Cloud or Local Server? A Realistic Calculation Instead of Belief
How to compare costs, risks, and operational aspects — not just equipment prices.
For many companies, the 'cloud vs on-prem' question is more ideological than technical. The truth lies somewhere in between — the answer depends on size, data type, regulation, and how many people you have for maintenance.
What to compare in your calculation
- Hardware (purchase vs. rental)
- Licenses (Windows Server, databases, M365, Azure)
- Electricity and cooling
- Internet with sufficient upload speed (for cloud)
- Backup for both cases
- Team management time
- Downtime risk and recovery time
Typical scenarios
When on-prem makes sense
- Many files, few users outside the office
- Lower electricity costs and existing space
- Regulations requiring local storage
- Applications with high latency in the cloud
When cloud makes sense
- Multiple locations and mobile users
- Unstable growth forecast (scaling)
- No space or team for a server room
- M365 already deeply integrated into daily operations
What often proves best
A hybrid environment. Email, collaboration, and some files in M365, a local server for industry-specific applications and large files, and cloud backup. Less romance, more daily functionality.
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