February 20, 2026
Cloud vs. On-Premise: How to Choose
There's no one-size-fits-all answer. Choosing between cloud and on-premise depends on context, costs, and business goals. We've seen companies that migrated everything to the cloud and regretted it, and companies that stayed on-premise and lost agility. The truth is somewhere in between.
Cloud advantages
The cloud has revolutionized how companies consume IT infrastructure. The main advantages:
- Elastic scalability — you can scale resources up or down in minutes, not weeks
- No CAPEX — no hardware investment. You pay monthly for what you use (OPEX)
- Global redundancy — major providers (AWS, Azure, GCP) offer geographically distributed availability zones
- Managed services — databases, load balancers, AI/ML, all as a service
- Deployment speed — from idea to production in hours, not months
On-premise advantages
On the other hand, on-premise isn't dead. It has clear advantages in certain scenarios:
- Total control — the hardware is yours, the data stays with you, no dependency on an external provider
- Predictable long-term cost — after the initial investment, monthly costs are significantly lower
- Minimal latency — for workloads requiring ultra-fast data access (trading, video processing)
- Compliance and regulations — certain industries (healthcare, finance, government) require data to remain in controlled locations
- Dedicated performance — you don't share resources with other tenants like in public cloud
The hybrid approach: our recommendation
In our experience, the best results come from a hybrid approach. Specifically:
- Stable, predictable workloads — on-premise (primary databases, core applications)
- Variable workloads — cloud (dev/test, burst capacity, temporary projects)
- Disaster recovery — cloud as a secondary DR site (cheaper than a second data center)
- Managed services — cloud (AI/ML, analytics, CDN)
Key questions to ask
Before making a decision, answer these questions:
- What's the real 3-5 year TCO? Cloud seems cheap at first, but costs grow. On-premise is expensive upfront but amortizes over time.
- What regulations apply? GDPR, NIS2, sector-specific regulations — all influence where you can store data.
- Do you have the right team? On-premise requires sysadmin staff. Cloud requires cloud engineering skills.
- How much flexibility do you need? If workloads vary dramatically, cloud is hard to beat.
- What's the exit strategy? Vendor lock-in is real. How easily can you migrate from one provider to another?
Don't choose cloud or on-premise based on trends or inertia. Analyze your workloads, costs, and long-term objectives. And if you need a second opinion, get in touch.