On-Premise vs Cloud (Saas, PaaS, IaaS)

Lets understand the difference between On-Premise and Cloud by taking an example

Oracle EBS when installed on a local server can be called as On-premise (on-prem) installation

You call it a Cloud Installation when the application is installed on a server located in a data center owned by some other company like Oracle

Cloud enables sharing of resources. Resources like Servers and Applications can be shared by multiple customers which helps in reducing the costs. Cloud has many other benefits, like it can be easily scaled, quicker implementations etc


Now lets try to understand SaaS, PaaS and IaaS

Resources or Services on Cloud can be accessed through Subscription.

For example, if you want a server for a POC you can subscribe for a Infrastructure as a Service (IaaS) say for a month, access the server over the internet, build your prototype, demonstrate and end your subscription. You pay for only what you use. No upfront costs like purchasing a costly server etc.

On the same basis, Oracle ERP is also available on Cloud. This is known as Software as a Service (SaaS). So when you subscribe for Oracle Cloud ERP, you get access to ERP over the internet. No purchase of costly servers, No installations are required (OS, Database, ERP Applications). From day 1 you can start configuring the ERP.

We spoke about IaaS and SaaS. There is one more beast PaaS. It is Platform as a Service. In this case a Platform is available as a service on cloud. For example, you are a web developer and want to develop a web application using HTML, CSS etc. Web application developers typically need a platform which consists of OS like Linux, Database like MYSQL, Web Server like WebLogic etc. All these are provided as a service so that you can directly start you web application development. You just subsribe to a Platform and start development.

Oracle has many cloud offerings

  • SaaS
    • Cloud ERP or Fusion Applications
      • Financials
      • HCM
      • SCM
      • etc
  • PaaS
    • OIC – Integration Cloud Service
    • SOACS – SOA Cloud Service
    • DBaaS – Database cloud service
    • Developer Cloud Service
    • etc

Read more about Oracle Cloud on https://cloud.oracle.com/home


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