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Do You Need an On-Premises Server in Your Business?

Choosing the correct file storage system is critical because it affects your business operations. Factors such as cost savings, accessibility, scalability, and level of security must be prioritized, as these server solutions hold all your data on internal servers.

Have you ever asked yourself when you need a server for your business? Here are a few suggestions that might help answer your question.

  • When you have a line of business database applications like accounting, client databases, or project management.
  • When you have custom applications built around an in-house server
  • When you have so much data (more than 300,000 files or larger than 1TB the internet makes access too slow.

In this article, we will share with you the important factors why an on-prem server is essential for any business in Southeastern Pennsylvania.

On-Premise vs. Cloud 

Before the advent of cloud server integrations, on-prem infrastructure was how all software operated. You bought a software package that came on a CD-ROM (or floppy disc), installed it onto as many computers as the license allowed, and ran it from there. On-prem is an in-house private cloud service that will enable businesses to collocate all cloud computing equipment on premises, which is either managed by themselves or by some third-party cloud vendor. Many business owners in Collegeville, PA, still prefer to do things this way.

Cloud-based software is accessed through a web browser and hosted on a cloud server and comes with a host of strengths that SME owners might find much more advantageous. As the name suggests, a private cloud is a single-tenant environment, meaning the cloud infrastructure is provisioned for exclusive use by a single business entity comprising multiple consumers or business units. A third-party cloud vendor provides the services.

On-Premise Software 

Companies are responsible for maintaining and facilitating the related processes with this software. Instead of a remote cloud or server farm, On-premise software is installed on computers on the business premises.

While this is more expensive than cloud software and requires hardware, software investment, and additional licenses, it is considered more secure because all data is stored entirely within the organization.

On-Premise Pros 

If your business in Chester County, PA, is considering a more traditional method of storing data, then the onsite server may be the perfect solution for you. Here are some pros:

  • No monthly Usage fee: Unlike cloud solutions, this solution doesn’t require a monthly usage fee, which makes it a great cost-saving benefit for every business. Although there are annual maintenance costs that the company will need to keep up with, the cost of operation is lower than cloud solutions.
  • Better Data Control: Premise servers are an excellent solution for businesses with high-security concerns because the company owns all the servers that store the data. Finance, healthcare, and government agencies benefit significantly from premises solutions because everything is stored internally.
  • Highly Customizable: Organizations have the freedom to build their infrastructure to meet their own specific operational needs.
    From multiple operating systems to various applications that can’t run on a single server, the customizable nature of premise solutions allows them to be used according to the requirements of the business.

On-Premises Cons 

While On-premises solutions provide robust security and data protection, which are its biggest benefits, they do come with a few limitations.

  •  Require Constant technical support: From regular security patches, anti-malware protection, and user account controls, the onus is on you to maintain the on-premises servers.   If the servers are accessed from outside the office, security safeguards must be configured and maintained to protect all access.  This may also impact the speed of the internet for all. . 
  • Data Loss Risk:  Regular backups are essential to mitigate the loss of data during any internal (e.g. hardware failure) and external disruption with on-premises storage systems. This usually means that daily backup logs must be monitored, error corrected and the restoration exercised on a periodic time table.  You must be able to rely on your backup when you need it.
  • Capital Expense: The initial upfront cost of onsite servers is very high and may be something that only some businesses can afford further down the line. 

Cloud Computing 

Simply put, cloud computing is the delivery of computing services—such as servers, storage, databases, networking, software, analytics, and intelligence—via the Internet ("the cloud") in order to provide faster innovation, more flexible resources, and economies of scale. 

You typically pay only for cloud services you use, helping you lower your operating costs, run your infrastructure more efficiently, and scale as your business needs change.

Cloud-Based Pros 

Cloud-based computing is a significant shift from the traditional way businesses think about IT resources. Here are some advantages of cloud computing:

  • Operational Expense: Cloud computing eliminates the capital expense of buying hardware and software and setting up and running on-site datacenters.  It becomes another expense like the electric or water bill.
  • Speed: Most cloud computing services are provided self-service, and on-demand, so even vast amounts of computing resources can be provisioned in minutes
  • Global Scale: The benefits of cloud computing services include the ability to scale elastically.
  • Reliability:  Cloud computing makes data backup, disaster recovery, and business continuity more accessible and less expensive because data can be mirrored at multiple redundant sites on the cloud provider’s network.

Cloud-Based Cons 

While the future is bright for cloud-based applications, they are not without issues. These are the key drawbacks to cloud computing that you should know: 

  • Server Downtime / Slow Connection: Cloud computing entirely depends on the internet. If it’s down, then your operations go down with it. This is often cited as one of the significant risks of cloud computing. Unfortunately, it’s unavoidable even for the best vendors in the market.
  • Data Security / Privacy Issues: Cloud computing has much going for it in the fast-paced business world. When selecting a cloud computing service provider, ask what server-level security systems and procedures they have.

Key Differences of On-Premise vs. Cloud

With so many cloud services, the time for storing your data on a server may be over. But many people fall outside that space and can say bye-bye to buying another server. Below we will list the key differences between on-premises vs. cloud:

  • The deployment of on-prem software happens in the local environment, whereas cloud software deployment happens on the internet.
  • In on-site software, the company is responsible for maintaining the software, while the service provider is responsible for maintaining the software in cloud systems.
  • Security is more in on-prem services when compared with cloud software. With the cloud all information is stored in the cloud, and there are chances of a security breach.
  • Cloud service has a monthly or annual subscription, whereas On-premises comes with a one-time installation fee that may be higher. This is a one-time investment, while the cloud is an operational expense.


Growing companies will find that on-premises services boost productivity and data security. As your business grows, it needs a centralized data storage location. Where you may have depended on cloud email or storage to start, it can become unwieldy and costly. A server helps organize the IT management of your company by managing user permissions, software, and security. If you have more than a handful of computers, a server can help you save time, maximize productivity, prevent security breaches, and recover if a disaster strikes. It's a solid investment offering much to gain and little to lose.

We have the correct server solution for your business needs. For more information, please contact us!

Helpful tip: Microsoft office 365 has Sharepoint when configured correctly; it can be the storage server you need. The best part is it comes with your Office 365 subscription. If you're a Google GSuite user, you can use Google Drive.

If you enjoyed this article, check out these other articles about Cloud:
Virtual Machines in Cloud Computing

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