On-Premise vs. Cloud Hosting: Which Option Is Right for Your Business?

cloud hostingOn-site hosting has traditionally been viewed as a safe option for both storing and processing data.  It ensures you, the owner, remain in sole control of all the hardware. The owner retains the ability to choose what hardware (& software) best suits their needs along with the notion that security managed locally is safer managed on-premise, rather than off-site.

On-premise hosting offers several benefits; however, choosing this route is typically a more expensive option when compared to an infrastructure-as-a-service model (OPEX vs CAPEX). Given the requirement for software licenses, in-house IT support and usually a longer integration period, more companies are finding that cloud services could offer a more flexible way to tackle their IT infrastructure needs, if the correct (hybrid) model is chosen.

Although on-premise hosting is a reliable means for hosting all kinds of information, many companies are finding cloud services to be more convenient, flexible, cost-efficient, and secure than ever before & also include additional features and advantages.

The Advancements in Cloud Infrastructure Technology

The use of cloud servers is increasing, which is a trend that is expected to continue. A year ago, research company IDC found the number of traditional data centers accounted for 62 percent of IT infrastructure spending. Public clouds made up 23 percent of spending and private clouds composed 15 percent. These numbers are predicted to shift by 2020, as IDC estimates data centers will drop to around 50 percent of total spending, while public clouds flourish to nearly a third of the market and private clouds will increase to 20 percent.

Companies can save time, money and stress by choosing the right hosting model. Allowing for better focus to develop new business strategies and improvements on existing products & services. Cloud technologies have several advantages when compared to traditional dedicated server resources. For example, the cloud offers flexible scalability, allowing your business to scale up or down as needed to meet demand, without having to wait for delivery of new hardware.

Additionally, it is more crucial now than ever before for companies to have proper security measures in place to combat cybersecurity issues. The plethora of (hybrid) cloud solutions available are just as secure as local servers as cloud services are ‘managed’ and updated around-the-clock, eliminating the need for your company to personally tackle these issues on-site (with potential downtime).

On-Premise Hosting vs. the Cloud/IaaS

On-premise hosting can be costly in terms of maintenance and hardware updates. Some hardware may be difficult to come by if it’s no longer on the market. This type of host is also typically not as scalable as cloud/IaaS services, so you will need to upgrade or expand to meet the customer demand.

However, that doesn’t necessarily mean local hosting isn’t a good fit for any business. In terms of complying with local or international regulations, certain companies benefit from on-premise hosting.

Industries and services such as healthcare, surveillance service providers (CCTV) and financial services companies are typically required to have their infrastructure hosted locally or with a local pre-selected third party as they are required to collect, store, and process private data. Public and government institutions also generally preserve data on-premise as a matter of national security — outsourcing their infrastructure is simply not an option no matter what costs are involved.

Other industries often benefit more from IaaS or hybrid hosting to sustain their growth and manage their IT costs. Major e-commerce companies, like eBay for example, needs to serve customers with the lowest latency possible and globally. For this reason, the IaaS model is typically used to optimize their operations and ensure their systems are able to meet demand globally.

SaaS providers are able to comply with local regulations on data processing by having their nodes hosted locally. Disaster recovery purposes are also met best via this solution. Companies that use citizens’ private data are typically guided by local regulations and government requirements to have their nodes hosted locally, where the IaaS model tends to be the most cost-efficient solution for doing so.

Social media services, like Facebook and Snapchat, also benefit from IaaS models due to their global reach and latency expectations, as well as local regulations placed on private data.

Selecting the Right Hosting Option

When selecting the provider, make sure to review the security measures, scalability, and reliability of each host type. Inspect the performance of the network to determine what the true network capacity is, and whether or not it is suitable for the task.

Organizations have more options than ever when choosing where to host their database and their operation Nodes, which is why it’s important for businesses to carefully evaluate which option is best for the long term. Establishing the best solution is no longer a task left solely to the IT team — now if your company doesn’t have the resources to handle it in-house, there are managed service providers who can help evaluate your options and choose the best one for your business.

 

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