Cloud Servers vs. On-Premises Servers

Over the past few years, we’ve observed a shift in client preferences, with more organizations opting to return to on-premises solutions rather than transitioning to the cloud. Two primary reasons for this trend include:

1. Accessibility: The Reverse of Expectations

• Internet speed plays a pivotal role in cloud adoption decisions. While many anticipate seamless access to data anywhere with cloud solutions, the reality is that internet speeds often fall short of expectations when compared to typical office network speeds.
• Example:
  • Home internet typically offers speeds of 100 megabits per second (Mbps), while hotel internet can be as low as 15 Mbps or less.
  • In contrast, office networks often operate at speeds of 1,000 Mbps or higher, providing much faster, more reliable access to data.

2. Cost: Cloud vs. On-Premises

• Both cloud and on-premises servers now use virtualization technologies such as Microsoft Hyper-V, VMware ESXi, and others to optimize efficiency and reduce hardware costs. Virtualization allows multiple application servers to run on a single physical host, minimizing hardware expenses.
• Maintenance:
  • Whether cloud or on-premises, regular maintenance is necessary to ensure optimal performance. This includes weekly and monthly updates, patches, and daily backups to keep the host servers and virtual machines secure and reliable.

Cloud Server Costs:

• Onboarding fees
• Monthly fees for storage, are typically three times more expensive than on-premises solutions
• Ongoing maintenance fees
• Additional fees for extras, such as backup services, antivirus, and enhanced security features

On-Premises Server Costs:

• One-time capital expense
• Typical lifespan of the server: around 8 years
• Maintenance includes periodic updates, patches, and backups (managed internally or through a service provider)

Key Considerations Before Moving to the Cloud

Before transitioning your infrastructure to the cloud, consider the following steps:

1. What is the motivation or need for moving to the cloud?
2. Is budget a significant consideration in the decision?
3. What alternatives could address the same needs without moving to the cloud?

Alternatives to Cloud Adoption

There are several solutions that may fulfill your organization’s needs without fully committing to the cloud:

• File Sharing and Collaboration with Microsoft 365:
  • If your company is focused on file sharing and already utilizes Microsoft 365, consider leveraging OneDrive, SharePoint, and Teams for file storage and collaboration.
    • Benefits:
      • Each user receives 1 TB of storage.
      • Users can share and collaborate on documents in real-time.
• Managed Services Backup:
  • Sunstate Technology Group includes a comprehensive backup of your Microsoft 365 environment, covering email, Teams, SharePoint, OneDrive, and more.
• Accessing Specific Applications from Anywhere:
  • If your company uses specific applications and wants remote access, consider investigating whether cloud versions are available.
    • Steps:
      • Compile a list of the applications you currently use and reach out to vendors to inquire about cloud-hosted versions.
• Advantages:
  • Cloud vendors handle backups, updates, and patches.
  • Troubleshooting may be simpler due to vendor support.
  • Cloud solutions can be accessed globally with an internet connection.
• Disadvantages:
  • Typically, cloud versions are more expensive.
  • Access is contingent on internet availability.
  • Poor internet speeds may negatively impact performance.

Sunstate Technology Group is here to assist you!

We are committed to providing tailored recommendations that best suit the needs of you and your organization. Please reach out to your account manager to schedule a comprehensive technology business review. We look forward to supporting your success.