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Cloud-Based Access Control vs On-Premise: Key Differences Explained

Choosing between cloud-based and on-premise access control is a critical decision for business security. Cloud systems offer remote access, scalability, and cost savings, while on-premise solutions provide full control, data privacy, and reliability.

Stu Waters
Stu Waters
Feb 28, 2025

Choosing between cloud-based and on-premise access control is a big decision in business security. Should you opt for the flexibility and remote access of cloud systems or the complete control of on-premise security?

Both options have benefits and drawbacks; the right choice depends on your company's security demands. 

This article compares the key differences between cloud-based and on-premise access control systems so you can make an informed decision for your organization.

What is Cloud-Based Access Control?

Cloud-based access control is a modern security solution that leverages cloud infrastructure to manage and monitor entry points within a facility. Instead of relying on on-premise servers, this system stores access permissions and logs in the cloud, allowing administrators to control access remotely.

With this approach, organizations can grant or revoke access permissions in real time, track entry attempts, and integrate with other security systems. The system operates on a SaaS (Software-as-a-Service) model, reducing the need for physical servers or complex IT maintenance.

Cloud-based access control is particularly beneficial for multi-location businesses, schools, healthcare facilities, and offices, offering scalability, remote access management, and enhanced security without the limitations of traditional, on-premise solutions.

Key Benefits of Cloud-Based Access Control System

Cloud-based systems ensure your safety without needing on-site servers. Their scalability and remote access enable companies to easily manage multiple locations from anywhere. Let's look at why they're worth considering.

  1. Remote Support

Using cloud-based access control lets you communicate with your software provider with just one call or click. Whether you encounter a system failure or need minor support with adjustments, your provider can always help you handle it remotely without coming on-site.

  1. Simple Management

With cloud-based access solutions, it's easier for property owners and managers to manage their property. It allows them to monitor visitors’ entry and exit from their building via date-and-time-stamped photo audits. They can access this data remotely on the software's portal.

  1. Enhanced Safety

A cloud-based access control system allows you to rest assured because your safety is guaranteed. It gives you relief knowing that you can approve and revoke any individual’s access regardless of your location. What better satisfaction than knowing your facility is secured 24/7?

  1. Scalability

This is particularly true for organizations that need remote access or international growth. Cloud-based systems can still support your business even though it expands in the future. It works because you can easily use it to maintain, add, or change any information, all from a single platform.

  1. Swift Integrations

Having an access control system that integrates effortlessly with other technologies enhances efficiency and automates workflows. Unlike traditional systems, cloud-based applications provide swift integrations with other software.

For instance, you can integrate cloud-based systems with:

  • Slack, to receive automatic alerts whenever a security event happens
  • Your G-Suite directory or CRM software 
  • Video intercom systems
  1. Affordable Costs

An access control system that's hosted off-site gives you some financial relief. It relieves you of the hassle and expenses associated with rack storage, power, and hardware servers on your site. 

Additionally, you don't have to stress over getting high-spec computers or a particular software, typically required to run and view the access control settings.

  1. Enhanced Flexibility

Its remote capabilities enable you to update the system and manage permissions from any location, all from a centralized platform. Though cloud-based security systems offer flexibility and scalability, security is still a major concern for many firms.

According to recent data, 45% of data breaches are cloud-based, while 80% of companies have had cloud security incidents in the past year. These statistics reveal why companies must prioritize robust security measures when transitioning to cloud-based access control.

  1. Easily Customizable 

You can easily customize cloud-based access control systems to suit your property's needs. Revoking or adding permissions in a conventional security system requires scanning a fob or rewiring different pieces of hardware. 

Conversely, cloud-based access control requires just a quick login to an online portal. With a few clicks, you've changed permissions for whichever staff you wish to.

  1. Data Protection and Backup

One perk attached to using a cloud-based system is receiving automatic updates and backups from the hosting center storing your software. As a result, your data will always be current. Plus, you wouldn't need to bother about your in-house server dying.

However, you risk losing important data if your in-house server dies without backing up your data.

