The decision whether companies should choose on premise vs cloud storage for their IT needs can be robustly debated. Although cloud computing in various forms has been around for a while, it has only recently gained momentum as a tangible solution. Companies have started using the cloud computing paradigm to improve IT service delivery, reduce costs and foster innovation. While there are obvious benefits to making this transition, there are also drawbacks and the drawbacks of cloud computing are not always well understood.
Global cloud service providers are now estimated to generate approximately $235 billion of revenue from cloud computing services. It is clearly a growth industry and there are many advantages to moving to cloud computing. However, it is important to make an informed decision about whether the cloud will be truly beneficial to your business operations. Before making the transition, you should analyze the pros and cons of on premise storage vs cloud storage. Let's start with some definitions.
Cloud computing is generally defined as using a shared pool of computing resources—from servers to applications to services accessible via the Internet. These resources can be quickly acquired with minimal management effort and service provider interaction can be limited. Corporate owned assets are generally on premise and require management oversight and consistent in-house attention.
People assume that the cloud is much faster. There is some truth to this. Cloud computing allows people to access data and information immediately, regardless of their location. Two people can work on the same project from opposite ends of the planet, and share and communicate their progress as though they were in the same office. This definitely makes for increased productivity, so in a sense, work can be done faster.
However, the cloud speed is only as fast your Internet connection. And your cloud is only as efficient as its platform. If you operate on a smaller-scale cloud service, it may not have a broad reach. And, if the person on the other side of the planet is working on a weaker Internet connection, ultimately, the cloud will not increase speed or eliminate communication issues.
The cloud can be a great way to reduce costs. It allows businesses to scale up or down, and add storage to meet their needs. This means that businesses are not bogged down with a one-plan-fits-all system that is not being fully utilized.
However, transitioning to the cloud only really cuts costs if you do not already have a strong in-house server. If you already own and maintain your server, you have already made that financial commitment. Because you have already invested, it may make financial sense for your business to continue to operate on its own server.
If there are any issues with your cloud provider, your business may not have access to your data for a period of time.
Building a secure server network and installing software can be a very intimidating process that ultimately requires a lot of know-how and professional guidance. Moving to the cloud transfers the onus and responsibilities to your third-party cloud services provider.
Cloud computing is an on-demand service that offers data storage and operations processes on a third-party platform online. Shifting your operations and information onto the cloud allows quick and easy access to the data by all persons given authorization, no matter where their physical location. The cloud removes the burden of overloading internal networks, which can slow operations and cause delays. It also outsources the responsibility of security onto cloud services providers.
However, by entrusting this responsibility to a cloud services provider, your business ends up losing a lot of control on the server-side of operations. By cutting back on in-house personnel that are skilled at maintaining a server network, your business might become too dependent on the cloud. If there are any issues with your cloud provider, your business may not have access to your data for a period of time. Problems will arise if you do not have anyone on your staff with the skills to move forward with operations in-house.
In the event of a cyberattack on your internal network, having your data secure on the cloud can ultimately save you from a devastating impact on your business operations. You can easily recover your data from the cloud and continue with business as usual.
However, if there is a disaster in the cloud, you have no control over how long it can take to recover. Downtime is often cited as one of the biggest drawbacks of cloud computing. Since cloud computing systems are Internet-based, service outages are always an unfortunate possibility and can occur for any reason. Your business is entirely reliant on how well your cloud services provider is prepared in the event of a disaster, and also what kind of guaranteed responsibility they provide in resuming their operations. It is always best to have your data backed up on the cloud and on an internal server.
Hosted cloud providers often boast that they are more secure than corporate owned assets, and this might be true. Reputable, well-known hosted providers can be the best defense against having your data hacked by cybercriminals. However, you are putting a lot of trust in a third party and ultimately relinquishing control of your data.
Cyber disasters do happen in the cloud. Software as a Service (SaaS) providers have experienced an increase in hacking. In cloud computing, every component is online which exposes potential vulnerabilities.
When it comes to deciding between the cloud vs in-house infrastructure, it is important to consider what works best for your business. Each has benefits and drawbacks and the decision needs to fit the needs of your own unique organization.
If you are debating whether your organization should use cloud computing or corporate-owned assets, get in touch with CITI. We can put together a strategy and options, including Microsoft Azure, Google Cloud, and Amazon Web Services.