The future of data storage: On-premises vs cloud

Businesses face a crucial decision when choosing their data storage solutions: should they keep their data on-premises or move it to the cloud? Both options come with their advantages and disadvantages. The decision depends on various factors such as cost, security, compliance, and scalability. In this article, we will explore these aspects, focusing particularly on German legal and compliance regulations.

What do on-premises and cloud storage mean?

1. Cost

On-premises solutions require significant upfront investments in hardware and software, as well as ongoing costs for maintenance and personnel. In contrast, cloud storage solutions offer a subscription or pay-as-you-go model. This is often more cost-effective as it eliminates large initial investments and facilitates scalability. Maintenance and updates are included in the fees, ensuring there are no hidden costs. Overall, the cloud tends to be the more transparent and typically more economical model.

2. Maintenance and scalability

On-premises systems require regular maintenance by the company’s IT staff. Scaling these systems can be time-consuming and expensive, as additional hardware needs to be procured and installed. Cloud systems, on the other hand, provide virtually unlimited scalability and are maintained by the service providers. This outsourcing allows businesses to focus on their core operations and scale their services seamlessly according to growth and needs.

For example, at FTAPI, updates are implemented immediately and regularly on our cloud instances. You receive advance notifications about improvements and new features, but otherwise, you don’t have to worry about maintenance.

3. Security and compliance

Security is often a critical factor when choosing between on-premises and cloud solutions. Some companies believe that on-premises systems are more secure because they retain full control over their data. However, cloud providers typically offer state-of-the-art security measures that many organisations cannot implement themselves.

In Germany, both on-premises and cloud solutions must comply with strict legal regulations such as the GDPR. Cloud services designed specifically for the German or European market often include configurations tailored to local laws and regulations. New legal requirements, such as NIS-2, are also addressed automatically, as providers fall under the scope of these laws.

For example, FTAPI’s cloud solution is state-of-the-art and certified under e.g., ISO 27001, as well as compliant with the BSI C5 audit. Additionally, the company is entirely European-owned, safeguarding it from external regulations like the US CLOUD Act.

4. Availability and disaster recovery

Cloud services generally offer higher availability and more robust disaster recovery options compared to on-premises solutions. Redundant data storage across multiple data centres minimises the risk of data loss and downtime. Service providers typically guarantee uptime through Service Level Agreements (SLAs).

Achieving comparable reliability with on-premises solutions would require substantial investments in hardware and multiple data centres. Without these, operational disruptions may occur during outages. For businesses seeking robust IT infrastructures without high upfront costs, cloud solutions present an attractive alternative.

Learn more about cyber resilience

Developments in cloud storage

In recent years, cloud technology has made significant advancements. Multi-cloud environments and hybrid cloud models, which combine the benefits of private and public clouds, are becoming increasingly popular. Artificial intelligence and machine learning are being leveraged to optimise data storage and management while enhancing security.

The cloud is often the better choice

For many organisations, the cloud is a cost-effective, scalable, and secure option for managing data. The ability to respond quickly to market changes, along with access to advanced technologies and expertise that might otherwise be unaffordable, are significant benefits. Moreover, the cloud enables greater flexibility in working practices by allowing access to critical data and applications anytime and anywhere. This promotes more efficient collaboration, particularly in a globally connected work environment.

FTAPI specialises in providing secure data exchange and compliance-ready data processing. Its platform is especially suited for businesses with stringent data protection requirements or those operating under strict regulatory frameworks. This makes FTAPI an excellent solution for industries such as finance, healthcare, manufacturing, and public administration.

With FTAPI, you can share data simply and securely while ensuring GDPR compliance and meeting industry-specific regulatory requirements.