Why modern infrastructure like cloud is better than traditional IT infrastructure?

Today, organizations face the challenge of deciding whether a cloud infrastructure is a right fit for them or an on-premise environment. There are many factors that a company must consider to make this decision. To begin with, organizations need to sort their business requirements and then choose a reliable technology vendor who offers services that meet their organizational needs. In this article, we’ll look at the key similarities and differences between cloud and on-premise, which will help you decide on the best viable solution for your organization.

Table of Contents

  • What Is ‘On Cloud’ and ‘On-Premise’?
  • Key Similarities and Differences Between On-Premise vs. Cloud

What Is ‘On Cloud’ and ‘On-Premise’?

In recent years, the hi-tech arena has undergone significant changes in computing and communication platforms. One such prominent technological shift has been the upgrade from an on-premise infrastructure to a cloud environment. Today, cloud has become a fulcrum of most organization’s technology strategies. The computing space has seen disruptive tech changes in the past decade, with cloud taking the top spot. The value proposition offered by cloud is multidimensional. From contributing to cost savings over traditional on-premise models to providing flexibility in services, cloud has replaced traditional computing models entirely.

On cloud explained

On cloud implies hosting data, software platforms, applications and even resources on the cloud instead of in-house. This is commonly termed cloud computing, a blend of two technologies — cloud refers to networks, while computing relates to computer-related resources, applications, and services. 

Enterprises pay for what they use, similar to services provided by a telecom provider. The cloud more closely associates with a subscription-based model where you only pay for what you use. Here, computing becomes a service on the cloud and customers are billed every month for utilizing these services. 

Thus, cloud can be treated as a distributed collection of computing resources where applications reside anywhere on accessible networks.

On-premise explained

On-premise refers to a computing model where a company hosts everything in-house in an on-premise environment. Software, platforms, hardware, and infrastructure (communications, storage, backup, and much more), including servers and server rooms, are located within the physical confines of the organization. 

On-premise and cloud computing primarily differ where resource control and infrastructure management are concerned. Traditional computer applications are hosted on local hosts on the premises, such as desktops, notebooks, and workstations.

According to IDG’s 2020 Cloud Computing Survey of over 500 IT professionals, 59% of tech buyers (involved in the purchase process for cloud computing) said they planned to be ‘mostly’ (43%) or ‘all’ (16%) on the cloud in the next 18 months. 

These figures are up from 38% in 2018 who said they were mostly or all on the cloud. Around 92% said that their organization’s IT environment is at least somewhat on the cloud today, while 8% said their total IT environment is all on-premise. 

According to another survey, 50 CIOs expect to see the proportion of total workload done on-premise drop from 59% in 2019 to 38% in 2021, a reduction of 41%. These figures only highlight how organizations are embracing cloud over traditional on-premise models.

Also Read: Top 10 Best Practices to Manage Hybrid Cloud Security Challenges in 2021

Key Similarities and Differences Between On-Premise vs. Cloud

The IT industry has been in transition for decades. Cloud is a one-stop solution that has received global acceptance. It simplified IT maintenance concerns by managing core infrastructure aspects over the network. Despite the various advantages, cloud deployment is not viewed as the complete answer, as some organizations still have strong preferences for on-premise solutions.

Why modern infrastructure like cloud is better than traditional IT infrastructure?

Similarities Between Cloud and On-Premise

While cloud handles infrastructure over the network, on-premise solutions deal with infrastructure at organizational premises or on-site. However, the fundamental aim of both these solutions is to reduce organizational costs and maintenance burdens by implementing agile IT infrastructure. Cloud has proven to be cost-effective and easier for small businesses, as it offers agile and flexible integrations at affordable costs. That being said, both approaches do have some similarities.

Key Similarities Between On-Premise vs. Cloud

1. Workloads within the system

Cloud is known for its ability to offer unlimited memory space, timely backup, on-demand service availability, a faster rate of application launch (and release), timely software upgrades without the need for additional hardware in case of its own data center, and the ability to handle workloads.

