Physical or Cloud- Which ‘Serves’ you Better?
Virtual, Cloud-Based Servers Vs. Physical, On-Premise Servers
When it comes to your organization, the answer may be more complex than you thought.
The age-old question, physical server or cloud? It’s not really an age-old question unless you were born in the last decade, but it seems like many business owners & IT staff are losing years of their lives making this tough call.
- “Cloud is cheaper”
- “Yeah, but it will get more expensive as we grow”
- “Yeah, but it’s much easier to recover our data in the event of a security breach”
- “Yeah, but if the internet is down we won’t be able to access any of our data”
“Yeah, but…”
And the conversation can go in circles until everybody is tired and no decision has been reached.
So you know your current server situation isn’t working
But where do you start your research?
Look internally at your organization’s needs and values. You may also want to look at compliance needs. For example, if you are required to adhere to HIPAA, PCI, Sarbanes-Oxley, or other regulatory requirements. Both physical servers and virtualized servers must meet all standards set forth by law. If you are considering virtualization, ask for a copy of a potential vendor’s most recent report on compliance from an audit.
Factors to consider before making your final decision
Budget
A primary factor for many organizations when considering the switch to cloud servers is cost savings. According to Sherweb.com, on average, the total monthly cost of cloud server ownership is 79% cheaper than owning physical, onsite, servers.
Average Monthly Cost (this estimate took into account technology refresh rate, scaling needs, and the indirect cost of system administration staffing)
Cloud - $313.90/ Month
Physical - $1,476.31/ Month
Cloud solutions are generally friendlier on budgets, but that alone does not automatically mean that a virtual solution is right for you.
Virtualization of your servers also allows for more scalability in small or large increments. With cloud servers, you are released from the cost of needing to commission or decommission servers.
Performance
Regardless of other factors, it is always a good idea to fully understand your organization’s software, hardware, and requirements. A good cloud vendor or managed service provider can help walk you through the process of understanding which data, applications, and processes are most critical to your company’s operations and health.
Some applications may require more dedicated server resources because if performance on that application diminishes, performance across the organization will diminish. In the case of other, more rarely used applications, management may be more willing to sacrifice speed and performance for cost savings.
Regardless of which path you take, physical or virtual, understanding your performance needs is a critical step towards having the best experience with dedicated equipment or a virtual vendor.
Business Continuity
As mentioned in the section above, with a virtual server, an internet connection is necessary. If you are in a location that frequently suffers from internet outages, cloud solutions might not be reliable enough for you.
However, since virtualization servers are located offsite, you have an immediate advantage in terms of disaster recovery.
If a fire or other natural disaster were to hit your physical server, there is a good chance it may be gone forever.
Consider your organization’s tolerance to asset loss vs. periods of data unavailability when making a decision.
Risk Mitigation
Risk can be effectively mitigated on either solution, it just ultimately depends on how you configure your setup. If your entire company’s workload is balanced on a single piece of equipment located in-house or in a vendor’s virtual environment, failure can be devastating.
Any reputable cloud service vendor will offer appropriate safeguards against hardware failure and backups both on and offsite. Make sure to ask about their protection systems when choosing a cloud vendor.
Information Security
This could fall under risk mitigation, but we think it is important enough to have its own section!
However, similar to risk mitigation, information security is largely up to configuration, staff knowledge/skill, and environmental factors. These vary significantly depending on an organization’s requirements and resources.
If you are facing a tight budget, minimal hardware, and untrained staff, switching to virtualization could offer significant gains in security protection over an on-premises server.
Space & Environmental Control
If things are going well, and if you are looking for a server upgrade we are going to assume your organization is doing well, you most likely are collecting tons of data! Many organizations’ data assets are increasing rapidly, which can present space-related challenges for IT teams. We mean space both hard drive space and physical space inside your server closet!
If you are running out of room to appropriately store and maintain ideal temperature control your servers, it might be time to consider virtualization. As your number of devices and hard drives increase, it becomes harder to maintain ideal temperatures in your server room
Fun Fact: The ideal temperature for your server closet is 68°- 71°, but anywhere from 50°- 82° is deemed acceptable by most standards.
Staff Knowledge
Does your staff have the skills and knowledge required to handle server acquisition, configuration, maintenance, and security?
Are they knowledgeable in server best practices for increasing efficiency and realizing cost savings?
