When On-Premise is Better than the CloudDuring my time at... | When On-Premise is Better than the CloudDuring my time at...
When On-Premise is Better than the Cloud

During my time at Palantir, I have spent significant time deploying our software in cloud environments and also a good chunk of time deploying our software in on-premise (on-prem) environments (including starting a team doing just that). I have noticed that despite the common preference for cloud deployment, there are still merits to deploying on-prem.

The Shift from On-Prem to Cloud Computing

Over recent years, the IT landscape has increasingly favored cloud computing, driven by the flexibility of Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) offerings. The global cloud computing market grew from $24.63 billion in 2010 to $156.4 billion in 2020, and that trend continues and is predicted to surpass $1 trillion by 2028. This meteoric rise is powered by both new demand of compute by the world, but also migration of on-prem workflows to the cloud.


There are good reasons for this shift, the cloud enables rapid provisioning of resources, geographic redundancy, and a shift from capital expenditures (CapEx) to operational expenditures (OpEx). However, I believe that there are certain scenarios where the use of on-prem infrastructure, particularly where specific technical requirements, such as deterministic latency, hardware-level control, and stringent security measures, are paramount.