On-premise versus cloud-based software: Why move to the cloud?
One of the key benefits of cloud-based software is that the vendor takes care of the necessary upgrades required to keep the software and infrastructure up to date while also preventing security and data breaches.
On the other hand, on-premise systems and software require your IT team to periodically upgrade them to address security risks and to take advantage of the latest features and functionality. In addition to system upgrades, your IT team will also need to maintain and consider the underlying servers and infrastructure that keep your systems and software running.
When using on-premise software and systems, there are a number of factors to consider. In this article, we’ll look at on-premise software compared to cloud-based software, including Prophix’s Financial Performance Platform.
In this article, we’ll cover:
- The risks with on-premise software and systems
- Why it’s important to keep servers and infrastructure that support your financial systems and software up to date
- What to consider when you need to upgrade servers and infrastructure
- Why so many companies are moving to cloud-based software and systems
At the end of this article, you’ll understand the differences – and the risks associated with on-premise software – so you’re informed as you take the next step in your journey to the cloud.
What are the risks with on-premise software and systems?
On-premise software is static with a specific set of functions and features. Over time, the software vendor will release new versions with additional features and functionality that you can’t access unless you upgrade. From time to time, you may encounter a bug or incorrect functionality which, once reported to the vendor, may require an upgrade to resolve the issue.
So, without upgrading your on-premise software and systems, you’re likely missing out on additional features and functionality that may have significant benefits to your team, or you may be relegated to having an unresolved bug that negatively impacts your usage of the system. Overall, it’s a good idea to keep track of what upgrades are being released by the vendor.
Why is it important to keep servers and infrastructure that support your financial systems and software up to date?
You can view your on-premise systems and underlying server infrastructure like an ecosystem. Various parts contribute to the ecosystem, and if one part has issues, it may have a downstream impact.
As an example, in May 2023, Microsoft announced that Windows Server 2012 and 2012 R2 would reach the end of support on October 10, 2023. Now that this date has passed, anyone using these products will no longer receive any updates (including security), bug-fixes or technical support.
Because Windows Server is an operating system, an issue with it would likely have a significant and detrimental impact on the server, including any dependent software and systems. In fact, it’s possible that those systems and software could become completely inaccessible.
So, because the underlying servers and infrastructure are an integral part of the overall ecosystem, without regular updates, you risk exposing your organization to:
- Security breaches
- Operating issues with varying levels of severity
- Severe disruptions that can disable servers and software
What are the factors to consider when upgrading servers and infrastructure?
Now that you understand the importance of keeping your on-premise software and systems, and the servers and infrastructure up to date, what do you need to consider when an upgrade is required to one or more parts of this ecosystem?
In the case of the Windows Server 2012 upgrade, Microsoft recommends upgrading to Windows Server 2022 or purchasing Extended Security Updates. Organizations that require an upgrade need to have their IT teams assess the software and systems dependent on those servers, and whether Windows Server 2022, the Extended Security Updates, or any additional server software or infrastructure being upgraded is compatible with software and systems dependent on the server.
For existing Prophix customers using our on-premise Corporate Performance Management (CPM) software, the on-premise software has reached the end of mainstream support and no new versions have been released since December 31, 2021.
What does this mean for existing Prophix on-premise customers? The latest on-premise version of Prophix is not compatible with Windows Server 2022. As a result, installing that operating system on a server used by any on-premise version of Prophix could have detrimental effects, potentially as severe as interrupting your key finance processes.
One of the most important considerations when looking to upgrade an on-premise server, software or infrastructure is to review the compatibility. If an upgrade is not compatible, then it’s time to consider other options.
Why are so many companies moving to cloud-based software and systems?
Many organizations are aware of the benefits of moving to a cloud-based software or system and many migrate to the cloud to avoid the risks of remaining on old on-premise technology.
Let’s look at a comparison of upgrades and maintenance, security, access, integrations, and resources for on-premise software, cloud-based software, and Prophix’s Financial Performance Platform.
