{"id":18262,"date":"2021-05-18T11:31:44","date_gmt":"2021-05-18T10:31:44","guid":{"rendered":"\/gb\/en\/blog\/?p=18262"},"modified":"2023-01-17T10:43:01","modified_gmt":"2023-01-17T10:43:01","slug":"on-premises-vs-cloud-based-software-which-is-better-for-your-business","status":"publish","type":"post","link":"\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/","title":{"rendered":"On-Premises vs. Cloud-Based Software: Which is Better for Your Business?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">\u201cTo cloud or not to cloud?\u201d is a reasonable question that often boggles the minds of CTOs. On the one hand, there\u2019s no shortage of articles praising the power of moving IT architecture to the cloud, improving operational flexibility and accessibility.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, there have been talks about the unreliability of the cloud in the data security realms. Even big names like Apple, Google, or Dropbox struggle to protect their users, let alone smaller-scale cloud storage providers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the day, which decision is the best one for your business? In this post, we will highlight the benefits and limitations of both cloud and on-premises storage, and outline scenarios in which one is more convenient than the other.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why Do Companies Still Use On-Premises Storage?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although there\u2019s a lot of buzz around the cloud, a lot of teams are still reluctant about cutting ties with on-premises infrastructure. A lot of factors come into play&#8211;some are subjective, like the fear to embrace innovation and lack of desire to re-train the team. Others, however, are perfectly reasonable. After all, on-premises storage platforms have undeniable benefits.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Key Benefits of On-Premises Storage:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>A lot of room for customisation<\/b><span style=\"font-weight: 400;\">. Managed fully by the host, on-premises storage can always be updated to match the company\u2019s needs. Business owners can tweak the interface and add features relevant for their field of operation and use cases. Such flexibility is outside the realm of possibility for vendor-backed solutions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-run cost-savings<\/b><span style=\"font-weight: 400;\">. On a short-term scale, cloud is cheaper than on-premises storage. However, years down the line, with the storage scaling and bandwidth consumption increasing, those who stayed on-premises will be winning in operational cost-cutting. Thus, if teams expect to scale their storage needs and process high data volumes in the future, on-premises is the way to go.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Full control over security<\/b><span style=\"font-weight: 400;\">. Let\u2019s not commit the fallacy of thinking that on-premises fully beats cloud in terms of data protection. There are numerous cases when hosting data infrastructure gives teams a false sense of safety. Making them, at the end of the day, more vulnerable to third-party attacks. The beauty of on-premises is in the fact that, if the team does care about <\/span><a href=\"\/gb\/en\/blog\/cybersafety-for-the-remote-revolution-keeping-call-centre-workers-cybersafe\/\"><span style=\"font-weight: 400;\">cybersafety<\/span><\/a><span style=\"font-weight: 400;\">, you can create a protection system unmatched by third-party vendors.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Key Challenges of On-Premises Storage:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Takes more time to deploy<\/b><span style=\"font-weight: 400;\">. When it comes to on-premises, there\u2019s no instant access to resources. If teams are set to scale, they\u2019d better have a plan and get ready to take their time. That\u2019s why hosting their own storage can be agony for businesses operating in rapidly-changing fields.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unfit to support remote teams<\/b><span style=\"font-weight: 400;\">. Since on-premises storage is linked to a location, it\u2019s not a viable solution for teams that don\u2019t have physical headquarters. It is possible to make on-premises storage more accessible by investing in carrier and network services, but these are costly investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Upfront investment<\/b><span style=\"font-weight: 400;\">. To host on-premises storage, business owners need to be ready to invest heavily. At the founding stage, most team leaders have no shortage of expenses and throwing on-premises infrastructure set-up into the pile will be a heavy burden. That\u2019s why most on-premises adopters are the companies that don\u2019t see implementation budgets as their main concern.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">The Case For Cloud Computing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you work in tech, chances are, you\u2019ve seen this meme a ton on social media.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18267\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-4.png\" alt=\"pic (4)-615\" width=\"800\" height=\"547\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-4.png 800w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-4-300x205.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-4-640x438.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-4-768x525.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Although exaggerated, this anecdotal story gives a clear reflection of how big the cloud industry is these days. Statistically, the majority of companies have already shifted their data to the cloud, at least partially. The growth rate of cloud computing and storage is huge &#8211; here are a few facts and figures that prove the point:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By 2023, the value of the cloud computing market will exceed <\/span><a href=\"https:\/\/www.abnewswire.com\/pressreleases\/cloud-computing-market-size-expected-to-grow-6233-billion-by-2023-at-a-cagr-of-180_431003.html\"><span style=\"font-weight: 400;\">$623 billion<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2020, cloud storage generated over<\/span><a href=\"https:\/\/www.statista.com\/topics\/1695\/cloud-computing\/\"><span style=\"font-weight: 400;\"> $305 billion in revenue<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resources.flexera.com\/web\/media\/documents\/rightscale-2019-state-of-the-cloud-report-from-flexera.pdf\"><span style=\"font-weight: 400;\">Business owners run<\/span><\/a><span style=\"font-weight: 400;\"> 38% of processes in public and 41% in the private cloud.