Explanation:
The following diagram illustrates the key difference between traffic policing and traffic shaping.
Traffic policing propagates bursts. When the traffic rate reaches the configured maximum rate (or committed information rate), excess traffic is dropped (or remarked). The result is an output rate that appears as a saw-tooth with crests and troughs. In contrast to policing, traffic shaping retains excess packets in a queue and then schedules the excess for later transmission over increments of time. The result of traffic shaping is a smoothed packet output rate.
Note: Committed information rate (CIR): The minimum guaranteed data transfer rate agreed to by the routing device.

Reference: https://www.cisco.com/c/en/us/td/docs/routers/asr920/con
figuration/guide/bsm/16-6-1/b-bsm-xe-16-6-1-asr920/bsm-timecalendar-
set.html

The virtual interface IP address (IPv4 or IPv6) is used only in communications between the controller and wireless clients. It serves as the redirect address for the web authentication login page. It is recommended that you configure a nonroutable IP address for the virtual interface, ideally not overlapping with the network infrastructure addresses. Use one of the options proposed in RFC 5737, for example, 192.0.2.0/24, 198.51.100.0/24, and 203.0.113.0/24 networks.

Explanation
On premise: customizable,specific requirements,resources
Cloud: scale, built-in automated backup, strong stable internet