Cloud vs On-premise IoT Deployment: Which Is Right for Your Business?

As industrial businesses and manufacturers embrace IoT solutions, one of the critical decisions they need to make is whether to opt for cloud vs on-premise IoT deployment.

To make an informed decision, one must take all the pros and cons of each solution into account. After all, one or the other might sound better, but the nuances of what matches your goals can differ from your initial thoughts. Let’s go through the factors to consider when weighing cloud vs on-premises IoT deployment.

What is on-premise IoT deployment?

An on-premise IoT deployment involves setting up and controlling IoT devices and systems within your own establishment. On-premise software is installed and operated on a company’s internal hardware infrastructure, and is hosted on-site, whereas cloud software is managed and stored on the provider’s servers and accessed through a web browser or other interface.

On-premise deployment gives you the power to take full control of your IoT infrastructure, including the collection, processing, and storage of your valuable data. This means that you can keep your sensitive data within your own network, ensuring that it remains confidential and secure. Essentially, the primary difference between on-premise and cloud deployment is the location of the data storage.

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Advantages of on-premise IoT deployment

On-premise software is licensed, and the entire software instance runs on an organization’s premises. As a result, there is typically more protection than with cloud infrastructure. On-premise deployment can provide peace of mind for businesses in highly regulated industries like healthcare and finance. By keeping your data in-house, you can easily comply with regulatory requirements while still reaping the benefits of IoT solutions. Your sensitive data remains within your own network, ensuring that it stays secure and confidential. While on-premise deployment is especially important for those who deal with a great deal of sensitive information, such as multinationals, many companies are now also exploring cloud IoT deployment. In this blog, we’ve outlined 3 simple steps to data security within a custom IoT solution

Another advantage is faster and more reliable connectivity. With on-premise IoT deployment, data is processed and stored locally within your own infrastructure, reducing latency and providing more stable connections. In addition, on-premise deployment is especially beneficial for businesses operating in remote areas or with limited internet connectivity. In these cases, an on-premise solution can ensure that IoT devices continue to function properly without relying on an unstable internet connection.

With on-premise deployment, you have the flexibility to customize and control your IoT infrastructure to meet your specific business needs. This means that you can integrate your IoT systems with your existing ones, improving operational efficiency and reducing costs. On-premise deployment is especially beneficial for businesses with unique or complex requirements, as it allows for greater customization and control than cloud-based solutions.

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When doesn’t on-premise suit your business?

Large capital expenditure
Compared to Cloud-based, on-premise deployment may require a significant upfront investment in hardware and software. While larger IoT deployments may benefit from cost-effective deals with on-premise, this may not be the case for smaller solutions. Additionally, managing and maintaining an on-premise setup can be more expensive in the long run, as it requires in-house server hardware, software licenses, integration capabilities, and IT employees to address potential issues and perform maintenance. Therefore, companies should consider the costs and benefits of on-premise deployment before making a decision.

Managing and maintaining on-premise IoT systems requires technical expertise and resources, which may not be available in-house. Additionally, getting specialists to do this work adds to the costs. 

On-premise deployment can be less flexible in terms of scalability. As your business grows, you may need to invest in additional hardware and software to keep up with demand.

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The benefits of cloud for your business

Cloud computing is becoming increasingly popular among enterprises due to its ability to save time, money, and improve agility and scalability. Unlike on-premise software, where a company hosts everything in-house, cloud computing allows a third-party provider to host everything for you.

This means that companies can pay for the services they need, and scale up or down based on their overall usage, user requirements, and business growth. With cloud computing, businesses can enjoy newfound flexibility, cost-effectiveness, and improved scalability.

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Continuous training to strengthen the model

The weights in a neural network can be modified, which influences the output of the model given a certain input. The model is first “trained” using so-called labelled data, meaning a set of known input and output data: sensor readings and the associated behavior, respectively. The set of weights, defining the model, is optimized to reproduce the known output. Then, in the real application, the model uses real-life sensor data to generate new output data, i.e. predictions.