  1. Off-site Hosting Centers

When using a cloud-based system, the location hosting and storing your data is always running. Compared to having a physical server in your building, a cloud-based access control solution automatically performs upgrades and maintenance. 

This means you can control your system from any internet-connected device without fear of it shutting down.

Bonus Benefit in Cloud-Based Access Control Like Coram AI 

As Coram provides the security system, its cloud-based access control integrates with security cameras, allowing businesses to monitor entry and exit activity in real-time. Linking cameras to access points helps verify access events, enhance security analytics, and support incident investigations.

These systems also enable event-triggered recordings, automatically capturing footage of unauthorized access attempts for review, improving security response and incident tracking.

What is On-Premise Access Control?

On-premise (on-prem, for short) access control is a security system whereby a company installs and regulates its IT systems and access control infrastructure on-site within its building. This gives the company total control over its data, system operations, and needs instead of depending on a cloud-based access solution hosted by a third party.

On-premise access control is usually used in industries that prioritize top security and have stringent data regulations. Such industries include energy and utilities, critical infrastructure, government, and public safety to name a few.

Key Benefits of On-Premise Access Control System

With an on-premise security system, businesses have total management over their security by handling access points within their facility. Compared to cloud-based solutions, it runs on local servers, which guarantees data privacy and reduced dependency on internet connection. 

Here are other key benefits of on-premise access control systems you should know:

  1. Complete Control

The overall benefit of an on-premise access control system is having complete control over your data and the location it is stored in. It makes good business sense to take charge of your company's data operations and infrastructure within its premises. 

This freedom enables organizations to set up their software, hardware, and networks based on their actual needs without having to involve third-party providers.

  1. Data Privacy and Security

With the surge in cyber attacks, companies are prioritizing security and making efforts to protect their data. On-premise control systems store all the sensitive data within the company's system. 

This reduces the risks associated with unauthorized access and data infringement, aligning data with the organization's privacy and security protocols.

  1. Lower Long-term Costs

Multiple infrastructure costs are associated with on-prem including equipment, cabling, the building’s physical security, and the connectivity costs of the network infrastructure.

Though these costs may be high initially, it can be a cost-effective option in the long run.

  1. Regulatory Compliance

Various organizations have strict laws for data privacy and location depending on the geographic location in which they operate. 

Companies with offices across the globe may have different regulations for these. However, an on-prem infrastructure makes compliance with other local laws easy.

  1. Reliable Operations

On-prem access control systems don’t depend on internet connections like cloud-based systems do. They still function efficiently even during a power failure or network outage. 

This reliability makes it critical in facilities where high-level security is prioritized.

  1. Designed to Meet Your Demands

Every building has its unique requirements. With an on-premise security solution, you can customize configurations like specific entries for prohibited areas. This adaptability ensures your security protocols align perfectly with your building’s operations and layout. Customizing your solution allows you to future-proof your security infrastructure. 

As your security needs broaden or your business expands, the on-premise system can be scaled to cater to those new challenges. Suppose you need to introduce new biometric devices or access control points. An on-prem security solution makes everything smooth.

  1. Versatility and Real-life Applications

Because they are versatile, on-premise security solutions can be used across different industries, including:

Educational Institutions -Monitor guests and safeguard labs, classrooms, and libraries.

Manufacturing Units - Ensure only trained employees use authorized machinery and access hazardous areas.

Healthcare Facilities - Regulate access to critical zones and secure sensitive patient data.

Corporate Offices - Track visitor activity while controlling employee access to sensitive places.

  1. No Recurring Subscription Fees

There may be significant initial costs for setup and installation. However, on-premise access control systems eliminate continuous subscription fees associated with cloud-based security solutions. 

This means businesses can skip monthly or annual fees for software updates, data storage, and remote access services, helping them save costs over time. It is also a budget-friendly solution for organizations that prioritize long-term financial planning.

  1. Quick Response to Security Concerns

Having a security solution on-site within your premises lets security personnel address and mitigate technical issues without waiting for cloud-based troubleshooting or external technical support. 

