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Cloud Storage vs On-Prem Solutions

Cloud vs On Prem Storage

If data is the new gold, "storage" is the vault it resides in.

Be it performance, scalability or security, modern infrastructure depends heavily on how its storage layer is configured and maintained. Storage or Data layer is the core of modern infrastructure. Any other factor can be brought back up with minimal interruption in connection, but if any data in the storage layer is lost, it can cost end of the entire business.

There are various kind of data that is stored in an infrastructure which can be broadly classified as


  • Data at rest: Relational/Non Relational User data, Secrets, Static Assets, Backups etc

  • Data in Transit: Communications, File transfer, key exchange etc.


Both kinds need to be protected from failure of any kind, be it availability, scalability, security or cost effectiveness. 


When deliberating over storage options, businesses often weigh the merits of cloud-based storage against traditional on-premise solutions. Each approach offers distinct advantages and considerations, particularly in terms of performance, scalability, security, and maintenance.


Cloud vs On-Prem Storage


1. Performance:

Cloud storage solutions, leveraging distributed architectures and advanced caching mechanisms, often provide superior performance compared to on-premise setups.


With the ability to dynamically allocate resources based on demand, cloud platforms can optimise data retrieval and processing speeds, enhancing overall system performance. 


Conversely, on-premise storage systems may face limitations in scaling resources, leading to potential bottlenecks during peak usage periods.


3. Scalability:

Scalability is a critical factor in modern infrastructure, and cloud storage shines in this regard.


Cloud providers offer virtually limitless scalability, enabling organisations to effortlessly expand storage capacity as data volumes grow. Moreover, leveraging managed services and database clusters ensures seamless replication and distribution of data across multiple regions, enhancing resilience and fault tolerance. 


On-premise solutions, while capable of scaling to a certain extent, often require significant upfront investments and ongoing maintenance to accommodate growth.


4. Multi-Site Data Replication:

This is necessary especially for data at rest. For high availability data must be replicated across multiple sites.

That is why I always use managed services or database clusters with multiple availability zone replications. These services also help to achieve zero downtime deployments during major os or version upgrades.

Backups are still necessary for compliance and regulations. Enable automated backup of the data instead of machine snapshots.

Do not store critical data on standalone local system storage, object Storage/NFS/NAS as these are difficult to scale and restore.


Cloud:

Cloud storage solutions leverage distributed architectures across global data-centers, enabling seamless multi-site data replication.


Providers offer built-in replication mechanisms and global content delivery networks (CDNs) to ensure data redundancy and low-latency access for users worldwide.


Multi-region redundancy and failover configurations are often configurable via a centralised console, facilitating high availability and disaster recovery strategies.


On-Premise:

On-premise storage systems require organisations to implement multi-site replication manually, typically involving complex networking configurations and data synchronisation protocols. While achievable, this approach demands significant investments in hardware, networking infrastructure, and ongoing maintenance to ensure data consistency and fault tolerance across geographically dispersed locations. Not to mention a direct physical connection between the two site to achieve < 1ms latency is a must for network level data replication. This adds an extra layer of cost and operation overhead.


5. Configuration Management:

All storage configurations such as provisioning, scaling, migrations or even decommissioning, must be automated through configuration management and infrastructure as code. No manual intervention should be allowed.


Changes in data configuration or structure must be version controlled inline with application configuration.


This will enable traceability for security audits and ensure backward compatibility of data.


Cloud:

Cloud storage environments offer centralised configuration management tools, allowing organisations to define and manage storage configurations programmatically. Infrastructure as code (IaC) frameworks, coupled with APIs and SDKs, enable automated provisioning and configuration updates across cloud environments. This approach promotes consistency, scalability, and version-controlled management of storage resources.


On-Premise:

On-premise storage systems often rely on manual configuration processes, requiring administrators to configure and manage storage resources individually across distributed systems. Configuration drift and inconsistencies may occur over time, necessitating meticulous documentation and change management procedures to maintain system integrity and compliance.


