In the realm of technological infrastructure, the decision between deploying on-premises servers or cloud services is pivotal. This choice is not just a technicality but a strategic move that shapes a company’s operational efficiency and financial outlay.
This discourse delves into the compelling reasons why a significant number of prominent firms, including some of our esteemed clients, are progressively gravitating towards on-premises data centers. Alexander Pampurin, the DevOps Lead at Symfa, shares his expertise.
The narrative unfolds with a real-life account of a major global insurance carrier, a client who embarked on the journey from a hybrid infrastructure model to a predominantly on-premises setup. The transition wasn’t impulsive but a well-considered move, underpinned by several compelling reasons. The foremost factor influencing this shift was the imperative of infrastructure availability and management.
For instance, the exit of tech giants like Microsoft from certain markets left companies using services like Microsoft Azure in a lurch, scrambling for alternatives. This incident underscores the vulnerability of cloud-dependent firms to external decisions and circumstances. On-premises data centers offer a semblance of control and assurance, allowing companies to switch between capacities and circumvent potential downtimes.
Data security and confidentiality stand as non-negotiable priorities for firms, especially those dealing with sensitive information like our insurance client. The inclination to manage data in-house stems from the need to fortify data against breaches and ensure its confidentiality. On-premises data centers, with their robust security measures, offer a sanctuary for sensitive data, minimizing the risks associated with third-party handling.
Moreover, the financial perspective of this infrastructure choice is intriguing. Symfa’s client’s investment in hardware for their on-premises data center, though substantial upfront, is poised to offer substantial long-term savings. With a calculated payback period and a strategic replacement plan, the company anticipates significant cost benefits, effectively receiving ‘free’ server usage beyond a certain point.
However, the transition from cloud to on-premises is not devoid of intricacies and challenges. Infrastructure maintenance demands a profound understanding of the underlying technologies, a stark contrast to the relatively simpler cloud management. For instance, the nuances of Kubernetes cluster management or the intricacies of backup strategies in an on-premises setup demand specialized knowledge and a hands-on approach.
Moreover, the approach to Infrastructure as Code (IaC) differs markedly between cloud and on-premises environments. While cloud services offer automated solutions like Terraform, on-premises infrastructure relies on tools like Ansible, demanding a more granular and manual approach to infrastructure management.
Read the story here.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global