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Pros & Cons of Storing Data In-House vs. In the Cloud

Pros & Cons of Storing Data In-House vs. In the Cloud

As more and more businesses become computerized, they are quickly finding problems with storage for all of that data. After a certain point, it becomes very cumbersome, and new solutions are required. The cloud is one of the best new solutions to this problem, but it is not without a few concerns and issues. When you are trying to decide whether to store your data in-house or in the cloud, good arguments could be made either way. Let’s examine a few of those arguments, and consider the pros and cons of storing data in-house, as opposed to the cloud.

The Pros Of Storing Data In-House:

There are a number of reasons for which a company might choose to keep all of its data in-house. Let’s examine the most important reasons, one by one:

More Control Over Your Data

This is definitely the most significant benefit and is often cited as such. In fact, many of the “pros” listed by other websites will come down to this one point. When you really need to be sure about where your data is going and how it’s being used, an in-house server will be the best option. For companies that require extreme security, nothing else will be adequate.

As you probably know, all internet access goes through a server. Consequently, the one who controls the server can control the data. Obviously, cloud providers are not supposed to spy on people, and it is illegal to do so. Still, things can sometimes be leaked, hacked, or seen by accident. By maintaining physical control of the server, you remove the third party from the equation.

Less Chance Of Compliance Issues

The cloud is a fairly new type of technology, and that can cause certain legal problems. The law hasn’t really started regulating this type of business very heavily, so there are a lot of grey areas. However, they have passed laws and regulations that prohibit the sharing of certain data to the cloud. This will usually include personal information like full names, addresses, SSNs, and other things like that. By opting for an in-house server, you can make sure that these new regulations will not affect your business.

Better For Small Companies

For a long time, it has been normal for small companies to use in-house servers instead of using a managed service provider (like the cloud). Depending on the nature and size of your business, this may be the best option for you. If you can get away with using one server and 1-3 IT team members, you can probably avoid the use of the cloud. Of course, you will need to look at your expenditures and your internet usage to be sure.

More Control Over IT Costs

One of the biggest problems with cloud computing is the fact that you have to trust another group of people. For instance, when you make a deal for a certain price, you have to trust that they will stick to that price. Yes, a contract does create certain legal obligations, but there are many ways in which attorneys can circumvent these obligations. Even if you do come out on top, the cost of your attorneys might be more than the matter is worth.

When it comes down to it, there is always a chance that your cloud provider might try to raise your rates or change the terms of service. On the other hand, an in-house approach gives you more control over what you spend and don’t spend. You might not have the same level of resources from which to draw, but at least you know that you are only paying for what you use.

Works During An Outage

When you choose to keep your network in-house, you can get by without the internet if need be! When the internet service goes out, your IT team can set up a temporary intranet. All of the computers on the premises will be connected, even if they aren’t able to access the outside world. Thus, their business can continue.

The Cons Of Storing Data In-House:

There are a number of reasons for which a business might choose to outsource its data storage to a third-party company. Let’s examine the most important reasons, one by one:

Cost Of Equipment And Staff

If you aren’t using the cloud, you will have to provide a server. This will also include cables, routers, and anything else that is required to run the network. Although these are not frequent expenses, they can be quite large.

You will also have to hire more IT staff if you keep everything in-house. That means more payroll expenses, and it may not be cost-effective by the time everything is figured. Maintenance costs are also a part of this, as no network can run without the occasional repair or upgrade.

Might Be More Vulnerable To Data Loss

One of the best things you get from cloud computing is an automatic and robust backup system. In-house networks, on the other hand, have no built-in backup capability. That means you will need to purchase extra computers or hard drives on which to store your extra records. If you fail to do this, your system will be more vulnerable to data loss.

Can Lead To Scaling Problems

We have already mentioned that in-house IT setups are often better for small companies. The problem with that reasoning is the fact that you may not remain a small company forever. As you expand (and you probably want to do that), your needs will grow, and your IT setup will eventually become outdated and insufficient.


There is no one right answer for everyone. Some companies will benefit from keeping all their IT under one roof, while others choose to go external. No matter which way sounds better to you, we hope that this article has given you a better understanding of things. If so, you can reward our efforts by filling out the contact form.