On-Premise vs Cloud: Making the Right Infrastructure Choice for Your Business
- Netmarks Singapore
- Aug 28
- 3 min read
Updated: Sep 2
In Singapore's digital-first landscape, the decision between on-premise infrastructure and cloud computing is one of the most strategic considerations an organisation will face.
The choice impacts operational efficiency, scalability, cost structure, security posture, and the ability to adapt to changing market demands.
This guide explores the differences between on-premise and cloud solutions, the advantages of each, and how to decide which approach best aligns with your business goals.
Why This Matters Now
Analyst findings make clear why infrastructure decisions are especially critical today:
According to Red Hat & Economist Impact, 68% of Singapore enterprises have fully adopted cloud services—among the highest in APAC—yet 70% cite lack of AI-ready infrastructure and upskilling as a key barrier to adopting advanced technologies.
Statista projects that the public cloud market in Singapore will reach US$11.09 billion by 2025, with a strong CAGR of 23.07% through 2030, reflecting the urgency businesses place on flexibility and efficiency Statista.
These insights reaffirm that, while cloud adoption is high, organisations must assess their infrastructure to fully unlock efficiency, innovation, and secure growth.
What is On-Premise Computing?
On-premise computing refers to hosting IT infrastructure within the physical premises of an organisation. Companies own, operate, and maintain their servers, storage systems, and applications on-site.
Key characteristics of on-premise solutions:
Full control over hardware, software, and security policies.
Requires capital expenditure (CAPEX) for equipment purchase and setup.
In-house IT teams handle maintenance, updates, and patches.
Access is typically limited to internal networks.
On-prem solutions are often preferred by organisations that need direct oversight of their infrastructure and have strict compliance requirements.
What is Cloud Computing?
Cloud computing refers to delivering computing services—such as servers, storage, databases, and applications—over the internet through providers like AWS Cloud, Azure Cloud, and Microsoft 365 Cloud.
Key characteristics of cloud solutions:
Operational expenditure (OPEX) model with pay-as-you-go pricing.
Managed infrastructure with automatic updates and maintenance.
Highly scalable, allowing resources to be adjusted instantly.
Accessible from anywhere with internet connectivity.
Cloud computing is often chosen by organisations that value agility, scalability, and reduced infrastructure management responsibilities.
On-Premise vs Cloud: Key Differences
When deciding between On-Premise vs Cloud, it’s important to understand how each approach performs in key areas such as cost, control, scalability, and security. The table below provides a clear side-by-side comparison to help you evaluate which IT infrastructure model aligns best with your business requirements.
Which One Should You Choose?
If your organisation prioritises full control, customisation, and offline continuity, on-premise may be the better fit. If you value scalability, cost flexibility, and remote access, cloud computing offers more advantages.brid approach, combining the control of on-premise systems with the flexibility of the cloud.
Ultimately, the right choice depends on your budget, operational model, security requirements, and growth plans.
Conclusion
Both on-premise and cloud computing have unique strengths. The best decision comes from aligning your IT strategy with your business objectives.
At Netmarks Singapore, we help businesses evaluate, plan, and implement the right IT infrastructure—whether it’s on-premise or cloud. Contact us at enquiries@netmarks.com.sg, WhatsApp us at +65 8902 3303, or click the button below to consult with our specialists.
Source:
Comments