The choice between a cloud-based identity verification solution and an on-premise option is often a challenging decision for technical leaders in many businesses and organisations.

While on-premise solutions provide a sense of greater control by hosting the technology within the client’s own infrastructure, the cloud-based SaaS model stands out as the more efficient and strategic choice—particularly in scenarios where scalability and cybersecurity are key priorities.

With this in mind, we aim to explore the differences between these two approaches, focusing on aspects such as security, operational costs, scalability, maintenance, and the benefits of each model.

Definition and key differences between Cloud and On-Premise

When it comes to identity verification solutions, the choice between cloud and on-premise is not just about where the infrastructure is hosted. It’s also about how resources are managed, how technology is updated, and the experience delivered to the end user.

On-Premise: Infrastructure controlled by the client

With an on-premise setup, the entire system is deployed, managed, and maintained within the client’s local infrastructure. This includes physical servers, networks, databases, and storage. While this model provides complete control, it also requires a significant upfront investment in hardware and software, as well as internal resources for ongoing system management.

Cloud. SaaS model

On the other hand, cloud-based solutions are hosted on servers managed by the identity verification technology provider (whether for digital onboarding or biometric authentication) and accessed via the Internet. In a SaaS (Software as a Service) model, clients don’t need to worry about the underlying infrastructure or managing updates, as the provider takes full responsibility for all technical aspects.

Practically speaking, cloud-based solutions offer clear advantages for most businesses, particularly when it comes to identity verification. As a result, few companies today choose to invest in maintaining their own infrastructure. Instead, those looking to replicate the on-premise model often do so within their own private cloud environment.

If we assume that a company can have its own cloud instead of a local infrastructure, there are two clear disadvantages when integrating a digital identity verification solution into its cloud environment:

• Lack of automatic updates, as the technology version becomes frozen.
• Complexity of maintenance and operation. If the infrastructure is managed and maintained by the provider, the solution can be optimised since the provider is an expert in configuring the cloud for their solution. 

Security and compliance: Cloud vs On-Premise

Security and compliance are crucial factors when evaluating identity verification solutions, especially for technical profiles such as CISOs, CIOs, and CTOs.

When comparing cloud and on-premise solutions with security standards in mind, we find that the SaaS cloud model provided by the provider not only meets the same security standards as on-premise systems, but often surpasses them.

Security in On-Premise systems

To maintain a truly secure on-premise system, businesses and public organisations need:

• Specialised personnel to continuously manage software updates, security patches, and threat monitoring. This also applies to cases where the organisation manages its own cloud.
• Constant investments in hardware and software to prevent technological obsolescence.
• Periodic cybersecurity testing, such as audits and attack simulations.

These requirements, along with the high level of technological expertise needed to maintain the systems, force companies to dedicate technology teams to tasks that fall outside the core business. Additionally, in institutions with limited resources or overburdened teams, any oversight, such as delays in applying critical patches, can create exploitable vulnerabilities for attackers. Moreover, on-premise systems often experience more downtime due to manual maintenance and update processes.

Security in Cloud systems: advantages of the SaaS Model

On the other hand, SaaS solutions managed in the cloud by the identity verification provider, such as Mobbeel, adopt a proactive approach to security. By centralising infrastructure, the provider can implement advanced measures and maintain continuous monitoring that would be costly or impractical for an individual client.

Some of the main advantages of the cloud model in terms of security include:

• Automatic and real-time updates: All security improvements, patches, and updates are applied immediately and without service interruptions, significantly reducing the risk of exposure to vulnerabilities.
• Constant threat monitoring: SaaS environments have dedicated security teams and advanced tools such as AI-based anomaly detection and forensic analysis. This enables the identification and mitigation of potential threats before they affect clients.
• End-to-end data encryption: Both data in transit and data stored are protected with advanced encryption standards (e.g., AES-256) and secure protocols like TLS 1.3.

Compliance Certifications

SaaS providers often comply with internationally recognised certifications, such as:

• ISO 27001: Information security management.
• SOC 2: Security, availability, and data integrity controls.
• GDPR: General Data Protection Regulation for clients in the EU.

This approach frees the client from the burden of ensuring compliance, as the technology provider assumes responsibility for auditing, updating, and maintaining certification compliance.

Consider the following examples:

• On-Premise solution: A company implements an on-premise identity verification solution. Each time a new vulnerability is detected, the internal team must plan the patch, test the changes in a pre-production environment, and finally deploy the update. This process can take days or even weeks, leaving systems exposed.
• SaaS solution: With a cloud-based SaaS solution like Mobbeel’s, patches are automatically applied within hours, ensuring systems are always protected against the latest threats without requiring client intervention.

What about highly regulated environments that do not allow the SaaS model?

While cloud solutions have advanced significantly, some highly regulated sectors (e.g., public organisations, banking, healthcare) remain hesitant towards the SaaS model, citing concerns over data location or external access. However, SaaS providers address these challenges by:

• Region-specific clouds: Ensuring that data stays within the required jurisdictions by law.
• Advanced access controls: Implementing multi-factor authentication (MFA) and role-based access control (RBAC) policies.

Cloud operating costs vs On-Premise

While on-premise solutions may initially seem attractive, their long-term hidden costs far outweigh those of the cloud model.

