When you introduce new business software, you must decide where it runs: in the cloud, on your own servers, or both.
Cloud
The software runs in a data centre operated by a cloud provider; you access it via the internet.
Advantages
- No hardware to buy or maintain
- Scales easily with users and data
- Access from anywhere
- Professional security, redundancy and backups
- Predictable monthly costs
Considerations
- Requires reliable internet
- Ongoing subscription costs
- Choose EU/German regions and sign data processing agreements
On-premise
The software runs on servers in your building.
Advantages
- Full physical control over data
- Works on the local network even when the internet is down
- Can suit special hardware integrations (machines, scanners)
Considerations
- Hardware purchase and replacement every few years
- You are responsible for updates, backups, security and power
- Remote access needs VPN and careful configuration
Hybrid
Many companies combine both: for example a cloud ERP with an on-premise machine connector, or local file servers with cloud backup.
Security and GDPR
Cloud does not mean insecure – professional data centres usually exceed what small companies can provide. What matters is configuration, access control and choosing providers with EU data residency. On-premise is only secure if it is maintained properly.
Total cost of ownership
Compare over 5 years: hardware, licences, electricity, IT staff time, backups and downtime risk for on-premise versus subscription and data-transfer costs for cloud.
Our recommendation
For most SMEs, cloud hosting in Germany is the most secure and economical choice. On-premise or hybrid makes sense for latency-critical machine integration, strict internal policies or unreliable connectivity.
We can host your custom software in Germany, deploy it on your servers, or design a hybrid setup.