Cloud hosting vs. Server hosting

The choice of cloud hosting vs. server hosting has become an eternal topic of discussion. Even though the external cloud hosting services are becoming more and more popular, in-house servers still have advantages depending on the purpose and gives full control of the day-to-day operation and functionality of the IT infrastructure.
There are many factors to consider when choosing cloud hosting vs. in-house operated servers. To get an overview we have listed some of the most important pros and cons when comparing cloud services to in-house operated server platforms and applications.

Cloud hosting

No need for capital expenses. Cloud is well suited for rapidly growing companies that may quickly outgrow their infrastructure
No need for a dedicated server room setup
Flexible and easily scalable, and can thereby be adjusted as needed. Solutions are often on-demand, so you only pay for the amount of storage and computer power you are actually using
Employees can connect to the cloud from anywhere using a tablet, computer or even a smartphone
Data can be backed up in the cloud regularly and with short intervals, minimizing data loss in disaster situations

The user experience is limited by the speed of the internet connection
Third party cloud service operators could have direct access to the companies’ data
If the Internet connection goes down on either your or your providers site, there is no access to any of the data
The costs can outweigh the benefits for companies not as dependent on high uptime and high availability solutions
Dedicated customer solutions can be more difficult to implement
Data and access security must be carefully considered and investigated. Important data should be accessed using Virtual Private Network (VPN) technologies and the cloud service provider operational policies should be investigated and carefully audited

Server hosting

Gives the company and employees physical control over the server
Keeps sensitive and critical data in-house, so no third party has access to the company’s data
Do not have to rely on an Internet connection to access data
Can be more cost-effective for companies that are not as concerned about uptime

Require a capital investment in IT infrastructure (hardware and software) and expert human resources to maintain and operate the server on a daily basis
Requires a space in your office for a dedicated server room as well as dedicated power supply setup for high availability solutions
Could be more vulnerable to data loss during disaster situations if no dual data center setup is available
To add additional IT hardware require time and significant planning

Depending on the purpose of cloud hosting vs. server hosting, there are both pros and cons. But as a result of new innovations constantly appearing in the tech and business industries, adapting to cloud computing is a fundamental but natural shift in the way businesses operate today and will operate in the future. If you are not already considering the advantages cloud computing could have on your business, you could be at risk of losing opportunities since cloud computing is evolving fast at the moment.