June 07, 2022

On-site vs cloud computing: Which is better for your business

Many business leaders are debating whether on-premises or cloud computing is better for their companies. On-site computing was once the only option, but cloud computing is rapidly reshaping global business networks.

Business leaders and Chief Information Officers (CIOs) may assume that on-premises corporate computing is a more reliable and cost-effective solution because they trust the familiarity, but this notion is shifting. Cloud computing has started to surpass on-premise computing in a variety of ways, including cost and performance.

On-site computing is costly

Some CIOs are put off by the cost of cloud migration. There may be concerns about whether cloud adoption makes financial sense if the company has already heavily invested in on-site computing. The operational costs of having on-premise hardware that is wholly owned and managed by a company are significant.

Purchasing physical hardware is not a once-off cost. When servers or other networking equipment becomes damaged or obsolete, they must be replaced. Since hardware must be stored somewhere, the company must rent or own a large space to house its on-site data centre.

Both the hardware and the cooling systems in data centres consume a lot of energy. Businesses must also consider the cost of power supply equipment, as well as the cost of electricity and backup generators.

In addition, companies must employ and retain personnel who can perform routine maintenance on hardware. Data recovery systems and cyber security must also be taken into account. The technical know-how of in-house teams is required, as well as the inclusion of necessary software in the IT budget.

Comparing the cost of on-site vs cloud computing

Cloud-based solutions, unlike on-site computing, do not necessitate the purchase of physical hardware or the provision of physical storage space. There's no need to be concerned about out-of-date hardware or software because cloud software is automatically updated. While physical hardware can be lost or stolen, cloud networks connect to extremely secure data centres. Businesses, on the whole, cannot afford the levels of security that third-party data centres provide.

Companies can save money thanks to low-cost deployment and a pay-per-use pricing structure. Since no specialised hardware or software is required, capital expenditure is reduced. Companies don't need to employ highly specialised IT teams to manage their networks when they partner with SEACOM Business.

The benefits of cloud computing

Businesses can benefit from global threat intelligence thanks to cloud computing. Cyber security is constantly evolving, so having a dynamic cyber security solution is critical for keeping company data and networks secure. Enterprises can use a private cloud or a hybrid cloud to maintain maximum cyber security in industries such as banking or healthcare, where corporate data must be kept extremely secure.

SEACOM Business offers burstable capacity, which means that as businesses expand, they will never run out of storage space and increased data traffic will be easily accommodated. As digital operations scale up, there is no need to purchase new servers or rent on-premises data centres.

On-premises computing is gradually being phased out, with virtualised networks taking its place. A cloud-first approach to computing should be considered by businesses seeking a long-term computing solution. For more information or to get a quote for our various cloud services, email us at marketing@seacom.com or leave us a message.

SEACOM owns Africa’s largest network of information and communications technology (ICT) infrastructure, including fibre optic networks and subsea cables. We offer a wide range of industry-leading scalable ICT solutions for large companies that operate throughout the region.

SEACOM is privately owned - making it adaptable to the needs of the client. We are the preferred ICT and internet connectivity supplier for African enterprises. We can guarantee fast, reliable and secure internet and networking services at affordable prices.

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