Face Recognition API: Cloud vs. On-Prem – Which Wins?

Face recognition technology is gaining traction in a variety of use cases from security and access control to marketing automation and customer behavior analytics.

When implementing face recognition, one critical decision stands out: choosing between cloud (SaaS) or on-prem (self-hosted) solutions.

Having guided numerous clients as the Product Manager at 3DiVi, I’ve seen both solutions succeed in different scenarios. Here’s a concise breakdown to help you decide which option better fits your business.

Total Cost of Ownership 💰

Cloud: Operates with costs depending on usage (e.g., number of queries, data volume). This minimizes upfront investment but can increase expenses as usage grows. Sounds great until your data grows faster than your company’s budget :)

On-prem: Requires significant upfront investment, including hardware purchase or lease, installation, configuration, monitoring, backups, and team training. However, operational costs remain stable over time, making them more predictable.

Pricing 💸

Cloud: Typically follows a pay-as-you-go model, charging based on transactions, data usage, or other metrics. This is cost-effective for moderate usage but becomes expensive as needs grow.

On-prem: Often involves perpetual or annual licensing fees. While requiring a larger initial investment, they avoid recurring payments and allow for better long-term cost control. Some vendors also offer revenue-sharing models, which are more common for on-premise solutions.

Data Security 🔐

Cloud: Offers strong security standards, and for most projects, the inability to control risks from third-party data transfers isn't a major concern.

On-prem: Provides full control over data leakage risks, but require an experienced team of administrators and cybersecurity engineers. For organizations with high-security needs, platforms designed with versatile deployment options, like our Omni Platform, allow for smooth integration into secure, localized environments.

Regulatory Compliance 📝

Some countries have data localization laws that mandate the storage of personal data within the country, as well as restrictions on cross-border data transfers. For example, such regulations exist in the EU (GDPR), Brazil (LGPD), and Turkey (KVKK). Additionally, 3DiVi experts see a growing trend for similar requirements in many countries worldwide.

Cloud: Some cloud providers allow clients to choose the regions where data storage and processing servers are located.

On-prem: Since the infrastructure is hosted on-site, companies have complete control over where data is stored and processed, which can be crucial for meeting strict data localization laws. In some cases, it may be the only viable option to comply with these requirements.

Availability 🌐

Service availability may be impacted by the following risks:
Service stability on the provider's side
Internet connection stability
Service-related limitations (e.g., payment issues, request limits, account blocks due to policy violations or sanctions)

Cloud: Businesses do not have direct mechanisms to protect against these risks. They are dependent on the cloud provider’s infrastructure and external factors such as internet connection or service policies, which can result in service downtime or interruptions.

On-prem: Provides full control over system availability, which enables businesses to ensure high uptime with the right expertise, but requires an expert administrative team and ongoing costs to maintain that level. Because why just rely on someone else when you can rely on yourself—until your servers decide they need a vacation too?

Service discontinuation: While large vendors like Amazon or Microsoft are less likely to discontinue service, smaller vendors might face challenges that could result in service termination within 3-5 years.

Flexibility and Customization ⚙️

Cloud vs On-prem:

Both cloud and on-prem solutions can be tailored to fit specific business needs, including:

Additional features
Custom licensing terms and business models
Mitigating vendor lock-in, particularly regarding support and modification options

While these factors aren't strictly dependent on the supply model, on-premises solutions typically offer greater flexibility in meeting these requirements.

Updates and Support 🔄

Cloud: Automatically updated by the provider, ensuring access to the latest features without additional effort. It doesn't incur extra costs, but may cause issues, like needing to adapt the system due to old API version support ending.

On-prem: Requires internal resources for updates and maintenance, offering full control over the process and avoiding disruptions from unforeseen updates.

Conclusion

Cloud solutions:

✅️ Best for startups or smaller teams, offering lower upfront costs, high availability, and strong data security.

❌ Come with risks related to service availability and data security that may not be a significant concern for smaller businesses.

On-prem solutions:

✅️ Provide greater control over availability, security, and compliance, making them ideal for larger businesses with complex needs or stringent privacy requirements.

❌ Require significant initial investments and specialized administrative expertise.

Got questions? Feel free to reach out to me on LinkedIn. I’d be happy to share insights or discuss how face recognition tech can work for you. Let’s connect!