Business Softwares

Cloud-Based Application for Business: The Good and the Bad

Cloud-based software is now widely used by companies in different fields, but is this model for you? This computing model saves information on the server of the service provider and the application’s interface is accessible using your web browser.

Cloud-Based Application for Business


A premise-based system, on the other hand, is installed on the company’s server and it is only available on the computer where the program is set up. Understanding the pros and cons of a cloud-based application will help determine if it’s for your business or not.

Cloud-based software benefits

  • No additional hardware. Since data is stored on the provider’s server and the interface is accessible using the browser; there is no added equipment needed than what you already have.
  • Server maintenance on provider’s end. If you encounter any issue with the application, your service provider will take care of the matter and fix it remotely. Since it’s done in their end, repair is quicker as it eliminates travel time and everything they need is at their disposal.
  • Cheaper upfront cost. Cloud-based systems are offered through monthly or yearly subscriptions. The provider may also give a free trial so you can try it before committing to a monthly subscription, as then you can abort the service if you no longer find it useful.
  • Security. If the system is from a trusted provider, security should not be a problem. The best providers ensure the safety of their applications as they know that this is vital to their clients. For example, cloud-based sports club software from a reliable provider will give you the convenience of efficiently managing and accessing the club database, while giving you peace of mind that only authorized users will have access to it.
  • Scalability. The growth of your company is not an issue as cloud-based applications are flexible. If you require additional storage or you need to add more users, your provider can give it to you.
  • Speed. Set-up is quick so you can start using the system in no time. A premise-based program, however, will require installation on the computers where it will be used so if there are several machines in the company, the program needs to be set up on each of these computers which is rather time-consuming.
  • Accessibility. Since cloud-based applications are accessible using the browser, users can utilize it as long as they are connected to the Internet.

Cloud-Based Application

Cloud-based software drawbacks

  • Lifetime payment. While upfront cost is cheaper, the money that you will spend in the long-run will add up. Plus, since it’s subscription-based you will pay for it as long as you use the service.
  • Privacy and security. Security can also be a disadvantage if you end up getting the system from an unreliable provider, as the safety and privacy of your data will be at risk without the proper security features.
  • Connectivity. You need a stable Internet connection to use the system efficiently. If there’s a problem with your connectivity you will not be able to use the application.

Whether you decide to get a premise-based or cloud-based system, make sure that it meets the needs of your business.

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About the author

Michael Austin

Michael Austin is a Internet Entrepreneur, Blogger, Day Dreamer, Business Guy, Fitness Freak and Digital Marketing Specialist. He also helps companies to grow their online businesses.

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