Cloud vs. On-Premises Video Analytics: How to Choose the Best Deployment for Your Security Needs

In today’s ever-changing technology landscape, organizations have the flexibility to choose between cloud vs. on-premises video analytics deployments for their security needs. This choice, while advantageous, can also lead to confusion due to industry jargon and the wide range of available solutions. This article clarifies the differences between cloud-based video analytics and on-premises video analytics, empowering you to make an informed decision that aligns with your organization’s security goals.

Understanding Cloud vs. On-Premises Video Analytics

Did you know that your organization can decide where to host their video analytics technology?

Cloud-Based Video Analytics: Hosted on a vendor’s secure cloud infrastructure.

On-Premises Video Analytics: Stored and managed locally on the customer’s servers.

Each approach offers distinct advantages depending on your organization’s infrastructure, security requirements, and budget. According to recent trends, the cloud security market is expecting a compound annual growth rate (CAGR) of 25.04% from 2025 to 2029 (Statista), driven by demand for scalability, remote access, and AI-driven analytics. The good news? Both cloud and on-premises solutions provide powerful benefits and can adapt to evolving business needs.

Security & Compliance in Cloud vs. On-Premises Video Analytics

Both cloud-based video analytics and on-premises deployments can support high levels of security and compliance. The primary difference is who manages these requirements. With cloud-based deployment, the software provider is the one responsible for meeting data protection standards such as GDPR, ISO 27001, and SOC 2 compliance. Organizations must verify that their vendor maintains strict security protocols, including end-to-end encryption and access controls. In contrast, on-premises deployment must assume responsible for all security, compliance, and IT management internally, ensuring that data remains fully under their control. Both options have certain benefits based on your unique organization.

Benefits and Challenges of On-Premises Video Analytics

For organizations that require full control over their video surveillance infrastructure, on-premises video analytics provide several key advantages:

• Full IT Control: Organizations manage all configurations, system updates, and data storage independently.
• Reliable Connectivity: Video content remains on the local network, avoiding latency and bandwidth issues that cloud solutions may face.
• Customizable & Scalable: On-premises solutions offer the flexibility to customize deployments based on specific security needs.

On-Premises Deployment Challenges

• • High Upfront Costs: Requires investment in servers, hardware, and IT personnel for maintenance.
  • Resource-Intensive Management: Dedicated IT teams are needed to monitor, update, and secure the system.
  • Scalability Challenges: Expanding storage or processing capabilities may require significant additional investments.

Benefits and Challenges of Cloud-Based Video Analytics

For organizations that need more ease and scalability in their video surveillance deployments, cloud-based video analytics are gaining popularity due to several business advantages:

• Fast & Easy Deployment: No need for on-site hardware, enabling quick implementation and remote access.
• Cost Efficiency & Scalability: Subscription-based pricing reduces capital expenditures and enables flexible scaling.
• Automated Updates & Maintenance: The vendor manages software updates, security patches, and system performance.

Cloud-Based Deployment Challenges

• • Internet Dependency: Requires stable, high-bandwidth connectivity for optimal performance.
  • Privacy & Data Concerns: Some organizations prefer on-premises storage for sensitive video footage.
  • Recurring Costs: While cloud solutions reduce hardware expenses, they involve ongoing subscription fees.

Making the “Right for You” Choice: Cloud vs. On-Premises Video Analytics

There is no one-size-fits-all solution when it comes to video surveillance deployment. Your decision should be based on these main considerations:

Infrastructure and IT Resources: Do you have an in-house IT team to manage on-premises video analytics, or do you prefer a cloud-hosted solution with vendor support?

Budget and Cost Strategy: Are you looking to minimize capital expenditures (CAPEX) with a subscription-based cloud model, or do you prefer to invest in on-premises hardware for long-term control?

Security & Compliance Needs: Do you have strict data security policies that require keeping video footage on-premises, or are you comfortable with secure cloud storage and third-party data management?

Maximizing the Value of Video Analytics

Regardless of whether you choose cloud vs. on-premises video analytics, the key is to maximize the value of your video investments, so you see measurable return. Check out this report by OMDIA and learn how diverse organizations are achieving rapid ROI on their video analytics investments!

This post was originally published in April 2020, and has been refreshed and updated for accuracy.