Cloud computing has transformed the business landscape, with many companies migrating their workloads to the cloud. In 2022, 60% of corporate data are already stored in the cloud — a figure poised to rise as remote work and cloud adoption continue to gain momentum.
However, amid the growing allure of cloud migration, on-premises servers will not fade into obsolescence. On the contrary, they stand tall as a favored data storage choice among businesses, offering a multitude of benefits that warrant thoughtful consideration before shifting your data to the cloud completely.
By exploring the distinct advantages of on-premises servers, companies can make informed decisions about their data storage strategies and strike a fine balance between modernity and time-tested reliability.
Hardware remains a popular investment
Despite the benefits of the cloud, on-premises hardware remains a major IT expense. In fact, according to SWZD’s 2023 State of IT Report, hardware expenses are expected to account for a substantial 30% of IT budgets, while hosted or cloud-based services are expected to constitute a modest 23%.
Though there has been a slight dip in IT spending on on-premises servers — from 14% in 2020 to 11% in 2022 — 90% of companies still use on-premises servers for their data storage needs. These figures attest to the enduring relevance of on-premises hardware, in spite of increasingly popular cloud alternatives.
Why on-premises servers are still a top choice
There are many reasons why many businesses still opt for on-premises servers.
The cloud can still fail
No matter how robust or secure a cloud service may be, outages and disruptions can still occur. This can lead to significant business disruptions, especially if your company relies solely on cloud services.
Cloud environments are also not invulnerable to security breaches. In 2022, 39% of businesses experienced a data breach that involved their cloud environment. Since the service provider owns, manages, and monitors the cloud infrastructure, you — as the cloud customer — have limited control over it. This can make it especially challenging to address issues or vulnerabilities directly.
Additionally, not all companies can make use of cloud services. Sixty-nine percent of organizations in rural areas report poor internet connectivity as an ongoing issue, limiting the potential for remote work and thus, the use of cloud-based platforms in these areas.
Increasing popularity of Infrastructure-as-a-Service (IaaS)
IaaS provides scalable computing, storage, and network resources over the internet through a scalable subscription service. It offers businesses access to both the physical and virtual infrastructure needed to run and manage workloads on the cloud.
Traditionally, IaaS solutions were offered remotely by cloud providers. However, in recent years, there has been a growing trend of on-premises IaaS solutions, where hardware vendors offer IaaS services that are hosted on site.
Twenty-five percent of organizations have already adopted on-premises IaaS services, with an additional 12% planning to do so in the next two years. This approach allows businesses to leverage the benefits of cloud infrastructure while maintaining greater control and assurance of uptime through on-site hardware.
Organizations prefer a hybrid future
Despite the prevailing use of on-premises servers, most workplaces haven’t written off the cloud altogether.
According to Flexera’s 2023 State of the Cloud Report, a hybrid, multi-cloud approach has become the norm, with 87% of organizations adopting a multi-cloud strategy. Hybrid clouds provide better security and resource control by allowing sensitive data to reside within on-premises servers while relegating your key applications and services to the public cloud. It offers the best of both worlds — increased agility, automation, and optimized performance alongside the option of on-site data management.
Greater server affordability and diversity
Twenty-four percent of companies already use flash storage, and an additional 20% are planning to adopt it within the next two years. And with flash storage solutions becoming more affordable, more and more companies are expected to adopt this high-speed data storage technology. The cost of flash-native storage is expected to outstrip traditional hard disk drives by 2027, making it an attractive choice for businesses.
Furthermore, businesses are open to investing in new servers powered by non-Intel processors. Currently, 30% of companies use AMD server processors, and another 14% plan to do so in the next two years. ARM server processors are also gaining traction, and in two years’ time, 22% of businesses are expected to use these processors, up from today’s 11%. This diversification in server options can ensure organizations find the best-fit solutions to meet their specific needs and budgets.
If you’re seeking out local server solutions, turn to Kortek Solutions. Our team can help you find the perfect fit for your data storage requirements and workplace needs. Book a FREE consultation with us today.