On-Premises vs. Cloud: A Comprehensive Comparison

Vikram Bhatia

Aug 11, 2022 / 4 min read

Synopsys Cloud

Unlimited access to EDA software licenses on-demand

Have you been considering a move to the cloud for your chip design project? We have compiled a detailed list of all you need to know when transitioning to the cloud. This post breaks down the on-premises vs. cloud pros and cons.

Pros and Cons of On-Premises


Security. Though on premises-clouds aren’t inherently more secure, many chip designers still consider security to be a significant advantage of on-premises infrastructure. With on-premises, you store data locally, allowing you greater control. You also don't need to worry about sensitive data leaving your company. On-premises can be especially helpful for regulatory compliance. 


Control. On-premises infrastructure gives your organization complete control of resources, services, and data. You decide who accesses them and what happens to them. 


Performance. On-premises systems provide some performance advantages, such as low latency. A short feedback loop exists for changes between the on-premises infrastructure and individual employees. Those on site can make changes if there is an outage.

Pros and Cons of On-Premises | Synopsys Cloud


Cost. Setting up an on-premises system can be expensive. First, you must take into account the upfront costs of purchasing and installing IT infrastructure. Then, you will have the ongoing maintenance, storage, power consumption, and IT support costs. Updating infrastructure also requires regular, significant investments. You must pay for software licenses upfront, which cloud providers often include in their subscriptions.


Scalability. On-premises software runs locally on each computer. All computers must therefore meet recommended hardware requirements, which can be a problem, especially for complex programs. Purchasing the correct hardware can be expensive as well as difficult to scale. As a result, your IT department will have to set up and maintain new hardware for scalability.


Data Backup. To back up your data and applications on-site, you must deploy adequate infrastructure. You must also invest upfront to acquire servers, build a network, and purchase backup software. Additionally, your staff must regularly maintain backup infrastructure.

Pros and Cons of Cloud


Cost. Cloud development platforms charge per user, dramatically reducing your upfront costs compared to on-premises solutions. You won’t need hardware or physical infrastructure, so you will have no capital expenditures. Many plans include landline connectivity, so you pay one bill. The maintenance costs are low since there is no infrastructure to maintain.


Scalability. The cloud is scalable and provides on-demand services, so you can use as much storage and processing power as you need. As you grow and your needs change, you can increase cloud resources. 


Data backup. You can easily back up data to the cloud using the vendor’s backup software and storage. Cloud vendors offer a cost-effective method to store and access data.

Pros and Cons of Cloud | Synopsys Cloud


Risk. Whenever you work with a cloud storage company, you allow them to manage and secure your data. You may risk unauthorized access when an outside party has access to your company data.


Control. Data resides on third-party servers in a cloud environment. If something goes wrong, you might not be able to access your data until the cloud provider fixes the issue.


Performance. Your applications may not perform optimally if you have not designed them for the cloud. Several factors can reduce the efficiency of an application, including internet connectivity, speed, and permissions management.

Synopsys Has You Covered

No matter which option you choose, Synopsys has the chip development and verification tools for you. We have decades of experience providing cutting-edge on-premises electronic design automation (EDA) tools and semiconductor IP to chip makers. 

Recently, we made the move to cloud-based EDA tools if you choose to use cloud computing. We offer an all-in-one software-as-a-service (Saas) product and a bring-your-own cloud (BYOC) option if you already have a trusted cloud provider.  

Whether you're a chip designer creating advanced semiconductors or a software developer writing secure code, we have the solutions you need to deliver innovative products.

Synopsys, EDA, and the Cloud

Synopsys is the industry’s largest provider of electronic design automation (EDA) technology used in the design and verification of semiconductor devices, or chips. With Synopsys Cloud, we’re taking EDA to new heights, combining the availability of advanced compute and storage infrastructure with unlimited access to EDA software licenses on-demand so you can focus on what you do best – designing chips, faster. Delivering cloud-native EDA tools and pre-optimized hardware platforms, an extremely flexible business model, and a modern customer experience, Synopsys has reimagined the future of chip design on the cloud, without disrupting proven workflows.


Take a Test Drive!

Synopsys technology drives innovations that change how people work and play using high-performance silicon chips. Let Synopsys power your innovation journey with cloud-based EDA tools. Sign up to try Synopsys Cloud for free!

About The Author

Vikram Bhatia is head of cloud product management and GTM strategy at Synopsys. He's responsible for building the industry's first completely browser-based EDA-as-a-Service platform, Synopsys Cloud. He has over 25 years of experience in product strategy, and prior to joining Synopsys, he served in a variety of leadership roles at companies including NetApp, Oracle, HP and Microsoft. Over the last decade, Vikram has exclusively focused on transforming traditional on-premises business models to cloud based SaaS offerings though product management, go-to-market strategy, partnerships, and sales transformation initiatives. Vikram has a Bachelor of Technology degree from the Indian Institute of Technology Kanpur, and graduate degrees from the Colorado School of Mines and the Indian School of Business.

Continue Reading