In short
Cloud-managed networking runs switches, Wi-Fi and firewalls from a vendor-hosted dashboard on a subscription licence, with no controllers to maintain. Traditional on-premise networking uses local controllers and management servers that you install and patch. Cloud suits multi-site and lean IT teams; on-premise suits strict data rules and large in-house teams. Cisco now supports both.
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The short version
Both approaches use physical switches, access points and firewalls in your buildings. The difference is where the management lives.
- In a traditional (on-premise) network, you manage devices one by one, or through wireless controllers and management servers that you host, patch, back up and eventually replace.
- In a cloud-managed network, such as Cisco Meraki, the devices connect out to a dashboard the vendor hosts. You configure, monitor and update everything from a browser.
The right choice depends on your sites, your team and your requirements. The rest of this page compares the two so you can choose with confidence. If you are new to the terms, start with what is cloud networking.
Side-by-side comparison
| Cloud-managed (for example Meraki) | Traditional on-premise | |
|---|---|---|
| Management | Web dashboard hosted by the vendor, reached from any browser or the mobile app | Device interfaces, local controllers and management servers you run |
| Extra infrastructure | None on site for management | Controllers, management servers or appliances, plus their hosting and backups |
| Licensing | Licences covering every device for as long as it is managed; if they lapse, management stops | Often perpetual software plus a support contract, although many vendors now sell on-premise software as subscriptions too |
| Firmware updates | Scheduled from the dashboard per network or across the organisation | Downloaded, staged and applied by your team or partner |
| Visibility | Every site, device and client in one view by default | Depends on the tools you deploy and connect |
| Multi-site | Templates and site-to-site VPN built into the platform | Possible, but usually more design and tooling |
| If the vendor cloud is unreachable | Devices keep running on their last configuration; changes wait | No dependency on a vendor cloud for management |
| Data location | Management data held in the vendor's chosen region | Held wherever you host your management servers |
| Skills needed | Lower day to day; design still matters | Higher; specialist knowledge of the platform |
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Tell us what matters most to you and we will recommend one, with the trade-offs explained.
Management: dashboard vs controllers
On-premise wireless normally needs a wireless LAN controller, and larger networks add a management platform (for Cisco, Catalyst Center) to automate configuration and assurance. Those systems are powerful and give deep control, but they are infrastructure in their own right: they need hosting, high availability, patching, backups and eventually a hardware or software refresh.
With Meraki, the controller and management layer are the cloud. Access points, switches and appliances are claimed into a dashboard organisation, grouped into networks and configured from the browser. Many settings can be set once in a template and applied to every site. Our guide to the Meraki dashboard shows what that looks like.
Licensing and how you pay
This is the biggest practical difference. Every current Meraki device needs a valid licence to operate. Under co-term licensing, for example, Meraki allows a 30-day grace period when licences expire or the organisation is over its licence limit, after which networks shut down until they are licensed. Budget for licences for the life of the hardware, not just year one. Meraki offers subscription and co-termination models (per-device licensing is closed to new customers); our Meraki licensing models guide compares them and what happens when a Meraki licence expires covers the rules.
Traditional networks were usually bought with perpetual software and an optional support contract, so equipment kept working if support lapsed, although you lost updates and help. That gap is narrowing: Cisco now sells its networking software, including for Catalyst, through Cisco Networking Subscription, and other vendors have moved the same way. Compare the whole-life cost of each option, including the controllers, servers and staff time an on-premise design needs. We can price both for you; ask us for a quote.
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Firmware, updates and change
In a cloud-managed network, firmware is a scheduling job. Meraki lets administrators schedule upgrades per device type for each network, or in bulk across the organisation, and roll back a recent upgrade within 14 days. Meraki also runs upgrade campaigns that schedule updates for you with advance email notice, which you can move to a time that suits.
On premise, your team or partner downloads images, checks compatibility, stages upgrades and applies them, usually in maintenance windows. You keep full control of timing and versions, at the cost of more effort. Either way, testing upgrades on a small part of the network first is good practice.
What happens if the cloud is unreachable?
This is the question most people ask first. With Meraki:
- Traffic keeps flowing. Meraki's documentation says user data does not flow through the Meraki cloud, so losing the management connection does not stop local switching, Wi-Fi or routing.
- Devices run on their last known configuration. Meraki's cloud architecture documentation says devices continue with their last configuration until cloud connectivity is restored, then pick up any changes.