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amazon, Google, and Microsoft are the biggest cloud storage providers. Together, \u201cThe Big Three\u201d <\/span><a href=\"https:\/\/www.canalys.com\/newsroom\/cloud-market-share-q4-2018-and-full-year-2018\"><span style=\"font-weight: 400;\">account for over 57%<\/span><\/a><span style=\"font-weight: 400;\"> of the market share.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Generally, data points to the fact that the future is, well, cloudy. However, does it mean that business owners should rush into moving all the parts of their infrastructure to vendor-backed, server-based storage? Not necessarily.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a closer look at the benefits and limitations of cloud storage to understand why <\/span><a href=\"https:\/\/www.ibm.com\/blogs\/cloud-computing\/2019\/03\/05\/20-percent-cloud-transformation\/\"><span style=\"font-weight: 400;\">few companies move over 20% of their data to the cloud<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key Benefits of Cloud Storage<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18265\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-2.png\" alt=\"pic (2)-601\" width=\"960\" height=\"720\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-2.png 960w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-2-300x225.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-2-640x480.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-2-768x576.png 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.slideteam.net\/media\/catalog\/product\/cache\/960x720\/f\/i\/five_benefits_of_cloud_storage_slide01.jpg\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400;\">1. On-demand resources help businesses react quickly<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In 2021, the business landscape is highly dynamic. <a href=\"\/gb\/en\/blog\/small-business-ideas\/\">New ideas<\/a> blow up and go out of style in a matter of months. Naturally, tech teams are under tremendous pressure to adapt, rolling out new releases and generating more content.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, traditional storage models struggle to keep up with the pace of change. Gathering resources needed to scale a team\u2019s data needs might take months, holding business owners back from seizing expansion opportunities. To that end, cloud storage is superior as it offers access to storage while, on the other hand, allowing the teams to scale down should they need to take a step back.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Cutting operating costs<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Although there\u2019s an ongoing debate as to whether or not cloud computing helps business owners save resources in the long run, the consensus is that it does. The reason for that is that, for cloud vendors, it\u2019s cheaper to buy resources (servers, network capacity) in bulk, as opposed to individual companies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, large-scale storage providers don\u2019t need to hire staff to operate data centres. Instead, they invest in automation that propels cost savings in the long run. As cloud storage is cheaper for vendors, it becomes more affordable to end-users as well, helping teams that bring data storage and other elements like <\/span><a href=\"\/gb\/en\/blog\/what-is-cloud-pbx-benefits-pbx-to-cloud\/\"><span style=\"font-weight: 400;\">PBX to the cloud<\/span><\/a><span style=\"font-weight: 400;\"> save both money and time.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Higher resiliency<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Maintaining on-premises storage puts teams under the pressure of coming up with a Plan B in case of an infrastructure shutdown. Coming up with contingency strategies is expensive as it requires investing in tools that will be redundant until push comes to shove.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, teams tend to bypass on-premises storage security, at the end of the day failing to contain single points of failure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cloud, on the other hand, provides business owners with ready-to-deploy resources that allow a quick way to bounce back in case of an infrastructure failure.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Less vulnerability to human error<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A human-error-based server outage can be stratospherically expensive, costing teams up to <\/span><a href=\"https:\/\/www.t-systems.com\/us\/en\/cloud-and-infrastructure\/manage-it-efficiently\/future-cloud-infrastructure\"><span style=\"font-weight: 400;\">$400,000 per hour<\/span><\/a><span style=\"font-weight: 400;\">. To that end, cloud storage is a better deal since most data management processes are automated.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, as a rule of thumb, cloud computing tools have higher system stability and are a better fit for managing large-scale, complex infrastructures.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Key Challenges of Cloud Storage Implementation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In a perfect world, cloud storage would be an ideal solution&#8211;cheap, flexible, and agile. But, since ours is not a perfect world, there are a handful of \u201cbuts\u201d that business owners need to consider before making a decision for or against the cloud. We will go over them below:\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Challenges of a multi-cloud world<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s rare for teams to host infrastructure on single-vendor-backed storage. <\/span><a href=\"https:\/\/www.canalys.com\/newsroom\/cloud-market-share-q4-2018-and-full-year-2018\"><span style=\"font-weight: 400;\">According to McKinsey<\/span><\/a><span style=\"font-weight: 400;\">, 94% of companies have a multi-cloud infrastructure. It\u2019s a smart move, but it throws in a couple of management hurdles, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensuring data protection regulation compliance across all storage.