In-House or Cloud – Which Is Right for Your Infrastructure?

The cloud is an off-premise centre that stores data and is managed by a third party. All the maintenance of the data and the updates are handled by the provider. Data that are stored in-house is on the hardware of a network that’s local.

Even though off-site providers can store data, a data centre is the only place that can store equipment and servers. Off-site providers may own several data centres in various locations, so customers have access to data during failures at data centres and outages. Whether you choose a third-party vendor to store data or use an in-house data centre depends on several factors:

  • Business needs
  • Cost
  • Security

Business Needs

A data centre is the best option for a business that needs a dedicated system that they can customize, so they have control over their hardware and data. A data centre is an ideal option for a company that runs multiple, complex applications. To increase the storage capacity, you must buy more equipment. A third-party vendor has unlimited space, but you’re sharing the resources with their other customers.

Cost For Small Businesses

A third-party provider is the better option for most small businesses in the start-up phase. You’re building a new business and are responsible the administration of your company. A data centre can cost a business between $10 and $25 million annually. With an off-site vendor, you don’t have to put capital into data storage.


If your company data is stored in a data centre, you have control over your security. The data centre is connected to a network that’s local. With a local network, only those employees with the proper equipment and credentials can access the company’s information and apps. An external storage facility may be harder to secure than a local network. The information stored by a third party can be accessed anywhere there’s connection to the Internet by anyone with the necessary credentials. Since there are numerous entry and exit points, it’s easier for your information to be accessed and more security measures must be taken to secure information.

In-House Data Storage

When the IT demands of a company are difficult to make predictions about or when company demands change, it might not be cost-effective to build more centres to store data. Recent statistics show that most managers of data centres want to take advantage of their current storage facilities rather than building new ones.

However, there are cases in which in-house data storage is a preferable scenario. Company funds can be wasted on purchasing more electrical power. Changing to a different electric provider could save money. If changing providers isn’t an option and the that is below capacity, adjust climate controls to compensate.

It’s imperative that internal data centres are managed professionally by an IT expert. One recommendation is that six months before the contract with a vendor is set to expire. Start researching available alternatives to the current contractor ways to improve the service from the current vendor. If you can switch to a vendor that costs less without an impact on service, that could be an option.

Another way to take advantage of in-house data centres is to use the space to test computers that are under consideration by the company. Testing at the internal data center can aid IT personnel in choosing the best new computers.

Leave a Reply

Your email address will not be published. Required fields are marked *