- Changes wait. You cannot push new configuration to a device until it can reach the cloud again, and dashboard monitoring for that site will be out of date meanwhile.
Meraki notes that loss of cloud connectivity is most commonly caused by a local internet provider or connection failure, so a backup link matters more than the dashboard. A cellular gateway or a second line keeps both users and management online. At design stage, it is also worth checking which features in your plan rely on cloud-hosted services, such as cloud-hosted sign-in pages for guest Wi-Fi.
Data residency and privacy
With a cloud-managed network, the vendor holds your management data: configuration, usage statistics, and some credentials if you use the vendor's own authentication. Meraki's documentation says customers choose the region their data is hosted in when the account is created, that Europe is one of its hosting regions (with its data centres in Germany), and that management data is replicated between independent data centres in the same region. Meraki also states that user traffic does not flow through its cloud.
Meraki also notes that organisations with networks in several regions create a separate organisation per hosting region. If you have specific contractual or regulatory requirements about where management data is held, raise them before your organisation is created; we can check the current options with you and point you to Meraki's own privacy and compliance documentation.
Cisco now offers both, on the same hardware
Cisco has blurred the line. Its Wi-Fi 7 access points (the Cisco Wireless family) and Cisco Smart Switches are designed so the same hardware can be managed in the Meraki cloud, in a mixed mode where devices are managed on premises but licences and inventory sit in the Meraki dashboard, or fully on premises with Catalyst Center. Those choices depend on Cisco Networking Subscription unified licences, and some families support only some modes so far. Select Catalyst switches can also be onboarded and managed in the Meraki dashboard.
So you can start cloud-managed and change later, or run a large campus on premises while branches use the cloud. See Cisco Meraki vs Catalyst, Meraki Wi-Fi 7 and Catalyst in the Meraki dashboard for the detail.
Which suits you?
Cloud-managed networking is usually the better fit when:
- you have several sites, or expect to grow
- your IT team is small, or you want a partner to help remotely
- you want one view of every device and client
- you would rather not run controllers or management servers
On-premise or mixed management is worth a look when:
- contract or regulation dictates where management systems must sit
- you run a large campus with an experienced network team that wants deep control
- you need to keep equipment running without a renewing licence
Forever Systems is a Cisco Partner and can design either model. Contact us and we can help you weigh it up for your sites. Back to the cloud managed networking overview.
Working with us on Cisco Meraki
Forever Systems helps organisations plan, buy and run cloud-managed networks built on Cisco Meraki wireless, switching, security and SD-WAN.
- Plan the network: we look at your sites, users and existing kit, and can arrange a wireless site survey before anything is ordered
- Choose the right products: access points, switches, security appliances, cellular gateways, sensors and cameras sized to what each site needs, rather than a one-size bundle
- Licensing made clear: we explain co-termination, per-device and subscription licensing, check renewal dates and quote the licences you need
- Deployment help: we can set up the Meraki dashboard, organisations, networks, templates and policies, and help move you from older or on-premise kit
- Ongoing help: changes, licence renewals and reviews as your sites grow, with the scope agreed at quote
Ask us for a quote and we will confirm what is included for your organisation.
Frequently asked questions
Is cloud networking better than traditional networking?
It depends on your sites and team. Cloud-managed networking is simpler to run across many sites and removes on-site controllers, but it needs a licence for every device for as long as you use it. Traditional on-premise networking gives you full control of the management systems and where data sits, at the cost of more infrastructure and specialist skills.
Does a Meraki network stop working if the Meraki cloud goes down?
No. Meraki says devices keep running on their last known configuration if they cannot reach the cloud, and user traffic does not pass through the cloud. You cannot make configuration changes until the connection is restored.
Is cloud-managed networking more expensive?
It depends on what you compare. Cloud-managed networks have ongoing licence costs but no controllers or management servers to buy, host and maintain. A fair comparison includes hardware, licences, support, management infrastructure and staff time over the life of the network. Ask us for a quote for both options.
Where is Meraki dashboard data stored?
Meraki lets customers choose the hosting region when the account is created, and Europe is one of its regions, served from data centres in Germany. Management data is replicated between data centres in the same region. Check the current options with us before your organisation is set up if data location matters to you.
Can I move from on-premise to cloud-managed later?
Often, yes. Cisco's Wi-Fi 7 access points and Smart Switches can run in cloud, mixed or on-premise mode with unified licences, and select Catalyst switches can be onboarded into the Meraki dashboard. Older on-premise equipment may need replacing; we can review your estate and suggest a path.
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