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No way to get a big picture view of data stored across multiple cloud platforms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Need to build a data-sharing bridge between storage.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a result, managing complex cloud infrastructures can, depending on the scale of the storage, get just as complex as running an on-premises archive.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Limited freedom and control<\/span><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18268\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-5.png\" alt=\"pic (5)-271\" width=\"1024\" height=\"557\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-5.png 1024w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-5-300x163.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-5-640x348.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-5-768x418.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.cloudpassage.com\/articles\/aws-security-best-practices-aws-cloud-security-report-2020\/\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Another reasonable issue business owners have with the cloud is that they can\u2019t have full control over data. The risk of being caught in the middle of a conflict of interests is too high. That\u2019s why some teams ditch the cloud for good.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, when AWS announced its plans for file-sharing, Dropbox stopped using Amazon Web Services to host infrastructure. The team of a storage giant might\u2019ve had reasonable concerns to make such a radical move.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. No influence over the speed of transaction<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not being able to control data processing is another reason to be skeptical about the cloud. Of course, typically business owners don\u2019t need granular precision in controlling transaction processing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, in industries like finance, the processing rate should be so high that cloud-based storage would not be able to keep up. That\u2019s why The Wall Street infrastructure, for example, is maintained on premises.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Cloud vs On-Premises Storage: Key Differences<\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18269\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6.png\" alt=\"pic (6)-237\" width=\"1999\" height=\"777\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6.png 1999w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6-300x117.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6-640x249.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6-768x299.png 768w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-6-1536x597.png 1536w\" sizes=\"(max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/cdn2.hubspot.net\/hubfs\/2295024\/blog-images\/Cloud%20Vs%20On%20Premises.jpg\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Now that we are clear on both benefits and limitations of these highly-discussed types of data storage, let\u2019s compare the process of managing both side-by-side. Take a look at the table highlighting the key differences between cloud and on-premises data storage tools:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><\/td>\n<td><b>Cloud<\/b><\/td>\n<td><b>On-Premises<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Maintenance cost<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Is included in the implementation fee.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Requires in-house resources and consulting.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Implementation cost<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Cheaper in the short-run. In the long run, paying monthly fees might become more expensive than owning resources.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Typically more expensive as the team needs to invest in hardware, as well as talent needed to maintain the infrastructure.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Software requirements<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No specific requirements &#8211; the team can access the storage using a device connected to the Internet.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">High server capacity, software, and hardware needed to maintain the storage, high bandwidth, backup infrastructure.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Data ownership<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Data ownership is negotiable &#8211; some vendors want to co-own stored data while others hand ownership off completely.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Data is typically owned by the company itself.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Data security<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Cloud storage has a wide user base which calls for robust security infrastructure. On the other hand, third-party platforms are more vulnerable to outside attacks.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Depends on the dedication of the team. Typically, there\u2019s less risk of data breaches but a higher number of human-error-related threats.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Staffing needs<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No immediate need for internal staffing.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Internal staff is needed to manage the on-premises infrastructure.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Customisation<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Limited and depends on the vendor.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Fully controlled by the company that hosts the storage.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Mobile access<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Included in most cloud storage platforms.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Designing a mobile interface is up to the company.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Offline access<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No or limited.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Depending on the needs of the company, there may be full offline availability.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Cloud vs On-Premises Storage: Which One Should You Choose?