Spencer Nguyen - February 20, 2023
On-premises software accounted for 58% of the market share for tech deployment in 2020 and is projected to grow 30% by 2030. While cloud services will likely overtake this deployment method in the years to come, your business might not be able to afford to switch to the cloud anytime soon, especially if predictions about an impending recession come true. However, you might have the budget and resources to optimize your current on-premises solutions and get more value from IT infrastructure hosted on-site, such as servers and other data center technology. Learn more about maximizing your existing on-premises technology investments below.
Why You Should Keep Your Current On-Premises Setup
Cloud computing isn’t the best deployment option for every business. On-premises software still provides incredible business value because it gives more control over hardware and software and doesn’t require you to sign up for a monthly pricing model like the private, hybrid, or public cloud.
While on-premises software generally offers fewer scalability advantages compared to cloud-based solutions, you’re not tied to a service provider. That means you can fulfill your business needs without relying on a third party for hosting. Of course, you might still need to pay licensing fees and assemble an IT team to set up and maintain your physical infrastructure and carry out upgrades. However, these extra costs and workload might justify your existing deployment setup if you prefer to keep technologies in-house, which can offer more security than cloud solutions and initiatives.
Another benefit of on-premises over the public, private, or hybrid cloud is the ability to operate and maintain your deployment setup within your network. Doing so provides team members with greater accessibility to your business apps, especially if your team works in your office and not remotely after the pandemic.
Now that you know why on-premises software and hardware still provide value, learn how to maximize your in-house investment for greater business growth.
Perform Regular Maintenance
Perhaps the best way to optimize your current on-premises technology investment is through regular maintenance and upgrades. Ensuring your software and hardware are up-to-date and work correctly will reduce security risks by safeguarding sensitive data and protecting your infrastructure, and it will generate a bigger return on your investment. You should also execute regular backups to prevent data loss in a possible cybersecurity event. Cybercrime is now a $6 trillion problem, according to one study.
There are various ways you can carry out regular maintenance and upgrades. Start with an audit to determine the strengths and weaknesses of your current setup and any threats that might jeopardize your business. Your audit might encourage you to carry out tasks such as network provisioning, where you set up a network that authorized users, servers, and devices can securely access. You might also want to facilitate penetration and vulnerability testing to discover potential dangers that might impact your on-premises hardware and software. While all these measures require a financial investment, you could save money in the long run by preventing expensive cybersecurity events like phishing and distributed denial-of-service (DDOS) attacks. Data breaches, another common cybersecurity issue, cost businesses $4.35 million, on average.
On-premises monitoring is another essential maintenance task, allowing you to identify real-time security vulnerabilities in networks, systems, devices, on-premises APIs, and other technologies. Adding monitoring to your IT workflows can prevent outages and prevent bad actors from infiltrating your on-premises setup. The total cost of monitoring tools will be far less than the cost of a major cybersecurity event.
Reduce Costs
As previously mentioned, the costs of maintaining your on-premises setup can far exceed the cost of a public, hybrid, or private cloud deployment. However, you can reduce costs in multiple ways. Start by evaluating all the costs you pay to vendors for software every month and consider canceling services for unused or outdated applications. For example, you might no longer use a legacy customer relationship management (CRM) system if your business has pivoted from a customer-focused one.
Canceling vendor services might not be possible in a long-term contract, but you can certainly reduce expenditure when these agreements cease. You can also contact vendors and negotiate lower licensing fees if you agree to renew your contract after the current period. Many third parties will reduce the cost of services if it means keeping your business over a longer period. Not all vendors will negotiate contracts, but it’s definitely worth a try to maximize your current spend.
If you’re unhappy with the service you receive from existing vendors, shop around for alternative software that might optimize your on-premises setup. If you have the funds, working with a technological consulting firm like Gartner can help you find the best software solutions for your use case and increase cost savings if those solutions are less expensive.
Automation (Through APIs)
One of the best ways to maximize your current on-premises investment is by automating processes. Reducing administrative or repetitive IT tasks in your business will free up time, increase productivity, improve digital transformation, and save costs. You can do this by investing in API solutions that integrate and expand your existing on-premises technologies.
APIs automate scripts and workflows that you no longer have the time or resources to complete. For example, you can integrate on-premises systems and share data between these systems more effectively, removing manual processes. APIs can also add functionality to your on-premises setup. For example, you can integrate on-premises systems with the cloud if you don’t want to make the full jump to virtualized deployment. You’ll be able to store data with cloud providers while still using the on-premises software you know and love.
Other benefits of investing in APIs for on-premises automation include optimized security. You can protect the most valuable data in your organization by creating a secure way for systems to share information and only allowing authorized users to access your on-premises infrastructure.
Train Team Members and Invest in Managed Services
Your current on-premises technology setup is only worth the investment if team members can use it to do their jobs. Training employees how to use software and hardware properly again requires an investment, but it will prove lucrative if you speed up workflows and improve performance. Even if your team already knows how to use your technology, investing in ongoing training can help them learn about new features that vendors introduce.
If you realize your current IT staff lacks the resources to handle your on-premises technology effectively, consider working with a managed service provider (MSP), which can take care of maintenance and upgrades. You might not want to use an MSP for the same reason as not investing in cloud infrastructure — keeping control over your setup and not delegating tasks to a third party. However, good MSPs will support your organization, resulting in better business growth.
Consider Virtualizing Some On-Premises Elements
While you might not want to transition entirely to the cloud, virtualizing a few on-premises components will maximize your current investment. As mentioned earlier, you could move some software applications to the cloud, which can improve accessibility if you have a remote team. Your team members will be able to access this data from any location in the world, improving performance and productivity. You might not be able to achieve this goal if you are in a long-term contract with an on-premises software vendor.
Alternatively, consider moving specific workflows to the cloud and keeping the rest of your processes on-premises. For example, virtualizing disaster recovery could improve your security credentials and prevent you from having to complete manual backups at regular intervals. Moving a few workflows to the cloud won’t devalue your current on-premises investment and will only strengthen your business operations.
Final Word About Optimizing Your On-Premises Technology
If you don’t want to switch to the cloud entirely, maximizing your on-premises technology investment is critical. Doing so can reduce costs, generate more value from your infrastructure, improve security, and make life easier for your current team members. Investing in APIs is one of the best ways to optimize your on-premises setup, allowing you to automate multiple processes, improve digital transformation, and free up time.
DreamFactory offers a scalable on-premises API solution for businesses like yours that value scalability and security. There are no limitations on seat count, service creation, or API volumes, ensuring you get more value from your current on-premises setup. Talk to an engineer to learn more about no-code API creation, or start your free 14-day trial now.
As a seasoned content moderator with a keen eye for detail and a passion for upholding the highest standards of quality and integrity in all of their work, Spencer Nguyen brings a professional yet empathetic approach to every task.