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There are several ways to look at this so the best option may be different for each business depending on their financial strategy and technical expertise.

Cloud:  Requires less up front cost, but the monthly costs will be more over time

On Prem:  This is the higher priced option.  You are responsible for the setting up and maintaining the technology.  You would only be charged for the annual software maintenance agreement that gives you access to support, software updates, and fixes.

Hybrid:  Requires more up front compared to cloud, but monthly costs are significantly less