Hosting: On-Premises or Cloud-Based? How to Make the Right Decision

Learn from our blog post whether an on-premises solution or cloud hosting is the right choice for your organization. Discover the advantages and disadvantages of both options and make the optimal decision for your IT infrastructure!

Teamwire, Jul 09 2024

The choice between cloud-based and on-premises hosting can be crucial for companies and public institutions. Both options offer different advantages and challenges. This guide helps you find the solution that suits your needs.


What Is On-Premises Hosting?

On-premises hosting means that the IT infrastructure is operated within the company’s own premises. Servers, networks, and other hardware components are installed on-site and managed by the company’s own IT department.


Advantages of On-Premises Hosting

  • Control and Security: Full control over the IT infrastructure and direct physical security.
  • Customization: Ability to customize according to specific needs.
  • Data Privacy: Data remains within the organization, which is especially important in sensitive areas.


Disadvantages of On-Premises Hosting

  • Costs: High initial, operational, and maintenance costs for hardware and personnel.
  • Scalability: Expanding capacity in response to growing needs is time-consuming and costly.
  • Risk Management: Higher risk due to potential failures or physical damage to the hardware.


What Is Cloud Hosting?

With cloud hosting, an external provider provides IT resources over the Internet. The infrastructure is located in the data centers of the cloud provider, and companies pay for the use of these resources.


Advantages of Cloud Hosting

  • Flexibility and Scalability: Resources can be quickly and easily adjusted as needed.
  • Cost Savings: No high initial costs since you only pay for the resources actually used.
  • Maintenance and Updates: The cloud provider takes care of operations, maintenance, and regular updates of the infrastructure.
  • Modern Hardware/Infrastructure
  • Possible Certifications: Such as ISO27001 or BSI C5 certification.


Disadvantages of Cloud Hosting

  • Dependency: Companies depend on the reliability and security of the cloud provider.
  • Data Privacy: Sensitive data is transferred to external providers, which can raise data privacy concerns. Compliance with GDPR cannot always be guaranteed, especially with non-EU cloud providers.
  • Cost Control: Costs can quickly rise if resources are used improperly.


Cloud-Based vs. On-Premises Hosting: The Right Choice for Your Organization


The decision between cloud-based and on-premises hosting depends on various factors:

  • Security Requirements: For highly sensitive data and strict compliance requirements, on-premises hosting might be the better choice.
  • Flexibility and Scalability: If you need to respond quickly to changing demands, the cloud offers the necessary flexibility.
  • Cost Structure: Analyze your long-term costs and choose the option that best fits your budget planning.


Special Considerations with Teamwire

Teamwire offers a secure communication solution that can be hosted both on-premises and in the cloud or private cloud. To meet the highest security standards, Teamwire relies on the German IONOS cloud for (private) cloud hosting, operated from data centers in Frankfurt and Berlin. The IONOS cloud meets the highest security standards thanks to ISO27001 certification and BSI C5 attestation and is 100% GDPR-compliant.


Please refer to this blog article for more information on hosting with Teamwire.



The decision between cloud vs. on-premises hosting depends on various factors, including security requirements, costs, and flexibility. Both options have their specific advantages and challenges. Carefully evaluate your needs and choose the solution that optimally supports your IT infrastructure. In any case, Teamwire offers you a secure and reliable communication solution tailored to your requirements.