What are the advantages of using cloud storage compared to traditional on-premises storage solutions?

Cloud vs. On-Premise Data Storage Pros and Cons: Which is Best for Your Business?

Introduction

In the ever-evolving landscape of modern business technology, the choice between on-premise and cloud solutions has become a pivotal decision for organizations across various industries. The cloud vs on-premise pros and cons debate has taken center stage as businesses seek to optimize their infrastructure, streamline operations, and achieve competitive advantages. While each option brings its own set of advantages and disadvantages, understanding the key factors involved is essential to making an informed decision that aligns with the specific needs and goals of your business.

What are the different types of Cloud vs. On-Premise Solutions?

Cloud and on-premise solutions refer to different approaches for hosting and managing software applications and data. Most business systems can be either cloud or on-premise. For example, a traditional way of storing and sharing data is with a on-premise server; however, today you are much more likely to see a business utilizing the cloud for data storage and sharing. Companies use what is sometimes called a cloud data warehouse to store their data in a public but secure location hosted by another company. Whereas traditionally companies would use their own data center, whether local or in a rented space, to house their own hardware which stores the data.

• This same concept is true for businesses applications. For example, companies could have a cloud or an on-premise ERP system. Basic office applications, like the applications provided by Microsoft 365, can be run locally or in the cloud. When these applications are provided from the cloud, it is called SaaS, which is like IaaS/HaaS but for software vs. hardware. Business phone systems can also be in the cloud or on-premise with most today using a VoIP system in the cloud. Business security solutions can even be delivered from the cloud today and not just on-premise.

What is the main difference between cloud and on-premise?

The main difference between cloud and on-premise solutions is that cloud solutions utilize servers and infrastructure provided by a third-party provider over the internet, while on-premise solutions involve hosting and managing applications and data within an organization’s own physical infrastructure.

What is Cloud Computing in Simple Terms?

Cloud computing is the delivery of computing resources, like storage, processing power, and software, over the internet. It allows users to access and use these resources on-demand without the need for local infrastructure. Think of it as accessing and utilizing virtual resources hosted by a third-party provider instead of owning and managing physical hardware. Cloud computing offers scalability, flexibility, and cost-efficiency, enabling individuals and businesses to leverage computing power and services without the complexities of infrastructure management.

What are some examples of cloud computing services or cloud data solutions?

There are various examples of cloud computing services and cloud data solutions available. Here are a few commonly used ones:

1. Infrastructure as a Service (IaaS): Providers like Amazon Web Services (AWS) and Microsoft Azure offer virtualized computing resources such as virtual machines, storage, and networking.
2. Platform as a Service (PaaS): Services like Google App Engine and Heroku provide platforms and tools for developing, deploying, and managing applications without the need to worry about underlying infrastructure.
3. Software as a Service (SaaS): Applications like Salesforce, Microsoft Office 365, and Google Workspace are delivered as SaaS, allowing users to access software applications over the internet without the need for local installation.
4. Database as a Service (DBaaS): Solutions such as Amazon RDS, Google Cloud SQL, and Microsoft Azure SQL Database provide managed database services, handling aspects like scalability, backups, and maintenance.
5. Data Storage and Backup: Cloud storage services like Amazon S3, Google Cloud Storage, and Microsoft Azure Blob Storage enable organizations to store and retrieve data in a highly scalable and durable manner.
6. Data Analytics and Big Data: Cloud platforms like AWS, GCP, and Azure provide services for data storage, processing, and analytics. This includes solutions like Amazon Redshift for data warehousing, Google BigQuery for analytics, and Azure Data Lake Storage for large-scale data storage and analysis.
7. Content Delivery Networks (CDNs): CDNs like Cloudflare and Akamai help deliver web content efficiently by caching data at multiple geographically distributed servers, reducing latency and improving website performance.

These examples highlight the breadth of cloud computing services available, catering to different needs such as infrastructure provisioning, application development, data storage and analysis, and content delivery.

What are the main benefits of cloud computing (or cloud data solutions)?

