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Types of Storage Solutions

If we go by the existing rate at which data is being generated, it is certain that businesses would be looking for some vigorous data management solutions in the near future. Looking at the number of advancements happing in the arena of data storage technology, IT organizations are more than able to present enterprises with the greatest data storage solutions.

Difference between Storage Types

On-premise storage and cloud storage reside in two different locations. On-premise storage utilizes in-house hardware and software. That is, the hardware is owned and managed by the enterprise versus a cloud service provider.


A key difference between on-premise and cloud storage is financial. Cloud-based software and cloud resources are treated as operational expenses (OpEx). Because they are rented monthly, these charges are part of the operating expense.
In contrast, on-premise software and hardware are treated as a capital expenses (CapEx). They are typically purchased once as a capital expense.


One of the benefits of private cloud storage is that it combines on-premise control over infrastructure, security and data with the flexible nature of cloud technology. Like public cloud storage, private cloud storage provides the ability to dynamically scale resources up or down as necessary.


Unlike public cloud storage, customers do not need to worry about performance degradation that may occur as the result of using a remote data center, since private cloud storage resides within an enterprise’s data center.

Cloud vs. On-Premise Cost Comparison

Comparing the cost of cloud and on-premise storage can be misleading, mainly due to false assumptions. For example, there’s a general belief that public cloud is cheaper than on premise storage.


However, many enterprises face sobering invoices they did not expect. Cloud storage pricing should not be assumed – it needs to be researched very carefully.
“Cost” can also have different meanings. For example, there’s the cost of purchasing on-premise resources versus using cloud resources. For on premise, it is wise to identify underutilized storage resources before deciding how much capacity is needed. Under buying or over buying assets is a common lament.


For public cloud, pay-as-you-go may seem attractive cost-wise until unused resources (such as virtual machines) are left running unmonitored for hours, days, weeks or even months. Similarly, prepaid public cloud capacity can seem attractive because it tends to be less expensive than pay-as-you-go. However, pre-paying for unused resources involves unnecessary costs.


In addition, cost comparisons of on premise versus cloud storage are not always apples-to-apples comparisons. If they were, then one might compare the cost of the same:

  • Number of virtual machines
  • Number of CPUs
  • RAM per virtual machine
  • Storage capacity per virtual machine

On-Premise Storage

Storage resources are procured, owned and managed by the enterprise.

  • The enterprise is responsible for securing the storage resources and data.
  • Storage resources remain dedicated to the company.
  • The investment is considered CapEx, which is a typically a high cost.

Cloud Storage

  • Storage resources are owned and managed by a third party.
  • Storage resources may be purchased on a pre-paid or pay-as-you-go basis.
  • Storage resources may be shared in a multi-tenant environment.
  • Software is kept up-to-date as part of an active subscription.
  • IT does not have to install software updates and patches.
  • The investment is considered OpEx, which is a lower monthly cost.

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