IT management involves many difficult decisions, each of which could have a very real impact on your efficiency, security, and profitability. One of the most important is whether you will continue to use on-premises infrastructure, or migrate to the cloud. Each approach comes with tempting benefits, making it extremely difficult to choose. The wrong decision could create a ripple effect that has serious, long-term consequences on your business.
The first step towards an informed, intelligent decision is understanding how they differ. So what is the difference between cloud versus on-premises infrastructure? And more importantly, which is better for your business?
What Is the Cloud?
Put simply, the cloud is internet-based computing. Data, software, and applications are hosted on an external server managed by a third-party, and delivered to you through your network connection. This provides access to these resources from any location.
Benefits
- Flexibility: The pay-as-you-go model used by cloud service providers (CSPs) makes it easier to react quickly to market changes without excessive capital expenditure. Ultimately, this makes your business more agile in a highly competitive market.
- Security: Storing sensitive data on company devices is risky. They are easily stolen or otherwise compromised, and a single outage can erase it entirely. The cloud provides another option, keeping your data safe regardless of what happens to physical devices.
- Resource Management: The highly scalable nature of cloud computing means you can distribute resources more efficiently, reducing waste. Rather than paying for expensive hardware that simply sits around when not in use, you can cut back or add extra resources as needed.
- Collaboration: The most obvious advantage of cloud computing is its ability to foster collaboration across vast distances. Because resources are accessed over the internet, staff can work together on important projects whether they are in the office, working from home, or in a different country.
Disadvantages
- Internet Connectivity: The cloud makes you entirely reliant on your internet connection. Any disruption cuts off your access to these resources, which could become a big problem in areas with poor connectivity.
- Financial Waste: When managing multiple cloud environments at once, cost control quickly becomes an issue. Without proper strategies and oversight, you may end up wasting money on unused resources.
- Loss of Control: Cloud migration means that you no longer manage the entirety of your IT infrastructure. Instead, some of that control is being handed over to a CSP. This both simplifies and complicates IT maintenance simultaneously.
What Does “On-Premises” Mean?
On-premises infrastructure is located and managed in-house, usually on company property. Physical servers, data storage, and software are all maintained locally by your own IT staff.
Benefits
- Full Control: You are in complete control of all on-premises infrastructure. Instead of managing your relationship with the CSP, you manage the technology directly.
- Not Dependent on the Internet: On-premises infrastructure will continue to work, even when the internet isn’t available. If your area has poor connectivity, this can be extremely important for maintaining consistent uptime.
- Easy Customization: Because you remain in full control of all elements of your infrastructure, it is much easier to customize any part of it at a given time.
Disadvantages
- Full Responsibility: While you retain full control, this also means taking on all of the responsibility. Anything that goes wrong will come back to you, making it essential to plan ahead carefully.
- Higher Costs: Without the cloud, any upgrade to storage capacity or computing power will cost you. If additional hardware is needed, these expenses might be very high.
- Stifled Growth: The need for capital expenditure, extra space, and complex integration makes it difficult to update and upgrade on-premises technology. This means each decision requires much more careful thought, which in turn slows growth.
Cloud Computing Versus On-Premises
When comparing on-premises versus cloud infrastructure, there is no one-size-fits-all answer. Identify your unique business factors, such as size, industry, and growth plans. Then, determine what your needs are based on this information, and compare against the following:
Cloud versus On-Premises Security and Compliance
Security is a mixed bag. On the one hand, cloud providers invest heavily in strong security measures designed to protect your data. However, you will still need to implement your own defenses on top of this. The idea of storing data off-site can also be stress-inducing for businesses in highly-regulated fields, as one mistake made by a vendor could endanger your business. You will need to thoroughly vet out any CSPs used, to ensure that security is a top priority.
On-premises, in comparison, leaves you in full control of data security. This is both a blessing and a curse. You must go without the additional defenses and oversight imposed by a CSP, which can result in weaker security overall. You are entirely responsible for preventing data breaches. However, this also reduces your risk of experiencing a supply chain attack.
Cloud versus On-Premises Efficiency
The cloud provides fast, easy access to important data and applications from any location, which can dramatically increase efficiency. This will be especially important if your business allows any kind of remote work. In situations such as this, cloud solutions are arguably essential.
However, they do rely on a consistent internet connection. Any network disruption will effectively pause all work requiring the cloud. This ceases to be a concern when using on-premises infrastructure, which will remain online even when the internet is not.
Cloud versus On-Premises Scalability
In this area, there is no debate. The cloud allows for near-instantaneous scaling, making your business extremely agile. On-premises systems cannot compete with this, requiring equipment or software upgrades and a much longer decision-making process.
Cloud versus On-Premises Costs
Cloud resources are typically far more cost-effective than on-premises, but only if you’re able to manage them effectively. Upgrade and maintenance costs are much lower on average, due to the fixed monthly fee CSPs charge. But failure to ensure sufficient oversight can result in extraneous cloud services sucking up unnecessary funds. The cloud is invisible, which can make it easy to forget which services are in use.
By weighing these traits against each other, you should be able to make an informed decision between cloud-based versus on-premises infrastructure. If you can’t, consider speaking to an IT consultant. They can provide you with crucial guidance on which strategy will best suit your needs now and in the future.
Discover the True Meaning of Efficiency With the Right Cloud Services
Cloud computing versus on-premises infrastructure is always a difficult choice, but the right information can make it much easier. The most important thing to remember is that your business is unique. While consultants can provide expert guidance, ultimately it is your decision to make. Consider the information given here, and you’ll be on the right track to make the best choice possible.
Ascentient’s experts understand that the IT decisions you make today impact your entire future. We work hard to help you develop an action plan that drives real growth and ensures success. Get started by learning how the right strategy can make migration a breeze.