On-Premises Data Centres vs. Cloud Computing

On-premises data centres, commonly referred to as “on-prem,” allow you to have full control of your infrastructure, while cloud computing is cost-efficient and easy to scale up and down.

On-prem and cloud computing defined

An on-premises data centre is a group of servers that you privately own and control. Traditional cloud computing (as opposed to hybrid or private cloud computing models) involves leasing data centre resources from a third-party service provider.

On-prem and cloud compared

Both on-prem and cloud computing can provide your business with the IT infrastructure it needs. The model you choose will likely depend on the level of security you need in order to meet compliance standards and on the cost structure you prefer. Here’s a look at how the two models compare.

Business need: Data centre single tenancy (for compliance)

On-premises: ✔

Public Cloud: X

Business need: Highly secure data encryption

On-premises: ✔

Public Cloud: ✔

Business need: Customisable hardware, purpose-built systems

On-premises: ✔

Public Cloud: X

Business need: Capacity easy to scale up and down

On-premises: X

Public Cloud: ✔

Business need: Infrastructure requires large, regular investments

On-premises: ✔

Public Cloud: X

Business need: Pay-as-you-go, usage-based pricing

On-premises: X

Public Cloud: ✔

Business need: Complete data visibility and control

On-premises: ✔

Public Cloud: X

Business need: Built-in, automated data backups and recovery

On-premises: X

Public Cloud: ✔

Business need: Near-zero downtime risk

On-premises: X

Public Cloud: ✔