What’s Better? On-Premises Server vs Cloud Server

on premise vs cloud server host edge1 out of home media management software dooh

There has always been a never-ending debate over the On-Premise server vs Cloud server, and which among the two is better. In this article, we’ll explain everything you should know about it.

On-Premises Server

“On-prem” refers to a private server that companies house in their own facilities and maintain themselves. A company keeps all its data, servers and everything in its IT environment in-house. The company is responsible for running, supporting and maintaining the data all the time. 

Cloud Server

When people speak of cloud servers, they’re most often referring to “traditional,” or “public,” cloud, a model in which a third-party service provider (i.e. Amazon web services, Godaddy)  makes computing resources available for consumption on an as-needed basis. Public cloud is a multi-tenant environment, meaning that these computing resources are shared by multiple individuals or companies, with all data secured by state-of-the-art encryption.

Now that you know about On-Premise Server and Cloud Server, let’s find out how they are different from each other.

BasisOn-Premises ServerCloud Server
CostAdvantage: It can be cheaper in the long run.

Disadvantage: Significant upfront hardware and software costs mean a mistake can be hugely expensive.
Advantage: Predictable subscription pricing. No upfront hardware/software cost.

Disadvantage: Really need to project costs out over the long-term. Software licensing can mitigate hardware savings.
SecurityAdvantage: Organization in full control of the data locally. No third-party access to the data.

Disadvantage: Requires dedicated and knowledgeable resources. If an organization lacks appropriate expertise, it risks significant exposure.
Advantage: Deliver superior data security.

Disadvantage: Data could be accessed by 3rd parties if login details are shared
Agility and ScalabilityAdvantage: Physical control over the hardware means upgrades can be tightly controlled.

Disadvantage: We need to plan well in advance to changes in demand because of the time necessary to research, justify, order, and deploy the hardware. It could be stuck with excess IT infrastructure which may or may not be able to be re-purposed.
Advantage: Cloud resources can be rapidly adjusted to accommodate specific demands.

Disadvantage: Costs escalate when the cloud infrastructure is improperly managed and not properly tracked.
ResiliencyAdvantage: Build out only the level of redundancy needed. Especially cost-effective when 99.999% up-time isn’t a concern.

Disadvantage: Costly to properly build out when 99.999% is required.
Advantage: Much easier and in most cases more cost-effective when building out a multi-site/ geo-redundant server and storage.

Disadvantage: Outside your control – you’re at the cloud provider’s mercy.
Advantage: Technology can be deployed based on unique IT infrastructure and application requirements.

Disadvantage: Complexity can mean lengthy and difficult deployments.
Advantage: Software is quick to implement.

Disadvantage: Software is implemented to the lowest common denominator, limiting functionality.
IT SupportAdvantage: Infrastructure and application expertise is readily available.

Disadvantage: Dedicated IT necessary, especially when applications are tailored to meet an organization’s unique requirements.
Advantage: The economies of scale inherent to cloud deployments mean that IT support can manage more with less time and effort.

Disadvantage: The learning curve for the cloud is significant. Properly trained personnel are expensive.


Ultimately every organization will have to factor the pros and cons for themselves. There is no one size fits all for finding the perfect hosting solution since every organization has varying needs.

It’s clear that Cloud Servers provide greater control and security. However, not every organization can afford to deploy, maintain and expand an On-Premise hosted solution. That’s where hosted Cloud solutions come in!

For more information please feel free to contact the Edge1 support team today. We are eager to assist you in finding the right solution. 

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