This rapid intervention improves overall responsiveness and safety and reduces downtime. Moreover, IT managers are responsible for system modifications and software updates, decreasing potential vulnerabilities.

  1. Increased Speed and Performance

These systems often exhibit better performance since data is not traveling over the internet. As a result, access and authentication times are faster. Without reliance on internet connectivity, users experience minimal latency. 

This makes it beneficial for high-traffic environments. The reduced dependency on external networks also improves system reliability and prevents delays caused by slow broadband speeds or network outages.

Cloud vs. On-Premise Security: Key Differences

Cloud and on-premise security solutions are two drastically distinct approaches to data protection. The cloud security system stores and protects data using remote servers run by third-party cloud service providers. 

This approach shifts the burden of data security to the cloud provider while offering scalability, hardware cost savings, and access to advanced security features without capital expenses. However, it largely depends on the cloud service provider to safeguard data and handle cyber threats.

Conversely, on-premise (otherwise, called on-prem) security stores data on local servers and lets you control it within an organization’s physical location. Though it necessitates a large infrastructure investment, continuous maintenance, and strong IT teams, this approach gives you total control over security procedures and physical security.

Pros and Cons of Cloud-based Access Control

Even though cloud-based access control is popular for its remote management and flexibility, it has potential drawbacks. The table below underscores the key advantages and disadvantages to help you determine whether this solution matches your security requirements.

Pros Cons
Enables remote monitoring, so IT personnel can manage data and permissions from anywhere without internet connectivity. Cannot function properly without an internet connection.
Highly scalable and perfect for growing businesses. Though initial costs are lower, you’ll have to continually renew subscription fees.
The subscription-based pricing model makes it suitable for small to medium-sized businesses. Cloud-based systems may raise data security and privacy concerns, especially when sensitive access information is stored in the cloud.
They receive automatic updates and are maintained by the service provider.
Doesn’t require maintaining on-site servers since the service provider handles it.
Has data integrity because cloud providers implement robust security protocols.

Pros and Cons of On-premise Access Control

On-prem access control systems give you better control and quicker response times even though they demand higher upfront charges and maintenance. The table below explains the key benefits and challenges to help you weigh your options.

Pros Cons
By storing data locally, they give businesses total control over their infrastructure. Upfront costs for the entire setup are high.
They don’t rely on an internet connection to function. Maintaining and updating on-premise systems can be strenuous for companies without an IT team.
Requires one-time cost during installation. No recurring subscription fees afterward. Scaling is challenging and expensive, making it unsuitable for expanding businesses.
You can handle system backups, updates, and maintenance without depending on a cloud provider.
Can be customized to suit an organization’s operational demands and security requirements.
Facilitates better compliance for industries with very strict compliance regulations.

FAQs

Is cloud more secure than on-premise?

Generally, the cloud promises significant security defense since it prioritizes data over physical control. However, the security level depends on the use case, cloud provider, cloud environment configuration, and safety protocols implemented. Conversely, on-prem security promises physical control over data, which can be beneficial for sensitive or regulatory industries.

How do cloud-based access control systems differ from traditional on-premise solutions?

Cloud-based access control systems store and manage data on remote servers hosted by third-party providers, while on-premise solutions store and manage data locally on the company's servers within their building. On-premise systems need on-site maintenance and hardware management while cloud-based systems can be accessible from any location.

Where is data stored in cloud-based access control systems?

In a cloud-based access control system, data is stored on remote servers. These servers are typically found in data centers where the cloud provider operates. Therefore, you can only access data via an internet connection (in the cloud).

Which access control system is right for your business?

The right access control system for your business is determined by your organization’s size and security requirements.

Conclusion

Your business needs, operational preferences, and security needs will determine whether to choose a cloud-based or on-premise access control system. Cloud security solutions are adaptable, scalable, and bring advanced security. 

These systems require IT specialists, making them perfect for businesses requiring robust and flexible protection. While on-premise solutions appear more expensive and sophisticated, they offer total ownership and control over data and systems. This is essential for certain regulatory environments.

Frequently Asked Questions

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