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On-Premises Data Centers vs. Cloud Computing

What is On-Premises Data Centers vs. Cloud Computing?

On-premises data centers, 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 center 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 center resources from a third-party service provider.

On-premises data center definition

"On-prem" refers to private data centers that companies house in their own facilities and maintain themselves. On-prem infrastructure can be used to run private clouds, in which compute resources are virtualized in much the same way as those of public clouds (however, private clouds can also be run on leased third-party hardware).

Cloud computing definition

When people speak of cloud computing, they’re most often referring to "traditional," or "public," cloud, a model in which a third-party service provider 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.

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 center single tenancy (for compliance)
On-premises: ✔
Public Cloud: X
Business need: Highly secure data encryption
On-premises: ✔
Public Cloud: ✔
Business need: Customizable 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: ✔