The Pros and Cons of Cloud vs. On-Premise Servers

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Has your business been operating an old, outdated server system? Are you worried about security and protecting your data?

You might want to consider choosing the right server that suits your business, considering a failed server can result in disaster! Constant technological advances have brought modern server options to businesses, providing flexibility, efficiency and greater service.

If you are considering a new business server, you need to choose between online cloud-based servers or traditional on-premise servers.

Cloud Servers

Cloud-based server hosting utilizes virtual technology to offer powerful and secure IT operations that are highly adaptable to business demands. Cloud-based operations are all the rage right now; however, there are pros and cons of the cloud to consider.

Pros Cons
No capital expenses Internet speed and connection controls user experience
Data can be backed up regularly, minimizing risk of losses Third party cloud servers might have access to your data
Only pay for options you need Access to data is solely dependent on internet connection
Great for expanding companies outgrowing their infrastructure, connecting employees globally Cost outweighs benefits for companies not reliant on uptime

On-Premise Servers

What does on-premise mean? On-premise servers have been primary before cloud services arose and still provide different pros and cons compared to cloud-based servers.

Pros Cons
Physical control over server hardware Need for dedicated IT support
Critical data is stored on-premise with no third party access Requires hardware and infrastructure capital investment
Not reliant on internet access No uptime guarantees
More cost-effective for companies not concerned about uptime More prone to data loss in emergency situations

Which Server is Best for Your Business?

There are several benefits and negatives for both on-premise and cloud-based server hosting.  On-premise servers are beneficial for companies who do not rely on the internet, while cloud-based servers solely depend on high-speed and reliable internet.

Are you still confused about what on-premise means and why it is been replaced?

Traditional on-premise hardware servers can be costly and may not be equipped to manage modern applications as technology continues to evolve. On-premise servers need constant maintenance: component replacements and upgrades, damage protection, commercial air conditioning, location security, local network troubleshooting and staff system administration.

Cost of ownership for on-premise servers is simply very high and requires constant upkeep and upgrading. Operating system licenses and IT expenditures could be the highest costs for your entire company. Any company that has faced disaster situations such as building fires, earthquakes, or theft understands what it means to lose crucial data. Not every on-premise server has integrated backup or restoration capabilities, but it is highly considered for businesses that operate on-premise.

Cloud-based servers are becoming increasingly popular due to their multi-tenant infrastructure that allows complete customization and accessibility to end users through the internet.  Access is completely secure, including VPN services and on-demand help services.  Unlike on-premise servers, cloud-based servers eliminate licensing costs and remove upfront investments. Monthly payments make cloud-based server hosting seamless and cost-efficient.


Choosing cloud-based servers means your company benefits from continuous provider updates and service management options. Because you have options to set scalable infrastructures, your business will be using resources specifically tailored to your goals, eliminating over-expenditures and improving efficiency.

Weighing the differences between server and cloud systems is essential for any successful business that wants to succeed and secure critical data long-term. The pros and cons of the cloud outweigh those of on-premise servers if your company values mobility, highly secure services and efficient technological aptitude.

Dynamix Solutions offers customized business cloud services in Toronto and Calgary, improving the reliability and availability of on-premise servers.  A well-maintained cloud hosting service provides your business with remote access, cost-effective solutions, and exceptional online security. Contact Dynamix Solutions to learn more about server assessments and customized cloud services that best suit your company’s needs.

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