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Which Environment Is Suitable for an ITSM System: On-Premise or Cloud?
- AuthorAdministrator
- Date2022.12.13
Which Environment Is Suitable for an ITSM System: On-Premise or Cloud?
Most companies are increasingly leveraging IT to respond to rapidly changing markets and customer demands. Additionally, there is a growing trend of shifting from on-premise systems to cloud environments.
In line with this trend, ITSM systems—which provide systematic management services for internal IT services—are also increasingly moving from on-premise to cloud-based SaaS ITSM solutions as organizations adopt various cloud services. However, rather than saying one environment is better than the other, it is more appropriate to choose the environment that best fits the company’s requirements and operational approach.
To determine which ITSM environment is suitable for your organization, let’s first review what ITSM is and the considerations before implementation, then compare on-premise ITSM and cloud ITSM environments.
Currently, ITSM has become an essential management system for responding to internal accounting control audits and improving IT processes and service quality.
What is ITSM?
ITSM refers to a service-oriented IT management framework based on ITIL (IT Infrastructure Library), a globally recognized best-practice guide for process-driven IT management. An ITSM system supports smooth operation of IT management frameworks by automating business processes.
| On-Premise | Cloud |
|---|---|
- Selection of process managers and consulting for internal process establishment | - Verified cloud ITSM service |
- Budget for implementation and operation (consulting, solution or SI development, maintenance costs) | - Acceptance of processes and functions provided by the service |
- Scope of implementation/functions and system integration | - SaaS user count and cost |
- Internalization and scalability of the system | - Internal system integration scope |
- Availability of operators and developers | - Promotion and user training |
Comparison: On-Premise vs. Cloud ITSM
1. Purpose and Use
| On-Premise | Cloud |
|---|---|
Suitable for companies that require full ITIL-based service operations and a proprietary IT service management system, and prefer to manage services and IT infrastructure internally or avoid storing critical data in the cloud. Requires sufficient IT operations staff and budget to manage infrastructure, security, backup, and monitoring. | Suitable for companies with limited budgets or those needing quick, cost-effective services and cannot directly manage IT services and infrastructure. Allows selective application of modules and standardized processes. Ideal for organizations with limited IT staff. |
2. Implementation Method and Timeline
| On-Premise | Cloud |
|---|---|
Requires process consulting, SI development, or product customization, taking at least 3–6 months. Additional phases may be needed for broader system scope. Can integrate with internal systems such as HR, e-approval, configuration management, and notifications (email, SMS, messenger). | Cloud ITSM SaaS services based on ITIL and domestic best practices enable rapid deployment—accessible on the same day as the request. Requires time for applying reference data (organization, HR, asset/configuration) and process training. Internal system integration with cloud ITSM must consider security policies. |
3. Characteristics and Main Customers
| On-Premise | Cloud |
|---|---|
Suitable for companies with diverse or non-standardized processes requiring customization. Main customers include large enterprises and major public institutions needing integrated IT services. | Suitable for companies that can use standardized best-practice processes and functions, have limited IT staff, or require globally standardized products for overseas teams. Main customers include small to mid-sized IT operations and public institutions. |
4. Cost
| On-Premise | Cloud |
|---|---|
Costs include solution licenses (Standard/Enterprise), consulting for internal process establishment, customization/development based on requirements, and ongoing maintenance and operations. | Subscription-based pricing per user, including ITSM cloud service costs (infrastructure and operations) and additional charges for extra services (plug-ins, storage, etc.). |
5. Advantages and Disadvantages
| On-Premise | Cloud |
|---|---|
Unlimited user licenses available; multi-tenancy support for subsidiaries; ability to integrate various IT services; easy process improvement and feature changes. However, requires annual maintenance costs and IT staff for infrastructure and service operations. | Lower total cost of ownership and reduced maintenance costs; vendor-provided patches and upgrades ensure latest features and stable service. However, customization is limited, and service use is restricted if internet access is unavailable. |
Conclusion
We have compared the characteristics of on-premise and cloud ITSM environments. Both have advantages and disadvantages, and what is a strength for one company may be a weakness for another. Based on the above, companies should carefully review which environment suits their needs. If ITSM is necessary but initial implementation is a concern, a good approach is to start with a cloud ITSM solution based on similar industry cases, then decide whether to transition to on-premise or continue with cloud ITSM.
Kwan-Ho Hong, Cloud Business Team, STEG Inc.