Cloud vs On-Premises Video Streaming Solutions – Which is Better?

Businesses are now relocating their vital operations, applications, and workflows to the cloud. With enterprise video receiving momentum across industries, businesses look to the cloud to improve the cost burden related to increasing needs for security, video hosting, storage, accessibility, processing, innovation, and more. Knowing how to build a video streaming website as it is very helpful.

On-premise video streaming is suitable for enterprises running in highly organized industries that need heavy security measures in position. For. e.g., healthcare organizations, government agencies, financial institutes, etc. The demanding privacy needs impel these enterprises to guarantee better control of important business operations.  On-premise or online video streaming solutions are well-suited for long-established businesses with extensive IT infrastructure and on-premise data centers, which can be utilized economically for our solutions. You can now learn how to make a streaming website online today.

On-Premise Vs. Cloud Video Streaming

When talking of on-premise hosting, you have ownership of the physical infrastructure and the IT staff, to manage and maintain the servers and other hardware required for seamless and protected streaming. With on-premise on-demand video hosting, you get full ownership of your online video platform and the method in which your videos are saved and distributed. 

Different from conventional in-house hosting, cloud servers are remote frameworks that can be rented/leased for saving and delivering video content.

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Benefits of On-Premise Video Streaming

1. Air-tight Security –

Leading cloud service providers like AWS, Azure, and Google have deployed high levels of compliance policies and technological security in the cloud ecosystem, which offers a highly secure environment for cloud video hosting.

2. Maintain Control –

Cloud offers central access to best video streaming platform infrastructure, which is suitable for companies running in multiple offices in many geographical locations with a dispersed employee foundation.

3. Fulfill Compliances –

Leading cloud service providers utilize high levels of technical security and compliance policies. High costs are inclusive for onsite security and compliance policy implementation.

4. Reduced Data Migration –

Data transfers between systems are low-cost, and there is no internal migration cost.  

Benefits of Having Video Streaming on Cloud

1. Cost-efficient –

With a video cloud provider, you can benefit from economies of scale thanks to huge infrastructure. Furthermore, cloud storage prices have also been reduced due to increasing competition among these providers.    

2. Remote Access –

With cloud video streaming, company employees are free to use media content – be it video or digital – anytime and anywhere which gives them the flexibility to work with mobility while traveling or work remotely at home. This is especially useful in the present pandemic scenario. You can also build a video streaming website by referring to online sources.

3. Accessibility –

Cloud video hosting lets all digital media be accessible on any device – be it tablets, laptops, or smartphones – extending to employees the convenience to deploy whichever device they like. Cloud video streaming solution also motivates organizations to market a ‘bring your own device’ culture to secure costs.

4. Security –

Leading cloud service providers like AWS, Azure and Google have utilized the highest security levels and compliance policies in their cloud system which offers a highly strong environment for cloud video hosting.

5. Scalability and Flexibility –

Cloud solutions are limitlessly scalable which gives companies capacity and flexibility to scale their digital media operations and capabilities and video hosting and innovate without being concerned about the actual expansion of on demand video hosting resources or infrastructure.

6. Centralization –

Cloud solutions offer centralized access to video hosting infrastructure, which is suitable for companies running several offices in different locations with a distributed employee base.

Cloud vs. On-premises Video streaming Costs

A. License and subscription –

For On-premises video hosting costs, there is the high cost involved for an annual license for video hosting software or application – an extra cost may be applicable if new users or modules are incorporated into the system For cloud video hosting costs, there is a medium-high cost involved for monthly subscription license for video hosting application, the vendor can increase rates on the expiration of the term of the subscription.

B. Installation and setup –

On-premises video hosting is expensive due to the need for on-demand video apps, database configurations, etc.  An upgrade installation will also incur high costs. For cloud video hosting (SaaS) there is a low-medium installation fee applicable by the vendor for video hosting applications – zero cost for upgrades as upgrades are gradual.

C. Hardware/capital expense –

Video hosting on-premises involves a high capital expenditure for hardware, PC and network infrastructure, applications, database servers, and middleware.  For cloud video hosting costs (SaaS) there are low video hosting hardware costs with no in-house servers. You can now develop a video streaming solution at your convenience.

D. Data Migration –

For on-premise video hosting costs, there is a medium-high cost involved for upfront data migration with low-cost data transfers between systems and no internal migration cost. For cloud video streaming solution costs (SaaS) there are high costs involved for outbound data as transfers on monthly allowances are charged on a per GB basis – there is a high cost for downloading data from the cloud and inbound data transfer or ingress traffic is generally free.

E. Storage –

For on-premise video hosting costs, there is a high cost involved in purchasing additional storage as there is capital expenditure on hosting storage servers. For cloud video hosting costs there is a high cost involved for extra storage but cloud storage costs reduce over time. Additional storage can be added without expenditure on extra video hosting hardware.

F. Customizations & integrations –

For on-premise video streaming business costs there are high integration and customization costs as on-premise systems are customizable to enhance developer tools and integration with present systems. For cloud video hosting there are low customization costs as SaaS systems offer restricted customization options. But, this may change with larger customization and integration choices in these systems.

G. Maintenance & management –

For on-premise video hosting costs, there is a high cost involved for video hosting infrastructure maintenance, management, and monitoring of infrastructure like rack space, power, cooling, site maintenance, etc. For cloud video hosting, there are low-cost basic maintenance fees that are included in subscription fees.

H. Bandwidth –

For on-premise video hosting costs, there is a medium-high cost for bandwidth usage for video hosting applications, purchase and install more computing resources to expand bandwidth. For cloud video hosting, there is a high cost involved for bandwidth usage if usage is less predictable and customers will end up using much on bandwidth based on video hosting workflows. Bandwidth usage which is unpredictable can be cost-limiting in a cloud video hosting situation.

I. Downtime Cost –

As a result, there is more downtime associated with on-premise video hosting, resulting in higher business costs and revenue losses. In cloud video hosting, cloud providers like Microsoft guaranteeing 99% uptime means downtime cost is greatly minimized.  

J. Backup & disaster recovery –

For on-premise video hosting costs, there are medium costs involved on the on-site backup saved onsite or offsite for disaster recovery. For cloud video hosting, backup and recovery costs comprise subscription or cloud-membership costs. These costs are vital in the video streaming industry.

K. Hardware replacement –

On-premise video hosting requires the hosting hardware to be replaced every three to four years, which increases capital expenditure costs.  In cloud video hosting, vendors pay for hardware replacements and clients pay minimal incremental costs.  


When selecting between cloud video processing and delivery and on-premises, there is an extensive range of operational, technical, and financial issues to discuss with team members. Only you can decide which cloud computing model is appropriate for your delivery workflows and video processing, on-premises or even a hybrid system that has both cloud technology and on-premises hardware.  You can now create a video streaming website for both cloud video and on-premise video streaming.

Ariana Madelyn is a blogger & Digital marketer. I'm enthusiastic about learning about new advancements in the app development in the market. I collaborate with various organizations and help analyze their competitors to provide them better strategies to improve and keep their businesses up to date.