Going virtual with your server may free up your IT staff from dealing with data storage and server management, and allow them to focus on other responsibilities and opportunities for cost saving
Projected Growth
Taking your servers to the cloud offers many advantages, one of them being the ease of scaling your servers up or down. When you are virtual, adding more storage or processing power can be as simple as a phone call to your vendor.
If your business’s data assets or application needs are growing rapidly, you could significantly save time and resources by switching to virtualization because you are not responsible for physical server acquisition, setup, configuration, and testing.
Migration Plans
If you are currently on a physical server, the migration to cloud servers can be daunting. To offset this, organizations do not usually migrate all at once. Many organizations choose to slowly migrate their workloads to virtualization over time.
If this is your plan, communicate with your vendor about their migration tools, and have a conversation about application compatibility.
Don’t let fear of a complex, time-consuming, migration stand in the way of your decision to go primarily virtual. Most businesses find that migration to virtualization, even when performed slowly over time, is much easier than they think.
Data Types
Certain data sets are not critical and you may not need to deploy them virtually. You also may have certain data assets that do not contain information subject to regulatory requirements. In these cases, using a basic physical server that you already own may be the right choice.
Accessability
With the shift in work-from-home and bring your own device policies, some employees may need virtual access to your server. It is important to consider every team member’s work situation and make sure that a decision does not affect their ability to work.
If your team is spread out, a virtual cloud-based server may be the better option to enable them to perform at the top of their game.
Pros & Cons of Cloud-Based Servers
So now you know the ins and outs of your organization from every angle, but you still don’t know which option is better for you.
It’s time to compare the Pros and the Cons of each option.
So now you know the ins and outs of your organization from every angle, but you still don’t know which option is better for you. It’s time to compare pros and cons of each option.
Pros of Cloud-Based Servers
All of your servers are consolidated- While physical servers take up space, consolidation by virtualization cleans your server room up quickly. On top of that, shared resources help you maximize your infrastructure investment.
Upgrades are quick and easy- As your business grows, your server needs to grow as well. In a virtualized environment, infrastructure upgrades can be handled quickly with minimal to no downtime.
Next-generation backup solutions and data security- Your business is only as safe as your last backup. Snapshots of your virtual servers can be created as often as needed, offering backup solutions that you could never match with your physical server. Additionally, you can ensure your data is protected through cybersecurity services.
Cons of Cloud-Based Servers
Recurring costs- While the upfront costs are higher for physical servers, recurring costs can be greater in a virtual environment. Specifically, in a cloud environment, resources are billed by use, as opposed to paying a set price in the beginning. The overall costs for virtualization are generally lower, but some businesses dislike the headache of monthly billing.
Dependent on a working internet connection- With cloud-based virtualization, your access to your data is tied to your internet connection. If your internet goes down, you’re out of luck and out of control.
Pros & Cons of Physical Servers
Pros of Physical Servers
IT staff has 24/7/265 direct access to physical resources- When server issues arise, it’s useful for your IT staff to have direct physical access to your server. Your IT staff can respond quickly to issues and be able to troubleshoot to resolve problems as soon as possible.
Reduced bottlenecks and other variables- When your physical server is onsite, your IT staff is in direct control of user access. When connection issues occur, troubleshooting network issues is streamlined, with every step of your connection in your control.
Cons of Physical Servers
High costs. Physical servers can be expensive. These costs aren’t just incurred at the initial purchase, either. Physical servers need to be maintained and upgraded over time, meaning these costs can come up over and over again. You need to be prepared to pay for your organization’s needs upfront when hosting physical servers on-site.
Larger servers take up space- Physical space comes at a premium in today’s office environments. Physical servers take up space and require a larger server room for implementation. Depending on the size of your location, this may be space that you are unable to afford.
Hardware failures take a while to respond to- While one of the benefits of physical servers is easy access to troubleshoot issues, when hardware fails, it’s a different story entirely. Often, replacement parts are not on-site and have to be special ordered, which can lead to downtime.
Energy costs- It should be no surprise that large servers use quite a bit of power. Having your physical servers on-site will increase your energy costs. Additionally, it makes your footprint on the environment that much larger.
Conclusion
In the end, every organization is different. Needs, wants, and requirements are different and there is no clear cookie-cutter mold. Many organizations opt for a hybrid model, mixing and matching what data they need onsite and what data can be kept in the cloud.
Whatever your decision is, the team of professionals at Current Technologies is here to help. Our technicians have set up countless organizations with physical, hybrid, and virtual solutions that fit into their technology environment.
If you are wondering which solution is right for you, reach out to us today and we will help you implement and support the right technology solution.
