Where do you store your data?
In IT, you generally have two choices: on-premise storage or cloud storage.
On-premise storage involves owning physical servers in your office or a data center. Cloud storage involves paying a cloud service to house your data. Each approach has its own set of benefits and challenges.
So how do you know which one is best for your business? We've compiled a list of benefits and challenges for both cloud and on-premise storage systems. We hope this information helps you make an informed decision that best suits your needs.
WEBIT Services has been developing IT strategies, procuring equipment, and deploying technology for over 25 years for hundreds of clients.
By reading this article, you will learn about each storage type, its benefits, its challenges, and what a hybrid system may look like.
Benefits of On-Premise Storage:
1. Customizable
On-premise storage allows you to customize the infrastructure according to your specific requirements. You can tailor the setup to meet your organization's exact needs, ensuring optimal performance and resource utilization.
You can upgrade your server to the exact specifications if you need slightly more processing speed or space. You are not limited by premade memory options. You can make major or micro upgrades—the increased memory space or processing speed is determined by your needs alone.
2. You Control It
One of the most significant advantages of on-premise storage is complete control over your data and applications. This control offers a sense of security. You know your sensitive information is within your grasp and not dependent on external service providers.
Your system is set to accommodate your needs and business functions. You can control when and how your system is updated and maintained. Your system is not reliant on a data company's schedule or services.
Unless you are enrolled in hardware-as-a-service, having an on-premise system means you own your servers. There's no fear that your service will suddenly be turned off due to missed payments or changed policies.
Challenges of On-Premise Storage
1. Expensive Up-Front Investment
Setting up on-premise storage requires a substantial initial investment. Purchasing servers, networking equipment, and other infrastructure components can be expensive, especially for small businesses with limited budgets.
In addition, servers only have a useful lifespan of roughly five to seven years. Once a server reaches five years old, it may slow down and develop glitches, becoming unreliable. In that case, a new server must be purchased.
This recurring investment must be made every five to seven years.
2. You Are Responsible for the Maintenance
On-premise storage demands regular maintenance and updates from your IT team. This responsibility can be time-consuming and may require additional resources.
If a server crashes, you and your team must bring it back online. Productivity halts until the server can function again.
If your business suddenly loses power and you want your server to keep running, you must have the additional resources and tools to make this happen.
However, if you pay to store your servers at a data center, they will be responsible for events like power outages. This relieves some of the responsibility for server owners.
3. Difficult to Move
Once your data and applications are stored on-premise, moving them to a different location can be challenging.
Servers must be carefully configured, moved, reconfigured, and connected to the appropriate system pieces. It's a time-consuming and complicated process, though not an unfamiliar process for experienced IT providers or teams.
The Benefits of Cloud Storage
1. Easy to Access
The cloud offers easy accessibility to your data and applications from anywhere with an internet connection. Your data is stored on the cloud service's servers.
Storing data in the cloud eliminates geographical restrictions. Team members can access critical information and applications regardless of physical location. This promotes seamless communication and productivity.
2. Maintained and Managed by the Cloud Service
Cloud service providers handle the maintenance and management of the infrastructure, relieving your IT team from this burden. The cloud provider takes care of regular updates, security patches, and data backups.
3. Increasingly Popular
More and more applications and services are moving to the cloud. Its accessibility and flexibility make it very appealing.
Challenges of Cloud Storage
1. Transferring Data or Upgrading Size Takes Time
It's a common misconception that everything about the cloud is fast.
Cloud storage may sound like a streaming subscription—just sign up, and all your data is right there—but it is far more complicated than that. Moving to cloud storage is a massive undertaking.
Transferring a large amount of data to or from the cloud can be time-consuming and requires a professional hand. Upgrading storage capacity may involve some downtime, temporarily impacting your operations.
2. Limited Sizing Options
Cloud providers typically offer predefined storage tiers, making it challenging or impossible to perform micro-upgrades. You are limited to the storage tiers predetermined by the cloud service.
This limitation might lead to paying for unused resources or facing limitations during peak usage.
3. Controlled by the Cloud Provider
When you store data in the cloud, you entrust its security and availability to the cloud provider. This reliance means you have less control over the infrastructure and must rely on the provider's policies and practices.
In addition, the cloud provider determines when and how updates and maintenance occur. They will announce that all their servers will be down at a set time for maintenance, and their customers will then plan for downtime. There's no choice in the matter.
4. It Can Be Very Expensive
Another common misconception is that the cloud is always cheaper. Depending on your needs and the service, this is often not the case.
While the cloud offers convenience, it can be costly, especially for businesses with substantial storage needs. Monthly subscription fees and additional costs for data transfers and extra features can add up quickly.
Can you use a hybrid storage system?
A hybrid data storage approach utilizes both on-premise and cloud storage solutions, striking a balance between their advantages. This approach allows organizations to leverage the benefits of both methods while addressing some of their drawbacks.
For instance, a company might keep critical, sensitive data on-premise to maintain maximum control and security while using the cloud for non-sensitive data or managing occasional spikes in demand. This combination ensures data accessibility, cost-effectiveness, and scalability.
Some businesses may use a hybrid model seasonally. During a slower season, they will rely on on-premise storage. However, they will supplement with cloud storage during the busy season. This means the business only has to pay for additional storage when it needs it most.
Next steps for choosing a data storage system
The decision between on-premise data and the cloud depends on an organization's unique requirements and priorities.
On-premise storage offers customization and control but at a possibly higher initial cost and maintenance responsibility.
Conversely, the cloud provides easy access, scalability, and managed services but may come with certain limitations and a lack of complete control.
Furthermore, the possibility of a hybrid data storage solution showcases the potential for businesses to capitalize on the strengths of both options, allowing for a more tailored and efficient data management strategy.
Choosing a data storage system and moving your data is a significant undertaking. Before transferring files or purchasing data storage, talk to your IT provider or internal IT team. They can help you closely examine your existing system, work processes, dependencies, and how data storage fits your long-term goals.
Data storage upgrades or moves should also be included in your IT roadmap, outlining your goals and potential investments.
If your IT provider or team does not have an updated, relevant IT roadmap for your business, this is a service red flag. This living document is crucial for your business's IT goals.
If you have additional questions about data storage and what it looks like for your business, talk to your IT provider or internal IT team. They can make recommendations based on your needs, goals, and expectations.
For over 25 years, WEBIT Services has helped hundreds of clients build successful IT strategies and processes while utilizing effective technology.
If you are looking for a new IT provider, schedule a free 30-minute consultation to see how WEBIT can help.
If you are not ready to make a commitment but would like to learn more about IT strategy, we recommend the following articles:
