On-Premises vs. Cloud: Advantages and Disadvantages

Regarding cloud computing, there are two main infrastructure models: on-premises and cloud. Each option has its own set of advantages and disadvantages that need to be considered to make the best decision for the organization.

From cost-effectiveness, AWS Support options, and management to security and compliance, this guide will help you understand on-premises vs. cloud to make the best decision for your business.

What is On-Premises?

On-premises infrastructure refers to computing resources that are physically housed and managed on-site by the organization. The organization is responsible for all aspects of the on-premises infrastructure, including purchase, installation, configuration, maintenance, and management.

From the name itself, on-premises means that the infrastructure is on the company premises. It can be in a data center on-site or a co-location facility where the organization rents space to house its on-premises infrastructure.

In some cases, particularly for small businesses, on-premises infrastructure may be housed on-site in a server closet.

Advantages of on-premises:

Greater control over the environment

Because on-premises infrastructure is housed on-site, the organization has complete control over all aspects of the environment, including security, compliance, and data management.

These are important factors, particularly for organizations in highly regulated industries such as healthcare and finance.

More predictable performance

When on-premises infrastructure is properly configured and managed, it can provide more predictable performance than cloud-based infrastructure.

This is due to the fact that on-premises infrastructure is not subject to the same network congestion and other issues that can affect cloud-based infrastructure.

Increased security (physical and logical)

Naturally, because on-premises infrastructure is housed on-site, it is more secure than cloud-based infrastructure.

Physical security measures such as locked doors, guards, and CCTV can be used to protect on-premises infrastructure. In addition, on-premises infrastructure can be logically secured with firewalls and other security measures.

Customization opportunities

Since you have complete control over on-premises infrastructure, it can be customized to meet the specific needs of your organization.

For example, you can choose the type and number of servers, storage systems, and networking equipment that you want to use. You can also determine how these components will be configured to work together.

Disadvantages of on-premises:

High upfront costs

One of the biggest disadvantages of on-premises infrastructure is the high upfront cost. Not only do you have to purchase all of the hardware and software needed to build your on-premises infrastructure, but you also need to factor in the cost of installation, configuration, and the list goes on!

That could cost a lot of money upfront, particularly for small businesses.

Ongoing maintenance costs

In addition to the high upfront cost, on-premises infrastructure also requires ongoing maintenance and management. This includes routine tasks such as patching and upgrading software, as well as more complex tasks such as capacity planning and performance tuning.

And since you're responsible for maintaining the on-premises infrastructure, you need to have qualified staff on hand to do so. That could mean hiring full-time employees or contracting with outside experts.

Of course, cloud management software like CAMS can help you automate many of these tasks, but it will still require some level of ongoing management.

Difficult to scale

Another disadvantage of on-premises infrastructure is that it can be difficult to scale. As your business grows, you may need to add more servers, storage, and networking capacity.

But that's not always easy to do on-premises. You may need to purchase new hardware, which can be costly. Plus, you may need to reconfigure the existing on-premises infrastructure to work with the new components.

What is cloud-based infrastructure?

On the other hand, cloud-based infrastructure is housed off-site in a remote data center. The organization rents space on servers owned and operated by cloud providers like Amazon Web Services (AWS), Google Cloud Platform, and Microsoft Azure.

These providers are responsible for the scloud-based infrastructure's ecurity, compliance, and data management, so you don't have to worry about those things.

Advantages of cloud-based infrastructure:

Pay-as-you-go pricing model

One of the biggest advantages of cloud-based infrastructure is the pay-as-you-go pricing model. With this model, you only pay for the resources that you use. For example, you can rent a certain amount of space on a server for a month and then increase or decrease that amount the following month, as needed.

This is in contrast to on-premises infrastructure, where you have to pay for all of the hardware and software upfront, regardless of whether or not you use it all. Naturally, this option is more cost-effective for organizations that have fluctuating needs.

Elastic scalability

Another advantage of cloud-based infrastructure is elastic scalability. This means that you can easily scale up or down as needed.

For example, if you need to add more servers, you can simply rent more space on a server in the cloud. There's no need to purchase new hardware or reconfigure the existing infrastructure. This is a big advantage for businesses that are growing rapidly or that have seasonal fluctuations in demand.

Enhanced security

When you use cloud-based infrastructure, you don't have to worry about the physical security of the data center. That's because the cloud provider is responsible for the security of the data center.

In addition, cloud providers have teams of experts that are constantly monitoring the security of their systems and implementing new security measures. This enhances the overall security of the cloud-based infrastructure.

Support from cloud providers

When you use cloud-based infrastructure, you get support from the cloud provider. This can be helpful if you have questions or run into problems.

For example, if you're having trouble scaling your infrastructure, you can contact the cloud provider for help. In contrast, with on-premises infrastructure, you're on your own.

Disadvantages of cloud-based infrastructure:

Shared responsibility model

One of the disadvantages of cloud-based infrastructure is the shared responsibility model. With this model, the cloud provider is responsible for the security of the data center, but you're responsible for the security of your data.

This means that you need to have security measures in place to protect your data. Otherwise, it could be compromised. Try to include some cloud management software options like AWS or  Azure management software that have robust security features.

Dependency on the internet

Compared to on-premises infrastructure, cloud-based infrastructure is more dependent on the internet. If there's an issue with the internet connection, it can affect the performance of the cloud-based infrastructure.

Of course, this isn't a big deal if you have a reliable internet connection. But if you don't, it could be a problem.

Potential for vendor lock-in

Another disadvantage of cloud-based infrastructure is the potential for vendor lock-in. This happens when an organization becomes too dependent on a particular cloud provider.

If you decide to switch to a different cloud provider, it can be difficult and expensive. That's because you might need to reconfigure your applications and data to work with the new provider.

To avoid vendor lock-in, choose a cloud provider that uses open standards. That way, you can switch providers if you need to without too much hassle. Check out the impact of vendor lock-in on your business to learn more.

On-Premises vs. Cloud infrastructure: Which is the superior option?

There's no clear answer to this question. It depends on your circumstances and what's important to you.

If you need more flexibility and scalability, then cloud-based infrastructure is the better option. But if security and customization are more important to you, then on-premises infrastructure is the way to go.

Both on-premises and cloud-based infrastructure have their advantages and disadvantages. Do some research to figure out which option is best for your organization.