„In short, we were impressed by the modularity and scalability with which you can work in the system. "
Siegfried SchneiderCMO, Red Dot Design
customer experience
11 min
On-premise hosting is a solution where companies run their IT infrastructure on their own premises. Data and applications are stored on the company’s own servers and managed by an in-house IT team.
This type of hosting is often compared to cloud solutions, where the infrastructure is provided over the internet. Many organisations choose on-premise because it allows them to retain full control of their data.
This is a key advantage, especially in industries with strict data protection policies or specific IT infrastructure requirements. But is on-premise the best choice for every organisation? To find out, let’s take a closer look at the differences and benefits.
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On-premises hosting means that companies own and manage their own servers, software and network infrastructure. It requires investment in hardware, software licences and IT staff. In return, businesses gain complete control over their IT systems and data.
A typical on-premises setup consists of servers installed in a company-owned data centre.
Applications and data are securely stored there. Unlike cloud solutions, where providers such as AWS or Microsoft Azure provide the infrastructure, on-premises hosting is entirely the responsibility of the business.
The biggest difference lies in the way the infrastructure is provided:
While hosting in your own data centre offers more control and security, the cloud offers flexibility and lower operating costs. Both models have their specific advantages and disadvantages, which we will now look at in more detail.
Hybrid cloud solutions combine on-premises and cloud services. Businesses can store sensitive data locally, while using the flexibility of the cloud for other applications.
For example, a company can store its customer data locally to meet data protection requirements, while using cloud services to process large volumes of data. This combination offers flexibility and security, but requires a well thought-out IT strategy and experienced IT professionals.
The cloud offers almost limitless scalability. Businesses can provision additional resources with just a few clicks. This is particularly useful for organisations with fluctuating resource requirements, such as seasonal peaks in business.
In contrast, on-premises scalability is limited by existing hardware. To increase capacity, companies must purchase and install new servers. This is time consuming and requires additional investment.
Organisations that host their own data have complete control over it. This is particularly important in sectors such as healthcare, finance and government, which are subject to strict data protection regulations.
Tailored security measures, such as encryption, firewalls and physical protection, can help organisations protect their IT infrastructure. However, this requires a high level of expertise and resources.
On-premise hosting offers maximum control and customisation, but requires a high initial investment and ongoing maintenance. The cloud, on the other hand, offers flexibility and lower entry costs, but comes with dependencies on third-party providers.
Choosing the right hosting option ultimately depends on the specific needs of your business. Growing businesses in particular often benefit from hybrid models that combine the best of both worlds.