Choosing Between Cloud and On-Premise: What’s Best for Armenian Businesses?

Introduction

For Armenian businesses striving to modernize their IT infrastructure, one key decision often arises:

Should we go with cloud-based solutions or stick with on-premise systems?

There’s no one-size-fits-all answer — it depends on budget, goals, and technical capabilities.

This article explores both models in detail and helps Armenian organizations decide which is better for them.

What is Cloud Computing?

Cloud computing allows businesses to use IT services (servers, storage, applications) via the internet, managed by third-party providers like Microsoft Azure, AWS, or Oracle Cloud.

Key benefits:

Scalability — grow or shrink resources based on your needs
Lower initial costs — no need to invest in expensive hardware
Remote access — perfect for hybrid or remote teams
Built-in security & backups — handled by the provider

What is On-Premise Infrastructure?

On-premise infrastructure means all servers, networking equipment, and software are hosted locally, usually in your office or a private datacenter.

Key benefits:

Full control over systems and data
No recurring cloud subscription fees
Compliance with local data regulations
Better integration with legacy systems

Cloud vs. On-Premise – Key Comparison

Feature	Cloud	On-Premise
Initial Investment	Low (pay-as-you-go)	High (hardware & licenses)
Scalability	Easy and flexible	Limited and expensive
Control	Limited (provider managed)	Full control
Security	High (vendor-managed)	Depends on internal setup
Internet Dependency	Yes	No
Maintenance	Handled by provider	Requires in-house IT support
Data Location	Usually abroad	Local (can be controlled)

What’s Best for Armenian Businesses?

Let’s break it down for Armenia specifically:

Small and Medium Businesses (SMBs)

Should consider cloud for cost-effectiveness, faster deployment, and low IT overhead.
Government and Financial Institutions

Often prefer on-premise due to regulatory and security requirements.
IT Service Providers & Integrators

Can use a hybrid model — cloud for flexibility, and on-prem for sensitive projects.
Companies Participating in Tenders

Should check technical specifications carefully — often, the state requires local data hosting, making on-premise or local datacenters more suitable.

Hybrid Cloud: The Best of Both Worlds

Many modern companies use hybrid infrastructure — some services in the cloud, others on-premise.

This allows flexibility, regulatory compliance, and cost control.

For example:

Email and collaboration tools on cloud (e.g., Microsoft 365)
Financial software on-prem for compliance reasons

Final Recommendation

There is no universal winner. Armenian companies should:

Assess their IT capacity and budget
Analyze compliance needs (especially for government projects)
Consult with system integrators (like SMMHub)
Start with cloud for non-sensitive services, and evolve toward hybrid as needed

Need Help Choosing the Right Setup?

At SMMHub, we help Armenian businesses design the best IT architecture.

Whether you're migrating to the cloud, upgrading local servers, or responding to a tender — we’re here to assist.