Cloud technology is fast becoming the go-to solution for modern businesses. Be it through using technology like Microsoft 365 or Azure, businesses are capitalising on a host of benefits that were less available several years ago. That said, an on-premises server can offer advantages that cloud technology can’t. So read on to learn which solution is better for your business.


An on-premises server will require a significant up-front cost. You’ll also be responsible for maintaining the hardware, paying for the power consumption, and protecting it from any physical threat. If your business requirements change and you require more from your servers this will require further investment. The Cloud is far more flexible. Cloud providers have legions of servers that they can assign to businesses as it expands and contracts, thus keeping costs down. A cloud provider will also handle all ongoing costs. For a business with steady needs, over the long term, an on-premises solution might be cheaper. But otherwise, the Cloud is much easier on the bank balance.

Cloud technology cost

Implementation time

No debate here. The Cloud is much quicker to set up. An on-premises deployment requires time to install the physical server in an office and time for installation on everyone’s device – a potential blow to a team’s productivity. Cloud technology can be as simple as a login and payment.

Control over your data

Here on-premises solutions have the advantage. They give you complete control. You are in full ownership and control of your data, and both your hardware/software can be configured exactly how you like it to be. A cloud solution can still be customised, but you’ll always be dancing to your provider’s tune. You’ll have different levels of configuration depending on your provider but one thing’s a given: your encryption keys are held by them. This means if they experience downtime, you’re unlikely to have access to that data. So for very important items you may want a hybrid solution and store that on-site.

Regulation and Compliance

The Cloud will typically offer methods for meeting regulatory and compliance conditions. That said, as a business, you’ll have to do your own research and carefully check that your provider is meeting the conditions specified by your regulator. With an on-premises solution, again, you’ll be entirely responsible for meeting regulations. And in some particularly strict industries, you may have no choice but to use an on-premises solution if the Cloud can’t guarantee your regulatory requirements. So think carefully about what you need as a business.

Cloud technology regulation and compliance

The Cloud is now often given the title of “better than on-premises” thanks to its flexibility and improved cost. For a business that’s changing rapidly or a small business looking to keep capital investments down, it’s a no brainer. It can also benefit a business of any size due to its ease of implementation. The case can be made that a certain type of business with steady needs in an industry that demands complete control of one’s data storage could find on-premises preferable. But for the typical business of today, the Cloud has a few more advantages.

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