Oracle On-Prem and Cloud: The Major Differences

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When it comes to making the decision of Oracle on-premise or Oracle Cloud, many businesses are left scratching their heads. It can be difficult to decide which option is best for your company, and there are a lot of factors to consider. 

Whichever way you’re leaning, (whether it be an Oracle on-premise or Cloud solution) no doubt you’re aware of Oracle’s myriad benefits and the added momentum it lends to businesses. It shouldn’t come as a surprise to you then that 40% of organizations have already migrated to Oracle and 47% plan to do so in the next 2-10 years.

Evidently, the time to embrace the advantages of Oracle is now.

So, to help you with your impending decisions, in this blog post we will compare the two options and help you decide which one is right for you.

What is Oracle Cloud and Why Are So Many Businesses Choosing Oracle Over Other Providers?

Oracle Cloud ERP is a powerful suite that can take a business’ team to the next level, allowing them access to cutting-edge AI technology for automation, efficiency, and analytics capabilities.

Oracle Cloud includes easily accessible organization-wide tools for various business-related functions and requirements such as:

  • Financials
  • Project Management
  • Procurement
  • Risk Management and Compliance
  • Enterprise Performance Management (EPM)
  • Supply chain & Manufacturing
  • And ERP Analytics

And, as a little taste of what’s to come when comparing the Cloud version to an on-premises solution it’s worth noting that upgrading from on-prem to the cloud lets you ditch the hassle of costly and complex on-premises updates – quarterly offerings give you access to cutting edge technology, automated processes for improved efficiency, plus timely insights that inform smarter decision making.

What Is the Oracle On-Premise ERP Solution?

The Oracle on-premise ERP solution is an enterprise resource platform that provides the same type of functionality as Oracle Cloud but with a different approach. With this option, you can customize the system to meet your exact business needs and have complete control over it.

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You will need to invest in the necessary hardware, software, and people resources for a successful installation and maintenance of your chosen environment. You’ll also need to establish appropriate security protocols and policies so you don’t leave the door open for cybercriminals or data breach instability. 

Additionally, you will need to hire a team of expert IT professionals to continuously monitor and manage your Oracle on-premises system, as well as pay for upgrades, updates and repairs.

Oracle Cloud vs Oracle On-Premise: Explaining The Major Differences

While both Oracle ERPs perform the same functions, there are considerable differences when it comes to how they each operate, what they cost to keep and maintain, and the kinds of advantages or challenges of each option.

So that you don’t build a data center you won’t need or purchase a software license you won’t use, we’ve broken down the major differences between Oracle Cloud and Oracle On-Premises so that you can make the best possible decision for your organization.

Power and Performance

Oracle Cloud offers a dramatic improvement in performance over an on-premises solution, unlocking greater scalability and the most up-to-date processor/memory capacities. To ensure maximum efficiency, these systems leverage data compression and provide SQL processing at the storage layer.

Moreover, utilizing integrations and accelerators, you can maximize your ERP. While onboarding new applications (such as data analytics, scoring, CRM, and even credit card payment integrations) would be a complex project with an on-premise system, it’s far more seamless with Oracle Cloud. 

For example, with Oracle Cloud, you simply ‘turn on’ Oracle Analytics, which automatically becomes an integration point. In minutes, you can start using Power BI tools, hook it up to a data source in the cloud, and start building dashboards.

What’s more, since applications are cloud-based, there is little to no effort required to maintain them.

Ability to Scale

Oracle On-Premise

For businesses that experience busy, unpredictable cycles throughout the year, on-premise solutions can be overly expensive, under delivering assets. Cloud computing provides a smart solution that on-premises simply don’t: efficient scalability. 

With Oracle’s cloud technology you have access to an almost limitless amount of resources when demand spikes—Oracle tends to work with the largest databases in the world, can handle billions of transactions, and offers in-memory processing—and peace of mind knowing those same resources won’t go unused during quieter times. 

Streamlining IT business processes like software upgrades has never been easier either. Cloud services companies are able to quickly adjust their systems, so downtime is kept at minimal levels even during growth spurts or other significant changes within the business itself.


With an on-premises environment, setting up IT infrastructure on-site can be costly, particularly with regards to the hardware and software costs. It’s not just a one-time expense either – aging equipment will require periodic repairs or replacements as it reaches its limits; ultimately resulting in even more frequent expenses compared to cloud hosting.

By taking advantage of running Oracle Cloud, however, businesses can unlock tremendous savings. With no capital expenditure required from them and all resource maintenance handled by a third-party provider, companies are able to increase efficiency while dramatically reducing costs!


For even more great advice on ERPs in the cloud, check out these other blogs:


Ensuring data security is paramount for all businesses, especially ones that must satisfy stringent regulations and maintain compliance. 

The traditional on-premise model grants exclusive access to authorized personnel within the organization, while also allowing customized features in order to meet any specific requirements set forth by applicable regulatory bodies. 

However, no level of personalized settings can replace well-implemented internal policies and procedures – from frequent backups and secure storage systems, all the way through a reliable disaster recovery plan should an unfortunate incident occur.

As businesses move to the cloud, they are presented with a whole new realm of security features and technologies. 

With an Oracle Cloud infrastructure customers can rest easy knowing their data is secure due to an extensive investment in regulatory guidelines, as well as advanced infrastructure networks backed by frequent upgrades and backups. 

But no matter what provider you choose it’s important that your solution offers heightened measures for extra peace of mind – this is where Oracle Cloud stands out from the crowd; offering industry-leading technology focused on protecting customer data at all times.

Oracle On-Premises

Deciding Between Oracle Cloud and Oracle On-Premises with Expert Consulting Advice from Buchanan

As technology continues to evolve and advance, organizations need to stay informed about options available to them, and that best suit their unique needs. With such complexity, it can be challenging to know which route is best for you. 

That’s where experience and reliability come into the fold. With more than 30 years of business experience, Buchanan Technologies is a leading provider of cloud services while our average client stays with us for 20 years. Very few providers offer the depth and quality of IT services and support that we do.

Are you ready to explore the possibilities of Oracle cloud database or Oracle on-premise for your business or organization? 

In the end, whichever option you choose, Oracle databases offer robust and reliable solutions for managing and storing data. Contact us today to learn more about our Oracle database services.

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