On-Premise vs Cloud Infrastructure: Which Is Right For You?

On-Premise vs Cloud Infrastructure: Which Is Right For You?

When deciding which type of infrastructure to use for your business, it's best to consider the specifics of your business.

There are benefits to both cloud and on-premise infrastructures.

In general, we recommend using the cloud, but depending on the specific needs of your business, that might not be the best fit for you.

In this article, we'll walk you through the important factors to consider when choosing between cloud vs on-premise infrastructure for your business.

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What Is Cloud Infrastructure?

Cloud infrastructure encompasses all aspects of cloud computing and your cloud environment, including all hardware and software components.

Cloud infrastructure encompasses all aspects of cloud computing and your cloud environment, including all hardware and software components.

When using cloud services, your data is stored on third-party servers hosted by major cloud service providers.

There are a few major advantages of cloud infrastructure, especially for small and growing companies.

Cloud infrastructure offers unique flexibility and scalability. Because you're only paying cloud providers for the amount of server space you're using, with cloud infrastructure, it's very easy to increase or decrease the amount of space you need and are paying for.

Cloud infrastructure management is less time-consuming and involved than traditional infrastructure. Managing cloud infrastructure is a task that majorly falls on the cloud provider, as you are not responsible for the functioning of the servers.

See also: Here's Why Moving Infrastructure to the Cloud Sooner Is Better

What Is On-Premise Infrastructure?

On-premise infrastructure is a cloud computing environment completely controlled and operated by your business.

On-premise infrastructure is a cloud computing environment completely controlled and operated by your business.

Your servers would be on-site for on-premise infrastructure, and your team would manage their operation.

A few aspects of on-premise systems make it very different from cloud infrastructure. On-premise infrastructure typically has a high cost because businesses are responsible for purchasing the servers and software themselves.

On the other hand, using on-premise infrastructure is considered very secure and allows you to maintain much control over your data.

Comparing On-Premise vs. Cloud Infrastructure

While trying to decide which type of infrastructure is the best for your business, you should consider a few factors.

There's no clear answer to which type of infrastructure is better, but there may be a better option for your particular business.

We'll break down the advantages of cloud computing over computing on-premise and the advantages of on-premise computing over cloud computing.

Here's a chart comparing on-premise vs cloud infrastructure attributes.

Attribute

Cloud

On-Premise

Hosting

Data is stored on third-party servers

Data is stored on-premises

Deployment

Faster installation and deployment via customer support

Risk of failure lies with your engineers

Scalability

Increase your usage as needed

Increasing server capacity most likely means purchasing new servers to store on-site

Cost

Only pay for the cloud resources that you use

Responsible for the cost of hardware, energy usage, and space to store the servers

Control

Data and encryption key reside with your provider

Retain complete control over your data and what happens to it.

Security

Data in a third-party provider that are part of a network could be vulnerable to security risks

All security measures are maintained in-house

Now let's look at our comparison in detail:

1. Hosting

The major difference between cloud and on-premise servers is how your data is hosted.

With cloud infrastructure, the servers are offsite at another location and are maintained over the network.

On-premise servers are deployed in-house with your infrastructure.

Because you have to take care of the functioning of the servers, on-premise servers require additional management and maintenance.

2. Deployment

Cloud infrastructure offers faster installation and support services because the infrastructure is set up and maintained by an outside company (your cloud service provider).

Your resources are accessible and usable but hosted on the premises of the provider.

With deployment, on-premise infrastructure has significantly more risk.

The entire risk of failure lies with your business and engineers because they control the entirety of the infrastructure.

3. Scalability

The cloud has unlimited memory space available because the providers have extensive server capacity, and you can increase your usage as needed.

Because of the expansive servers of third-party providers, cloud infrastructure can handle workloads based on need with timely software upgrades.

On-premise infrastructure has less scalability.

If you're hosting your own servers, increasing your server capacity most likely means purchasing new servers to store on-site.

This means that increasing server capacity can be expensive, with a hard cap on the amount you're able to increase your usage.

4. Cost

Using cloud infrastructure tends to have lower costs because you only pay for the cloud resources that you use.

The price of your usage will adjust based on your consumption.

With on-premise solutions, you're responsible for the cost of hardware, energy usage, and space to store the servers, making it score high in cost efficiency.

This will probably sit as a fixed cost unless you need to increase your storage capacity.

5. Control

Cloud infrastructure gives up some of your ability to control your own data.

With cloud infrastructure, the data and encryption key reside with your provider, meaning that if there is downtime with the server, you might be unable to access your data for a period of time.

If you choose an on-premises option, you retain complete control over your data and what happens to it.

6. Security

Data security and data storage are the main concerns regarding cloud infrastructure.

Security threats are real, and data in a third-party provider that are part of a network could be vulnerable to security risks.

With on-premise infrastructure, all security measures are maintained in-house, and you can have more privacy and security because your servers don't need to be accessible through an outside network.

What Are the Pros and Cons of Cloud Infrastructure?

To summarize, here are the pros and cons of choosing cloud infrastructure.

Pros of Cloud Infrastructure

  • Fully managed by third-party cloud vendors or cloud computing services, thus saving you time

  • Fast installation of cloud computing solutions

  • Most major providers offer 24/7 support

  • Unlimited memory space / increase usage as needed

  • Lower cloud cost because you only pay for the resources that you use

Cons of Cloud Infrastructure

  • Less ability to control your own data

  • Susceptible to elements out of your control, such as server downtime

  • Less control over security measures

What Are the Pros and Cons of On-Premise Infrastructure?

Here's a summary of the pros and cons of on-premise infrastructure.

Pros of On-Premise Infrastructure

  • Full control over your own data

  • Less risk of sensitive data breaches

  • Not susceptible to third-party service provider downtime

Cons of On-Premise Infrastructure

  • On-premise servers require additional management and maintenance

  • The risk of failure lies with your business and engineers because you control the entirety of the infrastructure

  • Difficult to scale usage up or down, as an increase in usage will require additional hardware

  • Responsible for the cost of hardware, energy usage, and space to store the servers

Frequently Asked Questions

What is on-premise infrastructure?

On-premise infrastructure is a cloud computing environment completely controlled and operated by your business.

What is cloud infrastructure?

Cloud infrastructure encompasses all aspects of cloud computing and your cloud environment, including all hardware and software components.

In closing

Cloud-based servers and cloud infrastructures are cost-efficient and can save you the upfront costs of setting up and having space for servers, and the needed maintenance to keep them running.

On the other hand, the benefits of total control over on premise security might be worth the additional maintenance costs.

Whatever you choose, working with a consultancy like OpSourced can help you build out your infrastructure without straining your in-house dev team.

Here at OpSourced, our team of engineers is experienced in cloud solutions and on-premises infrastructure. We've led many cloud deployment projects and are well-versed in what cloud service providers offer, allowing us to help you with your infrastructure that is suitable for various workloads and business types.

Whether you choose a cloud computing model, a hybrid cloud infrastructure, or an on premise environment—we can help you pick out and set up the infrastructure that will be most effective for your business.

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