With cloud-first strategies dominating manufacturers’ roadmaps, the question arises: are we approaching the end of on-prem databases?
The database industry is undergoing a significant transformation. For decades, on-premise solutions have provided IT teams with control and customisation. While cloud databases offer undeniable benefits, this shift raises concerns for organisations relying on tailored, in-house infrastructure. Is this the decline of on-premise databases, or simply a shift in focus?
THE SHIFT TOWARDS DATABASES IN THE CLOUD
Cloud has become the primary focus for database manufacturers. Oracle’s latest release, version 23ai, is exclusively available in the cloud unless deployed on specific hardware like Oracle Database Appliance (ODA) or Exadata. This limits the upgrade options for businesses that want to incorporate the latest features into their existing infrastructure.
For now, Oracle 19c remains the most recent on-premise-compatible version. Interestingly, in a surprising move, Oracle recently pushed out its Premier Support timeline for 19c until December 2029, with Extended Support lasting until the end of 2032. That gives 19c a longer supported lifetime than that of 23ai, which now has Premier Support until 2031, but apparently no plans for Extended Support. This suggests that Oracle has realised that many organisations aren’t yet ready – or willing – to adopt cloud-only solutions like the 23ai database right now. Rather, they’re happier to stick with a version of Oracle database to which they’re familiar with.
The inclusion of artificial intelligence features in Oracle 23ai might seem forward-looking, but Richard Dewes, Head of Database Architecture at Xynomix, remains sceptical.
Given the prospect of limited tangible benefits, not to mention the complexities involved in database migration, many organisations are sticking with Oracle 19c.
Observations in the Microsoft space paint a similar picture. SQL Server 2022 initially underwhelmed users, in failing to deliver on key promised features. With the recent announcement of SQL Server 2025, much of the announced ‘new’ functionality either already exists in Azure SQL Database or is being previewed there. This announcement fuels speculation that Microsoft is prioritising its cloud platform over advancing on-premise database solutions.
WHY VENDORS PREFER CLOUD OVER ON-PREM DATABASES
From a business perspective, the shift towards the cloud makes sense – for the cloud vendors, at least. Subscription-based models offer manufacturers predictable, recurring revenue, replacing the lumpy revenue stream associated with selling traditional on-premise hardware and licences.
For their customers, however, this change presents new challenges. Gavin Harris, Technical Manager at Xynomix, highlights a critical concern:
Increased total costs are another consideration. While subscription models may benefit those organisations with short-term or variable requirements, along with those who prefer to prioritise Opex over Capex budgeting; others find the long-term costs of cloud services exceed the traditional model of purchasing and maintaining infrastructure outright.
As in many rent-vs-buy decisions, the lifetime total cost of ownership that’s associated with on-premise solutions can sometimes be considerably lower, when compared with longer-term cloud subscriptions.
DOES ON-PREMISE STILL HAVE A PLACE?
Despite the rise of cloud solutions, on-premise databases still meet the needs of many organisations. Businesses with regulatory compliance requirements, legacy applications, or strict budget constraints often find it difficult to justify migrating to the cloud.
Shifting database environments to the cloud is not always straightforward. It can require careful planning to balance platform costs and application performance, whilst ensuring business continuity. For many organisations, custom on-premise configurations remain a reliable option, offering control and flexibility that cloud services cannot match.
However, with fewer updates and innovations being offered for on-premise setups, their long-term viability is uncertain. The trend is clearly moving towards cloud-first development, leaving IT decision makers with the headache of carefully weighing their options.
What Does This Mean for IT Leaders?
For IT Managers and Database Administrators alike, the decision to embrace the cloud, maintain on-premise systems, or adopt a hybrid approach is complex. Each path carries significant technical and financial implications.
Organisations must consider how their database infrastructure aligns with long-term business goals. The transition to cloud solutions may be inevitable for some, while others will need to optimise their existing on-premise systems to maximise their lifespan.
This is where Xynomix can help. As both an experienced Oracle Partner and Microsoft Partner, we understand the database challenges organisations face. Whether you are preparing for a future in the cloud or looking to extend the life of your on-premise systems, we provide tailored solutions to meet your needs.
Navigating these challenges alone can be overwhelming. Contact Xynomix today for expert guidance on the future of your database infrastructure. Together, we’ll find the solution that works best for your business.