An on-premise infrastructure model does not offer all these services. But testing and running workloads on the cloud is a temporary solution adopted by organizations with on-premise infrastructure. Hence, as like cloud, an on-premise environment too enables cloud computing to run its workload within the system.

This allows organizations to continue their normal operations without disruption due to excess workload. Companies can test and run the additional workload on the cloud depending on the requirement.

2. A unique mix of technologies

Both on-premise and cloud infrastructure are created using a combination of technologies. This includes an operating system, a management platform, and application programming interfaces (APIs). A management platform combines a set of features or modules that enables the management of different cloud environments as well as an on-premise model.

Meanwhile, an API facilitates the development of services and applications for provisioning cloud/on-premise platforms, hardware, and software. It acts as a service gateway to enable indirect and direct cloud/on-premise software and infrastructure services to end users.

3. Additional capabilities or increased efficiencies

Virtual machines enable a greater level of customization by OS and by application needs. Packages of applications and data can vary in relation to executive, IT access, accounting, HR, marketing, sales, or even front-line needs.

As virtualization continues to grow, it’s reaching into virtually every corner of the computing network, not just in the cloud but even in on-premise networks. Virtualization provides greater advancement in terms of ease of use and customization of machines for end users. It also helps in containing costs.

Today, computing configurations have become largely complex. Some organizations find it easier to operate their networks on-premise. Here, they build ‘private clouds‘ internally and manage the workload through virtualization as observed in cloud infrastructures.

4. IT infrastructure automation

Organizations employ IT infrastructure automation to minimize manual efforts associated with managing and provisioning workloads. IT infrastructure automation aims to make all activities related to on-premise and cloud resources fast, efficient, and with minimal intervention.

IT automation frees up IT staff to address more pressing issues and architect for the future. Automating repetitive tasks is a way for IT teams to focus on important tasks that provide added value to the organization.

Owing to these advantages, IT infrastructure automation is adopted on-premise and on different cloud environments, including public, private, and hybrid clouds. It makes workload deployments far more efficient. It also helps in cutting costs, as hardware resources and software licenses are reclaimed, which would otherwise have been wasted.

Also Read: Top 10 Hybrid Cloud Solution Companies in 2021

Key Differences Between On-Premise and Cloud

As outlined above, there are a few similarities between an on-premise and a cloud environment. However, there are quite a few fundamental differences between the two. Organizations can choose one of these environments depending on their needs and the features they’re looking for in a solution.

Why modern infrastructure like cloud is better than traditional IT infrastructure?

List of Key Differences Between Cloud and On-premise

Upfront cost

The core difference between on-premise and cloud computing models is the cost. It is also the reason for their contrasting pricing models.

On-premise
In an on-premise environment, in-house dedicated servers are used. Obtaining them requires a considerable upfront investment. This cost includes buying servers, licensing software, and hiring a maintenance team. Companies are also required to bear ongoing expenses to maintain server hardware, power consumption, and space. Besides, in-house infrastructure is a fairly rigid framework in the context of scaling resources.
Cloud
A cloud environment has little to no upfront costs. The infrastructure is owned by the provider, and the client only pays for using devices on a monthly or annual basis. This financial model is known as the pay-as-you-go model, where you only pay for the units consumed and time used. Additionally, cloud computing doesn’t require the cost of investing in a technical team. In some cases, the provider takes care of maintenance as well.
Deployment of resources

This refers to the difference in how the deployment of company resources is done.

On-premise
As the name suggests, resources are deployed in-house on the company’s local server in an on-premises environment. The company is solely responsible for maintaining, protecting, and integrating data on the server.
Cloud
Deployment varies according to the type of cloud computing (private, public, or hybrid). However, the critical aspect of cloud is that the deployment of data takes place on a third-party server. The advantages of this include the transfer of responsibility for security and extension space to the involved third party. In this model, the company will have all access to the cloud resources 24×7.
Security of data

For the security of data and compliance issues, some organizations prefer an on-premise model over the cloud.

