For most organisations, the shift from on-premise to the public cloud appears inevitable as many businesses are continually won over by the perceived benefits of flexibility and cost models available. However, they fail to identify whether this really is the most operationally cost-effective, efficient and secure approach to building a technology infrastructure.

The truth of the matter is that numerous companies have fallen short of the hidden costs of support and security, as well as the unknown additional costs attached to storage models. They have failed to realise the promised operational flexibility. When these hidden costs are inevitably compounded with rising security threats, significant latency issues, and apprehensions regarding vendor lock-in, a prevailing realisation emerges – the public cloud strategy is not only more costly but also poses higher risks.

But what is the alternative? While on-premise undeniably addresses both security and latency concerns, the prospect of substantial capital investments in new hardware and the requirement to rebuild in-house IT teams present formidable challenges for many companies. So, the question arises: How can organisations keep the benefits of flexible, usage-based pricing reduce costs and improve security? Mark Grindey, CEO, Zeus Cloud, explains why it’s time to go “back to the future” and build an in-house, on-premise private cloud.

Debunking the Cloud Myth

All organisations, across both the private and public sectors, have embraced the notion that a shared IT infrastructure provides a superior value for money compared with a dedicated, on-premise set-up. Consequently, the UK cloud computing market has surged to an eye-watering valuation of £7.5 billion, prompting an investigation by the CMA into its domination by just three vendors. However, this review, designed to tackle worries raised by Ofcom about exit fees, the lack of flexibility and the structure of financial agreements, while valid, diverts attention from the overarching issue at hand: the cost of public cloud services tends to be double that of an on-premise setup.

Every organisation using one of the big three hyperscalers is essentially incurring double the expense for their critical IT systems, including storage and application hosting. To compound matters, they are investing in a service that is drastically less secure and often less well-supported than an on-premise alternative.

Security is an ever-present issue for businesses that are now dependent on the public cloud. And the inherent dominance of the big three hyperscalers renders them prime targets for hackers. Distributed Denial of Service (DDoS) attacks on these organisations are occurring almost continuously, creating huge security vulnerabilities. Beyond the immediate consequence of impeding access to vital services and causing operational disruptions, DDoS attacks also unveil vulnerabilities in the security infrastructure, potentially granting unauthorised access to critical data.

With that in mind, why do the majority of organisations still opt to pay through the nose for a service that is less secure and less flexible than on-premise alternatives?

Exposing Hidden Expenses

Admittedly, at first glance, the cloud model is appealing, especially the shift from capital expenditure (capex) to operational expenditure (opex). Furthermore, the notion that costs are known, with a set monthly subscription, is compelling, especially when combined with the option to scale up and down in line with demand, hidden costs are around every corner and, unfortunately, catch the majority of organisations by surprise.

While the finances and investment involved in hyper scalers may look straightforward at first, buried within the fine print is the information that every additional bit of service and support incurs an additional cost. The extra – and much-needed – security, for instance, comes at an extra expense. Storage cost models are also disturbingly opaque: the promised price per terabyte looks great until a company discovers it is being charged not just to store data but also to delete it. Moreover, the perceived complementary act of uploading is countered by the charge for every object downloaded. Consequently, the monthly bill skyrockets for many and can often be two, or even three times the expected amount.

When the limitations on bandwidth are also factored in, alongside the additional charges for CPU or RAM, along with the fact that if the business is using VMWare, organisations can find themselves paying out yet again. All things considered, it’s not surprising that the cost of the public cloud has far exceeded any CTO’s original expectations.

The ‘New’ Model on the Block

The solution, for businesses looking to reclaim control and reintegrate their equipment, is to go on-premise. This strategic shift allows organisations to preserve the advantages of cloud technology, such as remote support and adaptable finance and usage models tailored to meet operational demands, all while ensuring a more affordable security framework.

Increasing numbers of Service Integration and Management (SIAM) companies recognise the fundamental issues associated with public cloud services and are offering this ‘back to the future’ on-premise model with the necessary flexibility to address the pain points attached to using a traditional hyperscaler. On-premise servers can be effortlessly activated, as required, with costs tied to actual usage. The inclusive support attached to this service is also included and, by moving back on-premise, the security risks are all but alleviated.

For any business apprehensive over the prospect of rebuilding their server rooms or employing dedicated tech experts, rest assured. The latest generation of servers can be run at higher temperatures, eliminating the need to recreate the air-conditioned server rooms of the past. These new servers can seamlessly integrate within existing network rooms or offices. Alternatively, if limited space is an issue, the entire system can be securely co-located within a dedicated and locked rack. Tech support – an integral part of the service – is administered by leveraging the remote, open-source technology used to provide cloud services cost-effectively, ensuring the on-premise systems are working efficiently.

Future Proof Your Business

Bringing this vital infrastructure back into the business isn’t just a cost-effective measure: it also fortifies security. Unlike the expansive, public access model mandated by the large hyperscalers, an on-premise set-up adopts an opposing approach: everything is locked down first, with access granted only as necessary through highly secure tunnels, safeguarding the business. Additionally, because the entire private cloud set-up is company-owned, any essential security changes can be made instantaneously. This eliminates the interconnected risk associated with the public cloud which has led to devastating, extended attacks across key public services in recent years.

The prospect of regaining this level of control is encouraging an increasing number of organisations across both the public and private sectors to actively bring data and systems back in-house. These organisations have – and rightly so – serious concerns regarding data security, expressing dissatisfaction with the escalating latency issues connected with the numerous layers of security imposed by hyperscalers – issues that disappear when systems are on-premise. In addition, there is a growing consensus that a dependence on the public cloud introduces operational risk, as any interruption to the internet connection leaves an entire organisation incapacitated.

A transformative shift is underway. While the public cloud undoubtedly serves a purpose, particularly for hosting a website or public-facing apps, there is a growing recognition that IT deployment can be both more cost-effective and more secure with an on-premise set-up. The time has come to regain control, go back to the future and implement an on-premise private cloud.

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