At AECCloud, a question we often get from our clients is what to choose between IaaS (infrastructure as a service) and on premise solutions. Of course, the answer is a complex one, which requires a good, insightful analysis of each company’s needs and processes, but there are some guidelines and key information pieces which should be taken into account, no matter the context. So, if you are also trying to decide between IaaS and on-premise, please read further.

How companies relate to the cloud?

According to Statista, worldwide IT spending on data center systems in 2019 reached $210 billion, 6.2% more than in 2018, while the public cloud services market was expected to get to $ 257.9 billion, in 2020. The figures show great interest in the area, as many companies are focusing budgets and resources towards identifying and deploying the best solutions.

On-premise infrastructure definition and benefits

On-premise infrastructure is a term that refers to network and storage hardware systems which are located in a physical place, controlled by the beneficiary, be that in the company’s actual building or in a data center which offers clients the possibility of renting their own machines.

From a traditional perspective, on-site systems have been considered the safe option, in what data storage and processing are concerned, as they offer owners complete access to hardware and sole responsibility.

The fact is that, if you choose it, on-premise infrastructure belongs to your organization only and it is not shared with any other company. This means that you may customize resources in a way that responds to your very own IT needs and benefit from a high level of control over your business environment and data.

The benefits of on-premise infrastructure are the following:

It is safer and it offers a high level of privacy, in what storing and processing information are concerned, as it ensures owners full control over hardware systems.

It is highly customizable, since the beneficiary may choose its networks and hardware, depending on the company’s needs.

Is extremely reliable and it gives owners the opportunity of having a hands-on approach on physical servers.

Of course, all these benefits come with a price. On-premise infrastructures are associated with higher costs, related to hardware, software, in-house IT support, high deployment times etc.

Infrastructure as a service definition and benefits

Infrastructure as a service is a term that we have been discussing on this blog. It defines a system where a third-party provider, that hosts hardware such as servers and storage equipment, offers virtualized computing access, online, through dedicated connections. In this case, clients may pay as they go, thus always adjusting their plans to their needs.

A relevant example of IaaS is Microsoft Azure, the cloud computing service which functions on data centers managed by Microsoft. What it does is that it enables so-called “tenants” to rent space on the cloud, sharing hardware, storage and network devices with other organizations.

The benefits of using IaaS are several:

There is no need to invest in infrastructure, companies only pay for what they actually use.

There are no costs associated with maintenance, no fees, no human resources etc.

A solution like Microsoft Azure enables clients to scale up or down their business, depending on their business volumes. This ensures cost optimizations and good adaptability, as each company may adjust to activity spikes - season sales, holidays etc.

A high scalability level which may solve any business request.

A wide portfolio of servers and networks, which ensure that there are always back-up solutions for beneficiaries and that continuity is maintained.

On-premise versus IaaS

Although costly, more complicated to implement and less flexible, compared to IaaS, on-premise infrastructure is not obsolete, as it is a must for certain companies which need to comply with local and international regulations. On-premise infrastructure is, thus, often used by organizations which manage a high array of sensitive information and resources, such as public institutions, financial companies and middle to large companies in the fields of healthcare, surveillance services etc. This is because these kinds of establishments are required to preserve data on-premise, no matter the costs and maintenance efforts.

Still, most of the industries, as is the case of architecture, engineering and construction, benefit from the usage of an IaaS solution, such as Microsoft Azure, because it supports their development, while also keeping costs and resources under control and enabling them to focus on their core work, rather than on IT.

What to choose for your AEC business

There are several things to consider, when it comes to choosing the best option for your AEC business, such as overall needs, security measures, scalability and reliability etc. This is why it is crucial to work with an experienced cloud provider that has an excellent track record and which understands and relates to important information regarding your priorities and operational flows.

Depending on the needs identified, the supplier might often recommend a hybrid model, which combines IaaS with on-premise infrastructure, a solution that has proved very successful in our line of work.

If you want to discuss what would be the best alternative for you, contact us and we will make an assessment.