10 Reasons to Choose On-Premises Infrastructure for Enterprise Content

Imagine this: a minor policy change by your cloud vendor results in an unexpected service disruption that puts your business-critical processes on hold for hours or, worse, exposes sensitive data. For many organizations, the cost of these disruptions—financial, reputational, and operational—far outweighs the perceived benefits of convenience. 

As per Gartner, the risk of cloud concentration is increasingly recognized as a critical concern, with many enterprises facing severe disruptions if a single provider fails. 

Businesses today face complex challenges around regulatory compliance, data sovereignty, and IT control. In an era of rapid digital transformation, depending solely on third-party clouds for enterprise content can become a business liability. 

But here's the good news—there is a solution that gives you the control, security, and performance you need: on-premises infrastructure. Here are the 10 reasons to use on-premises infrastructure to host enterprise content.

1. Data Security and Privacy Concerns

The cloud often promises robust security, but the reality isn't always as straightforward. High-profile data breaches and privacy violations continue to haunt large-scale cloud providers. In June 2023, for example, Toyota revealed that approximately 260,000 customers’ data was exposed online due to a misconfigured cloud environment. External cloud platforms share risks due to their multi-tenant nature, creating potential vulnerabilities that your business cannot afford. 

The High Costs of a Breach

When third-party providers experience breaches, the repercussions extend far beyond downtime. There’s the cost of lost revenue, eroded trust, potential legal battles, and regulatory penalties. Your organization’s proprietary information or customer data is too valuable to be left to chance. 

Regain Control with On-premises

An on-premises infrastructure allows you to define your own security protocols. Your data remains within your physical walls, under your watchful eye, and shielded by your own policies. This translates to significantly lower risks and potentially reduced insurance premiums due to enhanced risk management. 

2. Compliance Nightmares

The landscape of regulatory requirements continues to evolve. Regulations like GDPR, HIPAA, and CCPA have stringent requirements, and penalties for non-compliance can be astronomical. For example, GDPR violation fines can go up to 20 million euros or, in the case of an undertaking, up to 4% of an organization's total global turnover of the preceding fiscal year, whichever is higher. Compliance teams often feel that they’re playing a dangerous game of catch-up. 

A Never-ending Battle

Relying on a third-party provider puts your compliance largely at the mercy of their policies and implementations. This lack of transparency and control over data handling and access can become a nightmare for teams responsible for audits and regulatory checks. 

Simplify Compliance with On-premises Infrastructure

Hosting enterprise content on-premises gives compliance teams direct access to logs, processes, and configurations. You set the rules and can quickly adapt to regulatory changes. More control means less room for error and a much simpler process when auditors come knocking. 

3. Latency and Performance Bottlenecks

High data access latency from cloud-based solutions can severely hinder business-critical applications. This is particularly relevant for large enterprises dealing with big data analytics, real-time decision-making, and content distribution at scale. And as a result, many originations are considering exit from cloud storage.  

The Frustration of Sluggish Performance

When your business relies on the speed of data retrieval for its decision-making or customer service, every millisecond matters. Latency issues can directly impact revenue and customer experience, especially if you’re running data-intensive operations. 

Localized Speed with On-premises Infrastructure

With an on-premises setup, your data remains closer to your primary operations, minimizing latency and boosting performance. It’s the difference between waiting on external servers and having the resources at your fingertips—whenever you need them. 

4. Unpredictable Costs

Many organizations have found themselves shocked by unexpected spikes in cloud costs. Data transfer fees, unplanned scaling, and underutilized resources can lead to invoices that are far from the predicted cost models. 

The Cloud’s Cost Trap

The elasticity of the cloud can be a double-edged sword—useful during peak periods, but difficult to control financially. Without careful monitoring and an optimized workload strategy, your organization may find that cloud costs spiral out of control. 

Cost Predictability with On-premises

When your infrastructure is in-house, costs become significantly more predictable. You aren’t at the mercy of fluctuating fees for data storage, ingress, or egress. You set up what you need and know exactly what it will cost, allowing for more accurate budget planning. 

5. Dependence on Third-Party SLAs

Third-party Service Level Agreements (SLAs) can only provide so much protection. When a cloud service goes down, you’re at their mercy until their teams restore access. That’s not much consolation when business processes are halted and customers are left in the dark. 

Business at the Mercy of a Vendor’s Downtime

Imagine having a critical service that’s inaccessible due to factors beyond your control. And even if you’re eligible for compensation, can a small credit really make up for the lost business? 

Guaranteed Uptime and Control with On-premises

When you manage your own infrastructure, you’re not reliant on third-party service providers. You define your own SLAs and maintain direct accountability for uptime and system reliability. 

6. Data Sovereignty Challenges

If your organization handles data subject to local laws or regulations, the cloud’s global reach can become a legal minefield. Different jurisdictions have varying rules on data storage, sharing, and protection. 

The Legal Risks of Cross-Border Data Transfers

Failure to comply with local data sovereignty laws can result in fines, lawsuits, and reputational damage. Navigating these regulations can be confusing and leaves organizations feeling exposed. 