Cloud computing and cloud data solutions offer several significant benefits:

1. Scalability: Cloud services allow organizations to easily scale resources up or down based on demand. This flexibility enables businesses to handle varying workloads without the need for significant upfront investment or infrastructure adjustments.
2. Cost-efficiency: Cloud computing operates on a pay-as-you-go model, eliminating the need for substantial upfront costs. Users pay only for the resources they consume, enabling better cost control and eliminating wasted resources from overprovisioning.
3. Accessibility and Collaboration: Cloud services can be accessed from anywhere with an internet connection, facilitating remote work and collaboration among teams. This flexibility enhances productivity and allows for seamless sharing and access to applications and data.
4. Reliability and Availability: Cloud providers typically operate in multiple data centers, ensuring redundancy and high availability. They employ robust infrastructure, backup systems, and disaster recovery mechanisms, reducing the risk of data loss or downtime.
5. Security: Cloud providers often invest in advanced security measures to protect data, including encryption, access controls, and regular security updates. They sometimes have dedicated teams and resources focused on security, providing a higher level of protection than many organizations can achieve on their own.
6. Automatic Updates and Maintenance: Cloud service providers handle routine infrastructure maintenance, software updates, and security patches, relieving users of these responsibilities. This ensures that systems are up to date, secure, and performing optimally.
7. Innovation and Agility: Cloud computing allows organizations to rapidly adopt and leverage new technologies and services. It enables quicker deployment of applications, faster experimentation, and easier integration with new tools and services, fostering innovation and agility.

These benefits make cloud computing and cloud data solutions highly advantageous for businesses, providing them with flexibility, cost savings, scalability, accessibility, security, and the ability to drive innovation.

What are the disadvantages of cloud computing (or cloud data solutions)?

While cloud computing offers numerous benefits, it also comes with a few potential disadvantages:

1. Dependency on Internet Connectivity: Cloud computing heavily relies on a stable internet connection. In cases of network outages or unreliable connectivity, users may experience disruptions in accessing cloud services and data.
2. Data Security Concerns: Storing sensitive data in the cloud raises security concerns. Although cloud providers implement robust security measures, there is always a risk of unauthorized access or data breaches. Organizations must carefully evaluate security controls and protocols implemented by cloud service providers.
3. Limited Control and Customization: Cloud solutions often provide limited control over underlying infrastructure and software. Organizations may face constraints in customizing the environment to meet specific requirements, which can be a challenge for businesses with unique needs or compliance obligations.
4. Potential Vendor Lock-In: Moving data and applications to a specific cloud provider may result in vendor lock-in. Transferring resources to another provider or back to an on-premise environment can be complex and time-consuming, potentially causing disruptions and additional costs.
5. Cost Considerations: While cloud computing can offer cost savings, it is not always the most cost-effective option for all workloads or scenarios. Organizations need to carefully analyze their usage patterns, long-term costs, and potential hidden expenses, such as data transfer or storage retrieval fees.
6. Data Transfer Speed and Latency: Uploading or downloading large amounts of data to and from the cloud can be time-consuming and subject to network bandwidth limitations. Latency can impact real-time applications or scenarios where immediate data access is critical.

By understanding these disadvantages, organizations can make informed decisions and implement appropriate strategies to mitigate risks and maximize the benefits of cloud computing.

What are On-Premise Data or Computing Systems?

On-premise data or computing systems refer to the deployment of hardware, software, and infrastructure within an organization’s own physical premises or dedicated data centers. With an on-premise setup, organizations have full control and ownership over their computing resources, including servers, storage, networking equipment, and software applications. These systems are managed and maintained by the organization’s IT department or an IT managed services provider like IntegriCom.

What are the main benefits of on-premise systems?

