In the rapidly evolving landscape of financial technology, the decision to deploy infrastructure either on-premises or in the cloud has become a critical choice for organisations. The preferences often vary based on factors such as operational needs, financial considerations, and overall business strategy. Software development company Symfa explores the reasons behind the growing trend of opting for on-premises data centres.
Alexander Pampurin, DevOps Lead at Symfa opened the lid on why big companies opt for on-premises data centres more frequently, explaining the benefits and potential pitfalls of the move.
Symfa dealt with a global insurance service provider, which initially embraced a hybrid model, balancing the use of both cloud and on-premises data centres. However, over time, the client concluded that on-premises servers offered more advantages, extending beyond financial considerations. Key reasons for this shift include:
1. Data Security and Confidentiality
Companies dealing with sensitive information, such as insurance service providers, often prioritise data security and confidentiality. On-premises data centres provide greater control and minimise data vulnerability, a crucial aspect when handling vast arrays of personal and financial data.
2. Long-term Savings
Despite the upfront costs associated with procuring hardware for on-premises data centres, the long-term savings can outweigh the initial investment. The case study of the insurance customer illustrates a payback period of approximately five years, offering a compelling argument for the cost-effectiveness of on-prem infrastructure.
3. Cloud – On-Prem Data Centers Transition: Main Intricacies
While on-premises data centres present compelling advantages, the transition is not without challenges. Managing infrastructure in a cloud environment differs significantly from on-premises, requiring a deeper understanding of clusters, infrastructure maintenance, and security considerations. To mitigate potential issues, adequate training for IT and DevOps specialists is crucial during the transition period.
The main challenges provided by transitioning to cloud – on-prem data centres
Unlike the simplicity of cloud infrastructure management, on-premises data centres demand a comprehensive understanding of cluster functioning and infrastructure maintenance. Adequate training is essential to address issues promptly and ensure smooth operations.
The transition involves a shift in approach towards Infrastructure as Code (IaC) writing. While cloud environments may use Terraform for automatic results, on-premises infrastructure relies on Ansible, requiring manual understanding and implementation.
Overall, the decision to transition from the cloud to on-premises data centres is a strategic move that demands careful planning and consideration.
While cloud infrastructure remains easier to maintain, tools like Metal as a Service (MaaS) are emerging to facilitate the management of on-premises infrastructure. However, companies must be prepared for a gradual transition, acknowledging the potential challenges and benefits along the way.
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