Performance Tips

In-house server vs Cloud- What’s best for your business

Administrator / Last updated on: July 25, 2019

Whether you are a new business looking to buy a server or an existing business that has outgrown its current server, your decision often comes down to choosing to host the server in-house or in the cloud. With the new developments in technology every day, more businesses are making the shift to the cloud as it has better support functions. But some businesses choose to have the server in-house as it lets them have complete control over it. 

Which server is best for your business?

Choosing the right server is essential as it is the system that stores data, files and applications and impacts the business on a daily basis. Choosing to host the server in the cloud or in-house is a tough choice as each comes with its own benefits and drawbacks. Following are the pros and cons of each server to help you make this important decision. 

Host the server in-house

A few years ago, hosting a server in the cloud was not a viable option for many small to medium size businesses so most servers hosted by the business were located in the workplace. 

PROS:

You have complete control

One of the biggest benefits of hosting your server in-house is that you have complete control over it. Unlike the cloud server, you don’t have to depend on an external system for security and can customise the solutions to meet the needs of the business. As your business grows, you can upgrade your server without paying an extra hosting fee.

You can store critical data

Since the server is stored within the company, there is no danger of external threats, so the business can store critical information on their server. All the information stored in the server can only be retrieved by the employees of the company so there is no danger of third-party access. In addition to this, a user does not require an internet connection to access the information on the server.

CONS:

No uptime guarantees

The most important thing to consider with an in-house server is to have a backup plan in the case of server downtime. Hence, an in-house server is not suitable for businesses that rely heavily on online transactions as there is no guarantee of how long the server will be down.

It can get expensive

Since in-house servers are physically stored in the workplace, they come with a large initial capital investment such as set-up and operational costs. Furthermore, you would need to assign an IT professional to ensure the server is up and operational at all times and deal with issues regarding server failure.

Data loss during server downtime

Backing up your data is crucial when you host the server in-house. This is because, when there is server failure, there is a possibility of data loss as all the information is stored within the company. Therefore, when hosting your server in-house you need to back up your data offsite regularly. How often you do this can impact the amount of data you lose during a disaster situation. 

When it comes to security and reliability issues, an in-house server may be a better option, especially if the company owns all the infrastructure in the business and has full control over its computing system. If there is a system malfunction or the company wants to implement some new features, the changes can be made in-house with no dependency on an external provider. 

But is the cloud worth the hype?

Like the in-house server, a cloud server also comes with its pros and cons. A couple of years ago, the cloud server was not accessible to small and mid-sized businesses for various reasons and they usually opted for an in-house server. But in recent years, this trend has changed as more companies opt for a cloud server because it comes with low maintenance costs and hence a better option for small businesses, however, there is a monthly maintenance fee. 

PROS:

No capital requirements

The cloud server relieves the business of the stress that comes with managing an in-house server. This is great for those small to mid-size businesses that cannot afford to have a dedicated IT staff. For companies that do have an IT department, the resources can be used towards something else. 

You can expand storage as needed

Another benefit of the cloud server is that it can be scaled to meet the changing needs of a business. As a business grows and expands, they will need more storage for data, files and applications and the cloud server can be modified to meet the requirements. The business does not need to purchase new software every time they need to upgrade. Furthermore, you can back up your data every as frequent as every 30 minutes which reduces the risk of losing your data. 

CONS:

You need to be connected to the internet

Since the server is not physically stored in the office but on a virtual system, you would need to be connected to the internet to access any information on the cloud. This can prove to be a huge problem for companies because if the power goes out, they will not be able to obtain the data on the cloud.

Lack of security

Cloud servers are known for being highly secure but you need to remain cautious if your company handles highly sensitive information like important financial data- the cloud server may not be the best option for you. 

In-house server vs the cloud

The main advantage of an in-house server is that you have full control over the server, allowing you to customise and develop the server to meet your company’s changing demands. But this comes with strings attached like the high initial setup costs and the need for an in-house IT department. 

A cloud server makes it easier to scale your business as you are able to upgrade the server to meet the changing needs of the business. Additionally, the cloud lets you backup data regularly so you will never lose the information!

The choice between a cloud and in-house server comes down to the size and the personal preferences of the business. Whether your server is in-house or in the cloud, you need to choose the server that meets your needs now and in the future. The Dell Precision Workstations are great laptops that play the additional role of being servers. 

 

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