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On-Premise vs Cloud Deployment

Definition

When and why to deploy eKYC on-premise vs cloud — driven by regulation, data sovereignty, security requirements, and cost.


Comparison

Aspect Cloud On-Premise
Setup time Hours-days Weeks-months
Scaling Auto-scaling Manual capacity planning
Cost model OpEx (pay-as-you-go) CapEx (upfront hardware)
Data sovereignty Data in cloud provider's region Data in your own data center
GPU availability On-demand Fixed capacity
Maintenance Cloud provider manages Your team manages
Compliance SOC2, ISO 27001 (cloud) Full control for audit

When On-Premise Is Required

Driver Example
Regulation Government agencies requiring data within national boundaries
Military/defense Classified environments
Banking regulation Some jurisdictions require on-premise biometric processing
Data sovereignty Country without local cloud region
Latency Edge processing at border control points

Key Takeaways

Summary

  • Cloud is default for most eKYC — faster, cheaper, more scalable
  • On-premise when regulation demands it — government, defense, specific banking requirements
  • Hybrid is increasingly common — processing on-premise, management/updates from cloud
  • eKYC vendors that offer both deployment models have competitive advantage