Cloud or Own Server? How to Choose the Best Option for Business Data Storage

Introduction

Data is the foundation of any business. Where and how you store it affects security, performance, and company growth. Today, entrepreneurs face a strategic choice: use their own equipment (local storage) or rent resources from major providers (cloud storage).

Think of it as choosing between buying a house and renting an apartment. Each option has its pros and cons. Let’s break it down.

🏠 Local Storage: Your Own Digital Home

What is it? Physical servers in your office. You buy, configure, and maintain them yourself.

Analogy: buying a house. You’re the owner, but all the expenses and responsibilities are on you.

Popular local storage solutions:

• Synology NAS — user-friendly “boxed” solutions with interfaces for backups and file sharing.
• TrueNAS — open-source system for building reliable network storage based on ZFS.
• Proxmox VE — a virtualization platform that allows you to deploy clusters and flexibly manage resources.

Advantages:

• 🔒 Full control over security.
• ⚡ Maximum access speed within the office.
• 💰 One-time payment (hardware purchase).

Disadvantages:

• 💸 High upfront costs.
• 🛠 Requires specialists for maintenance.
• 📦 Difficult to scale.
• 🔥 Physical risks (fire, hardware failure, power outages).

☁️ Cloud Storage: A Digital Apartment “All Inclusive”

What is it? Renting space from Amazon, Google, Microsoft, or local providers. Data is stored in secure data centers.

Analogy: renting an apartment in a building with security and maintenance.

Popular cloud providers:

• AWS S3 — the global standard for data storage, integrates with almost any service.
• Google Cloud Storage — convenient if you already use Workspace.
• Yandex Cloud Object Storage — available for businesses in Russia and the CIS.
• Hetzner Storage Box — a simple and affordable solution for backups.

Advantages:

• 💵 Low entry cost.
• 📈 Easy to scale.
• 🌍 Access from anywhere.
• 🔄 Support, updates, and backups handled by the provider.

Disadvantages:

• 🔑 Ongoing payments.
• 🌐 Internet dependency.
• 🕵️ Trusting a third party.

⚖️ Comparison

🤔 How to Decide?

Many companies choose a hybrid approach: critical data is stored locally (e.g., in TrueNAS or on Synology), while backups and shared working files go to the cloud (e.g., AWS S3 or Yandex Cloud).

Choose local storage if:

• You have strict security requirements.
• You have an experienced IT department.
• You work with large files within a single office.

Choose cloud if:

• You’re a startup or SMB with a limited budget.
• You need flexibility and fast growth.
• You have a distributed team.

Conclusion

Choosing between cloud and your own server is a strategic decision. It depends on your budget, security needs, IT expertise, and growth plans.

Often, a combination of the two becomes the most reliable foundation for business: local storage provides control and speed, while cloud offers flexibility and scalability.

The key is to ensure your chosen solution helps your business grow rather than hold it back.