When investing in bespoke software to streamline your business operations, one of the most important decisions is where to host it. The choice between cloud-based and on-premises hosting significantly impacts key factors like cost, scalability, security, and ongoing maintenance.

In this post, we’ll break down the question, “Where should my software be hosted?” by comparing the key considerations for both on-prem and cloud options. By the end, you’ll be equipped with the information you need to make a decision that aligns with your business goals.

What Are My Hosting Options?

As a small business investing in bespoke software for the first time, you typically have two hosting options: on-premises or cloud-based. But what do these actually mean?

• On-premises (On-Prem) software is hosted on physical servers or hardware that you or your development team own and maintain. This option gives you complete control over your software and data. While initial costs can be higher due to the need for hardware and infrastructure, ongoing expenses may be lower, particularly if you have an internal IT team to manage maintenance, updates, and security.

• Cloud-hosted software resides on remote servers managed by a third-party cloud service provider. You retain access to and control over your software, but the provider manages the infrastructure. This option typically involves an ongoing subscription fee, with the benefit that the provider handles maintenance, security, and software updates for you.

Key Considerations When Choosing On-Prem vs. Cloud Hosting

To help you decide, here are the main factors you should weigh:

• Budget - Can you afford the upfront investment in building infrastructure and a team, or would ongoing subscription costs be easier for your cash flow?

• Technical Expertise - Do you have an in-house IT team with the necessary skills to manage and maintain the software? Or would outsourcing these responsibilities to a cloud provider be more efficient?

• Scalability - How do you expect your business to grow in the next 3–5 years? Are you looking for a hosting solution that can easily scale with your business, or do you prefer to build a system that evolves with your specific needs?

• Accessibility - Do you operate from a single office, or do your employees need to access the software remotely? Cloud-hosted solutions offer greater flexibility for remote access, as long as there’s an internet connection.

• Disaster Recovery - Are you equipped to implement your own disaster recovery strategy, or would you benefit from a cloud provider’s built-in recovery solutions? Cloud providers often offer automatic backups and quick recovery options.

Which Hosting Option Is Right for My Business?

As with most business decisions, your choice should depend on what you aim to achieve with your software and your long-term business goals.

• If full control over your data, infrastructure, and IT setup is crucial, and you have the resources to manage everything in-house, then an on-prem solution may be ideal.

• If you’re looking for scalability, flexibility, and lower upfront costs, a cloud-hosted solution will allow you to focus on your core business while letting your cloud provider handle the technical side.

Need Help Deciding?

If you're still unsure which hosting solution is best for your business, we can help. At Jatech Ltd, we specialize in creating tailored software solutions, whether you're leaning toward on-prem or cloud. Contact us today at info@jatech.co.uk to discuss your needs and explore the best option for you.