As companies increasingly have a need to store more data, there’s a big debate over whether using a cloud-based service is better than owning a server in-house. While there are pros and cons to each method of storage, there are significant advantages to both depending on needs. Here’s how the cloud and a company-owned server compare:
Price is typically one of the most important business considerations. All other factors being equal, in-house servers cost significantly less than cloud storage over time. The cost difference is no small margin. Experts say that cloud-based storage costs 230% more than in-house servers. However, the cost to set up an in-house server can be significant. So keep that in mind before writing the cloud off.
If your company is fast-paced and focused on growth, it may not make sense to invest the time and energy into in-house server technology. Why? Well, unless your company already employs a full-time IT professional, you’ll need to acquire one. You’ll need to pay that person well. And you’ll need to learn a little about the server yourself because if you hired IT professional leaves you’ll need to explain the setup to a new person. Also, you should know a little bit about the server you purchase and its limits so you can factor future upgrades. In terms of effort, using the cloud is much less intense. It’s easy to set up, and you’ll often have a dedicated team of professionals available around the clock to fix any issues you may have.
While cloud companies take great pride in their security, you are not in charge of the data you share on a cloud. It is vulnerable to attack, and it is typically not under your control. The cloud company has ownership of all the data it stores. You need to carefully consider your contract and how your customers or clients would feel about their data being on a cloud before signing over any rights. With an in-house server, you are fully in control of privacy and security. You alone own the data. It’s your call what happens to the data, how long it’s stored, what it’s used for, and even what data is collected. But with this power comes the need to secure your data. This can be costly and time-consuming, but the option you choose will ultimately depend on your business needs.
With the cloud, you have limited ability to customize your data requirements. Even the most sophisticated cloud companies are not a free-for-all. If you own the servers, you decide the data parameters. Depending on your industry, this level of personalization may make a big difference to your bottom line.
Choosing between cloud and in-house servers is a big decision. Some businesses opt for a combination of storage solutions. If you have information that is not super sensitive, you may choose to store it on a cloud while keeping private information with your company’s server. The choice is yours.