Cloud and data center are the two most sought after technical jargons that we keep on hearing day in, day out.

Both these buzz words connote the same infrastructure; however the two computing systems have less in common than the fact that they both store data.

To elucidate further cloud can be aptly defined as an off-premise form of computing where the data is stored on the Internet. Usually a cloud provider is hired to manage cloud services and carry out all updates and ongoing maintenance.

Data center, on the other hand is an on-premise facility which houses the data within the enterprise's local network. An in-house IT department operates and manages the functioning of the data center. This traditional data center acts as a physical unit that stores servers and other hardware equipment.

As a matter of fact, cloud providers also utilize data centers to house cloud services. The data is stored in data centers located across multiple geographic locations, thereby ensuring data availability during outages and other data center failures.

Before moving to cloud or building one's own data center, it is highly significant for a business to consider the below mentioned factors:

Need of the business - Cloud or data center:

An in-house data center is a perfect solution for businesses that need custom-made and dedicated computing resources. It allows you to maintain a comprehensive control over the data and the equipment. Moreover, it is an ideal solution for organizations that operate multiple applications and manage complex workloads. However, an in-house data center offers limited capacity, as one needs to purchase and deploy additional equipment to deal with inconsistent business storage needs and workload.

In contrast to a data center, cloud facilitates scalability of resources. It provides unlimited cloud storage space, high bandwidth, and uptime guarantee, as per the availed cloud service plan. However, in cloud, a business cannot exercise complete control over data, as a third party manages the services.

Security- Cloud or data center:

On the grounds of security concern, cloud might seem to be less safe in comparison to a traditional data center. In cloud, you will have to entrust your data to a third party service provider who may or may not have in place the latest updated security certifications.

A data center, on the other hand is connected to a local network thus ensuring that only authorized users can access data with company approved credentials. In case of cloud, any person with proper credentials can connect and access data with the Internet connection. Therefore it is imperative to ensure that all the entry and exit points of data stored in the cloud are protected with robust security mechanisms to avert any unauthorized data transmission.

Costs- Cloud or data center:

Cloud is a blessing in disguise for small and mid-sized organizations that cannot undertake huge capital investments in building and administering their own data centers. The cloud service providers employ adequate IT staff to ensure uninterrupted cloud services. They also offer multiple subscription plans that are both economical and efficient. You can easily scale the cloud services as per your fluctuating business needs.

In contrast to an in -house data center, that has a gestation period before it becomes operational, cloud services can be instantly made available for use after completing the registration with the cloud service provider.

Unlike a conventional data center, cloud does not require time or huge capital expenditure to get up and running. Cloud has evolved as a preferred choice for businesses due to its innumerable benefits such as economies of scale, reduction in infrastructure costs, working capital and IT manpower staffing.

Thus, cloud or in - house data center - the choice solely depends on the business needs and the budget constraints of an organization.