Tech Trends: Cloud vs. On-Prem

March 17, 2025
A guide for integrators in helping their customers choose which system is right for them

The evolution of security technology has led to a significant shift from traditional on-premises video surveillance and access control systems to cloud-based solutions.

Organizations must carefully weigh the economic implications and critical system reliability when deciding between these two approaches. The advantages and disadvantages of each are not always clear, as their impact on operational costs, scalability, security, and reliability must be considered.

Pros and Cons of the Cloud

Given that this trend has no end in sight, let’s take a closer look at many of the pros and cons of cloud-based video surveillance and access control systems to consider as integrators recommend them to customers.

Pro: Cost efficiency and scalability – Cloud-based systems reduce the need for significant upfront capital expenditures. Instead of purchasing expensive servers and storage devices, organizations can opt for a subscription-based model that spreads costs over time. This pay-as-you-go model enables businesses to scale their security infrastructure without large financial investments.

Cloud offers an affordable entry point with predictable costs. Large enterprises, particularly those with stringent regulatory requirements, may find on-prem more suitable.

Con: Ongoing subscription costs – While cloud solutions reduce initial costs, recurring subscription fees can add up over time. For organizations with tight budgets, advise them not to jump too fast to dodge the capital expense of an on-prem system, because the long-term operating expense may be a concern.

Pro: Remote accessibility – One of the standout benefits of cloud-based security solutions is remote access. Administrators can monitor and control security operations from anywhere using internet-connected devices. This flexibility enhances security management, especially for businesses with multiple locations.

Con: Internet dependency and latency issues – Cloud-based systems rely on a stable internet connection. If connectivity is lost, slowed, or limited in bandwidth, security monitoring, and access control could be delayed, posing a risk in critical situations.

Pro: Automatic updates and maintenance – Cloud providers handle software updates, security patches, and maintenance automatically, ensuring systems are always up-to-date with the latest features and protections. This reduces the burden on in-house IT teams and lowers maintenance costs.

Con: Data privacy and compliance risks – Storing security data on external servers raises concerns about data privacy, regulatory compliance, and unauthorized access. Some industries, such as finance and healthcare, have stringent data protection regulations that might limit the use of cloud solutions.

Pro: Integration with other cloud services – Cloud-based security systems often can integrate seamlessly with other cloud-based services, such as AI-powered analytics, machine learning for threat detection, and third-party applications that enhance functionality.

Con: Limited customization – Cloud-based security services are often standardized, with limited options for customization. Businesses with specific security requirements might find it challenging to tailor cloud solutions to their needs.

Pro: Data redundancy and disaster recovery – Cloud providers offer robust data redundancy, storing surveillance footage and access logs in multiple locations to prevent data loss. In case of hardware failure, natural disasters, or cyberattacks, data recovery is swift and reliable.

Pros and Cons of On-Prem

Whether or not an integrator recommends a cloud-based system, on-premises video surveillance and access control systems have their own set of considerations to evaluate. Here’s a look:

Pro: One-time investment – On-premises solutions typically involve a one-time capital investment, eliminating ongoing subscription fees. Over time, this can be more cost-effective than cloud-based models.

Con: High initial cost – That said, deploying an on-premises security system requires substantial upfront investment in hardware, software, and installation. This cost can be prohibitive for small and medium-sized businesses.

Pro: Greater control and security – On-premises systems enable organizations to retain full control over their security infrastructure, reducing reliance on third-party providers. Data is stored locally, reducing the risk of external breaches.

Con: Limited scalability – Expanding an on-premises system often means purchasing additional hardware and upgrading infrastructure, making scalability more complex and expensive compared to cloud solutions.

Pro: Customizable – Businesses with unique security requirements can tailor on-premises systems to fit their specific needs, adjusting hardware and software configurations as necessary.

Con: Maintenance and IT burden – Organizations must handle system maintenance, software updates, and troubleshooting. This requires dedicated personnel and resources, increasing operational costs.

Pro: No dependency on internet connectivity – Unlike cloud-based systems, on-premises solutions continue operating independently of internet availability, ensuring uninterrupted surveillance and access control. If you are a critical facility this point cannot be overlooked.

Con: Risk of data loss – On-premises systems depend on physical storage, which can be vulnerable to hardware failures, fire, theft, or natural disasters. Without proper redundancy measures, data loss can be a significant risk.

Pro: Regulatory compliance – Some industries have strict data retention and privacy regulations that favor on-premises solutions. Keeping data stored locally ensures compliance with policies that restrict cloud-based storage.

Other Key Considerations

When comparing cloud-based and on-premises systems, total cost of ownership (TCO) plays a critical role. Cloud-based solutions typically have lower upfront costs but involve continuous subscription fees. On-premises systems demand higher initial investments but may prove more cost-effective over several years if maintenance and upgrade costs are managed efficiently.

For small businesses or startups with limited capital, cloud-based solutions offer an affordable entry point with predictable costs. Larger enterprises, particularly those with stringent regulatory requirements, may find on-premises solutions more suitable for long-term cost efficiency.

Security infrastructure must also be highly reliable and resilient against potential threats. Cloud-based solutions offer strong redundancy but depend on external providers for uptime and security patches. On-premises systems provide complete control but require dedicated teams to manage and secure data effectively.

Cybersecurity is another key concern. Cloud providers invest heavily in security measures such as encryption, intrusion detection, and access controls; however, centralized storage presents a high-value target for hackers. On-premises solutions reduce exposure but require robust internal security protocols to prevent breaches.

So, what is the better choice? The decision between cloud-based and on-premises video surveillance and access control systems depends on a close evaluation of the pros and cons. Ultimately, integrators should help customers conduct a thorough risk assessment before making a decision. In some cases, a hybrid approach may offer the best balance between cost efficiency, security, and scalability.

About the Author

Paul F. Benne

Paul F. Benne is a 37-year veteran in the protective services industry. He is President of Sentinel Consulting LLC, a security consulting and design firm in based in New York City. Connect with him via LinkedIn at www.linkedin.com/in/paulbenne or visit www.sentinelgroup.us