Cloud-Based vs. On-Premise Security Systems: Pros & Cons

With the evolution of modern security systems, there have been two divergent paths for storage and processing footage:

1. On-premise security systems, and
2. Cloud security systems.

While both systems fundamentally do the same thing – monitoring and securing your property – the solution you choose can impact aspects like cost and accessibility for your business.

Before installing a commercial security system, review the benefits of the cloud vs. on-premise security system. Both offer unique advantages to different types of businesses, so we’ll explore these two options in terms of cost, installation, accessibility, and compliance.

What does ‘on-premise’ mean?

An on-premise security system is designed to do everything locally, meaning all footage and data are processed on-site, where you conduct your business. All hardware – including your DVR or NVR unit – is housed somewhere in your commercial space, alongside hard drives to host all recorded footage.

With an on-premise security system, your cameras will be connected directly to your footage recorder via cable or via your local network. Most of the time, accessing that footage also requires you to be in the building, but remote access is possible with the right configuration.

What about cloud-based security systems?

On the other hand, a cloud-based system is designed to work remotely. Instead of housing all hard drives and footage-recording hardware in the same place as your business, a cloud-based system transmit all footage and data to remote servers using an internet connection. The off-site servers are usually managed by the same people who installed your system, or by a third-party cloud service (depending on your desired setup).

Those servers store and process all footage, making it accessible to you for a set period via either the app or a web browser.

Sometimes it’s not a question of a hard-and-fast cloud vs. on-premise security system, but rather a hybrid setup. You might have an on-site unit that stores recently recorded footage locally so you can access it quickly, then a larger off-site backup for long-term redundancy.

Each approach provides excellent security, but they each have a different lift in terms of cost, installation, maintenance, data privacy, and accessibility. Let’s take a closer look.

Cost

Let’s start by breaking down the cloud vs. on-premise security system in terms of cost, both upfront and ongoing.

On-premise security systems cost more to install, most of the time. There is more equipment to source and implement, including recorders, storage drives, and cabling infrastructure. Once installed, however, on-premise systems are more cost-efficient to run. If your business has a stable setup and a dedicated team to service your hardware (usually provided by the right security company), then you’re good to go.

On the other hand, cloud security systems are usually cheaper to install with no cabling infrastructure or on-site servers. That said, you usually need to pay an ongoing subscription for cloud storage, with fees that can add up and make remote systems like these more expensive over time.

That said, they make it accessible for businesses with limited cash flow to install high-spec security systems, and cloud systems are also easily scalable, with no additional cabling infrastructure required to place more cameras over the years.

Installation

In terms of installation, cloud vs. on-premise security systems shake out as you might expect. On-premise systems require more equipment, so installation is more involved. The trade-off for all that readily accessible local data and privacy is more work on installation day. Keep in mind that this persists if you need changes to the system, like adding cameras or expanding storage.

On the other hand, cloud systems are usually much simpler to install, especially if you’ve opted for an IP camera system that connects over an existing Wi-Fi network. These systems are more scalable, so adding a camera is as simple as adding it to the network, with no data cabling required.

If your business doesn’t have dedicated IT resources, a cloud system is a good idea. These are usually managed by third parties, and the software is updated automatically.

Accessing them remotely

This is where the cloud vs. on-premise security system comparison most clearly favours cloud systems for many businesses, as on-premise systems usually require you to be on-site to access the footage. Alternatively, you can use a configured VPN or remote-viewing software to review footage from outside the building, but this is vulnerable if your internet goes down.

Cloud systems are built to provide remote access by default, as the servers are off-site. This is especially helpful if you need to monitor multiple premises at once, travel often, or check on your premises without being there.

Data security and privacy

New Zealand has firm data and privacy rules around footage collected for security purposes. You’re not restricted in your choice between cloud vs. on-premise security systems, as both can satisfy the Privacy Act 2020, but each one has different implications you should be aware of.

On-premise systems tend to be the most secure because you don’t need to transfer data anywhere. You own the hard drives, the recording devices, and everything else handling this sensitive data. In regulated industries like healthcare, legal, or financial services, you may have compliance obligations that determine how and where you can store your data. On-premise tends to be the best solution in this case.

Cloud systems technically mean your footage is in someone else’s hands, so the important thing is to find a reputable provider that can handle your data safely.

Ultimately, the toss-up between a cloud vs. on-premise security system is an easy choice when you’re clear on your needs. For a lower upfront cost and a secure, easily scalable solution, cloud systems are best. If you have the capital for a higher upfront cost and value the control of an on-site solution, then on-premise is the move for you.

If you’re still unsure, the best option is a security assessment to determine which system suits your business.

Understand whether a cloud vs. on-premise security system is for you.

We are DankoSec, Auckland’s security system installation specialists. If you are unsure which type of security system is for you, our team can assess your site and recommend the best course of action while meeting your budget.

Get in touch to book an assessment with our security experts today.