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Cloud Servers Vs Onsite Servers: Which Is Right for Your Business?
| StreetShares Blog

By Mike Jennings, President of BEI on November 30, 2018

Cloud Servers Vs Onsite Servers: Which Is Right for Your Business?

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official opinions, policies, or positions of StreetShares or any of its affiliates.

The digital universe gets more crowded and complicated every day. Many business leaders struggle with knowing what tech to embrace and what tech to move beyond.

Emerging cloud environments options look promising, no doubt about it. But keeping everything in-house means retaining a higher level of control. Like so many things in business, there are benefits and drawbacks to consider for both options.

Buy the server or lease the cloud server space?

Here’s the big question. Do you want to purchase your own in-house server or pay for just the cloud server space you need?

It sounds straightforward, but there’s more to think about. In most cases, your decision will come down to the type of business you own and your goals for its future.

Let’s talk about meeting your needs

Cloud servers and physical servers both have their place. Which is best for you? The one that meets your needs. So let’s take a look at the pros and cons of each.

Enterprise economies

The corporate budget is often a tiebreaker. Should you make that IT purchase or not? Well, what’s in the budget?

Buying a new in-house server usually requires a capital investment, which may mean reduced available resources for investments in other enterprise assets. Signing on for cloud services, however, is usually an operating expense. That means it doesn’t deplete existing corporate resources. There’s a plus for cloud computing.

Additionally, adding services to the cloud server is simply a matter of an adjusted monthly expense, not a capital investment. That added flexibility is appealing to many. You have access to more options with cloud hosting.

Read next: IT Isn't Just For Tech Companies: How to Make Your Business' IT More Reliable

Storage capacity

Most companies are struggling to manage the vast quantity of data they generate each day. Many find that their current storage tools can no longer handle the load.

Adding servers to an existing in-house infrastructure will definitely meet the need for added storage capacity. Plus, the in-house server provides not only storage space, but additional computing space, as well.

But keep in mind, the size of the new server will limit the volume of data it can store. So adding a new server today doesn’t mean you won’t need another new server next year. Or next month, if you’re in a particularly quick growth spurt.

A cloud server can also be expanded to provide additional storage space. In fact, cloud services can expand or contract on the fly as your needs evolve. The cost of making these changes is minimal by comparison, so there’s a great deal more scalability in the cloud.

See also: You Gotta Spend Money to Make Money: The Impact of Investing in Business Technology

Data security

When compared solely for the security purpose, cloud servers are the better choice more often than you might think.

Cybersecurity is only good when it’s current. Older computers might not have the software or updates needed to respond appropriately to today’s sophisticated cyberattacks. If you choose to rely on an in-house server, be prepared to invest the time and energy in maintaining and protecting it.

Cloud service hosting providers, on the other hand, include cybersecurity protection as part of the service, along with some additional IT support. But there is a caveat here. If you are bound by regulatory requirements, you may need an in-house server to remain compliant. Be sure to take that into account.


Mike Jennings, President of BEI

Mike is the Owner and President of BEI, a Managed IT Services Provider.  Mike manages the technical and administrative processes at BEI, which is a perfect fit for someone with two Engineering degrees!  Mike oversees a handful of BEI’s larger accounts and is one of the primary Virtual CIOs for BEI’s clients, where he supports strategic technology planning and budgeting.  Outside of work, Mike serves on the Board of the Greater Reston Chamber of Commerce and has season tickets to the Washington Nationals.  He received his undergraduate degree in Electrical Engineering at NC State and his Masters in Electrical Engineering from Stanford University. Connect with him on Facebook or LinkedIn

This communication is provided for informational purposes only. It is not intended to be an advertisement, a solicitation, or constitute professional advice, including legal, financial,  or tax advice, nor is StreetShares providing advice on any particular situation.

Topics: Veteran Small Business

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