By Beate Thomsen, Co-founder & Product Design - February 17, 2024

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Big data is no longer just a buzzword. The new volumes of data collected daily have pushed companies to value data more than ever before. 

Data quality and data accuracy have become essential components of any organisation's data management and digital data transformation strategy.

Unifying and combining data between data warehouses and other systems is a must-do. This has led organisations to look at data integration tools

Companies must integrate their systems to optimise business processes and remove error-prone manual data entries. There are many benefits to data integration.

The question is what data solution integration to choose. Are cloud-based data integration better than on-premise solutions? When is a cloud platform the right solution? 

This article will help you make an informed decision.  



Cloud-Based Solution

On-Premise Solution

Initial Cost

Lower upfront costs due to a subscription model and no need for physical infrastructure.

Higher upfront costs for hardware, software licenses, and infrastructure setup.


Handled by the service provider, reducing the need for in-house IT maintenance staff.

Requires in-house IT staff for ongoing maintenance, updates, and troubleshooting.


Easily scalable to accommodate business growth with minimal effort.

Scaling up can require additional hardware purchases and can be time-consuming.

Data Security

Dependent on the service provider's security measures concerns over data sovereignty.

Complete control over data security measures, but requires robust security protocols.


Simplified integration with other cloud services and applications.

May require custom solutions for integration with cloud-based or external services.


Some limitations are due to standardised offerings; however, many providers offer flexibility.

High level of customisation possible to tailor solutions to specific business needs.


Accessible from anywhere with an internet connection, facilitating remote work.

Access is generally limited to the on-premise network, though VPNs can extend access.

Data Control

Data is stored off-site, which might raise concerns about control and compliance.

Full control over data storage, management, and compliance with regulations.

Implementation Time

Typically quicker to deploy as there's no need for physical infrastructure setup.

Longer deployment times due to the need for hardware installation and configuration.

Operational Flexibility

High flexibility to adapt to changing business needs and technology trends.

Changes and upgrades can be more cumbersome and costly to implement.

What is on-premise integration?

The distinction between cloud software and on-premise is the same for a data integration system or any other kind of system as for example, a CRM or an ERP system. The difference lies in where the system itself is located or kept.

Data integration software and applications are implemented and maintained locally, on-premises. These solutions synchronise data through an installed local network to optimise business processes. For example, an on-premise data integration solution could be kept in one of your organisation's physical offices.

On-premise data integration solutions also typically require you to purchase a license to use it.

Benefits of on-premise data integration

In the age where cloud solutions are widely used, many organisations are still using on-premise integration solutions.

On-premise data integration solutions can be an obvious choice to unify data from diverse on-premise software solutions. You can buy an on-premise integration software and install it locally or in your private cloud.

There are interesting benefits to choosing on-premise data integration solutions:

  • Data integration cost

On-premise solutions are paid once, at the installation of the solution. This initial cost might be higher than for a cloud solution. 

It is a one-off amount, making you feel more in control of your solution's cost and ROI. However, this is not always true, and these solutions seldom cater to upgrade needs or upcoming customisation requirements.

  • Data security

This is a major reason why some organisations choose on-premise integration. Data security is a strong concern of many organisations. Many believe that cloud solutions are more vulnerable to data security breaches. 

Many wish to keep this data locally to maintain a high level of data privacy and data security.

  • Compliance

Compliance standards are sometimes easier to meet if you use on-premise applications. Because you maintain all your data in-house. Companies using cloud data integration must rely on the third-party vendor hosting the solution to meet all regulatory requirements. 

There are, however, many cloud data integration vendors that can deliver this promise.


What is a cloud integration solution?

Cloud data integration solutions are solutions that are hosted by a third party. It could be the server of your solution provider. For example, Microsoft provides Microsoft Azure, a public cloud computing platform. You can then access your cloud data integration solution via a web browser.

With a cloud data integration solution, you do not need to install anything on your local servers or systems. In addition, the third-party hosting provider will take care of managing and monitoring the installation.

Many companies are choosing cloud service data integration solutions rather than on-premise solutions. The early days of cloud computing and cloud software are behind us. So are cloud disaster recovery actions. 

It is now possible to safely synchronise and share data using cloud solutions.

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Benefits of cloud data integration

Integration Platform as a Service (IPaaS) and other cloud integration platform providers can offer robust solutions with many benefits.

  • Low maintenance and easy monitoring

    Using a cloud data integration solution does not require local servers. There are no associated maintenance costs. Cloud data integrations are monitored by data integration experts who can help if something goes wrong. You do not need in-house data integration experts to keep your solution working.
  • Easy upgrades

    As opposed to on-premise solutions, cloud data integration platforms offer regular automatic upgrades. This removes the pain and high cost that can be associated with upgrades that happen too rarely.
  • Fast and easy deployment

    Cloud solutions are fast to deploy. They can be deployed in a matter of days. Even hours, depending on the systems you are integrating and how much they have been customized.
  • Scalability

    Cloud data integration solutions are built and designed to scale. They are the most appropriate solutions to support your business growth. And this is without the hassle associated to scalability in an on-premise solution.