On-premise systems offer several key benefits:

1. Control: Organizations have complete control over their hardware, software, and data. They can customize and configure the systems according to their specific needs, security requirements, and compliance regulations.
2. Data Security: On-premise systems allow organizations to maintain full control over their data, reducing concerns about data breaches or unauthorized access. Data remains within the organization’s physical premises, offering an additional layer of security.
3. Performance: On-premise systems can offer faster and more reliable performance, as data processing occurs within the organization’s own infrastructure without reliance on external network connectivity.
4. Compliance: Certain industries or organizations with strict regulatory or compliance requirements may prefer on-premise systems to ensure compliance with data privacy and security regulations.
5. Data Sovereignty: With on-premise systems, organizations have physical possession and control of their data, which can be important for businesses operating in regions with specific data sovereignty regulations or concerns.
6. Long-term Cost: While on-premise systems require higher upfront investment, they can be cost-effective in the long run for organizations with stable workloads, as there are no recurring subscription fees associated with cloud services.
7. Customization and Integration: On-premise systems provide greater flexibility for customization and seamless integration with existing infrastructure, applications, and processes.

What are the disadvantages of on-premise?

The disadvantages of on-premise systems can be summarized as follows:

1. High upfront costs: On-premise systems require significant initial investments in hardware, software licenses, and infrastructure setup.
2. Ongoing maintenance expenses: Organizations bear the responsibility of managing and maintaining their own hardware, software updates, security patches, and backups, which can incur ongoing costs.
3. Limited scalability: Scaling an on-premise system to accommodate increased demand may be complex, time-consuming, and costly compared to the flexibility of cloud-based solutions.
4. Resource underutilization: Organizations may face challenges in optimizing resource utilization, leading to potential inefficiencies and wasted capacity.
5. Increased complexity: Managing an on-premise system involves dealing with a complex infrastructure, which requires specialized IT expertise and dedicated staff to handle its operations.
6. Dependence on in-house IT expertise: Organizations must have skilled IT personnel or a dedicated IT team to manage and troubleshoot the on-premise system effectively.
7. Lack of flexibility and agility: On-premise solutions may lack the agility and rapid deployment capabilities offered by cloud solutions, making it harder to adapt to changing business needs or leverage new technologies.

It’s important for organizations to carefully evaluate these disadvantages against their specific requirements, budget, and long-term goals when considering on-premise systems.

Why choose on-premise over the cloud?

Businesses may choose on-premise over the cloud for reasons such as enhanced data control and security, compliance with specific regulations, customization and flexibility to meet unique requirements, better performance and lower latency, and potential cost savings in the long run.

Cloud vs On-Premise Comparison Chart (Benefits and Cost)

BENEFITS

CLOUD COMPUTING

ON-PREMISE

Scalability: Easily scale resources up or down based on demand.

Control: Complete control over infrastructure and data.

Accessibility: Accessible from anywhere with an internet connection

Customization: Greater flexibility and customization options.

Managed Services: Offloading maintenance and updates to the cloud provider.

Performance: Lower latency and faster response times.

Disaster Recovery: Built-in redundancy and data backups.

Compliance: Easier compliance with specific regulations.

Cost Efficiency: Pay-as-you-go model, no upfront hardware costs.

Data Control: Direct control and ownership of data.

COSTS

CLOUD COMPUTING

ON-PREMISE

Operational Costs: Pay for cloud services on a subscription basis

Capital Expenses: Higher upfront costs for hardware, software, and infrastructure.

Scalability Costs: Pay for additional resources as needed.

Maintenance Costs: Ongoing expenses for system maintenance, upgrades, and security.

Staffing Costs: Lower need for in-house, or outsourced, IT expertise.

Long-term Costs: Potential cost savings in the long run compared to recurring cloud subscription fees.

How do you decide on-premise or cloud?

The decision between on-premise and cloud solutions depends on factors such as cost, scalability needs, data control and security requirements, customization and integration needs, expertise availability, accessibility and collaboration requirements, and compliance considerations. Conducting a thorough analysis of these factors, along with a cost-benefit evaluation, can help organizations make an informed decision. Additionally, consulting with IT professionals and cloud service providers can provide valuable insights and guidance to determine the most suitable option based on specific business needs and goals. Here at IntegriCom, we often consult with businesses to help them determine whether cloud or on-premise solutions best meet their needs, or if perhaps a hybrid approach, that combines both private and public cloud infrastructure, would be the best fit.

On-Premise vs. Cloud FAQs

Here are some frequently asked questions (FAQs) comparing on-premise and cloud solutions.

