The choice of on premise vs cloud infrastructure is a practical decision that can shape the future of many business, including AEC firms.
For years, many firms leaned on on-premise infrastructure for direct control over sensitive design files and local servers that sit close to project sites. It gave comfort and complete ownership, compliance ease, and tight security. But cloud solutions come to help teams across sprawling sites sync up instantly while scaling resources for hefty tasks like BIM.
At Interscale, we work with AEC firms across Australia on both ends. We help optimise on-premise setups and guide smooth on premise to cloud migrations. Now, let’s unpack the difference between on premise and cloud so you can see what makes sense for your business.
Key Differences Between On Premise vs Cloud Explained
The difference between on premise and cloud boils down to where your IT lives and who’s running the show. On-premise means owning the hardware, storing it locally, and managing everything in-house. Cloud means renting space on a third-party provider’s system, like AWS, Azure, or Google Cloud, and accessing it online.
However, it’s not just about location. It’s about cost models (CapEx vs OpEx), control levels, scalability, and even disaster recovery readiness.
It’s worth mentioning variations, too. A private cloud is a dedicated setup for your firm. Also, you can get a hybrid cloud that blends on-premise and public cloud for flexibility. Hybrid models blur the lines further, combining elements of both worlds for flexibility and security.
Many businesses find a hybrid approach gives them the best of both worlds when weighing on premise or cloud. The whole data center on premise vs cloud discussion is often about finding that perfect blend.
Ownership and Control
Ownership sets on premise vs cloud apart. With on premise, you own the servers and storage, giving you total say over configs and where your data lives.
For AEC firms with sensitive IP or strict compliance needs, on premise is a big deal. Meanwhile, in the cloud, you’re renting space from a third-party. You manage your apps and data, but the provider controls the hardware.
For some, that’s a trade-off worth making for flexibility. But if control’s non-negotiable, on-premise might be your pick.
Upfront Investment vs. Ongoing Costs
On-premise means high upfront costs, from hardware, licences, and setup. That’s CapEx-heavy and often a blocker for smaller firms. You also foot the bill for power, cooling, and IT labour. Cloud, however, runs on a subscription or pay-as-you-go model—OpEx. That lowers the entry cost and brings predictability to budgeting.
But it’s not always cheaper. If left unchecked, especially with large datasets common in AEC, cloud costs can balloon. That’s why many firms work with specialist partners to define a clear migration strategy or cost governance framework before they switch.
Scalability and Flexibility
Scalability is where the cloud truly shines in the on premise vs cloud comparison. Imagine needing extra computing power during peak design phases or scaling back once construction begins. The cloud lets you adjust resources on demand, ensuring you only pay for what you need.
On-premise scalability, however, is far less flexible. Expanding capacity involves forecasting future needs, purchasing additional hardware, and waiting for installation. Mistakes in planning can lead to either overprovisioning (wasting money) or underprovisioning (hurting performance).
Security Considerations
Security is a sticking point in the on premise vs cloud conversation. On-premise gives full control—your firewall, your access controls, your protocols. For high-risk data, that’s reassuring. Meanwhile, cloud operates on a shared responsibility model. The provider handles infrastructure-level security; you manage your data and access settings. Sounds risky? It depends.
Major cloud vendors often have stronger security teams and tools than internal IT departments. Some firms also consider private cloud options, offering cloud benefits with more isolation. This is why, in security considerations, it’s less about which model is more secure. But it’s more about how security is implemented, monitored, and maintained.
Maintenance and Management
Running your own servers means on-premise maintenance is all on you. Cloud shifts that burden to the provider. For AEC firms struggling to attract specialised IT talent, offloading routine maintenance to a trusted provider can be transformative. It reduces operational burdens and ensures your systems stay current without constant manual intervention.
Pros and Cons of On-Premise Servers for Business
Let’s look specifically at the pros and cons of premise servers, especially for Aussie AEC firms.
Pros:
- Full control over hardware and data
- Easier compliance with certain regulations
- Better fit for niche or legacy AEC applications
- Predictable performance for in-office use
- Reduced reliance on internet uptime.
Cons:
- High upfront costs and ongoing expenses
- Limited scalability
- Requires significant in-house IT expertise
- Slower deployment for new systems
- Complex disaster recovery planning
- Harder for cross-site collaboration.
For firms with stable workloads and strict governance requirements, on-premise might still make sense. But the trade-offs, especially for project-based, collaborative AEC environments, are becoming harder to ignore.
Pros and Cons of Cloud for Business
Turning to cloud solutions, the landscape presents different opportunities and considerations for Australian AEC businesses.
Pros:
- Rapid scalability on demand
- Lower entry costs with predictable OpEx
- Seamless collaboration across geographies
- Reduced internal maintenance
- Access from anywhere
- Easier adoption of advanced tech (AI, ML, analytics)
- Built-in disaster recovery options
- Leverage top-tier security protocols from providers
Cons:
- Dependent on internet access
- Usage costs can spike without proper monitoring
- Vendor lock-in risks
- Data residency and sovereignty concerns
- Less infrastructure-level customisation
- Data migration can be complex
Many downsides can be managed with good planning and maybe a hybrid strategy. Partnering with someone experienced, like an Azure migration consultant, certainly helps navigate these points effectively during an on premise to cloud transition.
Choosing What’s Best for Your Business
Deciding on premise or cloud isn’t about picking a winner. It’s more about what fits your AEC firm’s realities. So, do several assessments of your business’s internal conditions, like:
- How sensitive is your data?
- Do your projects fluctuate in resource demand?
- What does your IT team look like?
- Are remote work and multi-site access crucial?
- What’s your budget tolerance, CapEx or OpEx?
And consider, you might not need a full switch. Many AEC firms benefit from a hybrid model. Others go all-in with a tailored on premise to cloud migration strategy. Either way, a structured roadmap and expert input matter. This is why we offer clarity as the core service of Interscale cloud migration.
Whether you need help untangling old server setups, building a phased Azure migration strategy, or simply exploring whether the cloud is the right direction, we bring structured thinking and proven methods. More importantly, we don’t push one-size-fits-all solutions.
Ready to talk it through? Book a free discussion session with the Interscale cloud migration team here. We can help you map the right path forward.
Your Next Step
So, in the on premise vs cloud debate, there’s no silver bullet. But there is a right fit. Now, the choice is in your hands. And we’re here to help you assess your current environment, identify the real benefits of cloud migration, and build a plan that makes sense. We’ve got the tools and team to back you up with all your final decisions.
