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Complete Differences Between Drake Tax Software Hosting vs On-Premise. Which is a Better Option in 2026?
If you are a business firm, a tax professional, or an accountant, you know how it feels when peak tax season arrives: tight schedules and constant client calls and updates. But how can you be confident in this situation? Of course, rely on your software. And this is where Drake tax software comes in, and learn the difference between Drake tax software hosting vs on-premise. Which one is a better option for you all?
Drake software is a powerful accounting and taxation tool designed to streamline workflow. If you are still deciding whether Drake tax software hosting or on-premises software is better, hold off. Of course, many on-premises desktop users feel tied to their devices and have less flexibility, whereas hosting Drake Tax software provides remote access anywhere, anytime.
Through this blog post, we will showcase all the differences between Drake tax software hosting vs on-premise desktop software and which is best for your business.
Drake Tax Software Hosting or On-Premise? A Complete Comparison Table
| Drake On Cloud | Drake On-premise (Desktop) | |
| Foundation | Hosted on the cloud servers | Installed on your local device |
| Access | Anywhere, anytime access, no matter where you are. | Limited access, you are tied to your device for any work |
| Security | Highly secure with encryption, TFA, MFA, and Firewall protection | It is secure, but you have to regularly update and maintain the security |
| Updates, Upgrades, and Maintenance | A cloud hosting provider like Sagenext will handle everything. | You need a dedicated IT team to ensure compliance with all these parameters. |
| Costing | Drake tax software hosting is affordable. | The one-time license may be considered cheap, but the overall operational and maintenance costs are much higher. |
| Productivity & Team Collaboration | In cloud hosting, productivity and & team collaboration increase as you can collaborate with any client and teammates on the go | In the on-premises version, you are tied to a device location. If you need to collaborate immediately but are not near your device, your productivity and team collaboration will be limited. |
At a Glance: Drake Tax Software Hosting vs On-premise Differences
| On-Premise | Drake Software Hosting on Cloud |
| No remote access | Remote access, from anywhere, anytime |
| Not very flexible | Flexible due to cloud access |
| The risk of a security breach is very high | Risk of a security breach is there, but it is a secure platform |
| High IT costs | No IT Costs, everything handled by hosting providers |
| Can become challenging to scale when needed | Drake tax software hosting can be scaled and de-scaled when needed |
| Overall costing may be high | Affordable solution with added advantage |
Concluding Lines
There has always been a comparison between Drake tax software hosting vs on-premise. Which is better, which is good for business, and so forth. The comparison is clear: Drake hosting offers significant flexibility, remote access anywhere, anytime, team collaboration, affordability, and ease of management. On the other hand, the on-premises desktop version of Drake is somewhat limited in flexibility; you are tied to your device, have higher maintenance costs, and more. Drake tax software hosting is preferred by CPAs, tax professionals, firms, and accountants. Why are you waiting? Get your Drake securely hosted on the cloud.
For more information on Drake software, Lacerte software, and UltraTax, read our blogs.
FAQs (Frequently Asked Questions)
What is the difference between hosted and on-premise?
The main difference between hosted and on-premises Drake software is that the former is installed and hosted in the cloud, with remote access from anywhere, while the on-premises version is installed on a local computer and offers limited flexibility and access.
Is Drake tax software cloud-based?
Drake software is installed on your local device. To go cloud-based, you need to use Drake Online or get a cloud hosting provider like Sagenext to take your Drake tax software to the cloud server for anytime, anywhere access.
Can I use Drake tax software on multiple computers?
With Drake hosting, you can use it on multiple computers because the software runs on a cloud server, and anyone can access the platform from anywhere, anytime.
Is on-premises becoming obsolete?
No, on-premises is not becoming obsolete, but more and more businesses, professionals, and CPAs are migrating to cloud-based tax software hosting solutions.
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