What You Need to Know About Cloud and On-Premise Servers

In today’s rapidly changing technology landscape, businesses must make a strategic decision on how to host their data—on-premise or in the cloud. While both approaches have their advantages, understanding which option is best for your business can be tricky. Let’s take a look at the key differences between cloud and on-premise servers so you can make an informed decision.

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What Are Cloud Servers?

Cloud servers are virtual machines hosted by a third-party provider such as Amazon Web Services or Microsoft Azure. They are typically more cost effective than on-premise servers because they are “pay per use” with no long-term commitments or contracts. Furthermore, cloud infrastructure provides scalability—it can quickly expand or contract depending on your resource needs. It also offers redundancy; if one server fails, another takes its place almost immediately. Finally, cloud providers handle maintenance of the system, so you don’t need to worry about keeping things up to date or dealing with any technical issues yourself.

What Are On-Premise Servers?

On-premise servers are physical machines located in your own office space that store all of your data locally. This offers a degree of control that cloud servers do not provide; you have complete control over who has access to your data and when it gets backed up and updated. Additionally, it eliminates the risk of latency (which is the delay caused by internet traffic) that is often seen with cloud solutions due to their distributed nature. The downside of this option is that it requires a lot more maintenance in terms of hardware setup, software updates, and security patching. It also requires more capital investment up front compared to cloud solutions; while they may offer savings down the line as usage increases, they require significant upfront costs for hardware and software licensing fees.

Cost comparison

Cloud servers typically come at a higher cost than on-premise servers, due to the associated infrastructure costs. Businesses renting cloud space may pay according to usage, while on-premise servers involve upfront costs such as housing and hardware. In addition, cloud servers offer more features such as scalability and flexibility that an on-premise server may not have. On the other hand, cloud servers are often easier for businesses to set up than on-premise servers, since they don't require the same installation or maintenance time. Ultimately, it comes down to the individual needs of each business when choosing between cloud and on-premise servers.

Which option is better?

When deciding between cloud and on-premise hosting for your business data, there are several factors to consider including cost, control, scalability, redundancy, latency concerns and maintenance requirements. Ultimately it comes down to understanding your specific needs and making an informed decision based on those needs — what works best for one business may not work best for yours! If you need help figuring out which hosting solution is right for your business our team at Hyper38 can help guide you in the right direction - contact us today!

Miljan Vranic

CEO & Founder, Hyper38