Most organisations that are using automation or robotic process automation started with on-premises solutions. However, they are contemplating moving their entire RPA estate to a cloud platform. Why? Cloud-based platforms like Microsoft Power Automate offer numerous appealing benefits. Scalability, ease of deployment, and cost-effectiveness are some of the benefits associated with cloud platforms.

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Does it mean the end of on-premises automation? We cannot answer this question as this type of automation has unique benefits of its own. However, we do acknowledge several limitations. This article will assess the advantages and disadvantages of on-premises automation. Once you are done, you’ll be able to answer the question yourself. So, let’s start.

What is On-Premises Automation?

It refers to automation wherein a company purchases a licence or software and runs the entire automation within the company’s premises. The primary reason is that this approach offers greater control and security.

Advantages of On-Premises Automation

Enhanced Security

In an on-premises automation solution, the entire automation estate is hosted within the organisation’s physical infrastructure. It means sensitive data never leaves the organisation at any instance. It is indeed a significant boost in terms of data security. Healthcare and financial institutions usually prefer this type of security. A data breach in these sectors can prove highly problematic for the organisation and wider stakeholders.

Customisation

The automation solution can be customised according to the organisation’s preferences. It means the business can adapt the technology to its requirements rather than adapt itself according to the technology. It ensures each solution is tailored to the organisation instead of following a one-size-fits-all strategy. This degree of customisation and control is not available in cloud solutions.

Compliance

Certain industries are subject to strict regulatory oversight. This is true for organisations operating in industries like healthcare, financial services, and banking. An on-premises solution is better as organisations have direct oversight of the data and control over the processes. It allows them to comply with the regulations with little effort.

Reduced Dependency

Cloud solutions require round-the-clock access to the internet. Therefore, in case of a disruption to the internet, all automation comes to a standstill. On-premises solutions remove this dependency as the business can run the automation even during internet outages. A disruption does not have to be an internet outage alone. A cyberattack can also disrupt your organisation’s IT network, preventing the use of automation.

Drawbacks of On-Premises Solutions

High Upfront Cost

In cloud solutions, a business only needs to pay the subscription fees and nothing else. There is no requirement to buy or upgrade existing hardware. However, on-premises solutions are the opposite. A business must set up the necessary infrastructure to benefit from this automation type. The high initial cost is the top reason most businesses opt for cloud-based automation platforms. After all, not every business has the resources to bear this expense.

Maintenance & Support

Automation solutions require regular maintenance and support. It means additional costs as the business must employ a dedicated IT team for this purpose.

Scalability Issues

In the case of a cloud-based solution, scalability is not a problem as the business only needs to upgrade its plan. In an on-premises solution, scalability is not so easy. Even if a single new automation is to be added, it may require additional hardware or other infrastructure.

Accessibility Challenges

Cloud-based solutions can be accessed from anywhere in the world. It allows businesses to collaborate with satellite offices and remote workers without any hassle. On-premises solutions don’t offer this benefit. This limitation can hinder remote access and collaboration. Considering the popularity of remote working, this limitation is contrary to current work preferences.

Conclusion

On-premises automation solutions offer many benefits, but not without limitations. Ultimately, a company pondering cloud-based and on-premises solutions needs to consider its own requirements, available resources, and long-term goals. Such an analysis can help it make the right decision.

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