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">At the end of the day, there\u2019s no obvious answer as to which of the two storage systems is better. However, there are scenarios that help business owners determine which way works for their companies.\u00a0<\/span><\/p>\n<p><b>You should choose on-premises if:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want to have full ownership of stored data.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security is a major concern&#8211;you want to set up advanced data protection systems and cloud vendors don\u2019t meet your needs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It\u2019s important for your team to have offline accessibility of the storage.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want to be able to customise the storage, add and remove features freely.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You have enough resources to build, maintain, and scale on-premises storage.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>You should choose cloud if:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accessibility is crucial. Since the cloud has no attachment to a particular location, it\u2019s a powerful solution for <\/span><a href=\"\/gb\/en\/blog\/how-to-create-a-globally-distributed-remote-team\/\"><span style=\"font-weight: 400;\">fully remote teams<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You don\u2019t have enough resources or time to build a storage infrastructure from scratch.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your product and team are constantly changing and you want to quickly get on-demand resources as soon as you need them.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">4 Industries That (Typically) Favour On-Premises Storage<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While an individual company\u2019s needs are the key criterion when choosing a type of storage, there are a few industry-specific conventions as to which type of file management system works better.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your business is involved in one of the fields below, chances are, you would be safer and more comfortable with on-premises data storage.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Cybersecurity<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cybersecurity teams have high processing needs, <\/span><a href=\"https:\/\/www.wired.com\/2016\/05\/ibm-watson-cybercrime\/\"><span style=\"font-weight: 400;\">according to IBM<\/span><\/a><span style=\"font-weight: 400;\">. An average company gets over 200,000 security alerts per day. For SIEM systems that serve a wide range of clients, this number is many times higher. Thus, cybersecurity teams need to have a superior infrastructure to the one offered by cloud vendors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Besides that, since cybersecurity teams would be consuming a lot of bandwidth, the cost-saving benefit of the cloud will quickly dissipate. Data safety is another concern&#8211;a team offering cybersecurity services cannot afford to put clients at stake due to a hack of the cloud vendor.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Banking and finance<\/span><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18264\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-1.png\" alt=\"pic (1)-732\" width=\"1280\" height=\"800\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-1.png 1280w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-1-300x188.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-1-640x400.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-1-768x480.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/static.wixstatic.com\/media\/6b36fa_0394ddbdbf554889ba45e87e6dadefea~mv2.jpg\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Financial institutions are reasonably wary of the cloud as well. To start with, banking and finance teams often have a long list of custom features they expect from their storage. Few vendors are willing to go the extra mile and adjust the interface to meet such granular needs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other than that, compared to other industries, finance does not have such a fast change rate. Hence, instant resource availability is not the main issue. On the other hand, security and data ownership are at stake, so on-premises infrastructure is a more convenient option.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Adtech<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Advertising analytics and big data tools have become a huge presence in the modern-day business landscape, helping advertisers dodge ad-blockers and reach prospective clients. The main power of adtech providers comes from being able to aggregate and process terabytes of data. To offer such a high level of reliability, adtech teams need to invest a lot in powerful storage.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reason why Adtech companies choose to host their data rather than hiring vendors is because of the need to scale storage on their own terms. On top of that, business owners are worried about intellectual property concerns. Using storage platforms owned by another ad tech provider (e.g. Google or Amazon) might put the company\u2019s internal practices at risk of misuse.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Healthcare<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Despite the fact that healthcare service providers handle an avalanche of data every day, the key reason to prefer on-premises over cloud storage is regulatory compliance. Healthcare service providers are monitored by tight sets of rules like HIPAA. A data leak can put a company\u2019s activity at stake.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why, in healthcare security, the sky&#8217;s the limit for protection measures. Also, healthcare institutions cannot afford downtime and should be able to access clinical records even if there\u2019s no <a href=\"\/gb\/en\/blog\/ultimate-guide-to-broadband-for-your-home-office\/\">Internet connection<\/a>. That\u2019s why a lot of teams favour on-premises over cloud data storage.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">4 Industries That Benefit From Cloud Adoption<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While some fields are safer using on-premises data storage tools, for others, cloud is a more convenient, flexible, and scalable way to go. Here are the fields that will gain a lot after switching to the cloud.