In today’s data-driven world, businesses increasingly rely on cloud-based services for analytics, automation, and business intelligence. However, a significant portion of valuable enterprise data still resides on-premises, within local servers and databases. This creates a critical challenge: how can organizations securely and efficiently connect their on-premises data with powerful cloud applications? The answer lies in a crucial piece of infrastructure known as the on-premises data gateway.

This article provides a comprehensive overview of on-premises data gateways, explaining what they are, why they are important, how they work, and their key benefits and limitations. We will also explore common use cases and how modern project management platforms like ONES.com offer flexible solutions for data integration and security.

ONES.com, All-in-One Project Management Platform
Try for Free

What is an On-Premises Data Gateway?

An on-premises data gateway is a software application installed on a local server within an organization’s private network. It acts as a secure bridge, facilitating the transfer of data between on-premises data sources (like SQL Server, Oracle databases, or local files) and various Microsoft cloud services, including Power BI, Power Automate, Power Apps, and Azure Logic Apps [1].

Think of the gateway as a secure courier that picks up data from your local servers, encrypts it for safe passage, and delivers it to the cloud for analysis and processing. This allows organizations to keep their sensitive data within their own network while still leveraging the advanced capabilities of cloud-based applications.

ONES.com, All-in-One Project Management Platform
Try for Free

Why On-Premises Data Gateways Matter

The primary importance of an on-premises data gateway lies in its ability to securely unlock the value of on-premises data for cloud services. Many organizations are hesitant to move their entire data infrastructure to the cloud due to security concerns, compliance requirements, or data sovereignty regulations. Data gateways address these concerns by ensuring that data transfer is encrypted and that access is tightly controlled, without requiring organizations to expose their internal databases directly to the internet.

By enabling this secure connection, gateways empower businesses to:

  • Create comprehensive reports and dashboards in Power BI using real-time on-premises data.
  • Automate workflows in Power Automate that involve both cloud and on-premises systems.
  • Build powerful applications in Power Apps that can read and write data to local databases.
ONES.com, All-in-One Project Management Platform
Try for Free

How an On-Premises Data Gateway Works

The architecture of an on-premises data gateway is designed for security and efficiency. The process involves several key components and a secure communication flow:

  1. Query Initiation: A user in a cloud service like Power BI initiates a query for on-premises data.
  2. Gateway Cloud Service: The query is sent to the Gateway Cloud Service, which manages and routes the request.
  3. Azure Service Bus: The Gateway Cloud Service uses the Azure Service Bus to securely send the query to the appropriate on-premises data gateway installed on the local network [2]. This communication happens over an outbound connection, meaning no inbound ports need to be opened on the organization’s firewall.
  4. Gateway Processing: The on-premises data gateway receives the query, decrypts it, and connects to the specified on-premises data source (e.g., SQL Server).
  5. Data Retrieval and Transfer: The gateway executes the query on the local data source, retrieves the results, encrypts them, and sends them back to the Gateway Cloud Service via the Azure Service Bus.
  6. Cloud Service Response: The Gateway Cloud Service then forwards the results to the requesting cloud service, where they are presented to the user.

This entire process ensures that data is encrypted both in transit and at rest, and that the on-premises network remains secure.

Component Role Security Feature
Cloud Service Initiates data queries (e.g., Power BI, Power Automate) User authentication and authorization
Gateway Cloud Service Manages and routes queries between cloud services and on-premises gateways Secure connection management
Azure Service Bus Provides a secure messaging channel for communication between the cloud and the on-premises gateway Encrypted communication channel
On-Premises Gateway Decrypts queries, connects to local data sources, and encrypts results for transfer to the cloud Credential encryption and secure data handling
On-Premises Data Source Stores the actual data (e.g., SQL Server, Oracle) Local network security and access controls
ONES.com, All-in-One Project Management Platform
Try for Free

Types of On-Premises Data Gateways

Microsoft offers different types of gateways to suit various scenarios:

