Last updated on January 16th, 2023

You might have come across a choice of buying or leasing a car. Leasing a car frees you from the high-end purchase cost. Also, you can book a new one if you do not like it. However, if you decide to purchase a car, you will have to bear all the expenses, but you are the owner. It’s as simple as that. Choosing one is tough as both of them have their pros and cons.

In-house Server vs. Cloud Hosting: Understand the DifferencesThe situation mentioned above is the same when choosing between an in-house server and cloud hosting services. Let’s draw a comparison between them, which will help you make the right IT platform for your business.

IT Infrastructure

One of the significant differences between the in-house server and cloud hosting is the housing of their server system.

In an in-house server (also known as a dedicated server), the infrastructure is set up in the office premises, and you need a dedicated space for the server system. There is no need to rely upon a third-party to cater to your needs as you have your own team of IT professionals and a personal IT infrastructure.

This allows you to have full physical control over the server system and modify it according to the needs. You are responsible for all the expenses incurred, like maintenance, initial setup, payment of the IT professionals, and installation of the latest upgrades.

On the other hand, in cloud hosting, you do not have to allocate a dedicated space for the server. Instead, you rely upon a service provider for server infrastructure and IT needs. The cost incurred in the server maintenance and its running is handled by the service provider. You have to pay a monthly subscription fee for it.

Data Accessibility

Another difference that arises between the two types of IT platforms is the different range of accessibility provided by them.

In an in-house server, a user doesn’t require an internet connection to access their data. All they need is a running server through which they can have access to their data. So, an in-house server eliminates the speed of your internet connection as a limiting factor.

However, it also limits flexibility as you are unable to access your data remotely. Also, if you have multiple locations housing your servers, then the centralization of data is not possible, as they are not interconnected.

Remote access is one of the key features of why companies opt for cloud hosting. All you need is an internet connection, a compatible device, and the proper access authorization. You can easily access your data, even if you are not at your workplace.

Cloud hosting removes the physical limitation that comes with in-house hosting. Also, it allows for the centralization of data.


Both systems are quite different from each other when it comes to scalability.

If you are planning to have an in-house server, then the extent of scalability it offers is something you must carefully plan. Although having a dedicated server allows you to have full physical control over it, it can be quite a costly venture when it comes to upgrading.

When you expand and upgrade your server system, you have to take into account the physical space of your premises and the compatibility of the latest available hardware and software with your existing one. All this calls for considerable planning; the installation takes a lot of time. This may severely affect your business and cause a slowdown in your proceeding.

On the other hand, cloud hosting offers more flexible scalability options. You can upgrade the cloud resources and services by contacting your hosting provider about your growing needs, and the changes will be done. It is quite a hassle-free experience, with upgrades provisioned within a few hours to ensure no slowdown.

Security And Data Backup

In-house server setup may lack the IT security measures that are necessary to counter the prevalent IT threats. Cloud service providers, on the other hand, offer better security measures (intrusion alerts, firewalls, physical security, etc.).

Companies with sensitive data prefer investing in an in-house server because there is no third-party control. Whereas, if yours is a small business and you don’t have enough capital for a personal IT infrastructure, then cloud hosting might be the key to your success.

When it comes to data backups, it is the cloud that has the edge compared to in-house hosting; most service providers offer regular data backups so that it can be recovered quickly regardless of the situation.

Also, in-house hosting is more prone to accidental data loss or data damage due to natural disasters. Cloud hosting can be optimized to backup your data even to a 15-minute repetitive cycle ensuring you don’t lose an ounce of your precious data.


The needs entail a choice it has to satisfy. While virtual private servers can be a perfect solution for small or medium scale businesses which don’t want to invest a hefty capital for their IT infrastructure, in-house servers can be viable for organizations that want more control over their IT infrastructure.

Wish to know which solution is best for your business? Get in touch with our Solutions Consultant at 855-375-4955.

Chat With A Solutions Consultant