There are many options to consider when it comes to storing data. The system of storage is one such key consideration with two dominant methods being on-premises and cloud storage. Both have significant advantages and disadvantages, which can make the decision challenging.

The biggest thing to remember when creating a data storage system is what your business or industry needs. Which of these two solutions fits company standards and expectations?

Read below for a better understanding of on-premises and cloud storage options.

What Is On-Premises Storage?

As the name suggests, on-premises storage is the hardware that stores data locally. This includes devices such as computers, servers, etc. Anything that your company uses to store data falls under this umbrella.

Typically, a company that utilizes on-premises storage owns the equipment. In other words, they own all the tools and hardware required for operation. However, they may have software and licenses to enhance their storage process.

The Pros and Cons of On-Prem Storage

Naturally, relying solely on on-premises storage methods has pros and cons. Here are some of the most important factors to keep in mind:

Pro – Security: Storing data on a local server is probably one of the most secure ways to store and protect data. It’s safer from hackers, as on-premise storage makes it difficult, if not impossible, for remote hackers to access. Any data that is stored offline will naturally have this advantage.

Con – Maintenance Costs: One of the biggest cons to storing data on local servers is the cost. As mentioned above, companies utilizing on-premise storage own all tools and devices involved. This can get costly, especially for a data-heavy industry. Throw in basic maintenance costs, and the price rises further.

Pro – Offline Capabilities: We’ve all felt the frustration of working on something online, only to stop halfway through due to our internet dropping out. That isn’t as much of a concern with on-premises storage. In other words, an internet connection is not required to access any data stored locally. It will always be available.

Con – Scalability: This con also circles back around owning all hardware – it’s more challenging to scale a business when one has to budget for on-premises storage. Furthermore, there are many hidden costs, such as increased maintenance per new machine, new IT experts, and more.

Pro – Internet Costs: There’s less need to splurge on expensive internet plans when a company relies on local data storage – assuming it doesn’t need it for other reasons. The simple truth is that cloud storage utilizes an internet connection, which can quickly ramp up the cost of this bill.  

Con – Data Loss Risks: Finally, there is an increased risk of data loss when relying solely on local storage. Should something happen to those servers, there’s little a company can do about it (unless they have backups somewhere else, which comes with additional costs). 

What Is Cloud Storage?

Cloud storage is the opposite of local storage. It utilizes online storage made available by companies that specialize in doing so. In other words, you use external servers and storage systems when using cloud storage. 

This storage method has grown in popularity, and there’s a good reason for it. However, as with on-premise storage, some pros and cons exist.

The Pros and Cons of Cloud Storage

Pro – Customizable Options: Cloud storage makes it easier for a company to create a customized data storage plan that suits their needs. There’s no need to worry about installing a new server – that concern belongs to the service you’re paying for. 

Con – Security Concerns: However, the biggest concern with cloud storage is security. Cloud storage is more vulnerable than local storage, as it offers internet access. This is why companies must likewise invest in proper cybersecurity measures.

Pro – The Price: One of the biggest advantages of cloud storage is the infrastructure cost. In general, cloud storage costs less than owning and maintaining local servers. This lets companies run on a better margin while maintaining high data value.

Con – Scalability Costs: Although cloud storage is generally less expensive than local storage, the price will increase during any scaling process. This is something to remember, as you will not have control over the rates. You’re paying for a service.

Pro – Accessibility: Cloud storage can be accessed anywhere, as long as you have the right device and an internet connection. This is ideal for companies with remote employees or other unique needs. It makes it easier for employees to access the data they need when they need it.

Con – Online Only Mode: Unlike on-premises storage, you cannot access the cloud without an internet connection. So, you will depend on a solid connection to access needed data. This often results in additional internet costs.


Prevailing trends of modernization index heavily to a cloud storage system. You may have heard terms like IaaS (Infrastructure as a Service), PaaS (Platform as a Service), STaaS (Storage as a Service), in addition to the more commonly known SaaS (Software as a Service). On cloud storage is evolving more and more and ever so rapidly to become a way to play for many industries. Before you take the plunge, however, take account of the risks, rewards, and reasonableness of the implementation and dont forget to carefully consider your appetite and threshold for the now commonplace cyber exposures. There are two sides to the expert technologists’ coin. The good ones, and the dark side of a dark web. Yet, dont let that stop you. Have a plan!