On-premise
Extra sensitive data is preferably kept in an on-premise environment for security reasons. Confidential or critical data such as banking data or official governmental credentials cannot be shared with a third party. In such a scenario, on-premise models serve the purpose better than cloud. Some organizations prefer using on-premise models as they are more confident about keeping their data safe themselves or need to adhere to various security compliances.
Cloud
Despite cloud data being encrypted and only the provider and customer having keys to that data, most individuals and organizations tend to be skeptical over the security measures of cloud computing. Cloud has proved its mettle and obtained many security certificates over the years. But the loss of authority over the data reduces the credibility of its security claims.
Control of data

Companies prefer having maximum control over their data. As such, depending on their needs and model, they can choose an on-premise model or cloud.

On-premise
As seen earlier, in an on-premise model, companies keep and maintain all their data on a server and enjoy complete control of what happens to it. This allows them to enjoy superior control over their data as compared to cloud computing. Companies in highly regulated industries (e.g., banking) with extra privacy concerns are more skeptical about taking a leap into the cloud because of this reason.
Cloud
In a cloud environment, ownership of data is not transparent. Contrary to on-premise, cloud allows you to store data on a third-party server. Data and its encryption keys reside within your third-party provider. If there is significant downtime in case of an unexpected event, you would be unable to access that data. Such a computing environment is readily adopted by either those whose business is very unpredictable or the ones that do not have privacy concerns.
Compliance issues

Depending on compliance regulations, some companies are required to store their data on-premise and have complete control over it, while under different circumstances, other companies can choose the cloud.

On-premise

Today, almost every company operates under some form of regulatory control, irrespective of the type of industry. Companies have to meet the compliance policies of the government that tries to protect its citizens. Compliance policies involve data protection, data sharing limits, authorship, and so on. For those organizations that need to adhere to such regulations, the on-premise model serves as a better option. Locally governed data is stored and processed under the same roof, where it is more manageable and under control.

Cloud
Cloud solutions follow specific compliance policies. However, due to the inherent nature of cloud computing involving third-party servers in its framework, some companies cannot choose a cloud model. Additionally, despite data being encrypted on the cloud, government agencies never choose this model because losing authority over their data is a clear violation of their compliance policies.
Flexibility & scalability of operations

Due to the ever-increasing demand and changing user requirements, modern applications are continually evolving. Flexible and scalable infrastructure ensures that user experience is not compromised.

On-premise
On-premise environments offer less flexibility because of physical servers. Running operations on-site implies resource scaling through buying and deploying new servers. Hence, scaling is a bit of a challenge under this type of model.
Cloud
The scalability that a cloud environment provides is superior to on-premise models. Here, scalability includes resizing server resources, bandwidth, and internet usage. Also, for cost-saving purposes, cloud servers are scaled down or shut down when the usage is low. This flexibility is possible due to the virtual location and resources of servers, which are managed (i.e., increased or decreased) as per convenience. Cloud resources are administered through an API gateway or an admin panel.
Technical involvement

An organization’s decision to choose an on-premise or cloud model depends on another critical aspect: the amount of technical involvement required.

On-premise
On-premise implies on-location physical resources as well as on-location staff that is responsible for managing the infrastructure. This model requires the complete technical involvement of a team of experts in configuring and maintaining servers. Employing a team of professionals devoted to ensuring that the infrastructure is secure and efficient can, however, be costly.
Cloud
The service provider fully manages the cloud-deployed entities. As a result, it requires minimum technical expertise from the client’s side. However, some service providers also allow a certain amount of flexibility in this context. Most importantly, outsourcing maintenance allows organizations to focus on other business-critical aspects. Yet, not all companies are willing to hand over their infrastructure and data to a service provider.
Energy saving

Depending on an organization’s needs and compliance issues, it can choose a cloud model over an on-premise environment to save energy.

