On-Premises vs Cloud Storage: Which Is Better? A Comprehensive Comparison

Cloud Storage

Cloud computing is becoming increasingly popular among businesses of all sizes. By 2024, the global business cloud investment will account for 14% of the total IT revenue. However, is cloud IT infrastructure support the best choice for the business?

Making an informed decision is necessary to understand the distinctions between on-premises and cloud-based IT infrastructure support to make a better business decision for a new or a well-established firm.

Overview of ‘On-Premises’ Or ‘Cloud Storage’

On-premises IT infrastructure support is required when a storage server is physically located on-site and hosted within the organization’s IT infrastructure. The in-house IT staff or an IT partner control, operate, maintain, and procure the server. Through the local network, computers may share data and other information.

An external service provider hosts data in its data centers with cloud IT infrastructure support. The cloud provider procures, installs, and maintains all hardware, software, and other supporting IT infrastructure solutions. One may access and control these services and account online, using a personal computer, a web browser, or a mobile application.

Why Is Cloud Computing Ideal for Business?

Cloud IT infrastructure solutions are apt for many businesses since they save money and allow for easy scaling. Cloud storage is suitable for the company because it offers many benefits. These are mentioned below:

  • Reduced Stall Responsibility

Since the external organization manages the cloud storage, the IT personnel may focus on crucial aspects.

  • Regularly Backup Data

The cloud makes data backup easier than on-premises IT infrastructure solutions. Cloud-based IT infrastructure support eliminates the fear of losing data files due to any system failure.

  • Reduced Capital Expense

On-premises IT infrastructure solutions often need a considerable initial expenditure to acquire and install equipment. However, as cloud storage is external, there is minimal capital investment. However, corporations have to pay for the monthly subscription.

  • Adjust to Budget

Businesses pay monthly for cloud IT infrastructure support to keep initial expenses low. If a business is scaling up or down, most cloud storage providers can accommodate the budget.

  • Adapt to the Firm’s Needs

Cloud storage is scalable as you can upgrade the plan with a few clicks. Unlike company-owned servers that require new hardware installation, cloud-based servers can be readily scaled to match the demands. It means businesses don’t have to worry about the losses due to equipment failure, especially for fast-growing enterprises.

On-Premises Storage Is the Better Option

Unlike cloud IT infrastructure solutions, on-premises IT infrastructure support relies on the company’s physical IT infrastructure support to handle data. A business has to own all equipment and be in charge of maintaining them regularly. The benefits of on-premises storage include:

  • Operate Without Internet:One of the critical benefits of on-premises IT infrastructure support is that users don’t need internet connectivity to access data. While most organizations rely on the internet to do business, the loss of a connection might impact productivity and prevent access to critical data. On-premises servers give internal network access regardless of internet connectivity.
  • Greater Customization: On-premises IT infrastructure solutions are more flexible as they are handled in-house. One can customize them based on a single niche and change them as per requirements.
  • Lower Internet Cost:With on-premises IT infrastructure support, a robust connection with rapid download rates is not required.
  • Boost Security: Unlike cloud storage, which is open to unauthorized access, on-premises storage is totally secure as they don’t save data online, avoiding any external access. Organizations that handle sensitive data like banks favor on-premises storage.
  • Control Server Hardware:Some businesses choose to have dedicated servers on-site to handle all their demands. Modifying the server’s hardware may allow for additional storage customization and flexibility.

Disadvantages of Cloud Storage

  • Internet Determines Everything:Cloud storage requires a fast and dependable internet connection. Slow internet connections make accessing the cloud servers difficult for individuals who rely on the data.
  • Connection-Based Access: The disadvantage of using the internet to store data is that an internet outage might prevent access to crucial files. Losing data access due to a network failure might slow down operations and prevent certain employees from working.
  • Less Secure Data: When one engages with a cloud storage business, the company is entrusting them with the administration and security of the data. If a business trusts an outside entity with corporate data, it gets exposed to the risk of unauthorized access.

Drawbacks of On-premises Storage

  • Require Additional IT Support

This added assistance might increase expenses and hamper the efficiency of the IT department as they are responsible for on-premises servers.

  • Industry Compliance

If a company operates in a regulated field, such as finance or healthcare, it has to abide by the government rules and policies. If the infrastructure is non-compliant, it may result in fines and additional resources.

  • Increased Cost

To acquire more hardware, software, and license updates, additional costs get added to the initial capital outlay. This degree of cash commitment might be a disadvantage for startups.

  • Increase the Risk of Data Loss

A system failure or a hacked system can irreversibly erase data stored in on-premises storage. To avoid data loss, on-premises storage should incorporate an off-site backup solution that replicates data to another location or medium.

  • Limit the Company’s Scalability

It isn’t easy to increase the on-premises storage easily as the company grows. It requires additional expertise and assistance to build a new system. This affects the scalability of an organization.

Do Businesses Have to Settle for Just One IT Infrastructure Solution?

Hybrid systems that combine cloud and on-premises IT infrastructure solutions are quite prominent in many sectors. So, one doesn’t have to choose between on-premises and cloud-based technologies. Instead, utilize both for the best results. For example, the business may keep vital data on their servers while keeping daily data on the cloud for easy access by all employees.