  • On-premises data gateway (standard mode): This is the most common type, designed for enterprise use. It allows multiple users to connect to multiple on-premises data sources and can be used with all supported cloud services. This mode is ideal for complex scenarios where data access needs to be shared across teams and applications.
  • On-premises data gateway (personal mode): This mode is designed for individual users and can only be used with Power BI. It allows a single user to connect to on-premises data sources for their own reports and cannot be shared with others.
  • Virtual network (VNet) data gateway: This is a Microsoft-managed service that allows multiple users to connect to data sources secured within an Azure Virtual Network. It eliminates the need to install and manage a gateway on a local server.
ONES.com, All-in-One Project Management Platform
Try for Free

Benefits of On-Premises Data Gateway

The primary benefits of using an on-premises data gateway include:

  • Enhanced Security: Keep sensitive data on-premises while securely accessing it from the cloud.
  • Real-time Data Access: Enable real-time analytics and reporting on the most up-to-date on-premises data.
  • Centralized Management: Manage and monitor data connections for multiple cloud services from a single gateway.
  • Improved Performance: The gateway can cache credentials and optimize data transfer for better performance.
ONES.com, All-in-One Project Management Platform
Try for Free

Limitations and Considerations

While powerful, on-premises data gateways have some limitations to consider:

  • Payload Limits: There are limits on the size of data that can be transferred through the gateway (e.g., 2MB for write operations) [2].
  • Performance Overhead: The gateway introduces an additional step in the data retrieval process, which can impact performance for very large datasets.
  • Maintenance: The gateway software needs to be kept up-to-date to ensure security and compatibility with the latest cloud service features.
ONES.com, All-in-One Project Management Platform
Try for Free

Use Cases for On-Premises Data Gateway

On-premises data gateways are used in a wide range of scenarios, including:

  • Business Intelligence: A retail company can use a gateway to connect its on-premises sales database to Power BI, allowing analysts to create real-time sales reports and dashboards.
  • Workflow Automation: An HR department can use Power Automate and a gateway to create a workflow that automatically updates an on-premises employee database when a new employee is onboarded in a cloud-based HR system.
  • Application Development: A development team can build a Power App that allows field technicians to update customer information in an on-premises CRM system directly from their mobile devices.
ONES.com, All-in-One Project Management Platform
Try for Free

ONES.com: Flexible Data Integration Solutions

For organizations seeking comprehensive project management solutions that prioritize data security and flexible deployment, ONES.com offers a powerful alternative. While on-premises data gateways provide a bridge to the cloud, ONES.com allows organizations to keep their entire project management environment on-premises, eliminating the need for a separate gateway for project data.

ONES.com provides:

  • On-Premises Deployment: Maintain full control over your project data by hosting ONES.com on your own infrastructure.
  • Enterprise-Grade Security: Benefit from a secure platform with features like multi-factor authentication, SSO, and comprehensive audit logging.
  • Seamless Integration: Utilize ONES.com’s powerful migration tools and open platform to integrate with other systems and ensure smooth data flow.

By offering both cloud and on-premises deployment options, ONES.com provides the flexibility for organizations to choose the data integration strategy that best fits their security and compliance needs.

ONES.com, All-in-One Project Management Platform
Try for Free

Conclusion

On-premises data gateways are an essential tool for any organization looking to bridge the gap between their on-premises data and the cloud. By providing a secure and efficient way to transfer data, gateways enable businesses to unlock the full potential of their data assets while maintaining control over their sensitive information. As data ecosystems become increasingly complex, understanding and leveraging tools like on-premises data gateways will be critical for driving innovation and maintaining a competitive edge.

Related reading

Ready to Improve How Your Team Works?

Contact us today. Optimize the way you work.

CTA Image
On-premises

What is On-Premise ERP? Definition, Pros and Cons, and more

On-Premise ERP continues to be a relevant and powerful option for organizations that prioritize control, customization, and performance. As technology advances, these systems are expected to evolve through deeper integration with AI, IoT, and high-speed connectivity, enabling greater automation and real-time insights.
Anders 7 min read

Type at least 2 characters to search…