April 2020

Key Differences of On-Premise vs Cloud for Rental Business

Key Differences of On-Premise vs Cloud for Rental Business

There are several aspects that a rental company needs to evaluate in the field of information technology today to see if an on-site solution is appropriate.

I will try to explain in this article a complete overview which is particularly related to the rental industry.

What is Cloud Computing?

Cloud computing is a term used to maintain and retrieve data over the Internet. No data is stored on your personal computer's hard disk or on your local server. In cloud computing, you can access data from a remote server.

What is On-Premise Computing?

On-premise is also known as "on-site" is software and technology that is located within the your office – often in the company's data center or local server – as opposed to remote server or in the cloud.

By installing and running software on hardware located within the company's premises, Internet Technology staff can also have physical access to that data and therefore can directly control the configuration, management and security of the computing infrastructure and data.

Key Differences of On-Premise vs. Cloud

There are a number of fundamental differences between an on-premises and cloud computing. Which path is the right one for your rental business depends entirely on your preference and what you're looking for in a solution.


On-premise: The ongoing costs of the server hardware, power consumption, IT staff, support contracts, operating system cost, backup solution and space.

Cloud: You only need to pay for the resources you use, and the price will adjust up or down depending on how many services you have subscribed to.


On-premise: Retain all their data and have full control of what's going on, for better or even worse. Rental Companies with extra security concerns are more likely to hesitate to dive into the cloud than others for this reason.

Cloud: The issue of data ownership is one that many rental companies – and vendors, for that matter – have struggled with. Data is stored securely in AWS data centers, so if the unexpected happens and there is downtime, you may not be able to access that data.


On-premise: These days, some rental companies operate under some form of regulatory control due to their internal corporate policies.

Cloud: They must exercise due diligence and ensure that their third party provider is up to standard and, in fact, in compliance with all internal policies. Sensitive data must be secured and the privacy of customers, partners and staff must be ensured.


On-premise: Resources are deployed in-house and within the IT infrastructure of the company. The company is responsible for maintaining the solution and all its related processes, usually handled by IT staff.

Cloud: All resources are hosted at the premises of the AWS data center and managed by trained professionals with an in-depth knowledge of their respective domains. However, companies are able to access and use these resources as much as they want at any given time.


On-premise: Installation should usually be handled internally by IT staff, who also have complete control over the management of the application.

Cloud: The SaaS provider, such as Renetal, handles hardware, operating system, system updates, infrastructure patches, and application level, which also includes bug fixes.


On-premise: For certain rental companies that have extra sensitive information, such as the government and banking industries, there must be a certain level of security and privacy that the on-site environment provides. Despite the promise made by the cloud, security is the primary concern of some rental companies, so the on-site environment, despite some of its drawbacks and maintenance, makes more sense.

Cloud: Security concerns remain the number one barrier to some of the rental companies while closing the cloud computing model. From personal information such as login certificates to the loss of intellectual property, security threats are real.


On-premise: Internal IT staff are responsible for updating the operating system, databases, applications and must also have the expertise to do the job perfectly. They also need to connect with third-party vendors in order to understand more details about certain updates.

Cloud: The cloud provider usually removes headaches and concerns from rental companies about updates or upgrades for example to the Rental Management Solution or System. The supplier is responsible for rolling back to its previous state or applying the fix if something goes wrong during the process.


On-premise: Some internal applications may be scalable, but the cost of scale may rise unexpectedly and may be more expensive over a longer period of time.

Cloud: Cloud applications are basically designed with a scalability in mind and usually baked into a solution from the outset, and costs are also predictable.

Making the right decision

At the end of the day, there is no right answer to the question of whether to deploy SaaS rental management solution or on-site rental management software. Rental companies will need to evaluate their needs, calculate their TCO and determine the best fit on a case-by-case basis.

In recent years, there has been a clear trend away from on-site rental software and cloud-based rental applications, and we at Renetal's research and development team believe that the trend will continue. However, we're also generally quick to point out that it's unlikely that most organizations will ever move completely to cloud software.

It would be a good idea to get in touch with an expert adviser by sending an email to hello@renetal.com, so we would be happy to share our customers' success stories about how we have moved them from manual systems, spreadsheets and billing books to the most trusted rental software for growing rental companies.There are several aspects that a rental company needs to evaluate in the field of information technology today to see if an on-site solution is appropriate.

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