WhatsApp is everyone’s beloved chat app. We love to connect with our friends and family through its ergonomic chat UI. Its global popularity has also led the parent company Meta to introduce its WhatsApp Business suite, which includes the free WhatsApp Business app and WhatsApp Business API.
While the free mobile app is best suited for small businesses, the WhatsApp API is built for enterprises. It allows larger organizations to connect and interact with multiple users at scale.
Earlier, Meta offered the WhatsApp Business API through its chain of Business Solution Providers (BSPs), but the recently launched Cloud API has revamped the accessibility.
Determining which would be the best API for your business communication plan can be difficult, particularly when deciding between the On-Premise and WhatsApp Cloud APIs. Each option has advantages of its own, but choosing well requires knowing how they differ from one another.
In this blog we will walk through the main features of each API, their advantages, and the particular situations in which they might be superior to one other. Whether you value cost-effectiveness, control, or scalability above all else, by the end you’ll know more clearly which API fits your business demands.
What is WhatsApp Cloud API?
WhatsApp offers a cloud-based messaging service called the WhatsApp Cloud API that enables companies to include WhatsApp’s messaging features into their apps without requiring on-premise infrastructure. Because of thos WhatsApp’s servers host this API, it can be easily deployed and managed, negating the need for complicated configurations.
To diversify its API usage, Meta eventually launched the WhatsApp Cloud API. Unlike the regionally hosted version of the business platform, WhatsApp Cloud API allows businesses to send and receive messages using WhatsApp’s cloud servers.
WhatsApp Cloud API uses Meta’s proprietary Graph API, which is the key way to get information in and out of the Facebook platform. Since the Cloud API is Meta’s patented service, businesses don’t need to worry about updating and maintaining the API.
The Cloud API has simplified the accessibility of the Business API. Now, most small and medium businesses can use the cloud-hosted version on top of their WhatsApp to seamlessly connect and interact with their users.
While it’s a much more accessible option of the Business API, the Cloud API may pose some integration and automation limitations. This is mostly because, the Cloud API is a fairly new offering, and not every third-party vendor has solutions built to suit the API.
What is WhatsApp On-premise API?
In terms of WhatsApp On-premise API, businesses can host WhatsApp’s messaging features on their own servers. With this configuration enhanced control over data, adaptability, and adherence to regulations, making it perfect for businesses with particular security or regulatory needs.
The On-Premise API offers unmatched control and customization, but it requires more resources for setup and maintenance than the cloud-based solution.
WhatsApp On-premise API is one of the two hosting options available to businesses to use WhatsApp Business’ extended capabilities. It uses the REST API protocol using JSON data formats.
Businesses using the On-premise API need to host the API software on their own servers or on their BSP’s servers. On-premise API works better for much larger organizations with extensive customer communication needs.
5 Key Differences Between WhatsApp Cloud API and On-Premise API
Built to let businesses easily send and receive messages with users, both versions of the API have their pros and cons. Therefore, understanding the key differences between WhatsApp Cloud API and On-Premise API is essential for choosing the right solution for your business.
Let’s understand the difference between WhatsApp Cloud API and WhatsApp On-premise API.
1. Deployment and Maintenance:
WhatsApp’s servers host the Cloud API, which is simple to set up and requires little maintenance. While on the other hand, WhatsApp On-Premise API, gives companies more control over their servers but also requires more complicated setup and regular maintenance.
2. Accessibility to businesses
The top difference between WhatsApp Cloud API and WhatsApp is the method to avail both of them. Cloud API is Meta’s direct offering, which requires no intermediary. And so, it can be set up through Meta in the shortest time.
Whereas, the On-premise API must be availed through a WhatsApp BSP. The BSP works as the middleman to provide access to the comprehensive WhatsApp Business API.
3. Investment and costs involved
When comparing the two, WhatsApp Cloud API might be a more cost-effective choice for businesses of most sizes with realistic communication needs. If you choose the Cloud API, Meta will cover the hosting costs for you. You will only be required to pay per message sent or conversation held.
Whereas, the WhatsApp On-premise API depends on the BSP through which you’re availing it. In this case, you or your BSP will bear the costs of setup and maintenance. Businesses also follow the same message sent/conversation charges.
Meta follows conversation-based pricing which is categorized on two grounds:
- User-initiated conversations
- Business-initiated conversations
4. Messages per second throughput
The On-premise WhatsApp Business API supports throughput of 250 messages per second (MPS). Whereas, the WhatsApp Cloud API supports 80 messages per second, sent and received combined. Cloud API users can also raise a ticket with Meta to upgrade their throughput to 500 messages per second.
5. Certificate management
Certificate Authority (CA) is an organization that issues digital certificates to authenticate content sent from websites and servers. WhatsApp API users hosted on the premise are required to manage their own CA certificate and webhook authentication certificates.
Cloud API users, on the other hand, have their CA certificates handled by Meta directly. It’s wise to note that your Webhooks server must support HTTPS with a valid CA-chained TLS/SSL certificate installed to receive your Webhooks CA certificate.
