On-site: On-site hosting options require a dedicated physical space within your business in order to house data, servers, and essential security elements. Establishing on-site servers requires an upfront investment in order to install the equipment, as well as a dedicated team of IT personnel to maintain it over time.  Cloud-based: In contrast, cloud-based hosting platforms are remotely managed and maintained by a third-party provider without the need for a physical server. While cloud-based hosting platforms do not typically require an additional investment for setup, they do require a monthly or annual fee paid to the third-party hosting provider in order to render ongoing support.