Cloud Based vs In House Servers For Small Business


There are two primary options for hosting data for businesses: in-house servers and cloud-based servers. Which option is right for your company? The answer to this question will be different for everyone and should be dependent on several factors. For example, do you have one office or several? What size is your business? Do you frequently experience storms, power failures, or other risks to your data? How tech-savvy is your team? Today, our IT experts at TUCU will explore the pros and cons of both in-house and cloud-based servers.

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When determining which type of server is right for you, ask yourself, “What am I trying to accomplish?” Again, the answers can vary based on the unique needs of your business. Examples of what many business owners deem important include:

  • Enhance both physical and cyber security
  • Minimize downtime
  • Achieve maximum speed
  • Make remote access simpler
  • Minimize cost

The above goals can often be achieved with either an in-house server or a cloud-based server. Keep in mind that, at TUCU, we are not exclusive proponents of either option. Simply stated, we are advocates of whichever option will most effectively meet your needs. For example, your business may be better suited for a cloud-based server if you:

  • Do not have a brick-and-mortar office and need a secure place to store data
  • Do not own server hardware
  • Want the ability to run for a week or more in the event of a power outage
  • Do not want to have to deal with frequent updates
  • Are looking for a way to integrate with Office 365 and Microsoft Active Directory

What is an In-House Server?

As the name suggests, an in-house server is a server that is stored and maintained in your physical office space. Therefore, there is no need for an internet connection to access your data. You have physical control over your backup at all times.

Pros and Cons of In-House Servers

An in-house server can be beneficial for many reasons. First, it keeps all critical and sensitive information at your fingertips and away from third parties. This option can also be more cost-effective for small to mid-sized businesses.

In-house servers have a few downsides as well. For instance, they require a substantial investment in infrastructure and hardware. Additionally, you will need physical space to store your server, such as a closet or rack. In-house servers can potentially be more vulnerable in disaster situations. In order to protect your data, it must be moved offsite routinely.

What is a Cloud-Based Server?

A cloud-based server is located online, with all operations performed over a secure internet connection. Rather than requiring physical in-house equipment, cloud servers are accessed remotely from a service provider.

Pros and Cons of Cloud-Based Servers

With cloud-based servers, you can eliminate capital expenses. Storage can be added on the cloud whenever necessary; therefore, you only pay for what you need. In addition, your data is stored securely, but can be accessed by team members from any location on any device at any time. Data can be backed up every few minutes, effectively minimizing catastrophic loss in the event of a disaster.

In contrast, the cost of data recovery could overshadow the advantages for businesses that are not dependent on instant recovery. Additionally, if the internet goes down, you will not have access to your information until it goes back up. Of course, your business may have a limit to how much data can be stored in the cloud due to cost and space availability. You can compare the cost of several small business and NAS setups in this blog post by Cloudwards.

Need IT help in the GTA? TUCU offers cloud consulting services to assess your needs as well as cloud solutions and support services, and cloud management services to keep your business running smoothly. Contact us to schedule a consult call.

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