As your business grows and your IT needs become more complex, you will eventually come to a crossroads: should you continue relying on on-premise solutions, or move to the cloud? There are benefits to both strategies, making this decision quite difficult.
Step one is understanding the difference between on-prem vs cloud solutions. This information will help you make the choice that best suits your business. So, what is the difference between cloud and on-premise infrastructure? And how do you know when it’s time to migrate?
What is On-Prem vs Cloud Infrastructure?
In order to make an accurate decision, you first need to understand the difference between cloud versus on-premise solutions:
On-Premise
On-premise (on-prem) IT refers to infrastructure and applications hosted at your business’ physical location. Some examples include a server room or private data centre. Your internal team is generally responsible for setup, maintenance, upgrades, and security, all of which come from your budget.
Cloud Technologies
Cloud computing, in contrast, is the delivery of IT services through the internet. A third-party called a cloud service provider (CSP) hosts and maintains all required infrastructure, while you access resources through a monthly subscription. There are three main models:
- Public: You share cloud resources with other businesses, with all data kept separate.
- Private: Dedicated cloud infrastructure used only by your business.
- Hybrid: A mixture of both.
Cloud vs On-Prem: Pros and Cons
Cloud and on-premises infrastructure each carry their own benefits. Understanding these is essential for making an informed decision:
Cost
Cloud vs on-prem costs are slightly more complex than you might expect. On the one hand, on-premise systems generally require a significant upfront investment. This can include:
- Hardware
- Software
- Staffing
- Maintenance and repair costs
Cloud solutions are subscription-based, thus incurring a lower initial cost. However, they come with a caveat: without careful management, these expenses can quickly get out-of-hand. Small, monthly subscription fees often feel far easier to commit to, making businesses more likely to take them on. For this reason, it’s essential to monitor cloud costs carefully.
Security
Security is a major concern for all modern businesses, particularly in highly regulated industries. The cloud is often touted as a solution – but is it?
The answer is yes and no. CSPs invest heavily in security measures, but they will not handle everything for you. These services operate under a shared responsibility model, so using them does not mean you offload all security concerns. Public cloud services carry additional risk, as they are used by many entities at once. This can be mitigated somewhat by storing sensitive information only in a private cloud, or by implementing cloud security best practices.
On-premise environments provide far more control over your data, infrastructure, and security protocols. But this comes at the cost of full responsibility. You do not have that additional layer of protection that a CSP would provide. Your infrastructure will also be particularly vulnerable to any threat that directly targets on-premise technology, such as endpoints. Unlike the cloud, on-premise servers cannot be quickly and easily disconnected while still maintaining continuity.
Scalability and Flexibility
Scalability and flexibility are where the cloud truly shines. Subscription-based models are vastly easier to scale up and down as your business changes, as the additional resources required cost far less. This provides you with more freedom to respond to sudden and drastic market shifts.
On-premise technology, on the other hand, requires a large financial investment each time. As a result, you need to move slower and make decisions more carefully, potentially damaging your competitive advantage.
Need help with the cloud? Consider managed services
When to Migrate
With all this in mind, when should you consider moving to the cloud? Is it best to keep using on-premise infrastructure, or should you migrate early? Here are some key indicators to look for:
- Your on-premise systems have become outdated, or are no longer supported.
- You do not have the available funds needed to comfortably upgrade and replace your existing infrastructure.
- You are brushing against the limitations of your current technology, and need a quick fix that doesn’t require an enormous investment.
- You do not have a solid disaster recovery strategy in place, to handle scenarios where all on–premise technology goes offline.
- Rising costs are making on-premise infrastructure investments harder to justify.
If these challenges sound familiar, then it might be time to migrate.
FAQs
What are Cloud vs On-Prem Costs?
On-premise infrastructure often requires a significant upfront investment in both hardware and software. The cloud charges only a monthly subscription fee, which does make it cheaper as long as costs are managed effectively.
Can We Keep Sensitive Data On-Prem While Still Utilising the Cloud?
You can absolutely keep some aspects of your IT on-premise while moving others to the cloud. This is called a hybrid approach, and is very common.
On-Prem vs Hybrid vs Cloud: Which is Best?
If you are torn between on-premise, cloud, or hybrid infrastructure (the latter using a mixture of cloud and on-premise), stop to consider what your business needs most. If you desire greater flexibility, but don’t want to sacrifice the additional security of on-premise technology, hybrid might be the best strategy.
I Want to Migrate. Where Should I Start?
If you’re ready to migrate to the cloud, it is heavily recommended that you get in touch with an expert. This process can cause a large amount of disruption when not handled correctly, and a third-party provides valuable guidance that will help you prevent this.
Which is Better - Cloud or On-Prem Security?
Cloud vs on-prem security really comes down to your own defensive posture. While public cloud can carry more risk than on-premise storage, neither is inherently safe until they are supported with strong security measures.
Considering the Cloud? Learn How to Migrate Safely
The benefits of on-prem vs cloud infrastructure are not always obvious. One option might seem right on paper, only to be a terrible choice in practice. To make the right decision, you’ll need to weigh up the pros and cons against your unique business circumstances. Consider where you’re at right now, and where you want to be in the future, and you can’t go wrong.
Considering migration? It can be trickier than you think – and getting it wrong might bring enormous consequences. Before you do anything else, learn how to migrate safely.