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On-Premise vs. Cloud-Based Servers

Cloud Computing, Data Backup | July 8, 2021
cloud services

Servers are utilized in a variety of industries by companies of all sizes to deliver information, fulfill requests, and store data. From small marketing groups to large industrial manufacturing companies, the right server can make a significant difference. To ensure optimal performance and data security, it is important to understand the differences between on-premise vs. cloud-based servers. As leading providers of data security and cloud services, the team at Next Hop Solutions has provided some information to help you make an informed decision for your business needs.

What is managed cloud hosting?

On-Premise (Local) Servers

Also known as on-prem, in-house, or local servers, these options consist of a physical unit that is located in the same building as employees.


  • Full access and control over the physical hardware.
  • All critical information is kept in-house. No third party or outside company will have access to your information.
  • No need for a strong Internet connection or data, allowing for access in nearly any condition.
  • Often more cost-effective for small to mid-sized companies.


  • Requires a large initial investment in hardware and infrastructure.
  • Requires a dedicated space or room and cooling systems.
  • Can be susceptible to power surges and damage to the building.
  • Data can be more difficult to recover and repairs can take longer, extending costly downtime.

Cloud-Based (Remote) Servers

Cloud-based servers are completely remote, allowing users to access files from any location without any access to the physical hardware.


  • No need for on-site hardware, freeing up space for other purposes.
  • Lower initial costs.
  • Storage and capabilities are easily scalable so that you only pay for what is needed.
  • Data backup and restoration can be initiated from anywhere by using any phone, tablet, or computer.
  • Data can be backed up at frequent intervals (up to every 15 minutes), minimizing potential data loss.


  • The cost of data recovery capabilities could outweigh the need for smaller companies.
  • Your data cannot be accessed if the Internet goes down on either side.
  • Full data recovery and backups can be time consuming and impactful on your systems.
  • Some cloud storage providers may limit the amount of data that can be stored or accessed per month, leading to increased costs for additional data.

For assistance choosing the correct server and storage solution for your business, get in touch with the Next Hop Solutions team. We can be reached through our online contact form and will work with you to choose the perfect option for your precise requirements.


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