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Cloud vs. On-Premises Data Centre – Which is Right For Your Business?

Cloud Computing, IT Security, IT Services

Data management and security is everything in the modern era of a technology-driven business ecosystem. In this regard, present-day companies are faced with the option to choose between two main data infrastructure systems – Cloud and On-premises data centre.Server Inteck IT

Both the cloud as well as on-premises data centre comes with their unique set of properties that make them ideal for different types of business requirements. So, which iteration of data infrastructure is best for your business?

Let’s take a look at both these data infrastructure systems individually and see what their pros and cons are so you can decide which option is ideal for your business.

Cloud Data Centre 

Cloud data centre refers to the model of data infrastructure where a business’s data is hosted by a third-party service provider. Hence, it is also called an off-premise data centre. So, instead of maintaining an in-house data centre, you are able to turn to an external business to monitor and maintain your company’s data.

Pros of Using a Cloud Data Centre
  1. Scalability

One of the primary advantages of a cloud-based data centre is that you can scale the data according to your company’s data requirements. The data capacity is extremely flexible in the case of cloud data management, mainly due to its transparent infrastructure.

So, even if your company’s data requirement increases abruptly, a cloud data centre will take care of it.

  1. Cost-friendly 

It is rather an obvious assumption that building an in-house data centre from scratch will be more expensive as opposed to making use of an already established data centre. A cloud service is especially beneficial for small businesses or start-ups that require immediate data service with minimal investment.

  1. Data backup and recovery 

With a cloud-based data management system, the risk of losing data is negligible. Cloud data centres usually have an in-built system that automatically backs up your data at every regular interval (about 15 minutes). This efficient backup feature helps you to protect your data and recover them quickly in case of any unprecedented breakdowns.

  1. Near-Zero downtime 

Downtime is the single worst enemy of any modern-day professional establishment. Without data resources, your business is as good as irrelevant.

Luckily, with cloud data centres, you are almost guaranteed a near-zero downtime.

What this means is that your company is able to stay on the digital grid 24X7 without any interruption. This, in turn, will help your company to function optimally at all times.  

Cons of Using a cloud data centre  
  1. Limited control 

The primary disadvantage of using a cloud data centre is that you give up total ownership. In fact, the degree of control that you get from such a data management system is negligible. Hence, data privacy is something that you would have to compromise on if you choose to use a cloud data centre.

  1. Security 

Security is also one of the key concerns of a traditional cloud computing system. After all, the fact is, you are sharing your company’s data with a third-party enterprise at the end of the day. So, there is always a legitimate threat of security breaches in such cases. 

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Pros of On-Premise Data Centre  
  1. Total Ownership 

The most vital advantage of running an in-house data centre all by yourself is that you do not compromise on the share of ownership. Since there are no third parties involved, you are free to make any drastic changes to suit your company’s specific requirements.

Also, since you don’t share ownership, you gain total control of the data and everything related to sharing it on the public network.  

  1. Optimum security 

With total control over your data, it is rather obvious that your company will enjoy an enhanced security level. Since the exchange of data takes place within your on-premise infrastructure, there is less security risk involved.

Also, by avoiding data exchange with a third-party enterprise, you are able to maintain total incognito data status, which boosts your data privacy as well.

  1. Customisable 

Usually, with a cloud-based data centre, you operate your data under the watch of a bigger third-party company that basically controls your data consumption. Since every company’s data requirement is unique, such a controlled flow of data can be problematic in the long run.

However, with an on-premise data infrastructure, you can customise your hardware to control the flow of data to take care of your tailored requirements.

  1. Total Visibility 

One of the major concerns of sharing your business data with a third-party corporate form is transparency. After all, conventional corporate partnerships are known for their infamous loopholes. These loopholes are generally the result of the lack of total transparency between the two parties.

Luckily, with an in-house data centre, you do not have to deal with such inconveniences as you have total visibility over your data monitoring and utilisation as well.

Cons of On-Premise Data Centre     
  1. High initial cost 

Setting up a private data infrastructure will obviously cost higher and require more time as opposed to making use of an already-established data centre. The initial cost of procuring hardware infrastructure, along with installation, requires a substantial investment.

So, if your company does not have the best of the financial portfolio, or is just a start-up, an on-premise data centre is not an ideal option.

  1. Poor scalability 

One of the other major drawbacks of maintaining an in-house data infrastructure system is that it comes with limited storage capacity. Of course, you can increase the capacity as you go. But, that again will require hefty investments at every stage.

Whereas, with a cloud data centre, the storage capacity is extremely flexible, allowing you to take care of your increased data requirements with ease.  

  1. High risk of data loss

With a cloud-based data centre solution, it is extremely simple and easy to recover data even if there are any internal breakdowns on your system end.

However, that is not the case with an in-house data hosting system. Since the data centre is located on your premise, your data are more susceptible to damage in case of any internal breakdowns.


Bottom Line 

As you can see, both the Cloud as well as the On-Premise data centres come with their unique cluster of pros and cons that make them ideal for different business needs. At the end of the day, it will come down to the set of features that your business will want to prioritise.

An On-Premises data centre is ideal for your business if –

  • You need total control over the data
  • You want total data consumption transparency
  • You need optimum data privacy and security
  • You can afford to make a substantial initial investment

On the other hand, a cloud data centre is ideal for your business if –

  • You need a reliable system to handle your fluctuating data requirements (scalability)
  • You want to protect your data from getting lost due to any abrupt breakdowns or ensure easy data recovery
  • You want to maintain optimum uptime for consistent performance, and
  • You have a start-up with limited funds

Still not sure what the better option is for your business? Give us a call on 1300 39 65 65 and we can help you make the right decision for your business.

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