Which is safer on-premise or cloud?

Ultimately, the level of safety depends on the organization’s ability to implement robust security practices, regardless of the deployment model. With the proper security measures and best practices in place, both on-premise and cloud solutions can provide a secure environment.

Is cloud more sustainable than on-premise?

Cloud computing has the potential to be more sustainable than on-premise solutions due to resource optimization, energy efficiency, infrastructure consolidation, renewable energy adoption, and responsible equipment lifecycle management practices employed by cloud providers.

Is cloud faster than on-premise?

The speed of cloud versus on-premise solutions depends on various factors, including network connectivity, hardware specifications, and workload characteristics. In some cases, cloud solutions can provide faster access to resources and improved scalability, while on-premise solutions may offer lower latency and faster response times for certain workloads.

What are the 3 main types of cloud deployment models explained?

The three basic cloud services, often referred to as the “cloud computing stack,” are Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

1. IaaS provides virtualized computing resources, such as virtual machines, storage, and networking infrastructure, allowing users to deploy and manage their own applications and operating systems.
2. PaaS offers a platform for developing, testing, and deploying applications, providing tools, libraries, and runtime environments. Users can focus on application development without worrying about underlying infrastructure.
3. SaaS delivers software applications over the internet, allowing users to access and use the applications without needing to manage the infrastructure, maintenance, or updates.

What is the difference between cloud and ‘private cloud’?

The main difference between cloud and “private cloud” is the ownership and accessibility. Cloud refers to services and resources provided by a third-party over the internet, while private cloud refers to a cloud infrastructure dedicated to a single organization, providing more control, privacy, and security.

Is ‘private cloud’ on-premise or off-premise?

Private cloud refers to a dedicated cloud infrastructure exclusively used by a single organization. If the private cloud is hosted within the organization’s own data center, it is often still considered to be on-premise. If it is hosted in a third-party data center, it is off-premise.

Summary

Technology is forever changing. Keeping up with the changes and knowing what to apply in your business is valuable. Knowing what and when to move to the cloud takes careful consideration and calls for both technology and business expertise. Let IntegriCom guide you through the process. Schedule a consultation with our experts to help guide you and your business.

This guest post is from 45Drives who provides affordable high-performance, high-capacity, enterprise storage solutions for all industries and all size data requirements.

What is better: cloud storage versus local storage? 

Unfortunately, there’s no clear answer because no two data storage needs are the same. For that reason alone, it’s impossible to say that a specific setup will solve all of your problems. It’s going to depend on your particular needs and requirements, including security requirements.

Where and how your data is housed will play a massive role in the creation and implementation of your Business Continuity Plan. Because a Business Continuity Plan gives businesses the tools to be prepared in the face of unexpected events or to quickly respond to disruptions in their operations, these details should include provisions about your data too. For the sake of backing up your data, you may need both cloud and local storage. 

There are many widely accepted advantages and disadvantages when considering cloud storage versus local storage. We’re going to go through them in this blog. 

Advantages and Disadvantages of Cloud Storage

Four Advantages

1. Hands-off approach: With cloud storage, data management is virtually hands-off. Data sent to “the cloud” is backed up at regular intervals with almost no human intervention required. If your computer crashes? No need to panic – your data is safe. Unlike traditional local storage, you also don’t have to take your files with you. Meaning you don’t need to physically transport them from one location to the next. 
2. Your files are easily available: As long as you have access to reliable internet, your files will always be available to you whether you’re working from home or from a coffee shop. With the prevalence of working from home due to the recent pandemic, cloud storage has also made collaborative learning and file sharing easier.
3. The cloud is easy to scale (with only a few gigabytes or terabytes): If you only have a small amount of data, the cloud is a great solution. Increasing the amount of data that you have stored in the cloud is painless too. There are usually costs associated with doing this, of course, but adoption of cloud storage is still, by comparison, less expensive than local storage when you have small amounts of data.
4. Worried about physical data loss? The cloud has you covered: If you’re only using cloud storage, there are no physical servers or external hard drives kicking around. So, there’s a limited worry of you losing your data to things like a fire, water damage, physical damage, etc. Besides its ease of use, this is definitely one of the main selling points of the cloud for many people. The data centers owned by cloud storage providers have multiple redundancies in place to ensure that your data is always safe and accessible. They also employ a variety of additional security layers like encryption to further safeguard your files.

