Where your data is located affects your network and ongoing costs.

In today’s digital landscape, choosing the right location for your organisations data is critical. Choose to host your data “on premise” and you’ll probably save money in the longer term, whereas putting your data in “the cloud” improves scalability but can often be more expensive. It’s not just about money though – there are plenty of other considerations.

Whatever your approach, its essential to get this right and communicate these to your IT provider. The IT provider should educate you about your options and make them work for you, rather than railroad you into a specific platform.

This article explores the different types of networks most commonly found in organisations we support, it should help you to understand which is best for you and what the profile of ongoing costs may be.

Here are some important concepts about where your data is stored to grasp first:

• On-Premise refers to the fact that the systems upon which your data is located are physically within your premises. This is the most mature and well established approach, giving organisations direct control over their hardware and data. Such systems might require more upfront investment but can attract significantly lower ongoing costs overall.
• Public Cloud services, like Microsoft 365 or Google Workspace, are provided over the internet by third-party companies to host your data. Such services are shared among multiple “tenants” on the same servers. Public cloud systems are typically provisioned and charged for on a per user basis, giving great scalability. Putting your data in such locations can raise concerns about data security and limit oversight and control.
• Private Cloud services refer to internet-hosted IT infrastructure dedicated to a single organisation, for example renting a virtual computer running Windows Server or Linux and NextCloud. This approach combines some benefits of cloud computing, such as flexibility and scalability, with the security and control of dedicated resources. It’s often chosen by organisations with specific compliance requirements or those handling sensitive data.
• Hybrid Solutions combine on-premise and public or private cloud solutions. This allows organisations to keep critical or sensitive operations on their own hardware while leveraging the benefits of cloud services for other aspects of their IT needs. Hybrid solutions offer flexibility but require careful management to ensure smooth integration between different environments.

When comparing these options as to where to store your data, consider the following factors:

• Speed and Performance – On-premise solutions will always be able to provide faster local access to data and documents whereas cloud solutions may be affected by internet connection quality and reliability.
• Remote Working Capabilities – Cloud solutions are often designed with remote work in mind, making it easier to implement out of the box. Increased internet connections speeds mean this is less of an issue , cloud hosted data is increasingly being repatriated back to on premise where possible.
• Data Sovereignty and Security – On-premise solutions offer greater control over data location and access and it’s generally easier to implement stronger security measures with on-premise infrastructure.
• Cost Structure – On-premise solutions usually have higher upfront costs but lower ongoing expenses.
  Cloud solutions typically have lower initial costs but may have higher recurring fees.

Network Types

Now we’ve covered the different ways of hosting your data, lets explore how they may be deployed in the real world.

Peer-to-Peer Networks with On-Premise Data

This network type is the cheapest to run for smaller organisations with basic needs and a handful of users.

In this setup, you’ll have a collection of desktops and laptops, along with a central location to store data. This central storage can be either a computer designated as a PC Based Server or a Network Attached Storage (NAS) device.

Whilst traditionally these networks were best suited for scenarios where data was primarily accessed within the office, it’s important to note that with faster internet connections, remote access to on premise data is much less of a problem. A suitable router with a Virtual Private Network (VPN) means that employees can easily and securely access data from outside the office, or remotely access their computers if their connections at home are poor.

This type of network can be a good starting point for small businesses, offering a balance of simplicity and functionality. However, it’s important to consider its limitations in terms of scalability and control, especially if your business grows.

Client/Server Networks with On-Premise Data

As businesses grow beyond more than a handful of users, it often becomes necessary to transition from a peer-to-peer network to a client/server network. This involves upgrading from a PC Based Server or NAS to a dedicated Active Directory Server or similar.

Such servers are specialised computers with more robust hardware and an operating system designed for server tasks. It allows for more granular control over user access and data security, which becomes increasingly important as your organisation expands.

The shift to client-server network offers key advantages:

• Servers are highly scalable, so that users can easily be added into the existing system.
• Servers are highly reliable, with same or next day on-site support available from the manufacturer.
• Servers provide a single point of administration for users, computers, and resources, simplifying network management as the organisation grows.
• Servers allows us to automatically configure systems with policies that ensure consistent security across all desktops and laptops, crucial for handling sensitive data.
• Servers will store each users data and settings, allowing users to access their data from any device, enhancing business continuity and facilitating easier system maintenance.

Regardless of these benefits, running servers “on prem” is often essential for organisations running industry-specific software or when running demanding design applications.

If your organisation deals with highly sensitive data, an on-premise server affords much more direct control over your data’s physical location and security. This can be crucial for businesses with strict data protection requirements.

Peer-to-Peer Networks with Cloud Data

In recent years, many businesses have moved their data into the cloud. Whilst this shift isn’t always made for the right reasons, it can offer significant benefits in certain scenarios.

Using cloud services like SharePoint, Google Drive, or open-source alternatives such as Nextcloud can greatly simplify data access and collaboration for geographically distributed teams. Whether employees are in the office, working from home, or travelling, they can easily access and work on shared files.

This approach shifts the burden of server maintenance from on-site hardware to remote services. However, it’s important to note that cloud services still require management and maintenance, albeit in a different way.

Cloud-based solutions can be particularly advantageous for organisations with a mobile workforce. However, it’s crucial to carefully consider factors such as data security, sovereignty, and long-term costs when evaluating this option.

Client/Server Networks with Cloud Data

This is your typical hybrid environment – an on premise server and a cloud hosted server or services are configured to work together.

Such an approach allows organisations to store sensitive data locally while leveraging cloud resources for scalability and flexibility. This approach enables businesses to optimize performance, security, and cost-efficiency by selecting the most appropriate environment for each workload or application.

Cost Considerations: On-Premises vs Cloud Solutions

You can see that on-prem solutions typically involve higher upfront costs but lower ongoing expenses. This initial investment includes purchasing hardware (servers, storage devices, networking equipment) and software licences. While these costs can be substantial, they are often one-time expenses with predictable maintenance and upgrade costs over time.

On the other hand, cloud solutions generally have lower upfront costs, as there’s no need to purchase and maintain physical hardware. However, they come with higher ongoing expenses in the form of subscription fees, which are usually charged on a per-user or per-resource basis. These recurring costs can accumulate over time and may exceed the long-term costs of an on-premises solution, especially for larger organisations or those with stable, predictable usage patterns.

Regardless of where your data is or how it is accessed, it’s important to recognise that certain management tasks are crucial regardless of your chosen setup. These tasks include regular system updates, data backup, network maintenance, and user account management.

Compliance with data protection regulations and proper access rights management are non-negotiable in today’s business environment. Security measures, including antivirus software and firewalls, along with secure remote access solutions, are essential for protecting your systems. Implementing the UK government’s Cyber Essentials recommendations further strengthens your cybersecurity posture.

These ongoing IT management tasks all contribute to the total cost of ownership. When making decisions about your IT infrastructure, it’s crucial to consider these factors alongside your organisation’s specific needs, growth projections, and budget constraints. This comprehensive approach will help you determine the most cost-effective and manageable long-term solution for your business.

Ready to explore the best option for your organisation? Get a personalised quote for your system today and make an informed decision for your IT infrastructure