Initial and recurring costs for On-Premise

The on-premise model requires significant upfront investment in hardware, software licenses, facilities, and technical staff. Additionally, recurring costs include:

• Hardware maintenance: Replacement and upgrading of servers.
• Technical support: Specialised teams to keep the infrastructure operational.
• Energy and physical space: Electricity consumption and costs associated with equipment storage.

These tangible costs are compounded by intangible ones:

• Service interruptions due to updates and technical failures.
• Delays in strategic projects as resources are diverted to system maintenance.

Cloud Costs

In contrast, the SaaS model offers predictable and optimised cost structures. With a consumption-based subscription system, businesses eliminate the need for upfront infrastructure investment and drastically reduce ongoing expenses.

Key advantages:

• No initial investment: All underlying hardware and software are the provider’s responsibility.
• Optimised human resources: Internal teams can focus on strategic tasks rather than maintaining outdated systems.
• On-demand scalability: You only pay for the resources you use, avoiding unnecessary costs for unused capacity.

Cloud solution scalability

Scalability is one of the core advantages of the cloud model, especially for identity verification solutions that may experience drastic variations in usage with significant demand spikes. For example, a large-scale marketing campaign requiring mass user onboarding or high-demand periods, such as tax season or the launch of a new product.

Advantages of Scalability in SaaS:

• Vertical and Horizontal Scalability: Cloud solutions allow for the increase of resources (vertical scalability) or the addition of additional nodes (horizontal scalability) without interrupting the service. This ensures a seamless experience for both end-users and administrators.

• High Availability: Cloud solutions are built with redundant architectures that guarantee near 100% availability, eliminating the possibility of disruptions that could frustrate users.

• Pay-as-you-go: This is ideal for businesses with fluctuating needs, as it avoids costs associated with underutilised infrastructure. Costs are directly linked to usage. If a company requires more capacity for a specific period, it can temporarily scale up without making permanent investments.

• Multinational Flexibility: Cloud solutions make it easy to operate across multiple regions, with distributed servers that minimise latency and comply with local regulations.

In the case of on-premise, scalability requires prior investment in additional hardware, which is not only expensive but also involves significant time for installation, configuration, and testing. Moreover, if capacity predictions fail, it can result in unnecessary over-provisioning or interruptions due to a lack of resources.

Actomatic updates in the Cloud

Continuous updates are crucial in identity verification, where algorithms and authentication techniques are constantly evolving to respond to new threats and identity fraud, such as deepfakes or injection attacks, while simultaneously improving user experience.

Updates and technological enhancements are implemented centrally and transparently for clients, with no need for new integrations or updates to environments, APIs, or SDKs. This means that all clients have immediate access to new functionalities.

For example, a SaaS solution like Mobbeel can deploy new biometric algorithms in real-time to improve facial recognition accuracy or life detection, changes that enable compliance with regulatory updates or enhancements that optimise process speed.

In contrast, with an on-premise solution, updates must be managed manually by the client, and support must be coordinated with the provider to ensure they are implemented correctly. However, clients will never have access to real-time updates or patches.

Customer experience and integration times

In a market where customer experience can be the differentiator between success and failure, the ability to quickly integrate an identity verification solution and offer a seamless experience is critical. In this regard, the SaaS model in the provider’s managed cloud greatly outperforms the On-Premise approach, whether on private infrastructure or cloud.

Quick integration in the cloud environment

Deploying on-premise solutions involves several stages, which, although necessary, are inherently slow, such as hardware and equipment procurement for on-prem infrastructure, server configuration, software installation, compatibility testing, and training technical staff. This process can take months before the solution is fully operational.

On the other hand, SaaS solutions in the cloud offer a much shorter integration time thanks to their plug-and-play design and pre-tested, ready-to-use architecture. In many cases, the solution can be fully operational in a matter of days or weeks, depending on the client’s specific needs.

Integration with Docker

In the case of a deployment in the client’s cloud, there is an option to shorten integration times by installing a Docker image.

Docker is a containerisation platform that allows you to package, distribute, and run applications in an isolated environment called a container. These containers include everything an application needs to run, including code, dependencies, libraries, and configurations, ensuring consistent execution across any environment, regardless of the underlying operating system or infrastructure.

Thanks to Docker containers, the integration time of a digital identity solution can be significantly shortened, although it will still be longer than using the provider’s SaaS. Additionally, to benefit from any update, a new image would need to be installed.

Conclusion

The choice between On-Premise and SaaS cloud-based solutions for identity verification is a strategic decision with significant implications for operations, security, and the customer experience. While the On-Premise model may be suitable for certain organisations with specific requirements, the provider-managed SaaS cloud model offers overwhelming advantages in terms of:

• Automatic and transparent updates
• Scalability to meet demand
• Reduced operational costs
• Advanced security and automated regulatory compliance
• Optimised end-user experience
• Quick integration and continuous access to technological improvements

In a competitive market, businesses need agile, secure solutions that minimise operational costs. Cloud-based SaaS solutions, like those offered by Mobbeel, allow organisations to stay at the forefront of innovation without the complexities of managing their own infrastructure.

Ready to make the leap to the SaaS model? Contact our team for a personalised demo and discover how our cloud solution can transform identity verification in your organisation.

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Identifica a tus usuarios mediante su cara

En esta dualidad analógico-digital, uno de los procesos que sigue siendo crucial para garantizar la seguridad es la verificación de identidad a través del reconocimiento facial. La cara, siendo el espejo del alma, proporciona una defensa única contra el fraude, aportando fiabilidad al proceso de identificación.