The biggest factor is cost. Cloud hosting offers varying monthly rates based on your needs (usually with annual discounts) that can seem really expensive. It might seem like a no-brainer to save money with a local solution, even if you lose some performance. However, there are a lot of hidden costs in running an internal hosting solution.
Data privacy and security are big concerns. It is common to assume that hosting your own information will be more secure, but that is usually not the case. Cloud companies typically have a very secure infrastructure, and the true security of your data has more to do with your software and processes.
Some industries have regulatory limits and hurdles which may require one kind of hosting or another. Most regulations we encounter are easier to fulfill using cloud hosting, but a few require some kind of internal hosting. As a whole, Industrial IoT is so new that regulations haven’t caught up yet.
Cloud hosting solutions have the amazing capability to scale instantly. Need 2x the computing power? No problem, just ask. Need more storage space? Just press a button. Scaling is a continuing expense when you try to use internal hosting, and very time consuming.
The speed of your applications is critical. The speed of processing and response time (Latency) can ruin your user experience. An internal hosting solution can seldom compete with the performance of cloud hosting. After all, no matter how fast your computers are, they aren’t going to be as fast as thousands of computers working together.
People worry about how reliable cloud hosting is, but all major cloud hosting companies have %99.99+ uptime. Most businesses have more power outages during the year than they do cloud hosting outages. Of course, all these factors depend on picking a reputable cloud hosting solution.
As organizations move forward to implement their Industrial IoT strategies, one of the biggest decisions they face is using internal vs. cloud hosting for their applications and data. In our experience, this tends to be one of the most difficult and divisive decisions in an organization when getting started. To help you navigate these harsh waters, we have put this guide together to better explain the pros and cons of internal vs cloud hosting.