Often, people believe that cloud solutions have a higher cost and provide poorer data security than on-premise solutions. This might have been the case in the past. Today, modern cloud software solutions have improved significantly. Some myths can easily be busted:

  • Cloud data integrations are not more expensive

    The implementation costs of a cloud data integration solution are typically lower than those of an on-premise solution. These solutions are most often subscription-based, which could be scary for some.
    However, the subscription also means that you have an always updated solution. A solution that also works with the newest versions of the applications you are integrating. You can keep working with your solution, regardless of new versions. As a result, the costs related to upgrades are removed.
  • Cloud data integration solutions do not put your data at risk

    When integrating with the cloud, all data transmitted on the internet is compressed, packed, and encrypted. This ensures a very high level of data security, and your data is never at risk.

    data security cloud data integration vs on premise data integration

Cloud or on-premise: what to choose?

We have reviewed the pros and cons of both solutions. If you want to unify and consolidate data between your management solutions, you might want to choose a cloud data integration solution. Over the years, cloud providers have proven their worth. Cloud data security should not hold you back.

We suggest selecting a no-programming cloud solution. Such a solution gathers all the benefits mentioned above plus a few more.


Low-code, no-code, no-programming, code-free programming, low code programming all refer to the same thing. It refers to the development environments that allow non-technical users to develop apps without having to write code. Instead, they use simple graphical methods like drag and drop.

It is quite revolutionary, and it is getting a lot of attention - for good reasons. If you select a programming-free cloud data integration solution, you will benefit from a classic cloud software solution. Such a solution will be easy to keep improving in-house without requiring highly skilled in-house developers.

Rapidi Data Integration Solutions is the perfect no-code cloud data integration to integrate Salesforce with Microsoft Dynamics 365 Business Central, Finance, Sales, NAV, GP and AX. Rapidi provides a Salesforce and MS Dynamics integration solution based on pre-configured templates.

It is a secure cloud data integration solution. Because it is code-free, it is easy to customise to match your needs. It is possible to understand how such solution can help you here.

FREquently Asked Questions

What are integration capabilities, and how do they benefit business users?

Integration capabilities refer to the methods and technologies used to connect various software systems, applications, and data sources. For business users, these capabilities enable seamless data flow between cloud applications and on-premise systems, enhancing efficiency and providing a unified view of business operations.

How do cloud applications improve business decisions?

Cloud applications offer access to real-time data integration and analytics, allowing business users to make informed decisions quickly. By leveraging updated information from various sources, companies can respond to market changes more effectively and maintain a competitive edge.

What is real-time data integration, and why is it crucial for application integration?

Real-time data integration involves the continuous synchronisation of data between systems, ensuring that information is current across all platforms. This is essential for application integration because it allows for the immediate use of high-value data in business processes, enhancing decision-making and operational efficiency.

Can advanced integrations between cloud systems and on-premise applications drive digital transformation?

Yes, advanced integrations facilitate digital transformation by enabling businesses to leverage both cloud sources and on-premise data, creating a flexible and scalable IT environment. This holistic approach to integration supports innovative business models and enhances the digital customer experience.

What are some common integration strategies for connecting cloud systems with traditional IT infrastructure?

Integration strategies may include using APIs (Application Programming Interfaces) for application integration, employing middleware for complex integrations, or adopting iPaaS (Integration Platform as a Service) solutions for managing multiple cloud sources and systems.

How do cloud sources impact business operations?

Cloud sources provide scalable and accessible data storage and processing capabilities, which can significantly improve business operations. They offer flexibility, reduce IT costs, and support agile business practices, enabling companies to adapt quickly to market demands.

What role does a replication service play in achieving a competitive edge?

A replication service ensures that copies of high-value data are consistently available across different systems, enhancing data accessibility and reliability. This supports business continuity, improves customer service, and provides a competitive edge by enabling data-driven strategies.

How do complex integrations contribute to digital transformation?

Complex integrations allow for the seamless connection of disparate systems, including legacy platforms and modern cloud applications. This interoperability is key to digital transformation, enabling businesses to fully leverage their digital assets, streamline operations, and innovate more rapidly.

What should be considered when planning an integration project for digital transformation?

When planning an integration project, consider the specific business objectives, the compatibility of existing systems with new cloud applications, the need for real-time data integration, and the potential impact on business operations. It's also crucial to evaluate the security and compliance aspects of integrating cloud systems.

How do advanced integrations provide a competitive edge in today's market?

Advanced integrations enable businesses to efficiently combine data and functionality from various sources, improving agility, better customer insights, and faster innovation. This integration excellence allows companies to outperform competitors by making smarter business decisions and rapidly adapting to market changes.


About the author

Beate Thomsen, Co-founder & Product Design

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As co-founder of the Rapidi Data Integration platform, Beate has spent over 15 years on its development, building it around her motto: 'keep it simple, functional yet beautiful.'
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