A cloud-based system is an application or service that can be accessed via the Internet. Data is stored on remote servers rather than local hard drives.
For personal use, common cloud-based systems include Google Drive, iCloud, and Dropbox. For business use, examples include Google Workspace (including Gmail, Google Drive, Google Sheets, etc.) and Salesforce CRM. Users typically log in with an internet connection without having to install software of set up their own servers.
Cloud-based systems enable on-demand accessibility, greater flexibility for remote work, and cost-efficiency by eliminating the need for organizations to purchase and maintain their own physical hardware and infrastructure.
In contrast to cloud-based systems, on-premise systems are installed and run on a company's own local servers and are typically accessed through the company's internal network. Some organizations may prefer on-premise systems for greater control or for industry regulatory and compliance reasons. However, it is important to note that on-premise systems require significant upfront investment and ongoing maintenance responsibilities.
While cloud-based and on-premise describe where a system is hosted, web-based and desktop-based describe how it is accessed.
A web-based system is typically accessed through an Internet browser and doesn’t require installation on your device. In contrast, a desktop-based system runs through an application installed on your computer.
Many cloud-based systems—such as Ragic—are web-based, meaning users simply log in through their browsers. However, some cloud applications like Slack and Zoom are both web-based and desktop-based, allowing users to access them either through a browser or a dedicated desktop app.
While most Software as a Service (SaaS) solutions are cloud-based, not all cloud-based systems are SaaS.
SaaS specifically refers to software applications that are fully managed and delivered to users over the Internet on a subscription basis. Users sign up, pay a subscription, and access the service online without having to install an application.
On the other hand, cloud-based systems is a broad term to refer to any software or infrastructure hosted and delivered through the cloud rather than on local servers, which can include databases, storage services, or development platforms. Some cloud-based systems that do not operate under the SaaS model can be licensed or purchased outright. For example, a company might build or purchase a customized cloud solution hosted on AWS; this solution is cloud-based but not SaaS.