6. Encryption & Secret Management:

  • Storage systems must be encrypted for data at rest with a centralised key management system with periodic key rotation.

  • Data in transit such as inter account/region communications must be segregated and encrypted with SSL/TLS.

  • You can also enable zero trust policy via Mutual TLS to add an extra layer of security for data communication with third party softwares.

  • Some businesses still prefer to choose a self managed model for data localisation, privacy and security regulations. They are basically worried about IP security on systems managed by someone else. In such a case, you can actually discuss with the cloud provider and get them to clarify their compliance readiness in an agreement.


Cloud:

Cloud storage providers offer robust encryption and secret management capabilities to safeguard data at rest and in transit. Industry-standard encryption algorithms, coupled with centralised key management services (KMS) and secrets management solutions, enable organisations to manage encryption keys and access credentials securely. Granular access controls and auditing capabilities further enhance data security and compliance.


On-Premise:

On-premise storage environments can implement encryption and secret management solutions, but often require more manual configuration and maintenance efforts. Organisations must deploy and manage encryption keys, access controls, and secrets securely, potentially introducing security risks if not implemented and maintained rigorously. Compliance with regulatory requirements may necessitate additional controls and audits to ensure data protection and confidentiality.


7. FinOps:

Storage expenses constitute the most from the infrastructure budget. So planning for storage requirements must be done in advance or it can overspill your entire infra budget.


For example, your current data size is 500 GB, however your estimated utilisation can reach 1 TB, in self managed services you will be reserving 1TB in advance and then keep paying for  the empty 500GB.


That's where managed services are recommended for data storage. They charge for the utilisation and are scalable on demand. As a matter of fact, you can strike a good discount if you forecast storage requirements in advance with your cloud provider.


Cloud:

Cloud storage solutions provide transparent pricing models and pay-as-you-go billing structures, enabling organisations to optimise costs based on actual usage. FinOps tools and services offer visibility into storage expenditures, enabling organisations to monitor, analyse, and optimise costs effectively. Flexible pricing options, such as Reserved Instances and Savings Plans, allow organisations to commit to usage volumes and realise cost savings over time.


On-Premise:

On-premise storage solutions entail upfront capital investments in hardware, software licenses, and infrastructure, along with ongoing operational expenses for maintenance, upgrades, and utilities. Cost forecasting and budgeting may be more predictable compared to cloud-based models, but scalability and flexibility may be limited. Organisations must carefully manage costs, balancing capital expenditures with operational expenses and lifecycle management to optimise total cost of ownership (TCO).


8. Maintenance and Management:

Managed services offered by cloud providers streamline maintenance and management tasks, enabling organisations to focus on core business objectives. Zero downtime deployment models and automated backup solutions ensure high availability and data protection, minimising operational overheads. 


In contrast, on-premise storage solutions require diligent upkeep, including configuration management, version control, and backup procedures. While some organisations may prefer the autonomy afforded by on-premise setups, others recognise the efficiency gains and cost savings associated with cloud-managed services.


Summary:

The decision of cloud vs on prem storage solutions depends on the following factors:

  • Real time data replication instead of restoration.

  • Database configurations and data must be version controlled to achieve traceability & audit ability.

  • Avoid use of compute services such as VMs/EC2/Containers for data storage, Object Storage/ NFS/NAS.

  • Backup data not the machine. VM snapshots grow in size and prone to disk level corruption.

  • Encryption of data at rest & in transit is a must. 


In conclusion, while both cloud and on-premise storage systems offer advantages and considerations across multi-site data replication, configuration management, encryption and secret management, and FinOps, the choice ultimately depends on factors such as organisational requirements, compliance obligations, scalability needs, and budgetary constraints.


By evaluating these factors comprehensively and aligning storage strategies with business objectives, organisations can make informed decisions to meet their data storage and management needs effectively.


If you like this article, don't forget to like 👍 and share by reposting ♻️ in your network. Follow Kamalika Majumder for more. 



 

www.10factorinfra.com

 

Thanks & Regards

Kamalika Majumder

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