Five Disadvantages

1. Unexpected paywalls: Upfront costs of cloud storage can seem attractive. The relative cost per gigabyte, especially when you only have small amounts, can seem low in comparison to local storage costs. But the price tag begins to increase significantly as soon as you try downloading data that belongs to you already. Even uploading more data outside the scope of the package you purchased can see those costs start to climb higher. Downloading your data from the cloud is called an egress charge, and NASA was hit with some unexpected realities when they failed to realize the egress costs associated with placing 247 petabytes of data into AWS would cost them $30 million per year by 2025 in addition to their original budget.
2. Reliance on the internet: Cloud storage is exclusively online, which means if you experience any kind of internet downtime or disruption, your files are difficult to access. The performance of your internet can also affect your ability to access them. Slow download speeds and bottlenecks can dramatically affect data retrieval.
3. When you’ve got tens of TBs of data, the cloud just doesn’t cut it: Cloud storage is not ideal when you have large amounts of data. Yes, it’s a viable solution when you only have a few gigabytes. But when you get into the realm of tens of terabytes of data, it’s probably time to consider moving away from the cloud. Also, having large amounts of data usually warrants some kind of IT-service management to keep track of it all, make sure it’s set up properly, and that the levels of access are there.
4. Not all data can be stored on the cloud: Not all data is a candidate for cloud storage, especially sensitive files or personally identifiable information. These types of data sets, whether for legal reasons or reducing risk of a cloud breach, need to be protected and monitored from an on-site location. Furthermore, if you need to follow measures like HIPAA compliance, you need technical, physical, and administrative safeguards in place to protect that data with stringent controls. Plus, depending on where you’re located in the world, data stored on the cloud could be among several different data centers across the country. Some of them could even be located internationally.
5. Cloud storage providers are hacked more often: Cloud storage is often more prone to data breaches. It is a very enticing infrastructure to hackers. In a recent publication by McAfee, their findings state there’s been a 50% increase in enterprise cloud computing since the first quarter of 2020. It makes sense, given that more people have been working from home lately. Plus, the cloud has just become more widely adopted in recent years. But, frighteningly so, there has been a 630% increase in attacks across all industries. Cybercriminals are working to create new, highly mechanized, widespread attacks against the cloud — this problem is not going away.

So, now that we’ve discussed the common advantages and disadvantages of cloud storage let’s move on to local storage, also known as on-premises storage.

