Should You or Should You Not Move Your On-Prem to the Cloud?

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On-premise, also known as on-prem servers, have long been the preferred option for businesses, especially manufacturing businesses, due to their versatility and fast performance in supporting a variety of computational and storage requirements.

Another reason people choose on-premise, especially for performance, is that it operates on a local network, resulting in faster performance. Additionally, in cases where legacy systems have been operating since the olden days, on-premise is often the chosen solution.

While some argue against cloud computing as it may be seen as a loss of control over their IT infrastructure, others value the higher levels of security it offers.
On-premise servers offer businesses the advantage of greater customization and control over their infrastructure. From selecting hardware, software, and networking equipment, businesses can tailor their choices to meet specific needs and preferences.

However, it is essential to note that choosing a Cloud Hosting provider also presents several disadvantages that may not be immediately apparent. In this article, we will provide a thorough examination of the pros and cons of using an on-premise server to help businesses make informed decisions about their infrastructure choices.

Pros of On-Premise Server 

1.  More Control and Customization 
On-premise servers offer direct control and ownership of a business’s IT infrastructure. Businesses can choose their hardware, software, licenses, and networking equipment and customize these components to their needs.

2.  Regulatory compliance 
Adhering to compliance requirements is crucial in regulated industries such as finance or healthcare. For these businesses, utilizing an on-prem can offer greater control and security over their IT infrastructure, which can assist them in meeting regulatory compliance standards.

Cons of On-Premise Server  

1.  Cost-Effective  
On-premise servers are expensive to build and manage. Other than the costs of servers, cooling systems, and power sources, ensure their software and licenses are updated regularly, maintain hardware or infrastructure components, and have dedicated IT personnel on-site to supervise and resolve any issues that may arise.

In contrast, businesses that utilize cloud hosting can avoid these costs and pay for computing resources on a pay-as-you-go basis.

2.  Compliance Needs  
Growing businesses often face issues in scaling up due to limited past systems and IT structures. Even if they are prepared, without a well-thought-out plan to address the requirements can crash the whole system.

For example, compliance standards like HIPAA/HITECH or PCI DSS can be overwhelming especially if their IT structure is not adjusted to accommodate them.

It is important to note that the information and communications technology (ICT) industry is always evolving and software that worked before does not mean it will work again sometime in the future.

3.  Security Concerns  
Physical security is a critical concern for on-prem as of the sensitive information they store. Unauthorized access can lead to data theft, destruction, or damage. While measures like perimeter fencing, cameras, biometric access controls, and guards are typically used to prevent unauthorized access, recent data breaches underscore the need for stronger physical security measures.

For instance, a recent case study revealed that inadequate physical security measures led to the theft of a significant number of customer records, emphasizing the importance of implementing robust physical security measures in data centers.

4.  Cybersecurity Threats  
On-premise is at risk of cybersecurity threats due to its critical data and applications, making them a prime target for cybercriminals. These threats can come from multiple sources, including hackers, viruses, malware, and ransomware.

Cybersecurity measures like firewalls, intrusion detection systems, and antivirus software are implemented to counter these threats. However, IT technical operators must continually update and adapt to new threats and technologies to ensure their systems remain secure.

5.  Insider Threats  
On-premise is at risk of human error. Human error in an on-premise data center refers to mistakes or accidents made by people working with the equipment or systems in the data center. This can include errors such as misconfiguration of servers or networking equipment, accidental deletion or modification of critical data, failure to properly monitor or maintain hardware or software, and other similar issues.

6.  Natural Disasters  
Natural disasters like floods, earthquakes, and hurricanes pose a threat, leading to power outages, data loss, and critical system damage, causing significant downtime and financial loss. Cloud hosting can minimize the impact of such disasters through disaster recovery and business continuity plans that involve data backups and replication of critical systems to off-site locations.

7.  Dedicated IT Skill Team  
The day-to-day maintenance and management of an on-prem server are typically handled by a team of IT professionals with specialized knowledge and skills in areas such as server and storage management, network infrastructure, security, and power and cooling systems. This team may include system administrators, network engineers, security specialists, and facilities technicians, among others.

They are responsible for ensuring that the server operates smoothly, addressing any issues or incidents that arise, and implementing changes and upgrades to the data center infrastructure as needed.

One of the potential downsides of on-premise servers is the need for a dedicated IT team that must be on-site all the time. This requirement can lead to increased labor costs and can be difficult to manage, particularly in locations where qualified personnel are in short supply.
Another potential con of relying on a dedicated IT team is that it can create a single point of failure. If the team cannot respond to an issue, the server will experience downtime until a replacement team can arrive. This downtime can be costly in terms of lost revenue, damage to the company’s reputation, and potential data loss.

How Cloud hosting solutions boost your business operation

On-premise servers offer businesses greater control, customization, and regulatory compliance, but they also come with significant drawbacks. These include high hardware & maintenance costs, coping stringent compliance needs, security concerns, cybersecurity threats, insider threats, natural disasters, and the need for a dedicated IT team.

In contrast, cloud hosting can provide businesses with a range of benefits such as increased security, 24/7 monitoring, a 3-2-1 backup policy, disaster recovery as a service (DRaaS), and easy scalability. With cloud hosting, businesses can easily access their data from anywhere in the world and scale their IT infrastructure up or down based on their changing needs.

Additionally, cloud hosting frees businesses from the need to maintain their own IT infrastructure, allowing them to focus on their core competencies and long-term growth strategies.

In conclusion, if a company is considering whether to use its own server or a cloud hosting solution, it must carefully evaluate its needs, budgets, and long-term goals to make an informed decision. While on-premise servers have some advantages, the many benefits of cloud hosting make it a compelling option for businesses.

Ultimately, businesses should think about what is most important to them and what they can afford to determine which option is right for them.

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