Cloud vs. On-Premises
Where should your sensitive documents be processed? An objective comparison of deployment models for document management.
At a Glance
The key differences between cloud and on-premises
On-Premises: 100% yours
Cloud: With the provider
On-Premises: Lower
Cloud: Higher with growth
On-Premises: Yes
Cloud: No
On-Premises: Simpler
Cloud: More complex
Detailed Comparison
All criteria in direct comparison
| Criterion | Cloud | On-Premises |
|---|---|---|
| Security & Data Protection | ||
| Data Location | Provider's servers (often unclear) | Your own data centre |
| Data Sovereignty | Limited | Complete |
| Access Control | Provider has technical access | Only your IT department |
| GDPR Compliance | Complex (DPA, TOM review) | Simplified (no third parties) |
| Third-Country Transfer | Often unavoidable (US providers) | Excluded |
| Costs | ||
| Initial Investment | Low (Pay-as-you-go) | Higher (one-time licence) |
| Ongoing Costs | Monthly/yearly increasing | Predictable (maintenance) |
| TCO after 3-5 years | Increases with usage | Often 30-50% cheaper |
| Costs with Data Growth | Linear increase | Minimal additional costs |
| Operations & Availability | ||
| Internet Dependency | Mandatory | Not required |
| Offline Work | Not possible | Fully possible |
| Availability | Dependent on provider | Under your control |
| Performance | Internet latency | LAN speed |
| Maintenance Windows | Determined by provider | You decide |
| Control & Flexibility | ||
| Configuration | Limited to provider options | Fully customisable |
| Integration | API-dependent | Deep system integration possible |
| Updates | Automatic (no influence) | Controlled (you decide) |
| Vendor Lock-in | High (data migration complex) | Low (your data, your format) |
When to Choose Which?
Decision guide based on your requirements
Cloud is suitable when...
- You don't process sensitive data
- Short-term projects without long-term commitment
- No own IT infrastructure available
- Quick start more important than control
- No strict compliance requirements
On-Premises is ideal when...
- Sensitive data is processed (clients, patients, personnel)
- GDPR compliance must be demonstrated
- Government or regulated industries (BSI TR-RESISCAN)
- Long-term use planned (TCO advantage)
- Full control over data and processes desired
- Offline capability required
- Integration into existing systems necessary
Industries Requiring On-Premises
These industries use on-premises almost exclusively for compliance reasons
Law Firms
Client data is subject to attorney-client privilege. Cloud storage with third parties can be problematic under professional regulations.
Government
BSI TR-RESISCAN, classification levels, and administrative regulations often require on-premises operation.
Healthcare
Patient data is particularly sensitive (Art. 9 GDPR). Many hospitals and practices rely on local solutions.
Tax Advisors
Client and financial data require the highest confidentiality. DATEV integration works ideally with on-premises.
Insurance
Claims files and insurance data are subject to strict retention requirements and data protection regulations.
Pharma & Research
Research data, patents, and clinical studies require complete traceability and confidentiality.
Docuflair: 100% On-Premises
Why we deliberately chose on-premises
Your Data Stays with You
Docuflair runs entirely on your own servers. Not a single byte leaves your network – unless you want it to.
Works Without Internet
Scanning, printing, archiving – everything continues even during internet outages. No dependence on external services.
BSI TR-RESISCAN Certifiable
For government agencies and businesses with high compliance requirements: Replacement scanning according to BSI standard.
Fair Prices Without Surprises
One-time licence costs instead of growing subscription fees. Most installations pay for themselves within 3 years.
Frequently Asked Questions
Answers to the most important questions about Cloud vs. On-Premises
With cloud solutions, data is stored and processed on servers of an external provider. You access it via the internet. With on-premises, the software runs on your own servers within your company – your data never leaves your network.
On-premises provides full control over your data. You decide who has access, where data is stored, and how it's protected. With cloud solutions, you must trust the provider – and their employees often have technical access to your data. For sensitive documents and strict compliance requirements, on-premises is often the safer choice.
On-premises significantly simplifies GDPR compliance: data stays in your data centre, there are no third-country transfers (important after Schrems II), and you have complete control over retention periods and deletion. With cloud solutions, you must review data processing agreements, verify server locations, and rely on the provider's compliance.
Short-term yes, long-term often not. Cloud has lower initial investments through pay-as-you-go models. But: ongoing costs add up – and increase with data volume. On-premises requires a higher upfront investment but is often more economical for longer use. After approximately 3-5 years of use, on-premises is more cost-effective in most scenarios.
Cloud solutions cannot be used without internet – a total outage stops all work. On-premises software like Docuflair works fully offline. Your employees can continue scanning, printing, and accessing archives even when the internet connection is down for hours.
Basic IT knowledge is helpful but not mandatory. Docuflair offers remote installation by our technicians. After setup, the software runs with minimal maintenance. You can install updates yourself or have us do it. Many small businesses without their own IT department successfully use Docuflair.
Yes, but it can be complex. Cloud providers often have proprietary data formats that make migration difficult. With on-premises solutions like Docuflair, your data is stored in standard formats on your servers – you can export it at any time or process it with other systems. Switching from cloud to on-premises therefore makes more sense than the other way around.
Both models are scalable. Cloud is often portrayed as more flexible, but on-premises scales just as well – through hardware expansion or virtual machines. The difference: with cloud, you pay for every additional GB; with on-premises, additional storage is a one-time hardware investment.
Ready for On-Premises?
Experience Docuflair in a personal demo – and see how easy secure document processing can be.