You’ve been looking into different data center services and discovered two main options: using cloud services from another company and building your own data center. But what exactly is the difference, and which option is ideal for your organization?

Cloud vs. Data Center Services

The primary difference between the cloud and using your own data center is that a data center uses on-premises hardware, while the cloud refers to off-premise computing in someone else’s data center. Cloud computing services store your business’s data in the public cloud, while a private data center stores your data on your own private hardware. Both options have their own respective benefits, depending on your priorities as a business.

Cloud Computing and Data Management

More and more businesses are relying on the cloud for their data needs instead of independent data centers. In fact, it was predicted that one-third of all data would pass through the cloud by the year 2020.

The reasons for this trend are obvious: for small businesses and companies without a lot of working capital, cloud data management allows them to operate without buying expensive data center equipment. By using the cloud, you are storing your data in another, larger company’s data center and you only pay for the storage and services you need. Set up is very quick, as you can sign up for cloud services and have your business operational in a matter of days. Additionally, whenever you need extra space of functionality, you simply upgrade your plan. This eliminates your need to spend more time and money buying and setting up new equipment.

Data Center Services

When using a private data center to store your information, things may be less simple, but they are most straightforward. This is because instead of entrusting your data to a third party, which may or may not be a secure and trustworthy organization, you are managing data yourself.

Many people like to feel in control of their data and what happens to it. While it might not be reasonable to believe that a big cloud computing company will spy on you, it is still slightly concerning to imagine all of your business-critical information siphoning through someone else’s data system.

Of course, data center maintenance services can cost more than data management in the cloud, and data center installation is rather expensive as well. But if your end goal is to maintain end-to-end control over your entire business’s operation, it is the only reasonable way forward.

Knowing Which to Choose

Ultimately, whether you choose cloud computing or data center services will depend on which is the smarter investment for your company. To help you accurately determine which is better for your needs, LDP will use our cost calculators during a consultation to help you better understand the costs of going cloud versus hosting your own data. In as little as five minutes LDP can give you an estimate of what your DC will cost within 10%!

Believe it or not, some businesses can save money by using their own data centers, depending on the amount and type of data. When it comes to cloud computing, your main advantages are flexibility, ease of use, and speed. However, these come at a hefty price: a lack of data privacy and data control, as well as being forced to entrust critical business operations to another entity. Whichever choice you make, it is important to be aware of the trade-offs.