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On-Premises

  • Glossary

"On-premise"

This glossary explains various keywords that will help you understand the mindset necessary for data utilization and successful DX.
This time, we will explain the term "on-premises," which is sometimes used in contrast to the cloud, and through that, we will consider the essence of IT utilization in the cloud era.

What is On-Premise?

On-premises refers to installing and operating physical hardware and software such as servers at a location managed by the company.
Nowadays, the use of software that runs on the cloud has become more common, but the term is still used to refer to something that is not cloud-based. Premise means "on-premises," and is a word that conjures up the image of an IT system that is operated within one's own premises. In Japan, it is often abbreviated to "on-pre."

On-premise IT systems

The term "on-premises" was initially used to distinguish between the newly emerging cloud and the previously commonplace in-house IT utilization. However, now that cloud-based operations are becoming the norm, on-premises IT systems are becoming the exception. I think that in the future, it will become more common to explain what on-premises means. Building and operating a system on-premises means operating an IT system in the following situations.

First, you buy a server (computer). It's highly reliable and powerful, but it's often much more expensive than a regular PC, costing several million yen (but in return, if there's a problem, a technician from the manufacturer will come and help you out). You then buy a variety of other expensive equipment and assemble it in a rack to create a system.

To prevent the servers from being damaged by heat or overheating, air conditioning is used (which also incurs electricity costs), and a UPS is installed as a precaution against power outages. To prevent unauthorized people from entering the area where the servers are located, a room that can only be accessed by entering a PIN code is created, or such a place (such as a data center) is rented and used as a server room. The installation location itself also costs money.

The above only covers the hardware, but now we also have to install the OS ourselves. This requires specialized engineers and infrastructure engineers to take on all the hassle of building and operating the IT infrastructure.

It takes time and money, and it's difficult just to start using it. Some people may have imagined that operating a system in-house would be like buying a computer, but in reality, the difficulties involved are similar to those faced by real estate companies, even though it's IT.

Why on-premise? (Reasons for protection)

Before the spread of the cloud, the above was commonplace, so you can imagine how shocking it was when the cloud first appeared, allowing you to start using IT instantly with no upfront costs.

On-premise systems are a lot of hassle, but the cloud eliminates that hassle. So you might be wondering why on-premise systems still exist. However, in reality, it's not that simple for various reasons, and there are cases where on-premise systems remain for unavoidable reasons, and in other cases, there are reasons why the cloud should not be used.

Because you haven't migrated yet

In 2010, running business systems on the cloud was still an advanced initiative. Even back then, most people were still unsure whether it was okay to use something as unknown as the cloud for business purposes. It hasn't been that long since then.

Because I'm not in trouble

If you are not having any problems with the system you are currently using (for the time being), then there is no need to migrate. You can do it at another time in the future.

Because it's costly

On-premise systems require initial costs, but if you have a pre-built system, you have already paid for those costs. Instead, you will have to pay new migration costs to the cloud.

Because there is a risk

There may be unforeseen problems when migrating to the cloud, or you may not be able to use it with the same ease of use. There may also be cases where you (or your company) cannot find a reason to migrate despite the costs and risks involved. Sometimes it is wise to continue using a proven system without being swayed by trends.

There are some elements that cannot be transferred

If there are systems that use old technology such as mainframes or INS lines that are still in use, there are factors that make them unsuitable for cloud migration, making cloud migration difficult.

For example, if a mainframe system is running very stably and is still essential to the business, but the program specifications are no longer clear, migration is not possible without going through the arduous task of deciphering the current system specifications. If there is no benefit to be gained even after going through all that, it may be best to leave the current system as it is.

If there is a system that cannot be migrated to the cloud, then in reality it may be better not to migrate the systems that work in conjunction with that system to the cloud as well. For example, if a business partner's system requires the use of an INS line, it will be difficult to abolish the old system on your own.

Because I love Excel

There are situations where you want to move to the cloud, but the people on the ground love Excel so much that it's difficult to migrate, or systems made with Access or FileMaker are so widespread that it's difficult. While this is a little different from operating your own server, these situations can also be considered on-premise situations that make it difficult to move to the cloud.