On-premise
The energy consumption of servers is exceptionally high. Considering this factor, having an on-premise deployment will inevitably lead to more energy expenditure. A server, on average, consumes 100% of its required power. Meanwhile, an on-premise deployment demands 10-20% of that very server’s power. This acts as a maintenance burden for organizations, as they own the infrastructure and eventually end up with minimal energy savings.
Cloud
In a cloud model, however, as maintenance responsibility lies with the service provider, a lot is saved on energy requirements. The energy consumption variable comes as part of the package in a cloud deal. Simply put, organizations deploying cloud models are not burdened with energy-saving issues, as service providers use methods to deal with energy factors while renting out cloud services. Some advanced techniques, such as airflow management, are being used to address the issue of heavy power consumption in cloud environments.
Bandwidth enhancement

Depending on capacity requirements and future bandwidth enhancement needs, organizations need to determine if their on-premise model will suffice or whether a cloud environment would be better.

On-premise
In an on-premise infrastructure, enhancement of bandwidth and capacity relates to physically deploying new servers. However, in this model, users also enjoy better security. As one can manage things physically, you will have to make custom configurations based on organizational needs. Unlike on-premise environments, cloud fails here as an organization will only have to choose from the available options that cloud service providers (CSPs) offer.
Cloud
On the contrary, cloud gives enterprises the flexibility to upgrade their requirements, be it memory, software, server space, etc. One can make optimal use of virtual servers, virtual routers, and additional networks through cloud deployment to enhance the size and capacities of existing storage. This only demands the organization to upgrade its cloud plan.
Disaster recovery

Critical system failure, technical glitches, unexpected blackouts, and malware are common with any system. But how you overcome such disasters is the real challenge.

On-premise
In an on-premise model, the responsibility of security and privacy lies entirely with the organization. In case of a disaster, the infrastructure may suffer physical damage. Since the organization is solely responsible for managing its physical systems (servers, machines), restoring data from damaged hardware can pose a significant challenge.
Cloud
The cloud environment is a step ahead in this aspect as compared to the on-premises model. Cloud provides organizations instant access to virtual resources in case of any disaster. With such features, you can back up, restore, and reboot software and data in a virtual environment instantly whenever any natural or unnatural disaster hits the cloud infrastructure.

Also Read: Top 10 Cloud Data Protection Companies in 2021

In conclusion

A cloud model employs dynamically scalable and virtualized resources as services over the internet. Cloud users rely entirely on cloud platforms for most or all infrastructure management and software execution. A cloud platform, therefore, functions as a virtual storage space.

These very foundations of cloud infrastructure are opposite to traditional on-premise computing models. In an on-premise model, all the resources are stored on local hosts, such as desktops, servers, workstations, tablets, etc., that are on the company’s premises.

Fundamentally, the two models differ in resource control and infrastructure management. While both solutions have their share of pros and cons, no one model is superior or worse than the other. Organizations can choose any one of these solutions depending on their specific needs and end objectives.

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Why is cloud computing better than traditional one?

Scalability. The cloud offers much more scalability than traditional data centers do. On the cloud, you have access to nearly unlimited storage space and server resources. Depending on the size of your workload, you can scale your cloud servers up or down.

What is an advantage of cloud computing architecture over traditional IT architecture?

Benefits of Cloud Computing Architecture It reduces IT operating costs and gives good accessibility to access data and digital tools. It helps businesses to easily scale up and scale down their cloud resources. It has a flexibility feature which gives businesses a competitive advantage.

What are the advantages of using cloud over traditional data centers?

These providers benefit from better infrastructure and resources thanks to their focus on delivering this particular service. This means that cloud data centers are easy to use, highly customizable to business requirements, and more agile overall than traditional data centers.

What is the difference between traditional infrastructure and cloud infrastructure?

Overall, reducing support costs. In this way, cloud computing offers far more flexibility and scalability than traditional IT infrastructure. Businesses are able to purchase additional data space, and processing capacity. They can even manage employees' access levels with just a few clicks of a button.