Advantages and Disadvantages of Local Storage

Six Advantages

1. Physically on-site, so you have full control: With your local storage server on-site, you have full control over your storage infrastructure. You can set permissions, create file trees, set data quotas, buckets for specific users, and create permissions for user access. This functionality is still available with the cloud too, but you can have more rigorous controls in place when your storage servers are located at your business or your home office. Also, by having your data at your location, there is also a decreased risk for intrusion into your systems. Physical storage servers are not targeted by hackers as much as cloud storage providers are. 
2. Local storage systems can be changed easily: Briefly, we discussed those unexpected paywalls that can happen with cloud storage. An on-site solution can mitigate those surprises. If you need more storage space, you can increase the size of your infrastructure. If you need better performance, you can change the components within your storage server. There are no surprise surcharges or a need to apply guesswork to project what cloud storage package you’re going to need in three months, six months, and beyond.
3. Helps with compliance measures for frameworks like HIPAA and GDPR: To reach certain levels of compliance, your data sometimes needs to be stored on-site — in a location that is easily accessible. For example, law enforcement’s digital evidence like crime scene photos, victim information, etc., cannot be stored on the cloud for many different reasons. Think of how detrimental it would be if crime scene evidence was stored on the cloud and the provider of that cloud storage was affected by a data breach. Not just the fact that those photos could get into the wrong hands, but also that any trial happening as a result of that crime would need to be abandoned. The same goes for data like personal health records. There are so many horror stories out there about data breaches that have happened, where personal records were exposed or sold on the dark web for ransom.
4. No WiFi required: Unlike the cloud, for local storage, an internet connection is not required. Your data can be accessed whenever you need it, without the worry of internet speeds, connectivity issues, or general reliability. You also don’t have to worry about any additional costs associated with downloading your own data. Or costs to upload more of it, for that matter. Save, of course, for the times when you have to increase your storage capacity. But generally speaking, local storage is more reliable and is always accessible.
5. Local storage can still have cloud storage: The ability to easily access and share data from the cloud is one of its big advantages. But an on-premises cloud can be made too. With the help of the S3 protocol, you can turn your local storage into its own cloud. Having your own “cloud” at your location gives you the option of creating specialized buckets with their own unique links, similar to the way that cloud sharing works. Only the individuals with that specific link can access the data that has been shared with them and/or work within the parameters of the quotas that have been assigned. These permissions can also get very granular, depending on how they are set up, and can operate exactly like an online cloud. It’s the best of both worlds, really.
6. No hidden fees: As mentioned above, the cloud can come with a mix of hidden paywalls and fees. And while there can be some significant upfront costs with purchasing storage servers and the upkeep of those servers (general maintenance, power consumption, upgrades, etc.); once you have your storage infrastructure in place, there are no unforeseen costs when it comes to things like downloading your data, service charges, or unplanned spikes in the cost to store it all. Similarly, if you want to increase your storage limits, you can customize your own infrastructure to best suit your needs rather than paying prices that lock you in for specific periods of time. Worse than that, switching your data from one provider to another isn’t exactly easy to do—you have to download all of that data from one location and upload it to the next. This is both time-consuming and potentially very expensive. 

Four Disadvantages

1. Local storage requires physical space and oftentimes specialized IT staff: Having your storage solutions on-site can sometimes require the expertise of trained IT employees. The cloud is backed up automatically, and it is constantly “running” in the background to guarantee that your data is always available. Particular redundancies and/or performance mechanisms need to be implemented among your storage devices; therefore, requiring the intervention and skilled services of IT professionals. Not every organization has the means to be able to afford this or the bandwidth from current staff to control it all, which can account for the reasons the cloud is put into action.
2. Risk of unwanted internal access:  Because your storage servers are physically at your location, you need to make sure that these servers are stationed in the proper areas based on your physical security policy — that they are locked away securely in separate rooms or at least in a space that does not see high traffic. Additionally, with local storage, there is an increased risk of data tampering, i.e., If it’s not protected with the necessary firewalls and encryption – that cloud services often provide – you are running a greater risk of that data getting into the wrong hands. Whether from an external source or by a disgruntled employee who wants to do harm.
3. Higher upfront costs to local storage: Getting started with cloud storage costs less than getting started with on-premises solutions. Especially if you’re just using the cloud to back up your data (cold storage) and don’t necessarily need to access/download your data regularly—which is where cloud storage can really become cost-prohibitive. Also, the more data you have, the more physical storage you need. So, the upfront investment can potentially be a barrier to install and manage.
4. Physical servers are more susceptible to external damage: Keeping physical servers at the office or data center does come with the risk of losing them through external damages. If there is a fire, a flood, or your building experiences some kind of structural damage, you’ve likely lost all of your data. And if you haven’t retrieved it, it can be very difficult.

The data storage solution you choose is really going to depend on your use case, the physical space you’re working from, and, of course, your budget. The advantages of one may significantly outweigh the advantages of the other when you’re making that final decision. There are many cloud providers out there, all with their own offerings. Weigh the pros and cons of cloud storage versus local storage with careful thought and consideration, and choose what is going to make you most confident in the end. Visit 45Drives to learn more about our product line of enterprise-grade storage servers powered by open source technology. Our storage solutions are non-proprietary, giving you the freedom to run any software you choose. Our team would be more than happy to help you answer any questions you might have and determine the solution that’s going to best suit your needs and your budget. Visit www.45drives.com to learn more about our many storage options available.