Stay Local, Stay Compliant

On-premises solutions ensure your data stays within your chosen geographic location. This simplifies compliance with local regulations and provides peace of mind for your legal teams. 

7. Limited Customization and Flexibility

Cloud platforms often restrict your ability to modify or customize infrastructure to fit your specific needs. For enterprise-level applications, one-size-fits-all doesn’t cut it. 

Being Boxed-In by Cloud Limitations 

When you’re relying on rigid external systems, it limits innovation. Your organization must adapt to the cloud’s capabilities, which often means costly workarounds or compromising on certain requirements.

Tailored Infrastructure for Unique Needs

On-premises infrastructure gives you complete control to configure, customize, and scale your systems as needed. You’re the architect of your own infrastructure, rather than a tenant subject to the limitations of someone else’s design. 

8. Data Ownership Concerns

Third-party cloud providers often include clauses in their contracts that address ownership and access to data. However, the legal language can sometimes leave ambiguity around what happens if you end your relationship with that provider.

The Fine Print of Data Ownership

In some scenarios, there have been disputes over data ownership rights and the length of time it takes to retrieve content after service termination. For highly sensitive data, any ambiguity in ownership rights poses a major risk. 

Absolute Data Ownership with On-premises

With an on-premises setup, there are no gray areas—your data remains yours and fully under your control. You dictate who has access, when, and how long it’s retained. No more fine print headaches or risks of vendor lock-in. 

9. Reliability of External Vendors

Third-party cloud vendors must constantly update their security, backup protocols, and service offerings to maintain competitiveness. However, this constant evolution can sometimes lead to lapses in service or reduced reliability. 

Uncertainty and Inconsistency

When third-party vendors undergo structural changes, product updates, or reorganizations, these changes can affect their services. As an enterprise, relying on an unpredictable external factor is not an option for long-term stability. 

Steadfast Reliability with On-premises Infrastructure

With your own on-premises infrastructure, you control system updates, configurations, and reliability measures. This approach minimizes external risks and helps you maintain a stable, consistent environment. 

10. Long-Term Scalability Concerns

Cloud providers often tout their ability to scale, but when your business reaches enterprise-level growth, this can come with limitations and increased costs. Organizations often encounter performance issues or restricted access when dealing with large-scale workloads. 

The True Cost of Scaling on the Cloud 

Enterprise growth often leads to diminishing returns with cloud providers. The cost of scaling can exceed initial forecasts, and many businesses find that the cloud’s scaling promises do not align with their real-world needs. 

Scale at Your Own Pace with On-premises Infrastructure

On-premises solutions provide the flexibility to scale horizontally and vertically as needed without the constraints of a vendor’s pricing model. You decide when to upgrade and invest in additional capacity, enabling proactive scalability planning. 

Why On-Premises Infrastructure is the Smart Choice

Investing in on-premises infrastructure may seem like a large upfront commitment, but the long-term benefits in terms of control, cost efficiency, security, and reliability make it a smart choice for enterprises with sensitive content. It’s not just about keeping your data secure—it’s about empowering your organization with autonomy and a competitive edge. 

With enterprise solutions that can host video on-premises, control over your content becomes just a fingertip away. Despite the advancements in modern cloud storage platforms, organizations still prefer on-premises solutions for critical functions where data ownership, reduced latency, and regulatory compliance are non-negotiable. The flexibility to tailor your infrastructure to meet your unique needs, maintain strict compliance, and eliminate third-party risks can be the difference between a reactive and a proactive business strategy. 

By opting for on-premises infrastructure, your organization isn’t just choosing where to store data; it’s making a strategic decision to embrace reliability, efficiency, and greater business resilience in an ever-changing digital landscape. 

People Also Ask

Is on-premises infrastructure more secure than the cloud?

On-premises solutions offer higher security control since they are not shared with external tenants, reducing exposure to potential vulnerabilities that affect multi-tenant cloud environments.

Does using on-premises infrastructure lead to increased costs?

While the initial costs of on-premises solutions can be higher, predictable expenses and reduced long-term fees for data transfers or scaling often make it more cost-effective over time.

Can on-premises infrastructure be scaled to accommodate growth?

Yes, with strategic planning, on-premises infrastructure allows for horizontal and vertical scaling based on your specific needs, without the limitations of a vendor’s pricing model.

Why should organizations worry about data sovereignty?

Many regions have stringent regulations governing where and how data can be stored. Failing to adhere to these can lead to severe legal repercussions, making on-premises solutions preferable for organizations handling sensitive data.

What does 'absolute data ownership' mean in on-premises solutions?

Absolute data ownership means maintaining full control over your data without dependencies on third-party vendors or ambiguities over data retention, access, or retrieval.

How do on-premises solutions improve cost predictability?

On-premises solutions eliminate variable costs related to data ingress, egress, or unexpected cloud scaling requirements, allowing for clearer financial planning.