Do I Need a Server or Cloud Storage for My Business

In House Server Vs Cloud Storage Complete Guide - Leap Managed IT

Data is something crucial for a business, and when it comes to its storage and maintenance, it is quite complex to choose the right server. Many businesses are migrating from traditional data centers (on-site servers) to cloud storage because of their accessibility and security. Hence, it is important to know the difference between “on-site” and “cloud server” to decide on the right server for your business.

In this article, we, at LEAP Managed IT, are going to share all the necessary information regarding on-site and cloud storage by making a comparison of some crucial features that exist on both storage systems. This may help you to select a suitable storage platform for your business.

The cloud computing market is estimated to amount to 832.1 billion dollars by 2025


In 2022, spending on data center systems is expected to amount to 227 billion U.S. dollars, an increase of 4.7 percent from the previous year.

What is Cloud Storage?

Cloud storage is about storing data on the internet through a cloud storage provider. It is the cloud computing model that helps businesses to back up and access their data through software that runs via the internet. This installs and maintains all business data, software, hardware, and all other supporting infrastructure in the data center.

What is an On-Site Server?

Here, businesses store their data on the servers hosted within the organization; in most cases, it would be a physical one. The on-site server is administered, controlled, and maintained by the organization’s in-house IT team or would outsource an IT support provider for the maintenance of the server.

Cloud Storage Vs On-Site Server

Cloud Storage vs On-Site Server - Leap Managed IT

On-Site Server Cloud Storage

  • Businesses have a thought that keeping everything on-site gives them more control but, provides limited access.
  • The business is completely responsible to implement a high-level security system for monitoring and maintaining all the physical assets as well as the network.
  • It would also require the need for security tools, security access control and of course, in-house time and money.

  • Cloud storage helps in taking the burden off your business in terms of security.
  • Businesses would suffer lesser security incidents when compared to traditional methods.
  • The cloud storage providers are equipped with multi-layered security data redundancy, access control systems, suspicious login, activity monitoring, and more.
  • The cybersecurity experts can help in protecting the business data and assets.
  • Though security breaches can happen, the business can eliminate them as the security experts can handle it efficiently.
Data Backup

  • When businesses use on-site servers, an internal storage system is used for storing the data, which creates a higher possibility of losing data in any situation.
  • Businesses always need to keep an off-site backup to avoid data loss.
  • Some organizations use cloud storage as a data protection strategy in addition to on-site servers.
Data Backup

  • Businesses using cloud storage are more secure.
  • Cloud storage is built with features that help in avoiding data loss along with features like data redundancy, backup, monitoring, and more.
  • It also has faster recovery methods when compared to the on-site servers

  • On-sites servers are not capable of handling the evolving workloads. Hence, businesses need to look for expanding resources like software, hardware, memory, and more for handling the workload.

  • Cloud storage with its built-in features is capable of scaling the workloads based on certain metrics. It is more flexible as it is also equipped with auto-scaling functionality.

  • When businesses are accessing sizeable data, an on-site server would be the better choice.
  • When it comes to handling situations like natural disasters, remote access would be essential and this can overwhelm the VPN system.

  • Cloud storage allows the workforce to access any data from anywhere via the internet.
  • This is one of the convenient features of cloud storage, as the users need not rely on a VPN system for accessing data. It also offers reliable file sharing and version control.

  • The on-site server will be completely available without any connection but will be accessible only to employees who work on-site.
  • This would require power, backup power, and backup storage which will add to your cost.

  • A reliable and fast internet connection is required to access data in the cloud.
  • A delay in the connection or a break in connectivity can slow down the operations.
  • An internet backup is essential to overcome certain situations.

  • Must have proper maintenance and configurations in your system to have proper compliance, as well as must assign the right employees and resources.
  • If anything goes wrong, the business is completely responsible as it owns the storage.

  • The compliance burden is taken care of by the team of experts offered by the cloud service provider.
  • Businesses should ask for compliance certificates in case of any shortage.
Cost and Maintenance

  • Large upfront capital investment when it comes to on-site infrastructure.
  • Requires investment in hardware, installation, software licensing, backup, additional IT support, and more.
  • Investment required for IT support team, whether it is an in-house team or outsourced.
  • Requires purchase of frequent updates on the software, hardware, license renewal purchase, and more.
  • At the time of malfunction, there will be scenarios where you might have to replace or upgrade with new equipment.
Cost and Maintenance

  • Less investment when compared to on-site servers.
  • Cloud storage is indeed available in various monthly subscription plans.
  • Maintenance, software updates, security, and support are all taken care of by the cloud service provider and businesses need not take that burden.
  • As the market has various cloud service providers, the cost of the subscription plans may vary. So, before you choose one, give a good analysis and compare the services offered by each provider under each plan.

Want to Go for a Hybrid One?

A hybrid solution allows switching data and applications between on-site servers and cloud servers. Also, help in creating great flexibility with more deployment options. Using the hybrid solution, you can manage sensitive assets in on-site servers and other files/documents in the public cloud. Though hybrid solutions can bring in benefits, it is just temporary solution. Depending on the size, data and assets, select the best storage solution for your business.

Are you looking for expert guidance on selecting the best storage option for your business? Visit our website, Leap Managed IT.

Want to learn more about having a sustainable approach to IT? Speak with our Ridiculously Helpful team to learn how we can create a comprehensive roadmap for your technology. Hence, this will help keep you on track while you focus on growing your business.

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Patrycja Thomas

Author: Patrycja Thomas

Fortune 500 sales and marketing veteran dedicated to helping small businesses change the world with technology.