On Premise Data-Platform

"Data platform on-premise" refers to solutions where physical servers are installed either within a company’s premises or in a third-party data center. Unlike cloud-based systems provided by vendors, an on-premise platform requires full control over the physical infrastructure, comprehensive security management, and direct responsibility for software deployment.

Before the rise of cloud computing, all businesses relied on on-premise servers, but this approach involved heavy management overhead. Cloud providers later introduced managed services with a pay-as-you-go model, reducing upfront investment costs and offering greater agility.

Today, while cloud solutions dominate, some industries such as healthcare, finance, and government continue to prefer on-premise platforms to ensure data confidentiality, sovereignty, and full customization of software and hardware.

However, on-premise platforms come with several disadvantages:

• Scaling up or down based on demand is more challenging
• Significant upfront capital investment (time, hardware, human resources, and financial costs)
• High operational expertise required for deployment and maintenance

Companies like Cloudera, Oracle, and IBM simplify on-premise deployments by handling infrastructure, maintenance, and software compatibility. However, these solutions remain more complex to implement than their cloud counterparts and involve additional costs in the form of subscriptions, licenses, and installation fees.

Theodo’s point of view

At Theodo, we work with clients in the banking and healthcare sectors on on-premise platforms. These projects tend to be long-term and require experienced professionals. We only recommend on-premise solutions for companies with strict regulatory or technical requirements that justify this choice.