Understanding Your Options
On-Premises Infrastructure
Traditional servers in your office or data centre. You own the hardware, manage the environment, and have complete control. High upfront costs but potentially lower ongoing costs for stable workloads.
Cloud Infrastructure (IaaS)
Virtual servers in Microsoft Azure, AWS, or Google Cloud. No hardware to buy—pay monthly based on usage. Extremely flexible but costs can grow if not managed carefully.
Hybrid Infrastructure
Combination of on-premises and cloud. Keep some workloads local while leveraging cloud for others. Offers flexibility but adds management complexity.
Decision Framework
On-Premises May Be Better When
- Stable, predictable workloads with minimal scaling needs
- Data sovereignty requirements mandate local storage
- High-performance, latency-sensitive applications
- Large data volumes where cloud storage costs become prohibitive
Cloud May Be Better When
- Variable or unpredictable workloads
- Rapid scaling up or down is needed
- Disaster recovery is a priority
- Limited in-house IT expertise
How We Researched This Article
This article was compiled using information from authoritative industry sources to ensure accuracy and relevance for Australian businesses.
Sources & References
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Microsoft Azure for Australia
Azure services and pricing for Australian customers
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Australian Signals Directorate Cloud Guidance
Australian Government guidance on cloud security
* Information is current as of the publication date. Cybersecurity guidelines and best practices evolve regularly. We recommend verifying current recommendations with the original sources.
Frequently Asked Questions
Is cloud always cheaper than on-premises?
No. For stable, predictable workloads, on-premises can be more cost-effective over 3-5 years. The "cloud is cheaper" assumption should be tested with actual cost modelling.
What about data sovereignty for Australian data?
Major cloud providers have Australian data centres. Configure workloads to keep data onshore and verify data residency settings carefully.
Peer 2 Peer IT
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