Cloud or On Prem – What Adobe Commerce Version Might Suit Your Business?
According to stats, Magento-based platforms continue to attract attention with their robust functionality and adaptability. Powered by Magento, Adobe Commerce remains a powerhouse in the eCommerce ecosystem, not only for constantly rolling out cutting-edge features such as AI-powered product recommendations, advanced analytics, and seamless integrations with the Adobe Experience Cloud solutions, but also because it offers two premium versions – Adobe Commerce Cloud and On Prem, that cater for pretty much every industry and business model. In this article, we will try to help you determine which of the two is the best fit for your business.
We’re experts in e-Commerce development services and we’re here to help you choose the right solution for your business.
Working the Basics – the Cloud and the On Prem versions
Adobe Commerce Cloud is a Platform-as-a-Service (PaaS) solution that combines the robust performance of Magento, paired with the flexibility and scalability of cloud hosting, all beautifully integrated with some of the best marketing and sales tools offered by the Adobe Experience Cloud. While Magento is the beating heart of the platform, we can fairly say that the extremely complex AI engine, Adobe Sensei, is its brain.
This version is a fully managed service hosted on the Amazon Web Services (AWS) cloud infrastructure and is designed to support customized Magento deployments with a pre-provisioned infrastructure. Additionally, its Git-based workflow enables seamless rapid development and continuous deployment, automatically building and deploying changes whenever new code is pushed.
With Adobe Commerce On-Prem, businesses have access to the same core engine and advanced tools, but are responsible for hosting the platform on their own servers or through a third-party provider, granting them complete control over the environment.
The seamless integration with all the AI-driven marketing, sales and personalization tools from Adobe Experience Cloud is also possible, though it may require additional configuration and resources.
Suitability
While many talk about Pros and Cons for the two options, both are extremely solid – it only depends what your business prioritizes first.
With the On Cloud version, Adobe handles the infrastructure, including server maintenance, updates, and security patches. Additionally, it offers a suite of integrated tools, such as the ece-tools package, which simplifies deployment processes, including cron management and environment configuration.
This way, businesses can focus on their core operations – like selling and providing unique shopping experiences and excellent customer care, leaving the maintenance worries aside.
The cloud-based architecture of Adobe Commerce Cloud allows for rapid scaling to accommodate traffic fluctuations, ensuring consistent performance during peak periods. Therefore, if your business runs Flash Sales, Promotions, Sales events, etc constantly, and you don’t have the internal technical capabilities to handle the surge in visitors numbers, going On Cloud might be a suitable option.
Just bear in mind that sometimes, even the best hosting plans cannot deal with these incredibly high volumes, requiring the deployment of other techniques. Unfortunately, even though Adobe Commerce Cloud allows for extensive customization, this managed environment can impose certain limitations on modifications.
In other words, with this option businesses will not have to worry about platform maintenance, but they need to understand that it comes with a limited control over server configurations, a dependency on the hosting provider for performance and availability, and a certain limitation when it comes to getting the platform customized.
The On-Prem version on the other hand, gives businesses the flexibility to select their own hosting infrastructure, allowing them to create environments tailored to specific performance and security needs.
Integration with the Adobe Experience Cloud Suite is also possible, though it may require additional configuration and resources.
The customization benefit does not end here, as the version also enables extensive changes of the platform’s functionality and design. Businesses can adapt the platform to fit their unique workflows, such as integrating it with other third-party systems.
However, while the idea of complete control over the platform may sound ideal, it is most suitable for businesses with the technical expertise and resources to manage their server infrastructure, handle maintenance, implement updates, and ensure that security measures are in place.
Choosing an On-Prem version offers independence from a single hosting vendor, giving businesses more freedom in their operations. It isn’t necessarily more cost effective, but it surely reduces reliance on specific external hosting providers, giving owners the flexibility to choose what’s best, such as a setup exclusive to their business.
However, there are some important facts to consider. Managing infrastructure requires dedicated IT resources and a higher initial investment. Businesses are also fully responsible for overseeing security, backups, and system uptime, which can add to operational complexities. Furthermore, deploying an On-Prem solution typically takes longer compared to cloud-based options, which may delay the platform’s launch.
Fees Considerations
While fees for both versions are determined by the business’s annual Gross Merchandise Value (GMV) and Average Order Value (AOV), the fees for Adobe Commerce Cloud are a bit higher than the On-Prem counterpart.
Businesses with a GMV under $1 million can expect to pay an annual license that starts around $40,000. For businesses exceeding $25 million in GMV, fees start at around $190,000 per year.
Adobe Commerce On-Premise also operates on a tiered pricing model based on the same values. The annual license fees start at approximately $22,000 for businesses with a GMV below $1 million. As GMV increases, the costs rise accordingly, with businesses generating over $25 million in GMV potentially facing fees up to $125,000 per year. But what you have to take into account here are web hosting fees, which can add up to a few thousand euros per month and also the fees charged by your Magento development team.
Final thoughts
As a conclusion, while Adobe Commerce Cloud offers the convenience of a fully managed infrastructure and seamless scalability, it limits control over server configurations and makes businesses dependent on Adobe for performance and availability. On the other hand, while Adobe Commerce On-Prem provides complete control over the hosting environment and extensive customization capabilities, it demands significant technical expertise and ongoing management resources.
The choice between the two options is not one that should be taken lightly, especially in the current economic environment, where finding capable and trusted development agencies is harder than ever. The decision lies in aligning your business needs, technical capabilities, and long-term goals with the strengths of each solution.
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