Hosted vs On-Premise Banking Platforms
The main difference is not simply where the software runs. It is how infrastructure, maintenance, security, availability, staffing, and commercial responsibilities are allocated.
| Consideration | Managed hosted platform | On-premise platform |
|---|---|---|
| Infrastructure | Hosted environment is operated within an agreed managed-service scope. | The institution or its infrastructure provider operates the environment. |
| Maintenance | Platform and hosting maintenance responsibilities can be combined. | The institution coordinates application, operating system, database, network, and hardware maintenance. |
| Commercial model | Often recurring and tied to platform and operational scope. | May involve licenses, infrastructure acquisition, internal staffing, and separate support. |
| Control | Control is exercised through contractual scope, configuration, access, and oversight. | Direct infrastructure control is greater, but operational responsibility is also greater. |
| Scalability and resilience | Adjusted through the hosting architecture and service scope. | Requires internal capacity planning, procurement, deployment, and operational skills. |
| Security responsibility | Shared across the platform provider, hosting services, and institution. | Primarily managed by the institution and its contracted infrastructure providers. |
Operational responsibilities can be consolidated
A managed hosted model can reduce vendor fragmentation by combining platform access, environment operation, maintenance, monitoring, patching, backups, and support in one framework.
Infrastructure control can remain directly internal
On-premise deployment may suit institutions with established data centers, security operations, database administration, application support, and regulatory requirements that demand direct infrastructure ownership or control.
Bansoft is a managed hosted service
Bansoft is positioned around dedicated hosted deployment and managed operations, not as a public on-premise licensing offer. Commercial and technical scope is confirmed before deployment.
Compare total operating responsibility
- Internal infrastructure and security skills
- Availability and recovery objectives
- Regulatory and data-location requirements
- Integration and network dependencies
- Procurement preference for capital or operating expenditure
- Need for direct versus contractually governed control
Related Bansoft resources
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