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Choosing Between Cloud or Data Centers

2 Mins read

Data management is one of the main keys to business profitability and efficiency. For companies who are involved in large-scale data acquisition, the options available for storage are cloud and data centres. These two are sometimes interchangeably used by non-technical individuals, but they are fundamentally different methods.

The primary difference between the two methods lies in where the data is stored. Generally speaking, when a company opts for cloud storage, their data is stored online.

On the other hand, an organization utilizing data center solution stores its information in servers that are either within or outside the premises of the company. So, how does each option fair in the following considerations?


Data privacy and security are two of the essential aspects that can build or destroy a company’s reputation. No company would want to have information about its business out into the public for scrutiny; a leakage of clients’ data could throw a business into bankruptcy.

Despite the commendable efforts of many IT personnel to provide the most reliable security programs, a breach can still happen, especially when the data is just stored online. One of the catch when subscribing to a cloud vendor is that the company is still the one responsible for its protection.

Meanwhile, organizations that have a data facility are the only ones who have access to it. Limiting its accessibility creates another layer of protection to the company’s data.


Once subscribed to a cloud service, the company has very little control in terms of how to innovate the IT management system since their billing classification will limit them. In subscription plans where companies are allowed to customize, they are bound by the operators to share their codes with the other clients of the cloud.

Companies who highly value intellectual property and would like to keep their technological innovation for proprietary reasons would find this arrangement quite problematic.

Additionally, because clouds are managed by someone else, it would be difficult to directly address problems like breaches and glitches by the companies themselves. On the other hand, data centers can instantly communicate with their IT department if there is a problem that needs immediate attention.


At the onset, a cloud-based solution is the cheaper solution between the two. Having a data facility, especially if it is in-house, requires a lot of investment because the company has to make space for it and procure equipment that abides with the standards set by ANSI. They also need to hire human resources to maintain the physical and digital security of the facility.

This cost can be lessened by acquiring a third-party data facility that will store the company’s data. Some data storage providers offer collocation services that allow you to use their servers on their site.

So while the billing option for cloud storage is cheaper upfront, moving your company’s data to a physical facility is a preventive measure that may be more cost-effective in the long-run.

Information is the basis of many decisions, which make data management a worthy investment. Ultimately, choosing between a cloud storage solution should be based on what your company needs. It appears that small to medium enterprises could benefit from the affordability of cloud storage.

However, high-traffic e-commerce sites, social media applications, government institutions, and financial industries would benefit significantly from the security and control offered by a data center.

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