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Education<\/span><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-18266\" src=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3.png\" alt=\"pic (3)-438\" width=\"1880\" height=\"1253\" srcset=\"\/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3.png 1880w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3-300x200.png 300w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3-640x427.png 640w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3-768x512.png 768w, \/gb\/en\/blog\/wp-content\/uploads\/2021\/05\/pic-3-1536x1024.png 1536w\" sizes=\"(max-width: 1880px) 100vw, 1880px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.pexels.com\/ru-ru\/photo\/5905700\/\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The key of online <a href=\"https:\/\/www.ringcentral.com\/gb\/en\/cloud-education-solutions.html\">education<\/a> is accessibility. That\u2019s where the value of cloud storage is non-negotiable. By using the cloud, e-learning service providers, schools, and universities can make sure that students and teachers have one-click access to learning materials on a <\/span><a href=\"\/gb\/en\/blog\/the-digital-campus-the-time-to-act-is-now\/\"><span style=\"font-weight: 400;\">digital campus<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other than that, most education institutions are in a tight spot financially and maintaining an on-premises storage infrastructure will further strain budgets. On the other hand, collaboration with a cloud vendor is flexible and allows teams to pay only for resources they use.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Hospitality<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Hospitality is a rapidly-changing industry that, furthermore, has seasonal tendencies. In periods of peak activity, hospitality service providers might need to host large data volumes. On the other hand, when there isn\u2019t much demand for tourism, business owners should have the freedom of scaling down.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To this end, cloud is a better choice as it spares teams the need to maintain a redundant infrastructure.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Real estate<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In real estate, accessibility is a pinnacle of a business owner\u2019s needs. With brokers being constantly on the move (at least, in the pre-pandemic world), the ability to access listings and client data anytime is vital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With mobile accessibility and multi-device access, cloud is capable of supporting real estate teams scattered around the globe.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Non-profit<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For non-profit managers, cost-saving is the main reason to move to the cloud. It\u2019s not the only one. Other factors involve not having to engage volunteers willing to support the infrastructure and simplifying workflows (compared to on-premises storages, cloud platforms are typically more intuitive and take less time to master).\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So, is cloud storage ultimately the future of data management? Generally, yes. With remote work becoming commonplace and the overall business environment growing increasingly more dynamic, it makes sense for business owners to go for the \u201cI want it, I got it\u201d resource management strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, it\u2019s presumptuous to believe that cloud storage will fully replace on-premises. For some industries, not letting third-parties into their data warehouses is crucial, as is offline data accessibility. That\u2019s why large-scale finance or healthcare companies might never transition to the cloud.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the day, there\u2019s no right choice per se. All that\u2019s left for business owners is to carefully assess the company\u2019s priorities and choose the storage that meets these needs.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cTo cloud or not to cloud?\u201d is a reasonable question that often boggles the minds of CTOs. On the one hand, there\u2019s no shortage of articles praising the power of &hellip; <a href=\"\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/\" class=\"more-link\">Read more<span class=\"screen-reader-text\"> &#8220;On-Premises vs. Cloud-Based Software: Which is Better for Your Business?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":244,"featured_media":18464,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>On-Premises vs. Cloud-Based Software: Which is Better for Your Business? | RingCentral UK Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ringcentral.com\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"RingCentral Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"On-Premises vs. Cloud-Based Software: Which is Better for Your Business? | RingCentral UK Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ringcentral.com\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/","twitter_misc":{"Written by":"RingCentral Team","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":":\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/#article","isPartOf":{"@id":"\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/"},"author":{"name":"RingCentral Team","@id":"\/gb\/en\/blog\/#\/schema\/person\/cc4f043d2b478862a8622c28b0ebd08c"},"headline":"On-Premises vs. Cloud-Based Software: Which is Better for Your Business?","datePublished":"2021-05-18T10:31:44+00:00","dateModified":"2023-01-17T10:43:01+00:00","mainEntityOfPage":{"@id":"\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/"},"wordCount":2811,"commentCount":0,"publisher":{"@id":"\/gb\/en\/blog\/#organization"},"articleSection":["Cloud Solutions"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":[":\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/#respond"]}]},{"@type":"WebPage","@id":"\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/","url":":\/gb\/en\/blog\/on-premises-vs-cloud-based-software-which-is-better-for-your-business\/","name":"On-Premises vs. Cloud-Based Software: Which is Better for Your Business? 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