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The Pros & Cons Of An On-Premises Server For Your Business

As you’re setting up a business, you see various options when it comes to web servers and hosting. A server is essential for all kinds of companies to help store key files and manage data – it’s also responsible for keeping your website online and broadcasting it to the world. In other words, servers are one of those hidden things you don’t think about that actually have a key impact on how your business functions. 

Some common server options include cloud-based servers, virtual private servers and shared servers. However, many businesses operate with an on-premises server, which basically means you have a physical server somewhere in your workplace. It’s an option that presents some unique benefits – though you should explore the pros and cons before taking the plunge. 

On-Premises Server Pros

If you want to store and maintain a server in your office space, then this will undoubtedly bring a lot of advantages to the table, particularly when matched against other server solutions.

  • You have complete control over everything: All of the hardware is on your premises, which means you control everything related to the server. You get to set the various security protocols based on what you deem the most important. You also get more control over the total storage space on the server and have complete ownership of all the data on it. 
  • Much faster & handles higher workloads: If you’re using a cloud-based server of VPS, then you’re effectively sharing servers with other companies around the world. Not only that, but you’re pinging the server from your location whenever you’re doing work. There’s an element of latency there that’s completely eradicated when you have an on-premises server. Everything runs a lot faster, and the server itself can handle higher workloads without collapsing. 
  • Full customisation: What happens if your business grows and you need a bigger server to handle more data? With an on-premises server, you can customise things to suit your needs. It lets you design the ideal server that grows with your business. 
  • Cheaper in the long run: After dealing with the upfront costs of building and installing your server, you don’t pay for much else. There are the general maintenance costs, but other than that you don’t have anything else eating away at your budget. You don’t pay monthly server hosting fees, like you do with almost any other server option. 

On-Premises Server Cons

Let’s be perfectly clear: if on-premises servers were 100% amazing, every business would opt for them. There has to be a reason why some companies prefer the alternatives – and it’s likely down to these disadvantages: 

  • Bigger security concerns: An on-premises server presents larger security concerns because there’s a physical object that can be put at risk. For example, if the server equipment is ill-maintained, it can cause the whole server to break and create downtime.

    You need to place more attention on server security, which starts with the right IT enclosure for optimal protection. Then, it’s a case of weighing up NEMA vs IP ratings to figure out what safety protocols to follow to keep your IT enclosure safe, allowing it to protect your server. After that, you worry about general workplace security with access control systems and CCTV to restrict access to your server enclosure. We’ve barely even encroached upon this topic, yet there are many other security concerns to ponder!

  • Much more expensive initially: The initial costs of setting up an on-premises server are way more than all the other server options. You need to purchase and build your server, then buy an IT enclosure, then pay for everything to be wired up, etc. It’s a lot of effort, and the upfront costs are what turn many businesses away.

  • Too powerful for lots of businesses: Unless your business has lots of employees and handles loads of data every day, then an on-premises server is likely too powerful. What this means is you’re not benefitting from its enhanced capabilities; you can easily manage work on a VPS or shared server without seeing performance issues. There’s no need to invest because it’ll be a waste of money. 

Conclusion: Should You Opt For An On-Premises Server?

Looking at the pros and cons, it’s clear that on-premises servers don’t suit all businesses. If you operate a small business, then it’s likely not a solution for you. Instead, it suits companies in highly regulated industries that need to have tighter control over data security. It’s also ideal if you require a completely custom server infrastructure because other options can’t handle your workload.