Cloud Hosting Services Vs On-Premises IT Solutions

Cloud Hosting Services Vs On-Premises IT Solutions

Cloud serices

A lot of companies and people have been talking about cloud hosting services vs on-premises IT solutions–the pros and cons of both. To be very honest, no option is “perfect”, but cloud hosting services do offer a wide range of advantages over on-premises solutions. Before we delve into all that, it is important to provide some basic background information on the subject.

What are cloud hosting services?

The term cloud services is a broad category that encompasses a vast collection of IT resources provided over the internet. The expression may also be used to describe professional services that support the selection, deployment and ongoing management of various cloud-based resources provided by private vendors, as opposed to on-premises services.

What is an on-premises environment?

An on-premises environment involves software and technology located within the physical confines of an enterprise – often in the company’s data center – as opposed to running remotely on hosted servers or on cloud services such as AWS. The key advantage to such a system of data storage and management is that by installing and running software on hardware located on company premises, staff have physical access to the data and can directly control the configuration, management, and security of the computing infrastructure and data.

What is Amazon Web Services?

Amazon Web Services, or AWS for short, is a subsidiary of Amazon that functions as a secure cloud services platform, offering computing power, database storage services, content delivery, and other functionality to help businesses scale and grow. It offers over 165 fully-featured services from data services globally.

So, what are the various advantages of choosing a cloud hosting service over on-premises solutions, and why you should choose cloud hosting services? There is a myriad of reasons that include:

Running costs

Cost depends on several different factors. First, upfront on-premises solutions are the more expensive option, but with the continual monthly payments made for cloud hosting services, the total costs may eventually tally up. In the long run, AWS is more cost-effective.

One thing to consider is that electricity costs accrue when using on-premises solutions since they consume a lot more electricity for both running and cooling. Over time, this may become a significant expense.

Another consideration is the replacement cost. On average, most organizations have to replace their hardware and upgrade their software every 4-6 years to avoid the danger of failure and costly upgrade fees due to obsolescence.


It would be extremely misleading to say that cloud services don’t have their own bandwidth problems, but on a general note, the high-ranking cloud hosting services, like Amazon Web Services, provide a much higher level of quality. On-premises solutions require an efficient and well-designed network of switches and cabling to serve bandwidth-hungry applications inside office walls.

Uptime and Dependability

In this cloud regard, hosting services such as AWS far outstrip on-premises solutions. Major cloud hosting services can guarantee an uptime of up to 99.95% in an entire year, with the average downtime for cloud servers being 30 hours per year. By contrast, on-premises solutions at the macro level average up to 14 days of downtime a year, causing revenue losses running to billions of dollars.

Adequate Data Security

A key feature of AWS is its top-tier security protocol for businesses at all levels. AWS offers levels of data and cyberspace security to small and mid-level businesses that were once only available to large scale corporations. In an era where information is power, you can understand just how important this feature is. If this isn’t a major deal-breaker, then I don’t know what is.