Decision FrameworkPrintable PDFFree Download

Cloud vs On-Prem
Decision Framework

A structured approach to workload placement decisions. Five questions, six migration strategies, TCO comparison, and a risk checklist — everything an architecture review board needs.

Download the PDF

2-page printable reference. Decision flowchart, 6R strategies, TCO bars, and risk checklist — landscape A4.

Download PDF

Cloud vs On-Prem 5-question decision flowchart — Decision flowchart: five sequential questions that determine the optimal placement for each workload

The 5 Decision Questions

Q1. Does data sovereignty or regulation require on-premises?

YES → On-Premises (regulated/sovereign)NO → Continue

Q2. Is ultra-low latency needed (<1ms, real-time OT)?

YES → Edge / On-Premises (latency-critical)NO → Continue

Q3. Does demand vary >3x between peak and baseline?

YES → Cloud-Native (elastic workload)NO → Continue

Q4. Is this a competitive differentiator or a commodity workload?

YES → Cloud PaaS/IaaS (build + innovate)NO → Continue to SaaS check

Q5. Does a SaaS product exist that meets requirements?

YES → SaaS — buy, don't buildNO → Cloud IaaS (standard hosting)

6R Migration Strategies

Retain

Keep on-prem. Regulatory, latency, or legacy constraints.

Effort: NoneValue: Risk avoidance

Retire

Decommission unused or redundant applications.

Effort: LowValue: Cost savings

Rehost

Lift & shift. VM to cloud IaaS with no code changes.

Effort: LowValue: Low-medium

Replatform

Lift & optimize. Adopt managed services (RDS, managed K8s).

Effort: MediumValue: Medium-high

Refactor

Re-architect for cloud-native. Containers, serverless, event-driven.

Effort: HighValue: Highest

Repurchase

Replace with SaaS product (Salesforce, Workday, ServiceNow).

Effort: MediumValue: High

Total cost of ownership comparison between cloud and on-premises over 5 years — TCO comparison — on-premises cost structure (CapEx-heavy) vs cloud (OpEx, pay-per-use)

Risk Checklist

Review these eight risk dimensions before committing to any workload placement decision:

☐Data sovereignty: Where will data physically reside? Which jurisdiction governs it?☐Vendor lock-in: Can you move to another provider within 6 months if needed?☐Egress costs: What is the monthly data transfer volume? Model actual egress charges before committing.☐Skills gap: Does the team have cloud-native skills, or will significant retraining be needed?☐Integration: How will cloud workloads connect to remaining on-premises systems?☐Compliance: Do contracts, auditors, and regulators accept cloud hosting for this workload?☐Disaster recovery: Is the cloud DR strategy documented, validated, and tested?☐Exit strategy: What is the documented plan if the cloud vendor relationship ends?

Need help with your cloud strategy?

Our enterprise architecture consulting and TOGAF training help organizations make structured, evidence-based infrastructure decisions.

TOGAF Training EA Consultancy Get in Touch

Cloud vs On-PremDecision Framework