In-House vs Cloud Servers

When it comes to setting up your business, you want to make sure that you lay a solid foundation for effective growth. One of the most important things to consider when developing a business is the type of server it will run on. A server failure can be detrimental to your business, so it is important that you establish a well running server fit for your company right from the beginning. The two different types of servers you may consider are either a cloud-based server or a in-house server. Before getting into the specific details of each type of server, and what would be best suited for your business, it is important to firstly outline the difference between the two server types.

An in-house server is a physical entity that is either purchased or rented for the use of your business alone. This type of server is typically used by large organizations that require a higher level of security and more server space demand. These servers stay in-office and require an IT team to keep constant maintenance and perform updates.

A cloud-based server works just like any other server, however instead of hosting on physical hardware that is only used by you, your information is being hosted in a shared ‘virtual’ platform that is managed by a cloud manager. Essentially, rather than your information being stored on one piece of machine, it is being hosted online and can be accessed from anywhere. In terms of payment, you only pay for the amount of server space you require.
The type of server that is required for your company ultimately comes down to the type of business you are running and the amount/type of information you are storing. Highlighted below are the pros and cons of each type of server in order to help you make the best decision for your business.


The most obvious benefit to using an in-house server is the fact that businesses are able to keep important and confidential information in-house. Information is not kept with any third party, therefore risk for information breach is lowered. Additionally, having an in-house server also provides a business with control over data backups and requires no internet connection in order to access the data. While an in-house server may end up being a more affordable option for small to mid-size businesses, they do however require a capital investment to begin. Further, to house a server means that your business will need additional office space for the server, as well as a dedicated IT department. Getting an in-house server may mean more protection of your data, however it also makes your data more susceptible to data loss in emergencies due to the central location of all the company’s data.


Since cloud servers don’t require physical hardware, they are beneficial for any new businesses that may end up needing a lot of storage. For cloud servers, storage can be added whenever needed, and payment is solely based on how much storage a company uses, which can greatly benefit companies that are unsure of how much storage they will require. Additionally, information can be backed up from anywhere on any type of device, and usually occurs every 15 minutes, which can help prevent data loss during any emergencies. On the flip-side, if data does need to be recovered, costs to do so can greatly outweigh any benefits for some companies, and can be very timely. Additionally, while data space is on-demand, every company will have a limit to how much storage space they can get, due to increasing costs and limited availability. Lastly, as mentioned previously, cloud servers allow information access from anywhere, however this could also present many issues if the internet goes down, and data becomes inaccessible.

As presented above, there are both pros and cons for each type of server and the decision ultimately lies in further analysis of the requirements of your business. Each type of server can provide great benefits and it all depends on what a business is seeking. To ensure you make the right decision, make sure to take note of your business goals, objective, and future IT prospects and requirements.

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