Cloud vs Data Center: Which Is Right for Your Business?

Valentin Bora
CTO, ProtectBox
Jun 24th, 2022

Data storage and transportation can rapidly become incredibly expensive for the modern organisation. There are numerous options for infrastructure, equipment, and software required to host a powerful data funnel, and many companies find it difficult to create a system that is comprehensive, integrated, and cost-effective.

When putting together any IT project, the first choice a company or organisation should make is deciding exactly where the information and processing capabilities will physically reside. Clearly, computer systems, data centres, and supporting infrastructure can be purchased and installed locally. At the same time, recent advancements in virtualisation and distributed systems have made it possible to create digital systems that are offered to host and operate completely on remote hardware.

These two alternatives represent the progression of the traditional data centre into advanced cloud data centres (CDC). Understanding the distinction between these two broad types of enterprise computing could indeed assist businesses and their shareholders in making informed decisions, thereby ensuring a high level of their data pipeline.

Defining Cloud Storage Services

A cloud storage service is a type of data centre that is not physically located on the premises of the organization. It authorizes access to business data via the web. The cloud hosting completes ongoing maintenance and updates and, in many cases, owns multiple servers in different geographic locations to protect your data throughout power failures and other breakdowns.

Defining a Data Center

A data centre is a facility where server hardware is kept on company premises and from which data can be stored and accessed via a local network. An on-premises data centre is usually maintained by an in-house IT department.

Choosing the Right Solution for Your Company

Think About Your Security Concerns

Your business will authorise its data to a third party when using a cloud vendor. It is the cloud provider’s responsibility to ensure that it has the most recent security certifications. If your cloud is housed in multiple data centres across different locations, each one will require the appropriate cybersecurity measures.

Anybody with the necessary login details can gain access to your cloud data from any location with an internet connection. This is handy, but it also frees up a slew of new entry points, all of which should be secured to strengthen the safety of transmitted data through them.

A data centre is physically linked to your organisation’s local network. This makes things simpler to guarantee that only employees with company-approved login details and devices have access to storage apps and data. However, you should be willing to take responsibility for your own safety.

Think About Customisability vs. Scalability

A data centre is best for companies that require a specialized system that gives them complete control over their data and equipment. A data centre is best for a company that runs a wide range of applications and complicated workloads since this hardware facility is only used by the company.

At the same time, a data centre has limited capability. If your corporation tries to expand the data centre’s extra capacity and volume of work, you’re in charge of acquiring and installing new technology and equipment.

Based on your vendor’s product lines and service action plan, a cloud-hosted data system may have practically limitless capacity. Because the cloud vendor owns and maintains the data centre system, the disadvantage of this solution can be that you have less authority over the remote locations’ hardware.

Consider Your Budget and Finances

It will take a long time for your company to develop a data centre from the bottom up, and you will be fully accountable for the system’s maintenance and management. A big data centre can cost companies between $10 million and $25 million per year to operate.

A cloud service is less expensive, especially for small businesses. It doesn’t take nearly as long or as much cash to build and run. After registering, the cloud service is almost instantly accessible for use. The cloud vendor should be able to accelerate your service up or down as your company’s network needs change over time. To account for this, most businesses offer a variety of subscription plans.

Benefits of Cloud Storage

Cloud storage has numerous advantages, but it may not be appropriate for every company or industry. Here are some of the benefits of cloud storage.

  • Capacity: A cloud data storage system can offer you unlimited capacity. All it requires is a few clicks to change your capacity plan.
  • A third party will be in charge of security: When using a cloud vendor, your business will authorize its data to a third party. You are not required to have complete control over data security. Cloud hosting must keep its security standards up to date. If your cloud is housed in multiple data centres across the country, each one will require the appropriate security measures.
  • Lower cost: A cloud storage service is inexpensive, especially for small businesses. As your company grows, a cloud vendor can rapidly scale up or down your service. To account for this, most businesses provide a variety of subscription plans that may suit the best for your business’s requirements.

Advantages of Data Centres

Data centres, like cloud storage solutions, have their own set of advantages, mentioned below:

  • Full control: If you need an entirely devoted system that gives you full control over your user’s data and hardware, a data centre is perfect.
  • Security: Your business’s local network is connected directly to a data centre. This makes it very easy to ensure that only employees with company-approved login details and devices have access to stored apps and data.
  • No Internet connection needed: There is no need for an internet connection when using a data centre because your entire team can access the files via a local area network. If your internet service goes down, your team still has direct exposure to its files and can continue working on tasks that do not involve the internet.

Which One is the Winner?

Unsurprisingly, there is no simple answer to this question. The preferred choice is one that will assist you in achieving your business objectives with the assets you have available. In some situations, your current IT team may restrict you from pursuing one option over another. This is a common issue with small IT teams; they simply lack the knowledge and experience to manage some of the tasks related to cloud migration or running an on-premises data centre. Your team might not even be able to tell you which alternative is best for your company.

This is where a reputable IT services provider can assist. You can rely on their extensive pool of well-trained, seasoned professionals to assist you in determining which solution is right for your company and then in planning, implementing, training, managing, and supporting your project. With so many to choose from ProtectBox can make finding and deciding on providers, as well as everything else cybersecurity … smarter and greener!

By smarter we mean that in a few clicks, you can see personalised discounted bundles of solutions risk-fitted to your office and home.

Why should you care about greener? Because the elephant in the room in the choice of cloud vs data center, is the impact of both options on the environment. Which is bigger than greenhouse gas (GHG) emissions caused by agriculture, namely cows, sheep digestive gaseous by-products … or farts! The internet is responsible for 3.7% of GHG emissions

  • Our platform’s adaptability to a sustainability marketplace discussed here could halve the internet’s GHG emissions. Using our new Partner API described here (with our first application for Oracle Cloud shown below) we can roll this out further across health, agriculture and beyond …. in 1-2 years with sufficient support from the likes of the Earthshot Prize (which we’ve been nominated for) this could reduce 15% of GHG emissions