Even in such a situation, it is possible to force the use of the cloud, for example, through force, but in reality there will be cases where there is something to lose, such as business operations no longer being able to run smoothly.

Why on-premise? (Reasons for the offensive)

There are also reasons not to proactively use the cloud. In particular, as the cloud becomes more commonplace in the future, I think there will be cases where companies will choose to use on-premise systems for aggressive reasons.

Because you can create an IT system that suits your company

When using the cloud, you will have to create an IT system to match the services that are provided in some form, and there will be many things that you cannot control yourself.

On-premise systems can make it easier to configure hardware to suit your needs or customize packaged software to suit your company's needs. If you want complete freedom (or want to sell that value to your customers), you have no choice but to do it yourself.

High security is required

When using cloud services, it can be difficult to ensure a high level of security because IT resources are accessed from remote locations via the Internet. In principle, if you operate your system in-house and use a system that is physically well protected, it should be less likely for information leaks to occur.

Even if you are physically isolated, you can still be attacked, and there are various ways to deal with the cloud, but if there is an accident, I think (for now) which is more likely to make people think "it can't be helped" is careful in-house operation. If you are selling security as your top priority, not using the cloud may become an increasingly important PR tool in the future.

It can be more efficient and cheaper than the cloud

For example, suppose you're building a system for an application that requires full GPU operation 24 hours a day. In such cases, it may be cheaper to purchase your own hardware and operate it at full capacity. If you're competing with other companies in extreme cost areas (such as cryptocurrency mining), the difference in cost may be the difference between winning and losing.

Also, while pay-as-you-go cloud services make it difficult to know how much your costs will be, if you own and operate your own hardware, it can be easier to predict costs, eliminating the possibility of unexpected costs due to unexpected usage or high load.

Because of the low latency

The cloud uses computers in distant locations, which causes communication delays. Signals themselves cannot travel faster than the speed of light, and delays occur due to various processes along the communication path. When high real-time performance is required, processing may not be possible unless a computer is located "at that location."

For example, it is difficult to return processing results within 10 ms on the cloud, but with a little effort it can be achieved with local processing. In cases where there are needs such as real-time control of machines, or where it is necessary to provide an advanced user experience for people, or where the key to success is processing faster than the competition, even if just for a split second, such as in systems that handle high-frequency trading (HFT) in stocks, not using the cloud can be an advantage.

Use on-premise in combination with the cloud (solution)

I've mentioned that there are "unavoidable reasons (defensive reasons)" and "offensive reasons." However, that doesn't mean it's a bit difficult not to use the cloud these days. But there's no reason to choose just one. You can simply combine the benefits of both.

In many cases, moving to the cloud while coexisting with "unavoidable reasons" will work better than a bold and disruptive move to a full cloud.

Furthermore, as cloud computing becomes more commonplace in the future, those who can also utilize the strengths of on-premise systems may have an advantage over other companies. In fact, on-premise systems, one of the reasons for being aggressive, may even become more important in the future.

Because I haven't migrated yet

By linking the cloud and on-premise systems and gradually migrating when the time and circumstances are right, you can tackle the process without any stress.

Because I'm not in trouble

It is possible to preserve existing systems that you are satisfied with, but there must be some parts that are still necessary in the cloud era, and from there you can link cloud services with on-premise systems and make use of them.

Because it's costly

By linking cloud and on-premise systems, you can gradually migrate areas where migration is possible without incurring costs or where cost reductions are expected.

Because there is a risk

Integrate cloud and on-premise systems, and leave any parts you consider risky on-premise.

There are some elements that cannot be transferred

It would be smarter to leave it on-premise and link it to the cloud rather than forcing a migration. For example, if you still have a mainframe in use, you can link it to the cloud and get the best of both worlds without forcing a migration.

By linking them together, you can take advantage of both the stable operation of a mainframe (such as an AS/400) and the ease of use of kintone's current IT.