Why you should opt for the cloud

Cloud IoT deployment has revolutionized the way businesses approach their infrastructure by eliminating the need for costly on-premise installation. With cloud-based servers, applications can be hosted virtually, which means no capital expenses and regular data backups. Moreover, cloud IoT deployment enables businesses to easily connect with customers, partners, and other businesses anywhere, making it an ideal solution for organizations planning to expand.

Cloud computing offers the advantage of instant provisioning, allowing for quick and easy integration of new software into your environment without the need for time-consuming installation and configuration. With Sensorfy’s tech stack built on Amazon components, monitoring, control, and adjustments become seamless, making the entire process of adopting new technologies much easier for your team.

Always accessible
Cloud IoT deployment is an excellent solution for manufacturing and industrial businesses. With access to data anytime and anywhere, companies can operate more efficiently, streamline operations and reduce resource usage. Additionally, cloud IoT deployment enables businesses to take a proactive approach by making accurate predictions and connecting data to analytical systems that determine the next steps. By leveraging the power of the cloud, companies can gain a competitive advantage and stay ahead of the curve in today’s fast-paced business environment.

Continuous training to strengthen the model

The downsides of cloud IoT deployment

While cloud data handling offers flexibility and scalability benefits, it does come with a higher risk of security breaches compared to on-premise IoT deployment. However, it’s important to note that with the right security measures in place, the risk can be mitigated. It’s also essential to evaluate the type of data being handled and the potential impact of a breach.

For instance, while industrial sensor data from manufacturers is valuable, it may not be critical to the overall business operations. By balancing the risk and reward, businesses can make informed decisions on whether cloud data handling is right for them.

In today’s world, we can even connect to satellites in the most remote locations, making the cloud a viable option for most businesses. However, if a stable internet connection is not available, then cloud may not be an option. Other than that, there are no reasons not to opt for cloud computing, which offers a range of benefits such as flexibility, scalability, and cost-effectiveness.

Anomaly detection as part of condition monitoring

The in-between: hybrid

A hybrid IoT model is a combination of on-premise and cloud-based IoT deployment. With this solution, businesses can store and process sensitive data on their own premises, ensuring compliance with regulatory requirements, while using the cloud for processing and storing non-sensitive data or in cases where scalability is required.

A hybrid model can be more cost-effective than a purely on-premise solution, as it eliminates the need for expensive hardware investments and maintenance. It also allows businesses to take advantage of cloud computing, which can provide scalability and agility at lower costs.

Moreover, it offers the flexibility to scale up or down depending on demand. By using the cloud for non-sensitive data, businesses can take advantage of the scalability of cloud computing without compromising data security.

Additionally, a hybrid IoT model can be tailored to meet the specific needs of the business. With on-premise deployment, businesses can customize their IoT infrastructure to meet specific requirements, while using cloud-based deployment for non-sensitive data or processing.

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And the winner is…

While on-premise deployment has its benefits, such as increased security and customization, it can also be expensive and less scalable. On the other hand, cloud IoT deployment is cost-efficient, highly scalable, and always accessible, making it an ideal solution for businesses of all sizes. In this blog, you can learn about how to avoid the biggest mistake when implementing an IIoT solution. 

With cloud-based servers, businesses can easily connect with customers, partners, and other businesses anywhere. Moreover, instant provisioning enables quick and easy integration of new software into your environment, ensuring that you remain agile and adaptable.

By choosing cloud IoT deployment, businesses can enjoy newfound flexibility, cost-effectiveness, and improved scalability.

Build a custom IoT solution

Designing, developing and implementing an IoT solution is complex and requires the right combination of IoT expertise, domain knowledge and data science. So making the choice between cloud vs on-premises IoT deployment depends on what suits your organization best. 

Do you need an introduction to IoT deployment and support in making the right choice between cloud vs on-premise IoT deploymentSchedule a call with us.

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