How many of us remember the room at the end of the office corridor—that ‘server room’ only the IT folks went into? My memories, for one, have started to get hazy. Was there even a room like that? What has changed? The server technology, of course! And it has been a while. But the fundamental question remains: which is better: an on-premise server or IaaS? Let’s do a quick comparison.
Let’s start with what these terms mean.
What are On-premise Servers?
On-premise servers are physical hardware that a team manages and maintains on-site.
The location can be your own or a data center from a third-party vendor but with your team deployed on-site and responsible for maintaining the equipment.
What is IaaS?
IaaS is one of the four types of cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... services, along with software as a service (SaaSThe term SaaS stands for Software as a Service. SaaS is an evolution of an application that runs on the...), platform as a service (PaaSThe term PaaS stands for Platform as a Service. PaaS is a model that gives you access to hardware infrastructure...), and serverlessThe term 'serverless' is used to define a segment of cloud computing. Even though there are servers involved, you do.... Read here to see which of the cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... services might be better for your business.
Why does the business need a server in the first place?
Here are some of the many reasons why as a business owner, you might need a server:
- Your business is ready to scale
- You require remote data access
- You’re looking to increase connectivity between in-house staff and clients/customers
- You’re looking to increase uptime
- You want to back up your data
On-Premise Server Vs. IaaS
IaaS or cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... server solutions have become a go-to these days. You might have heard many in the business community tell you that IaaS is the way to go about it. After all, on-premises servers are more expensive than other types of computer hardware. While it is estimated that the typical on-premise server costs between $1,000 and $2,500, that could go higher if you require more powerful servers. And there’s the cost associated with the upgrade and not to mention the hardware repairs and all that.
On the other hand, the same proponents of the cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... might have talked about improved scalability, flexibility, and security as being the advantages of IaaS.
On-Premise Server And IaaS: The differences
Here’s a table that compares the two (in reference to what a small business might need):
| On-Premise Servers | IaaS |
| Require a high initial investment | Requires a low initial investment |
| Take up much physical space, as each OS requires a separate server | Takes up little physical space, as one virtual server can run multiple Virtual Machines (VMs) |
| Have a shorter life cycle due to compatibility issues | Virtualization allows greater back-endThe term backend refers to code on a server or serverless functions that run in the background. A user does... compatibility and support for legacy applications |
| Carry additional costs when hardware needs to be upgraded | Virtualization allows the user to change the hardware easily |
| Have scalability issues | Easier to scale |
| Require hardware maintenance | Because most hardware is virtualized and represented through software, there is little requirement for hardware maintenance |
It is impossible to compare the two—apples to apples. However, here are some factors that you could take into consideration before taking the leap of faith and choosing one over the other:
- Time
On-premise servers include a host of physical hardware that takes time to set up.
If you are short on time and need a server immediately, then IaaS is your best bet.
- Compliance with regulations
Many businesses have to comply with governmental and non-governmental regulations.
With stringent compliance, choosing a dedicated on-premise server is the way to go.
- Specific configuration, management, and support concerns
If the business has a custom configuration, management, and support concerns, then dedicated on-premise software that can handle a stable workload works wonders.
For a workload that requires constant fine-tuning, the cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... is a better choice.
- Workload
As noted in the previous point, consistent high-demand workload suits on-premise servers.
If your workloads rarely hit peak demands, you may want to shift to a cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... server.
- Foreseeable Upgrades
Depending on anticipated workloads, upgrades need to be made.
If you foresee higher workloads that can be met only with specific server requirements, a dedicated server would be best.
- Preferred cost management
If you want to pay higher upfront costs and your requirements are specifically that the on-premise server can meet, then choose that.
Otherwise, given the lower capital outlay, IaaS is the best as it would mean spreading expenses over time.
In Conclusion
Whether you’d need an on-premise server or IaaS depends on the kind of business that you own and what your specific requirements are.
Hard dollar cost comparisons are rather complex, given that these depend on the specification of the solution one opts for. And that’s where @Aerion Technologies can help. We work with you to understand your requirements and then plan how the end goal can be achieved. Get in touch for a Free Consultation asap!
