Cloud computing is increasing in popularity at such a rapid pace that many are wondering if cloud computing may replace dedicated server hosting entirely. Scalability is often cited as the chief reason, since cloud subscriptions allow businesses to obtain the services they need whenever they’re needed.
Most agree that dedicated server hosting isn’t going anywhere, but many feel the need for dedicated servers and appreciate the opportunity to manage and configure them as they see fit. Some of the prominent fans in this arena are open-source users. Other fans are enterprises with the need to store and process secure information, with banks and intelligence organizations falling into this category. No one expects an end to dedicated server hosting, but it will definitely be a part of hosting for many years to come.
The choice between cloud and dedicated server hosting is a decision closely related to business needs. For startups, smaller companies, or enterprises that have a global distribution, a cloud-based environment is highly suitable. However, owners and managers of traditional small and medium-sized businesses with old servers aren’t going to the cloud but are deciding to acquire new servers.
Business owners are alerted to the fact that they need timely upgrades when the existing infrastructure is reaching its limit and things are noticeably too slow. Many owners have put off upgrading their servers because of issues related to the slow economy. Nevertheless, these same owners haven’t made the transition to the cloud. In many cases the gating factor was cost. According to Forbes, in 2013 the cost of moving existing applications is about $100 per user per month for cloud services.
Compare this to a scenario where 20 people require computer access. Let’s say you’re satisfied with your current applications and don’t want to incur the overhead, substantial expense and disruption associated with a migration to the cloud. When smaller businesses purchase their own servers, they can easily pay for them in a 12-month period if they choose not to migrate.
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Cloud computing supports applications that run on mobile apps. Real-time asset management, immediate order fulfillment and real-time updates are just a small selection. With software services paid for by the month, applications’ costs are lower for startups. Maintenance costs are also much lower and any reconfiguration to add memory and space can be easily done. Data is automatically backed up, so the risk of data loss is minimized, and data is also accessible from anywhere in the world. Software licensing savings is also another advantage.
Cloud computing is highly suitable for startup businesses that can reap the benefits of front-office and back-office services at minimal monthly costs. Enterprises relying on a need for mobility find cloud computing the best option in terms of functionality and accessibility. When business processes require collaboration, cloud computing can be helpful with group efforts.
Dedicated server hosting, however, is excellent for small to medium-size businesses that must have strict control over security, such as for HIPAA-protected medical records. It can be less expensive than cloud computers and allows you to have tight control of configuration. Companies and organizations that make use of open-source products are especially likely to prefer this type of platform.