We have been asked many times on the differences between OnDemand hosting versus hosting the Atlassian apps within the premises.
Here’s a chart we did that lists down the various factors for consideration together with a rating for each option.
Infographic: Atlassian OnDemand vs in-Premise
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Valiantys wrote an article on how to choose your JIRA or Confluence hosting at
http://blog.valiantys.com/en/atlassian-en/choose-hosting-jira-confluence
There is another article in Atlassian Knowledge Base –
Pros and Cons of Cloud vs. Server