On-Premises Server Guide: A Detailed Look at the Key Factors

Updated on Jul 20, 2022

FS Rack Servers

Whenever enterprise IT is talked about, the on-premises server comes as a conventional and, not long ago, the only option available for data management. Cloud servers have attracted a large percentage of enterprises, but when concerns like security and compliance come into play, on-premises still remain the preferred choice. However, in order to develop a better understanding, let us take a deeper look into what this type of server is and how it works.


What is an On-Premises Server?

Talking about the definition, a server being managed individually by an organization is defined as an on-premises one. It is a common misconception that on-premises servers have to be physical, which is not necessarily the case. For instance, if your organization has a server hosted on a network that is in your control, it would also be counted as an example of on-premises servers.

Every server that is an on-premises one is available locally on your machines. This means that the employees of your organization do not need an internet connection to access the server. On the contrary, if this server is hosted in a data center, it requires a VPN or a direct connection.


How Does an On-Premises Server Work?

On-premises servers enable the storage of data within the premises of your organization. All the hardware and relevant software infrastructure is also present within the organization and is being managed individually by the IT team at the workplace. Stored data is readily available to the users of the organization and access does not require an internet connection. Where it gives you complete control over the data, responsibility for the risks involved also resides with the people managing it.


Why Use an On-Premises Server?

A number of factors involved in choosing the type of server for your organization still impact the decision. Let us enlist the factors that still make organizations opt for an on-premises server.

On-Premises Server


Regulatory control is something a significant number of organizations operate under. Considering similar examples, Health Insurance Portability and Accountability Act (HIPAA) compliance are essential for enterprises working in the healthcare sector. This binds the working process by applying certain checks. On-premises servers aid a great deal in this regard. Making the data more secure and accessible within the premises facilitates compliance with a certain regulatory standard.


This comes as the biggest advantage when this type of server is talked about. This is so because various sectors out there primarily focus on data security. Talking about healthcare, Public Health Information (PHI) comes as sensitive data and requires maximized protection. Similarly, the banking sector also has critical records like transactions and customer details. When data security is being handled manually, you have full control over its security as well.


On-premises servers are not dependent on an internet connection. This also comes as a key difference when compared to cloud servers. When the server does not need an internet connection, you can locally use it within the premises and any potential connection issues are eliminated.


As data stored on this server is available locally on the machines, you have complete control over any changes, management, and scalability of the data. As compared to cloud servers, you know exactly where the data that needs to be accessed is.

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