Cloud Vs On-Premise: IT Infrastructure Model of Your Choice?

IT infrastructure has been undergoing transition over decades. The IT industry has matured to a stage where infrastructure maintenance is easily manageable from the level of traditional hardware with heavy maintenance.

Cloud based infrastructure is one solution in that journey that simplifies IT maintenance concerns by taking care of core infrastructure aspects over the network. However, Cloud solutions are not a complete answer because of the strong preferences for on-premise solutions on the other side.

The cloud vs on-premise installations are various. While cloud based infrastructure is enabled over the network, on-premise servers (as the name suggests) deal with infrastructure at organizational premises or on-site. However, both solutions aim to reduce organizational costs and maintenance burdens by implementing agile IT infrastructure services. Cloud based infrastructure has already proved to be cost-effective and more accessible for small businesses, mainly for its agile and flexible integrations at affordable costs.

Cloud computing and on-premise infrastructure are two of the most common approaches to IT infrastructure management. Recently, cloud computing has gained significant traction, with many organizations migrating their workloads to the cloud. However, on-premise infrastructure remains a viable option for some organizations.

Key Statistics

• Cloud computing market size: The global cloud computing market is expected to reach USD 480.0 billion in 2023, up from USD 332.3 billion in 2022. (Source: Statista)

• Cloud adoption: As of 2023, 83% of organizations have adopted cloud computing, and 58% have a multi-cloud strategy. (Source: Flexera 2023 State of the Cloud Report)

• On-premise infrastructure: Despite the growth of cloud computing, on-premise infrastructure is still widely used. 27% of organizations plan to increase their investment in on-premise infrastructure in 2023. (Source: IDC 2023 IT Infrastructure Spending Guide)

Planning Migration to Cloud

Benefits of Cloud Computing

1) Cost Savings

Cloud computing offers substantial cost savings by adopting a pay-as-you-go model. Organizations only pay for the computing resources and services they use, eliminating the need for significant upfront investments in infrastructure. This cost-effective approach allows businesses to scale their operations efficiently, optimizing expenditure and promoting financial flexibility.

2) Scalability

The scalability of cloud computing is a game-changer for businesses. It allows companies to scale their IT infrastructure management resources up or down swiftly and seamlessly on demand. This flexibility ensures that companies can respond rapidly to changes in workload, whether handling increased traffic during peak periods or downsizing during quieter times. As a result, businesses can avoid over-provisioning and only allocate resources as needed, enhancing operational efficiency.

3) Flexibility

Cloud computing provides unparalleled flexibility, allowing organizations to deploy and manage applications and data from virtually any location with an internet connection. This flexibility benefits businesses with distributed teams or those looking to tap into global markets. Teams can collaborate in real-time across geographic boundaries, fostering innovation and enhancing overall productivity.

4) Security

Cloud providers prioritize security and invest heavily in advanced security features. Contrary to common misconceptions, many organizations find their data more secure in the cloud than when stored on-premise vs cloud. Cloud server infrastructure providers employ robust security measures, such as data encryption, multi-factor authentication, and regular security audits. Additionally, they often have dedicated teams of experts focused on monitoring and addressing security threats, providing protection that may surpass what individual organizations can achieve on their premises.

Benefits of On-premise Infrastructure

1) Control

On-premise infrastructure provides organizations with complete control over their IT infrastructure management environment. This level of control is crucial for specific industries, such as finance or healthcare, where regulatory compliance and data governance are paramount. Having physical control over servers, networks, and data centers allows organizations to implement specific policies and configurations tailored to their unique requirements. This control is precious when dealing with sensitive data that must adhere to strict regulatory standards.

2) Customization

On-premise infrastructure offers high customization to meet an organization’s specific needs. Businesses can design and implement infrastructure technology services tailored to their applications, workflows, and business processes. This level of customization is particularly beneficial for enterprises with specialized requirements or legacy systems that may not easily transition to a cloud IT infrastructure environment. It provides the flexibility to build and maintain infrastructure technology services precisely aligned with the organization’s objectives and technology stack.

3) Performance

On-premise infrastructure can deliver low-latency and high-performance access to data and applications. Since the infrastructure is physically located on-site, organizations can achieve optimal performance for applications that require real-time data processing or demand low-latency connectivity. This is especially important for industries such as manufacturing or research, where immediate access to data and rapid response times are critical for operational efficiency and competitiveness.

4) Security

Organizations can implement and manage their security measures on-premise vs cloud, offering a level of control that some businesses find preferable. This includes customizing security protocols, implementing stringent access controls, and monitoring the entire infrastructure in-house. For industries handling susceptible information or subject to stringent regulatory requirements, maintaining direct control over security measures provides a sense of assurance and compliance. Organizations can establish and enforce security policies tailored to their specific needs, addressing potential concerns related to data privacy and regulatory adherence.

Stuck at this point?

Answers to these questions lie in understanding key differentiators between the Cloud Vs On-premise models.

1) Hosting

Hosting is the first factor that shows us a big difference between on-premise and Cloud infrastructure models.

As we see the on-premise servers, the infrastructure is maintained at the organization’s premises. This directly means the requirement of additional maintenance personnel for server management. Cloud IT infrastructure solutions work otherwise, and the Cloud infrastructure management is maintained over the network.

The cloud service providers (CSPs) in place will (by default) take care of the cloud computing environment. Be it upgrading software, addressing downtimes, repair, maintenance, or more pertaining to the accommodated public cloud computing servers.

Coming to sudden scenarios like server blackouts, Cloud solutions work their way with high scalability offerings.

2) Deployment

Having an on premise infrastructure server model means maintaining infrastructure on your own, which directly reflects in investment for servers, software, and technical personnel.

In that case, the entire risk at times of failure lies with the organization! Meanwhile, cloud computing infrastructure presents a safer perspective for your business. In Cloud solutions, any loss incurs only the subscription charges needed to utilize its virtual environment.

Cloud virtual infrastructure also offers you high flexibility in implementing broader infrastructure.

Cloud integration also facilitates faster installation and support services, while it might take days together to get an on-premise server on board. A system administrator with Cloud support can perform at a rate ten times faster than in an on-premise infrastructure.

3) Workflow and Delivery