Comparison between WhatsApp cloud API vs On-premise API
| Differences | Cloud API | On-premise API |
| Hosting | Through Meta | Through BSPs |
| Upgrade and maintenance | Features are automatically updated and maintained by Met | Businesses and BSPs bear the responsibility for periodic updates/maintenance |
| Costs Involved | No extra costs to maintain data servers. Only have to adhere to conversation-based pricing | Set up costs borne by businesses/BSPs. Also, have to abide by conversation-based pricing |
| API protocol | Graph API | Rest API |
| Message throughput | Max limit of 500 messages per second, which combines sent, and received, including media messages.
High server load may also result in lower message throughput |
Send up to 70 text messages per second for single-connect.
Send up to 250 text messages per second for multi-connect. Sending media messages may reduce these numbers. |
| Certificate management | Meta manages CA certificates. | Individual business and/or BSP responsibility to manage Certificate Authority (CA) certificates and Webhook CA certificates |
| Media Provider API | Deprecated | Supported |
Benefits of WhatsApp Cloud API for Modern Enterprises
It is essential to have a scalable and dependable communication platform in the lightning-fast commercial world of today. Simple to use and packed with functionality, the WhatsApp Cloud API is a strong choice for modern businesses. The Cloud API offers the following main advantages, which make it a great option for companies wishing to improve their messaging capabilities:
- Cost-Effectiveness: The Cloud API eliminates the need for heavy upfront investments in hardware and infrastructure. With no need for server maintenance, businesses can reduce operational costs while still enjoying a powerful messaging solution.
- Scalability: As your business grows, the Cloud API scales effortlessly with it. Whether you’re managing a small team or a global enterprise, the cloud-based solution can handle increased messaging volumes without requiring significant changes to your infrastructure.
- Ease of Deployment: One of the standout features of the Cloud API is its simplicity in setup and deployment. With hosting managed by WhatsApp, businesses can integrate the API quickly without the need for extensive technical resources, making it ideal for companies looking to get up and running swiftly.
- Global Accessibility: The Cloud API is hosted on WhatsApp’s servers, ensuring reliable performance and availability across different regions. This is especially beneficial for businesses operating in multiple countries or with a global customer base.
- Automatic Updates and Security: The Cloud API is regularly updated by WhatsApp, ensuring that your business always has access to the latest features and security enhancements without the need for manual intervention.
Advantages of WhatsApp On-Premise API for Enterprise-Level Control
The WhatsApp On-Premise API is a strong option for businesses whose communication strategies place a high value on control and customisation. There are major benefits for your business when you host the API on your own servers. The following are the main advantages of the On-Premise API for businesses:
- Data Control: Hosting the API on your own servers gives you complete control over your data. This is crucial for industries with strict data privacy regulations, ensuring that sensitive information remains within your organization’s control.
- Compliance: The On-Premise API allows businesses to meet stringent regulatory requirements more easily. With control over data storage and processing, companies can ensure compliance with local and international data protection laws.
- Customization: The On-Premise API offers extensive customization options, allowing businesses to tailor the messaging solution to their specific needs. Whether it’s integrating with existing systems or adding custom features, the flexibility of the On-Premise API makes it ideal for enterprises with unique requirements.
- Security: Managing the API on your own infrastructure, you can implement advanced security measures tailored to your organization’s needs. This ensures that your messaging platform remains secure from potential threats.
- Integration with Legacy Systems: Enterprises with existing legacy systems can benefit from the On-Premise API’s ability to integrate seamlessly. This allows for a smoother transition and consistent operation across all business functions.
Which WhatsApp API is Right for Your Business?
The ideal WhatsApp API for your company will depend on your long-term objectives, technological capabilities, and particular requirements. While there are clear benefits to both On-Premise and Cloud APIs, the best option will depend on your unique needs.
Let’s discuss them in detail:
- Small to Medium-Sized Businesses (SMBs): If your business is looking for a cost-effective, scalable, and easy-to-deploy solution, the WhatsApp Cloud API is likely the better option. It’s ideal for SMBs that need to get up and running quickly without investing heavily in infrastructure. For instance, a growing e-commerce company could use the Cloud API to manage customer inquiries globally, benefiting from automatic updates and robust scalability without worrying about server maintenance.
- Large Enterprises with Specific Requirements: For companies that require extensive customization, control over data, and compliance with strict regulations, the WhatsApp On-Premise API is the way to go. Consider a financial institution that needs to adhere to stringent data protection laws. The On-Premise API allows them to manage their data internally, ensuring compliance while customizing the platform to integrate with their existing systems.
- Hybrid Approach: Some businesses might benefit from a hybrid approach, using the Cloud API for certain applications while maintaining the On-Premise API for areas requiring higher control. This strategy allows companies to optimize both cost and functionality.
How Chat360 can help your business
You can easily incorporate either WhatsApp API into your business processes with Chat360. Chat360 offers the resources and assistance necessary to guarantee a seamless implementation and functioning, customized to your company’s requirements, whether you go for the On-Premise API due to its control and customisation or the Cloud API because of its ease of use and scalability.
Schedule a free demo today!