The pros and cons of cloud & on-premise storage

As companies are deciding to move away from the cloud, you may be considering whether traditional on-site storage is the right fit for your business.

That answer depends on your specific storage needs. Whilst the cloud can be a more convenient option, in many cases, issues will crop up if cloud services are mistakenly opted for in scenarios where on-premise hardware would be superior.

This blog will take an in-depth look at the pros and cons of both cloud and on-premise storage solutions, to help you decide which would be more beneficial to your business. 

What’s the difference between cloud and on-premise storage?

On-premise storage is when data is stored on hardware such as servers, on-site in a business’ office. Cloud storage on the other hand means your data is stored on external servers, which can be accessed anywhere via an internet connection. Cloud storage is typically managed by a third-party company.

Pros, cons and use cases for on-premise storage

Having your hardware in-office has two main benefits: tighter security and compliance through higher control over your data, as well as reduced latency, since data storage and processing take place locally. In addition to this, whilst your upfront price may be higher, overall costs will be lower if you opt for an intelligently designed, scalable sever. This hardware can be tailored specifically to your unique use case as opposed to the limiting, pre-set specifications offered by the cloud.

The main drawback of on-premise storage is convenience. Managing your own servers can be complex and time-consuming, especially if you don’t have skilled IT staff on hand to help with maintenance, upgrades and scaling, though this can be overcome by working with an experienced IT partner, provided this is within your budget.

On-premise storage is preferable for businesses in regulated sectors, or those handling sensitive information. Government agencies, defence contractors, healthcare providers and finance institutions would benefit from the full data control and tighter security offered by on-prem servers. Those with unique and specific use cases, for example researchers and those working with machine learning, would also benefit from this type of storage. 

Pros, cons and use cases for cloud storage

The cloud is praised above all else for its flexibility. Businesses can scale their resources based on demand, without having to update their hardware or configuration manually. In addition, all updates occur automatically, removing the burden of routine updates and security patches from your IT team. This storage type also has better disaster recovery through cloud-based backups and specific recovery packages. Avoiding data loss on-premise would require a second server in a separate location, which might not be feasible, or simply inconvenient.

However, security and compliance issues occur in cloud services. It may not be advisable for organisations handling private or sensitive data to entrust it to a third party, in case it concerns your customers, or your chosen provider does not comply with any relevant regulations. Worryingly, some major providers were found to have security holes, which left their clients exposed to data losses and leakages.

Finally, cloud services can become incredibly expensive over time, especially when opting for additional services such as extra storage, data management and AI. Some SMEs have even reported paying over £500,000 per year for their storage. Even if you become unsatisfied with the cost or performance of service, it can be very difficult to switch providers due to vendor lock-in, in which it is tricky to retrieve or move data which has been reformatted for a specific cloud service.

Cloud storage can be convenient and cost-effective for startups and small businesses, as it removes the need for a costly upfront investment in both storage servers and skilled IT staff. It can also be beneficial for businesses facing rapid growth or those with fluctuating requirements, as they can scale resources as required.  

So, which should I use?

Your unique business requirements will determine which you should opt for. If you’re looking to keep a closer eye on your data for security and compliance reasons, or you require better performance, on-premise solutions would be most beneficial. However, if you don’t have the internal capacity to deal with growth or frequently changing requirements, a cloud service would be the most convenient option.

Issues arise when cloud services are seen as a one-size-fits-all solution to storage. Often, specific requirements make it so a custom on-premise server would be more beneficial to your business.

In many cases, a combination of both storage types can be the solution for larger businesses. For example, you may use the cloud for mass archival storage of your non-critical data, but choose to keep important, frequently accessed data in an on-site server.

If you’re still not sure which solution would fit you best, book a chat with one of our friendly specialists today to discuss your storage needs.