Because I love Excel

For example, if your staff loves Excel so much that they won't use kintone after you've introduced it, you can still promote cloud utilization by linkingExceland kintone, while still being considerate of those who can only use Excel.

Because you can create an IT system that suits your company

By differentiating the parts that can only be made on-premise by making them on-premise, and integrating the parts that do not need to be differentiated via the cloud, it may be possible to create the intended system with less effort.

High security is required

There probably aren't many cases where the highest level of security is required for the entire system or all IT utilization. In fact, it's easier to ensure security by limiting the scope and thoroughly protecting that scope. In that case, you may be able to achieve higher security by leaving that part on-premise and linking the rest to the cloud.

It can be more efficient and cheaper than the cloud

If you secure the parts where having your own hardware is an advantage on-premise and link the rest to the cloud, you will be able to demonstrate your strengths more realistically. For example, if you are using on-premise to pursue the lowest possible costs, it will be cheaper to link to the cloud for parts where it is cheaper.

Because of the low latency

Processing that requires high response times can be left on-site, while other processing can be moved to the cloud for integration. Alternatively, low latency that cannot be achieved with cloud services alone can be achieved by deploying and linking a system on-premise as well.

How can on-premise and cloud systems be linked? (Solution)

However, you may be wondering how to achieve integration between on-premise and cloud, and if that part is too difficult, then it's pointless. However, in fact, there are already methods in place to make this "connecting" process smooth and efficient.

Software products such as"EAI" and "ETL," as well as cloud services such as "iPaaS," can be used to smoothly integrate on-premise and cloud systems. By simply placing connection icons on the GUI and configuring various settings, you can integrate with a wide variety of systems and data, from cloud to on-premise, as needed.

It's common to find yourself in a difficult situation where you have systems that can't be migrated to the cloud. Some of you may have wondered whether it's really necessary to go to such lengths to implement the cloud. By leveraging the integration of on-premise and cloud systems, you'll be able to make it work. Give the "connecting" technology a try.

Related keywords (for further understanding)

  • EAI
    • It is a concept of "connecting" systems by data integration, and is a means of freely connecting various data and systems. It is a concept that has been used since long before the cloud era as a way to effectively utilize IT.
  • ETL
    • In the recent trend of actively working on data utilization, the majority of the work is not the data analysis itself, but rather the collection and preprocessing of data scattered in various places, from on-premise to cloud.
  • iPaaS
    • A cloud service that "connects" various clouds with external systems and data simply by operating on a GUI.
  • SaaS
    • When people generally think of the "cloud," they are referring to an initiative to provide software usage as a service.

Are you interested in "iPaaS" and "connecting" technologies?

Try out our products that allow you to freely connect various data and systems, from on-premise IT systems to cloud services, and make successful use of IT.

The ultimate "connecting" tool: data integration software "DataSpider" and data integration platform "HULFT Square"

"DataSpider," data integration tool developed and sold by our company, is a "connecting" tool with a long history of success. "HULFT Square," a data integration platform, is a "connecting" cloud service developed using DataSpider technology.

Another feature is that development can be done using only the GUI (no code) without writing code like in regular programming, so business staff who have a good understanding of their company's business can take the initiative to use it.

Try outDataSpider/ HULFT Square 's "connecting" technology:

There are many simple collaboration tools on the market, but this tool can be used with just a GUI, is easy enough for even non-programmers to use, and has "high development productivity" and "full-fledged performance that can serve as the foundation for business (professional use)."

It can smoothly solve the problem of "connecting disparate systems and data" that hinders successful IT utilization. We offer a free trial version and online seminars where you can try it out for free, so we hope you will give it a try.


Why not try a PoC to see if HULFT Squarecan transform your business?

Why not try verifying how "connecting" can be utilized in your business, the feasibility of solving problems using data integration, and the benefits that can be obtained?

  • I want to automate data integration with SaaS, but I want to confirm the feasibility of doing so.
  • We want to move forward with data utilization, but we have issues with system integration
  • I want to consider data integration platform to achieve DX.

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