organizations require flexible deployment models, with security frameworks such as NIST SP 800-53 and ISO/IEC 27001 emphasizing the need to align system architecture with organizational risk, compliance, and operational requirements. Cloud Access Control Designed for scalability and remote management, IDCUBE’s cloud-based access control enables centralized monitoring, real-time updates, and reduced infrastructure overhead. On-Prem Access Control For organizations requiring complete control over data and infrastructure, IDCUBE’s on-premise access control ensures maximum security, local data storage, and compliance with strict regulations. ==Current software market condition==

General market trend Over the last decade of software market, an increasing trend toward cloud-based software from traditional on-premises software has been appeared with an acceleration to its speed. Variety of on-platform services Cloud-based software provides the software services in relatively more flexible way and with more variations. The reason of this exists in the architecture of cloud-based software platform that consists of a number of different platforms with different specialty and functions. The most representative example of such platform is Microsoft Azure. The software consists of a number of distinct business platforms. ==Integration of on-premises and cloud-based==

As discussed above, on-premises solution and cloud-based solution have both positive and negative sides respectively. Thus, the 'better' choice among 2 software depends on many factors, for instance, customer's business model, financial status and business strategy. However, neither choice would provide customers the perfect solutions as both software do not offer full functionalities to its users. In transition to cloud-based solution for the information management, customers' concern involves the security of data, privacy, and many more that may be better provided by the traditional on-premises solution. In order to deal with this problem, the software market came up with new solution to combine on-premises and cloud-based solution and its best features. As such, the software will be provided on-demand with customization simultaneously. ==Software industry==

History and evolution Software has begun evolving from the beginning of 1990s and there was a big movement in business market trend toward the use of software at the beginning of 2000s. Although, during these periods, IT industry as a whole was in the middle of market boom and experienced a rapid growth in its market size, software market accounted for nearly 25% of all the spending in IT industry products. According to Hietala's research, US has been always the biggest country player in the software business and has been presenting a dominant market position in the market. Customer-tailored software are the software of which the system and the service can be tailored to individual needs of customers. This customization can be achieved through a variety of different combinations of software modules and platforms. The core purpose of this software product is to solve a specific business issues of individual customers and provide a unique solution to that through technology. While standard cloud-based software usually offer standardized solution and service to a broad range of customers within an industry and/or market area. ==See also==