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Choosing between On-Premise and Office 365 (Microsoft 365) can be tricky, especially if you're setting up IT systems for your business. Don’t worry — we’re here to break it down in plain English. In this guide, we’ll look at the key differences, pros and cons, and when to choose one over the other. Whether you're a small business or a large company, this blog will help you make the right decision.
“On-Premise” means all your software, email, and data are stored and managed on servers you own, right inside your office or data center.
Key Features:
Pros:
Cons:
Office 365, now called Microsoft 365, is a cloud-based service. That means your apps (like Word, Excel, Outlook) and data live on Microsoft’s secure servers.
Key Features:
Pros:
Cons:
| Feature | On-Premise | Office 365 (Cloud-Based) |
|---|---|---|
|
Control
|
Full control over hardware & data
|
Microsoft manages everything
|
|
Cost |
High upfront cost
|
Monthly/annual subscription
|
|
Maintenance |
In-house IT team |
Handled by Microsoft |
|
Scalability |
Add more hardware manually |
Scale with a few clicks |
|
Accessibility |
Limited to office network or VPN |
Access from anywhere |
|
Security |
Fully customizable |
Built-in Microsoft security |
The biggest difference is where your data lives. On-premise stores it locally on your servers, while Office 365 stores it in the cloud on Microsoft’s servers.
Both can be secure, but Office 365 comes with built-in security features and compliance tools. On-premise gives you more customization if you have a strong IT team.
Office 365 usually has a lower upfront cost but ongoing subscription fees. On-premise is expensive at first but can be cheaper long-term if you already have the hardware and IT resources.
Yes, many businesses migrate from on-premise to Office 365. Microsoft even provides tools to help with the move.
You can use desktop apps offline, but you’ll need the internet to sync files and access cloud features.
The difference between On-Premise and Office 365 comes down to control, cost, and convenience. On-premise gives you more control but comes with extra responsibility. Office 365 is easier to manage, more flexible, and great for modern work setups.
Need help deciding which one’s right for your business? Let us know — we’d love to help!
Note: Give us a call or leave a message, we endeavour to answer all enquiries within 24 hours on business days.
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