Upgrades and maintenance
On-premise software and systems
- Must be upgraded by IT to get the latest features and functionality and address potential security risks and/or incorrect functionality (bugs).
- Companies must keep the underlying server software and infrastructure up to date.
- On-premise systems and software are at risk of being put on extended maintenance: no updates are provided by the vendor, but still have to pay maintenance fees to be supported.
Cloud-based software and systems
- Updated and maintained by the vendor, giving you the latest version of the software and automatic access to the latest features and functionality.
- Underlying supporting software and infrastructure are maintained by the vendor.
- Cloud subscriptions make sure customers have access to ongoing upgrades and updates.
Prophix’s Financial Performance Platform
- Updated and maintained by Prophix, with regular releases including new features and functionality.
- Prophix customers don’t need to worry about software or server updates because it’s done automatically but can get optional notifications when upgrades happen.
- A subscription to Prophix’s Financial Performance Platform not only gives customers ongoing support, but they have access to an expanding platform with new applications and capabilities being added to increase the efficiency and effectiveness of the office of the CFO.
- A Prophix subscription can also lead to a lower total cost of ownership, due to increased ROI and reduced dependency on internal and third-party IT resources.
Security
On-premise software and systems
- Companies are vulnerable to increased risks over time due to aging technology being exploited by bad actors.
Cloud-based software and systems
- Vendors can innovate and add additional security procedures and protocols to address the changing security landscape.
Prophix’s Financial Performance Platform
- Prophix has an industry-leading, security posture, including multiple certifications, encryption of data in-transit and at rest, and evolving security protocols to keep customers and their data safe.
Access
On-premise software and systems
- On-premise systems typically require access to be restricted. In some cases, staff can only access them from certain networks or machines, creating additional barriers to important information.
- Companies using on-premise technology may be subject to systems being unavailable in the event of a server failure, disaster, or major world event.
Cloud-based software and systems
- Cloud-based systems and software offer multiple authentication methods and are meant to be accessed from anywhere.
- Cloud vendors have advanced backup processes with built-in redundancies and disaster recovery processes to ensure you can maintain access, even in unforeseen circumstances.
Prophix’s Financial Performance Platform
- Prophix customers benefit from the ability to access the platform in the office or remotely. Increased security measures like Single Sign-On (SSO) and Multi-factor authentication (MFA) prevent unauthorized access to sensitive data.
- The Prophix Financial Performance Platform leverages AWS with data backups to multiple regions and industry standard redundancy and disaster recovery procedures.
- Prophix employs advanced threat detection, monitoring, and alerting infrastructure to ensure your data is safe, secure and remains accessible to authorized persons.
Integrations
On-premise software and systems
- Companies may be limited in what integrations they can build, because of a lack of compatibility between the on-premise technology and various source systems.
Cloud-based software and systems
- Cloud vendors are continually updating their integration capabilities to ensure their customers can bring in data from multiple external systems.
Prophix’s Financial Performance Platform
- Prophix has a robust data integration capability and continues to expand the options available for bringing data into the platform and using the data in multiple applications.
- Whether your data resides in on-premise systems, cloud systems, or a combination of the two, Prophix can connect to and automate your data integrations safely and securely.
Resources
On-premise software and systems
- On-premise systems are limited by the resources available on the server. Getting additional resources often involves additional approvals and requisitions.
Cloud-based software and systems
- Cloud vendors can easily leverage additional resources based on the cloud technology they use.
Prophix’s Financial Performance Platform
- With Prophix, as your computing and storage requirements increase, cloud resources can quickly and easily scale to meet your changing needs for optimal performance.
Whether you’re an existing Prophix on-premise customer or a prospective customer using another on-premise technology, Prophix can meet your needs and more. Don’t be left out in the cold with outdated systems and software. Move to the Prophix Financial Performance Platform today and see what you can do.
A short overview of the Prophix Financial Performance Platform.
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