Four Factors Favoring On-PremisesEven though the trend is strongly in the direction of cloud, are there situations where on-premises deployment is still justified? In a recent article, Joe McKendrick outlines four situations where staying on-premises may be preferable to cloud, at least for now. He writes:
To explore the issues of when staying on-premises versus cloud makes sense, I asked industry executives about any areas that were not suitable for cloud, and better left on-premises -- especially from the all-important data perspective. The security implications, as well as geographical presence requirements, are obvious. But there are also other facts that may make staying on-premises the most viable option.Joe goes on to outline four factors:
- Legacy entanglements: where the system is just one part of an integrated set of applications, especially where there are dependencies on certain database or platform versions. “Monolithic legacy applications” with custom system administration tools are another example.
- Cloud sticker shock: where data storage requirements are so great that cloud deployment is simply not economical.
- Security: where “some data cannot risk even a hint of exposure.”
- Need for speed: where large data sets are maintained for “real-time user data interaction, high-speed analytics, personalization, or recommendation.” Some IoT applications may fall in this category.
The Four Factors Not as Great as They Once WereWhile these four factors are worth considering in a cloud vs. on-premises decision, I find them to be less of a factor than they were even a few years ago.
- The legacy system factor is certainly reasonable in some situations. To this I would add, staying on-premises may be justified when requirements for a new system can more easily be accommodated with an add-on to the legacy system. Be careful with this, however, as this can be a prescription for further entrenchment of the legacy system.
- In my view, cloud sticker shock is only a factor for a small percentage of cases, perhaps for very large data sets. Declining costs of cloud storage should lead to fewer instances where this is a legitimate objection. Often, IT leaders making a case for on-premises systems based on cost are not factoring in all costs, such as the cost of personnel to maintain and back up that on-premises storage.
- The security factor I find to be largely an excuse. Although business leaders often underestimate the impact of a potential security breach, they also tend to overestimate the capabilities of their own security staff members, processes, and technology. The level of security maintained by internal IT organizations is usually far less than what is achieved by cloud services providers. If one of the big three credit data providers (Experian) could not protect consumer data maintained on-premises, what makes you think that your security capabilities are greater?
- The need for speed, in some cases, may be a legitimate reason for keeping some systems on-premises. However, most enterprise applications do not have this requirement. Even manufacturing execution systems—systems with low latency requirements—have been successfully deployed by cloud applications providers, such as Plex. In other cases, local buffering of data may be possible to accommodate any latency between the local system and the cloud provider. In such cases, it may be better to make investments in high-speed data communications, with redundancy, rather than continue to maintain such systems in local data centers.