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What are the Benefits of Cloud-Hosted IT Services over On-Premise IT Solutions?

By Theresa Clark|11th August 2023

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In recent years, businesses have witnessed a monumental shift in the way they manage their IT infrastructure. Traditional on-premise IT solutions are now facing stiff competition from cloud-hosted IT services or Software as a Service (SaaS) as more businesses use the internet both in and away from the office.

The introduction of cloud computing services has revolutionised the IT landscape, offering a wide range of benefits that have proven to be game changers for businesses of all sizes.

In this blog post, we’ll consider the difference between on-premise and cloud hosted solutions, as well as exploring the advantages of cloud computing services, and what they could mean to you and your business.

What is the difference between on-premise and cloud computing?

On-premise computing is the running of a company’s IT services from servers and hardware commonly located in their offices. An on-premise solution requires a business to purchase and maintain its own hardware  which will allow all internal processes such as security, system updates, and maintenance to be completed in-house. It will also allow a company to store and manage all of its data from a singular on-premise system.

With an on-premise system, it is important to remember there will be no involvement from any third-party services, so your business will need to hire a dedicated IT team to manage its servers.

Alternatively, cloud computing allows a business to access its data, applications, and other software over the internet. Instead of storing data on personal servers, a business will contract an external company to host and manage its systems on a remote sever.

What are the advantages of cloud computing?

1. Cost Efficiency

On-premise solutions require substantial upfront investments in hardware, software, and infrastructure setup. As your business continues to grow and you require more resources and maintenance, these costs can quickly escalate.

One of the most significant benefits of adopting cloud-hosted IT services is cost efficiency. Cloud-based services allow you to host your company’s database and applications on a third-party server for a monthly fee. Instead of committing to the high cost of purchasing a server and hardware for an on-premise data centre, you can simply pay for the storage you need, and scale your resources up and down at any time.

Further, the use of cloud-hosted IT services will mean you can minimise the need for a dedicated full-time IT team to manage your on-premise servers, as well as the high electricity bills associated with running a server 24/7.

2. Scalability and Flexibility

As your business grows, it is inevitable that you’ll need to be able to store more data, and having the ability to scale resources quickly to cater to this growth will be crucial. In this instance, cloud computing offers unparalleled scalability and flexibility, that allows businesses to adapt to changing demands with ease.

Whether you need to increase your server capacity during peak periods or downsize it during quieter times, cloud providers can adjust resources in real-time at a small fee. Usually, this small fee is a much more inexpensive option than upgrading or replacing on premise hardware . This scalability ensures optimal performance and eliminates the risk of over or under-provisioning your data needs, which ultimately will improve your businesses operational efficiency.

3. Accessibility and Remote Work Enablement

Another advantage to cloud-hosted IT services over on-premise solutions is its ease of accessibility. In a world of hybrid working, companies are no longer constrained by physical locations, and employees can access their work tools, applications, and data from anywhere with an internet connection.

This flexibility in data access allows employees to foster remote work opportunities and can help to enhance collaboration across geographically dispersed teams. It also means that any changes to shared documents and files on a user’s end are updated in real-time, meaning the rest of your workforce won’t miss out on any important updates as long as they have access to the internet.

This accessibility not only boosts productivity but also ensures business continuity during unforeseen events like power outages or office closures.

4. Automatic Updates and Maintenance

As technology advances, so will servers and hosting platforms, and it is important that these are kept up to date to better serve your business data. When using an on-premise IT solution, it is likely you’ll need to invest extensive time and effort into updates and maintenance. Not only this, but you’ll also need to invest money into purchasing new hardware and software for the upgrades, as well as paying professionals to implement these updates.

Alternatively, cloud-based services eliminate this burden completely. Cloud services automatically handle updates and maintenance in the background, and manage software patches, security updates, and system maintenance. In turn, this can free up your personal IT team and allow them to focus on strategic tasks to support company growth, rather than routine maintenance.

5. Enhanced Security and Data Protection

For most organisations, security concerns over the safety of data are paramount in the digital age. To minimise these data threats, cloud service providers have invested heavily in ensuring robust security measures to protect sensitive data. Now, It is safer to host your data on third-party cloud servers than on an on-premise server.

Most leading cloud platforms offer multi-layered security protocols, including encryption, access controls, and threat detection systems, far exceeding what many businesses can implement internally with on-premise solutions. Additionally, data is stored across multiple data centres as a standard practice, which ensures data is safeguarded against data loss due to hardware failures or disasters.

These attributes make the cloud a better, more reliable solution for hosting your business data, and allows you to take advantage of better security and avoid attacks on your data.

6. Sustainability

Finally, cloud-hosted IT services offer a greener edge over on-premise solutions. Cloud hosting allows you to share any unused, additional storage with other users. By adopting shared resources and optimising your server usage, cloud providers can improve energy efficiency by 93%, and produce 98% fewer greenhouse gases, compared to traditional, on-premise data centres.

Therefore, organisations choosing cloud services contribute positively to environmental sustainability and corporate social responsibility efforts.

How can cloud-hosted services benefit businesses?

The benefits of cloud-hosted IT services are undeniable, encompassing cost efficiency, scalability, accessibility, security, and more. Businesses of all sizes can leverage the power of the cloud to optimise their IT infrastructure, streamline operations, and enhance overall productivity.

While on-premise solutions may still have their place in certain scenarios, the cloud’s flexibility, reliability, and cost-effectiveness make it a preferable choice for modern organisations looking for success.

Get in touch

As part of the DCS group, Amber Vault cloud services offers a range of cloud solutions suitable for a business of any size. Our secure and scalable cloud services for business, allow you to develop your IT Infrastructure efficiently in a cloud-centric world.

At Amber Vault, we provide you with the best comprehensive data protection solution that is:

  • Affordable
  • Flexible
  • Reliable
  • Powerful

Rest assured, your company data is always safe with us.

If you’d like to speak to a member of the DCS team about Amber Vault cloud solution, please contact us at [email protected]. You can also contact us here – we look forward to hearing from you.