You can scale up cloud-based systems in minutes. You can therefore quickly expand or reduce your EDA infrastructure depending on demand. Just tell the cloud service you need more capacity, and it will come online within minutes. As soon as you're done, you can turn the capacity off. To add more EDA capacity to your on-premises network, however, you would have to reassign existing capacity or add more servers, which could take months.
Large chip makers often have several design centers worldwide. IP for a project may need to stay within certain geographical boundaries by law or contract. Network segmentation in cloud networks can enforce rules based on geography.
Cloud redundancy and on-premises redundancy differ immensely. On-premises networks can't compete with cloud systems, which store redundant servers in both a data center and worldwide. With the cloud, your data stays safe from localized disasters.
Single Point of Failure
EDA grids usually contain several built-in points of failure. For example, a central job dispatcher usually runs on a single node. If something disrupts that node, all EDA work halts. The same goes for EDA license, configuration management, and version-control servers. Since cloud networks are based on microservices, they don't suffer from the single-point-of-failure vulnerabilities that on-premises networks do.
Ease of Use
Designers who are used to on-premises EDA should find the cloud much easier to use. Most notably, the cloud provides faster turnaround times due to on-demand, real-time provisioning. Implementing EDA tools in the cloud usually won’t require any special processes or knowledge on the user’s part.