The internet and modern technology mean an organization’s infrastructure doesn’t have to be in-house. It’s the age of ‘the cloud’ and remote working rather than cluttered offices with aging systems.
But what does it all mean in simple terms, and how can you choose the best infrastructure for your organization?
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Cloud vs on-premises vs hybrid – What’s the difference?
The three main infrastructure categories are:
- On-premises – All hardware, software, and critical functions are housed within the organization’s physical premises.
- Cloud – All data, software platforms, and applications are hosted and delivered via an off-site cloud system.
- Hybrid – A strong mixture of the two approaches.
All structures have their pros and cons and suit different types of organizations. It can be a complicated decision, so let’s explore cloud vs on-premises vs hybrid more closely.
| Cloud | On-Premises | Hybrid | |
| Cost | PAYG, small upfront costs | Large initial investment | Cost factors are split |
| Deployment | Third-party | In-house | A mix of in-house and third-party |
| Security | Less control and security | Complete control but also responsibility | Allows control over the most sensitive data |
| Scalability | Easily scalable because of few hardware limitations | Less easy to scale because of physical limitations | The cloud resources are more easily scalable than the in-house resources |
| Customization | Easily modified but less room for unique requirements | More customizable due to more control | Aspects of both |
| Compliance | Third-party control can be a compliance violation | Better for most compliance policies | Allows for in-house compliance where necessary |
Cloud
Cloud infrastructure is when an organization’s hardware and software that support the delivery of its main functions are accessed remotely via cloud computing.
It typically includes a network of servers, storage systems, and other hardware, as well as the software and operating systems that run on these devices.
Full cloud infrastructure allows organizations to access all computing resources on demand, over the internet, rather than building and maintaining their own in-house solutions.
This can be more cost-effective and scalable than traditional, on-premises setups, as it allows you to pay for only the resources used and to easily scale up or down as needs change.
Different types of cloud infrastructure
There are different types of cloud infrastructure, including public clouds, private clouds, and hybrid clouds.
Public clouds
Public clouds are owned and operated by third-party companies that offer their services to multiple customers over the internet.
At the top level are Amazon Web Services (AWS) and Microsoft Azure. These are comprehensive cloud computing platforms with storage, database, networking, and web applications.
This is called Infrastructure as a Service (IaaS), which allows organizations to rent computing resources on a pay-as-you-go basis.
However, there is often another layer where one organization develops, runs, and manages applications for another organization using these top-level services.
There is also Software as a Service (SaaS), which appeals to a mass user base, such as Google Drive or QuickBooks cloud accounting.
Private clouds
Private clouds are owned and operated by a single organization and may be used to store sensitive data or to meet regulatory requirements. It includes bespoke hardware or software solutions commissioned just for you.
Private cloud infrastructure can be more expensive and less scalable than public cloud infrastructure but can solve complex needs.
Hybrid clouds
Hybrid clouds are a combination of public and private clouds, allowing organizations to take advantage of the benefits of both. This isn’t to be confused with a hybrid of traditional on-premises and cloud infrastructure.
On-premises
On-premises refers to the hardware and software resources that an organization uses and maintains in-house. The infrastructure is typically owned by the organization and is located within its own physical premises, such as the offices, data center, or server room.
It includes workstations, servers, storage systems, networking equipment, and other hardware, as well as the software and operating systems that run on these devices.
Organizations may choose to use on-premises infrastructure for various reasons, such as having more control over their IT resources, storing sensitive data, or meeting regulatory requirements.
However, this route is typically more expensive and less scalable than cloud infrastructure, as it requires the organization to invest in and maintain its own hardware and software resources, along with the staff.
Moreover, it can make remote work more difficult to manage and secure.
Nonetheless, one major benefit is customization. Cloud services might be easier to scale, but because they serve many customers, there’s an element of one-size-fits-all.
With the right budget and talent, an on-premises solution can be tailored precisely to your vision.
Hybrid
A hybrid infrastructure combines on-premises and cloud-based solutions, allowing organizations to take advantage of both.
With a hybrid deployment, an organization runs some of its IT resources on its own premises while also leveraging cloud-based resources as needed.
This can provide greater flexibility and scalability, as they can choose the most appropriate infrastructure for any given application or workload.
For example, you may choose to run mission-critical or sensitive applications on-premises while using the cloud for less critical applications or temporary bursts of demand.
In a hybrid infrastructure, the on-premises and cloud-based resources are typically connected via a secure network, allowing them to communicate and share data as needed.
Moreover, cloud apps integrate with each other and in-house software over the internet.
Cloud vs on-premises vs hybrid – Which one is better?
While most organizations use some degree of hybrid, there are reasons to lean more in either direction.
Generally, choose cloud to cut costs when in-house control isn’t critical. It allows for easier scalability and agility. I.e., being able to quickly deploy new applications and services, as there’s no waiting for hardware to be procured and set up.
It also opens the door to specialized resources, like machine learning or analytics tools, that may be difficult or costly for an organization to set up on its own.
On the other hand, on-premises infrastructure may be better in industries like healthcare or finance, which have strict data storage and handling regulations.
Some mission-critical functions may also be too important to rely on third parties. Can your organization afford the fallout if a financial, HR, or manufacturing system goes offline and you have no direct access to its hardware?
Furthermore, particularly unique functions may only be possible when developed in-house.
Essentially, our cloud vs on-premises vs hybrid comparison outlines the solutions’ key differences, pros, and cons. But there is no single answer to the question, “Which one is better?”. The best infrastructure is the one tailored to your organization’s needs.
