Modern businesses require reliable IT infrastructure to manage applications, store information, and provide support for staff. But what will you choose, cloud infrastructure or on-premises infrastructure?
Cloud infrastructure provides flexibility and scalability plus you are able to take advantage of managed technology. On the other hand, on-premises provides you with full control over hardware, predictable scalability, and you are managing the technology.
It really depends on your workload, needs, security requirements, and cost.
What is Cloud Infrastructure?
Cloud infrastructure enables you to utilise computing resources such as servers, storage, databases, and networking from third party cloud providers.
Rather than buying your own hardware, you can lease what you need. Some popular options are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
Advantages of Cloud Infrastructure
- Scalability – Easily increase or decrease resources to meet demand.
- Lower up front cost – You will not have to buy expensive hardware.
- Remote access – Employees will have access to applications.
- Faster – New environments and applications can be deployed quickly.
- Managed – You can take advantage of managed databases, monitoring, backups, etc.
Cloud infrastructure can be useful for businesses with changing workloads, expanding digital platforms, and remote teams.
What is On-premises IT Infrastructure?
- On-premises infrastructure is where you will purchase, install, and manage computing resources.
- You will be managing your own servers, storage, networking hardware, security, and updates.
Advantages of On-premises Infrastructure
- More control – You are managing your own hardware.
- Management – You have full control over where your information is stored.
- Predictable costs – Once you have bought your hardware, there will be less costs depending on how much you use each month.
- Low latency – Systems on the same network will have low latency.
- Customisable – You can set the infrastructure to suit your needs. This option may be suitable if you have steady workloads, specialised hardware, strict data handling, or have invested in infrastructure.
What Workloads Benefit Most from Cloud Infrastructure?
There are some workloads that will greatly benefit from using cloud infrastructure.
Websites/E-commerce
Websites and e-commerce sites can suffer from unpredictable traffic. Cloud infrastructure means you can easily scale resources when running promotions, seasonal sales, or high traffic periods.
Development
Development teams often require temporary environments to develop, test, and deploy software. With cloud infrastructure these can easily be created and removed.
Data Analysis
If you have large amounts of data to analyse, you can utilise cloud based analysis tools. This means you are not having to invest in extra computing hardware. You can also reduce unnecessary data transfer by keeping your analysis tools close to your data.
Backup
Cloud storage can assist with backup and disaster recovery. This means you can keep copies of your important business information in different locations.
Unpredictable resource demand
If you have applications that require unpredictable resources, cloud infrastructure can help you scale your resources. This will save you having to buy hardware for occasional peak times.
What Workloads Benefit Most from On-premises Infrastructure?
Despite the move towards cloud infrastructure, on-premises infrastructure can still be useful.
Predictable resource demand
If you have systems that are always running with predictable resource demand, you may want to invest in dedicated hardware. This will save you having to pay for unused cloud infrastructure flexibility.
Strict data handling
Some businesses will have strict data handling requirements due to contractual, regulatory, or internal policies. Depending on your requirements, you may want to utilise dedicated on-premises infrastructure.
Low latency
If you have manufacturing systems, industrial machinery, or applications that are talking to local hardware you may require very fast local network responses. On-premises or edge computing can help with this.
Legacy applications
Some legacy applications will require specific hardware, or operating systems. This may mean that you will have to heavily redevelop them to use them in the cloud.
Specialised hardware
If you have specialised computing hardware or bespoke infrastructure then on-premises infrastructure may be more suitable.
Why Hybrid Infrastructure is Becoming Important
Sometimes you may not want to choose just one option.
Hybrid infrastructure enables you to use a mix of both cloud and on-premises infrastructure to ensure your workloads are in the best environment.
For example:
- Main business applications can be hosted on cloud infrastructure.
- Sensitive databases can be kept on a secure on-premises infrastructure.
- Development can be completed on temporary cloud resources.
- Backups can be done via cloud storage.
This gives you flexibility, whilst still keeping control over your workloads.
Hybrid infrastructure will need to be properly integrated. You will need to have centralised identity, monitoring, network access, and backup.
Things to Consider
Before choosing your infrastructure, you should consider:
Total Cost
Infrastructure costs can be more than just servers or monthly costs. You will need to consider electricity, cooling, maintenance, licences, staff, storage, network usage, and data transfer costs.
Security
You need to know what security requirements you will have. What access control, encryption, and regulatory requirements you have.
Scalability
If you expect to grow quickly or have unpredictable workloads then cloud infrastructure can help you scale. If you have predictable workloads then on-premises can be more cost effective.
Current Infrastructure
You should consider your current hardware, application requirements, and migration needs.
Technical Skills
Cloud infrastructure requires you to have knowledge of cloud architecture, identity, networking, and optimising costs. On-premises will require you to have hardware, networking, and virtualisation skills.
Common Mistakes
When choosing between cloud and on-premises infrastructure, you should not make your decision purely based on industry trends.
Common mistakes include:
- Moving everything to the cloud.
- Not considering data transfer/storage costs.
- Underestimating hardware maintenance and replacement costs.
- Ignoring licence requirements.
- Assuming cloud infrastructure will be more secure.
- Keeping identities and monitoring separate.
By analysing your workloads you can avoid unnecessary costs of migrating.
Final Thoughts
Both cloud and on-premises infrastructure play an important role in modern IT. Cloud infrastructure provides scalability, flexibility, and faster deployment. On-premises infrastructure provides you with full control over your hardware, predictable scalability, and the ability to customise.
Many organisations choose hybrid infrastructure.
The best option is to analyse each of your workloads, understand your technical requirements, calculate the total cost, and choose the infrastructure that will provide the most value in the long term.
Want to know which infrastructure will be best for your business?
Check out this detailed guide:
Cloud vs On-Premises IT Infrastructure: Which Is Right for Each Workload?
See how your workloads, scalability, security, costs, and hybrid infrastructure can impact your infrastructure choice.
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