Cloud software 

Government is taking a cloud-smart approach. A cloud-smart approach recognizes the benefits of cloud services, while acknowledging that other options may better suit certain applications. This approach encourages organizations to make thoughtful, strategic decisions around what works best for business and operational needs. Cloud infrastructure allows flexibility in a contract – it will expand or contract to meet your organization’s demand. Visit Cloud Services for information about options available for government.

To help you decide if a cloud solution is right for your organization, it may be helpful to understand the difference between cloud or software-as-a-service (SaaS) versus on-premises software.

Cloud/SaaS 

• Hosted on the supplier’s servers and accessed using an internet service provider 
• In general, priced under a monthly or annual subscription, with additional recurring fees for support, training and updates 
• Generally considered an operating cost 
• Examples include Microsoft 365, Customer Relationship Management (CMR), Enterprise Resource Planning (ERP) and Content Management System (CMS) 

On-premises 

• Installed locally, on a company’s own computers and servers 
• In general, priced under a one-time perpetual license fee (usually based on the size of the organization or the number of concurrent users). There are recurring fees for support, training and updates 
• Generally considered a capital cost
• Examples include legacy systems such as Oracle 

While many types of software are offered on-premises, most are moving to cloud. Learn more things you need to consider when purchasing cloud or on-premises software (PDF, 186KB).

If you decide to purchase a cloud solution, you will likely need to work with Hosting and Cloud Services, which delivers hosting infrastructure and enterprise printing services to support ministry operations, including secure and scalable hosting options.