Choosing Between Cloud Storage and Data Centers for Your Business - Direc Business Technologies, Philippines

Choosing Between Cloud Storage and Data Centers for Your Business

What should you consider in choosing cloud storage or data centers?

  1. Location
  2. Administration
  3. Scalability
  4. Cost-effectiveness
  5. Security

In the debate between cloud storage vs. data centers, businesses are likely thinking about what kind of data storage system meets their needs. They have to consider a range of factors such as affordability, storage capacity, level of maintenance, and the like. The cloud and the data center are currently two of the most popular systems for storing, managing, organizing, and securing an organization’s data.

Essentially, data is stored over the internet when thinking about the cloud. Meanwhile, data centers make use of a combination of server hardware and software for data organization. If your business is on the fence about storing data over the cloud or in in-house data centers, it’s important that you consider the differences between the two. Continue reading to learn more.


Super Computer Server Racks In Datacenter. 3d Illustration

As mentioned before, data centers are located on your organization’s premises. This is where the organization itself manages all of your organization’s IT-related and network processes.

Data centers are usually located in a dedicated building floor that’s built for no other function than to store the bulk of hardware involved in this storage scheme. With this in mind, this part of a building must be accessible by only qualified individuals with the right credentials. Implementations like controlled security doors or keycard access are also taken into consideration.

On the other hand, cloud storage is located on the internet. An organization’s data can be conveniently accessed through mobile devices or laptops, as long as they’re connected to a network. With the location alone, you could already identify which type of storage system is more flexible and accessible.


An on-site data center is managed by your own company’s IT personnel. This means they hold the responsibility of ensuring that all systems and hardware are in working order. Since the IT equipment is located inside a controlled facility, they also need to ensure that all physical aspects such as flooring, cooling systems, and the like, are functioning optimally.

Unlike data centers, third-party cloud storage is managed by the providers themselves. The organization takes place off-site, at the provider’s own set of data centers. With this option, your business no longer has to concern itself with regularly updating and upgrading the hardware so that all IT processes remain efficient. Instead, you’ll need only to develop a storage or cloud computing plan that will work for your business.


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Cloud storage has a considerably higher level of scalability compared to data centers. This is because the storage capacity for the cloud is limitless. Once again, your organization needs only to request a capacity increase periodically that your business can work with.

Data centers are also scalable, but this involves rigorous planning that may cause delays in the upgrade process. For example, constantly adding new hardware in a data center may not necessarily be feasible, given the limited room storage capacity. As such, not only will the quantity of hardware have to increase, but also the size of the physical location. An organization has to be able to maximize the limited space they’re provided with — or undergo renovations to ensure that all the systems can fit.


In line with scalability, you could already have an idea of which storage system is more cost-effective. With cloud storage, you already have a set of pre-determined pricing plans that will be offered to you by the provider. You can choose from a range of cloud servers that differ in storage, uptime, and technical support level.

This doesn’t mean to say that having an in-house data center isn’t cost-effective. In fact, there are many ways for you to build a modern yet low-cost data center. Your organization doesn’t have to start with nothing, because you could already take advantage of your company’s IT and physical resources to accommodate a data center. For example, you can already determine a stable and sturdy building location where you can get a constant power supply.

With the right planning, your business can find that either of the options can be cost-effective. Since on-premise data centers require comprehensive planning, you need to make sure that you’re buying only the right type of hardware. For cloud storage, you just need to make sure that you’re getting the best type of service for the price that’s set by a reliable provider.


Security is arguably one of the most important considerations. Network attacks are ever-present, and without the right storage system, your entire organization can be compromised. Fortunately for you, both data center and cloud storage can provide good security for your business.

Finding the right cloud storage provider, for example, isn’t difficult because you can conduct your own research. You can trust that a provider has only your organization’s best interests at heart. They’re usually managed by a team of experts that are knowledgeable in their field. More than that, they’ll be open to accommodating any inquiries you may have about the security of their storage system.

While data centers may take some work, security is guaranteed because your IT personnel are familiar with all the organization’s applications and programs. Having in-house data servers also makes it easier for them to scan the system for vulnerabilities and identify which upgrades are needed by the company.

Key Takeaway

If you find your organization choosing between cloud storage vs. data centers, there should be an understanding of the business’s better option. They need to see if the IT equipment they already have in place can accommodate an in-house data center. In the absence of that, they need to consider the other option, outsourcing their storage capabilities.

Data centers and cloud storage systems differ in location, administration, affordability, and scalability — one may be more advantageous over the other, so a company needs to have these factors in mind to have a reliable data storage scheme.