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A Comparative Study of On-Premise vs. Cloud-Based Enterprise Systems: A Study of Businesses in Gombe State

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  • NGN 5000

Background of the Study

Enterprise systems are integral to modern businesses, offering solutions for resource planning, data management, and operational efficiency. Traditionally, organizations relied on on-premise enterprise systems, which involve deploying software and hardware within the physical premises of a company (Okoro & Hassan, 2023). However, with the rise of cloud computing, businesses have increasingly adopted cloud-based enterprise systems, which offer the flexibility of remote access, scalability, and cost efficiency (Bello & Umar, 2024).

On-premise systems provide organizations with greater control over their data and operations, making them appealing for industries with strict regulatory requirements. Conversely, cloud-based systems reduce the need for extensive IT infrastructure, allowing businesses to focus resources on core operations rather than system maintenance (Adeyemi et al., 2025). The choice between these two models depends on various factors, including business size, budget, data sensitivity, and technological readiness.

In Gombe State, businesses are gradually transitioning to cloud-based systems, but many still prefer on-premise solutions due to concerns about data security, internet reliability, and the costs of migration. A comparative analysis of these systems will provide valuable insights into their effectiveness, challenges, and the factors influencing their adoption.

Statement of the Problem

The decision to adopt on-premise or cloud-based enterprise systems is critical for businesses aiming to optimize operations and remain competitive. On-premise systems are often criticized for their high initial costs, maintenance requirements, and limited scalability, while cloud-based systems face challenges related to data security, internet dependency, and compliance (Yakubu & Sule, 2023).

Despite the global trend toward cloud computing, businesses in Gombe State encounter unique challenges that influence their system preferences. Factors such as poor internet infrastructure, data security concerns, and limited awareness of cloud technology contribute to slow adoption rates. There is a need to critically compare the two models to determine their suitability for businesses in this context.

Objectives of the Study

1. To compare the performance and efficiency of on-premise and cloud-based enterprise systems among businesses in Gombe State.

2. To identify the factors influencing the adoption of on-premise and cloud-based systems.

3. To evaluate the challenges and benefits associated with each system in the context of Gombe State.

Research Questions

1. What are the differences in performance and efficiency between on-premise and cloud-based enterprise systems in Gombe State?

2. What factors influence businesses in Gombe State to adopt on-premise or cloud-based systems?

3. What challenges and benefits are associated with on-premise and cloud-based enterprise systems in Gombe State?

Research Hypotheses

1. There is no significant difference in performance and efficiency between on-premise and cloud-based enterprise systems in Gombe State.

2. Factors influencing the adoption of enterprise systems differ significantly between on-premise and cloud-based models.

3. Challenges and benefits associated with on-premise and cloud-based systems significantly affect business performance in Gombe State.

Scope and Limitations of the Study

The study will focus on small, medium, and large businesses in Gombe State, analyzing their use of on-premise and cloud-based systems. Limitations may include difficulty accessing proprietary business data and respondents’ varying levels of knowledge about enterprise systems.

Definitions of Terms

• On-Premise Systems: Software and hardware installed within a company’s premises for exclusive use.

• Cloud-Based Systems: Enterprise solutions hosted on remote servers and accessed via the internet.

• Enterprise Systems: Integrated software solutions designed to manage business processes and data.

 





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