What is an On Premises Cloud? | Traditional Data Centers

In this tutorial, you are going the see the Scenario-based approach to understand the use and limitation of On-Premises cloud or traditional data Centers.

You will also see how the traditional system affects business growth and increases the cost for setup and maintenance in every step.

Now you are going to explore how organizations leverage on-premises cloud, and so you are specifically going to be focusing on organizations that have not yet shifted to the cloud.

On Premises cloud Scenario

To understand the exact view of traditional data centers and cloud we are going to start with a fictional organization called Firstbook and how they use on primes cloud for their business.

In the Firstbook, there is a group that has decided that they should launch a new social network for Adults as a new line of business for the organization.

1. Initial launch

In the initial phase, they are focusing on India at launch, and if they are successful, they are looking to expand into Europe and the USA.

Now, they are currently working to secure funding for the initial infrastructure because it’s going to cost a good deal of money to build up the initial data center.

2.Round of Funding

In the Firstbook, they are able to secure an initial round of funding and since they are located in Mumbai, they built a data center in Mumbai.

It took six to eight months from when they started to when they were actually able to move in, and once they were able to load their servers in, they knew they needed several types of servers.

On-premises cloud systems require multiple servers so here they needed some web servers so they could serve their content out through their website.

They needed some file servers so that they can store user uploads like profile pictures and other multimedia and they also needed a database server so that they could store user information like messages etc.

Now fisrtbook had a great launch in India, and they feel like there is a lot of growth ahead, so they want to plan a move into Europe or the USA.

3. Expansion

They specifically want a plan to move into European countries and once this process starts, it’s going to be another 5 to 6 months for them to be able to move into that new data center.

Now for this process, they need to go through that entire process and secure more funding, and they need to order some more servers.

After few months, they are finally able to move in some servers in their on premises cloud or datacenter in London.

Now they don’t want to just stop there, they also want to move into different European countries and the USA to expand their business, but still, there is the same process like building a new data center and adding more funds.

4. Complexity

They got tremendous growth in India, and they need to expand their data center in the USA so they are able to go in and add some more servers.

But once that demand happens, it takes them at least a month to order the servers, get them there, gets them installed, and be configured and during that time, several users were experiencing performance issues with their social network.

Now, once all of that’s in place, they are finally able to shift their attention to the data center in the USA, which is going to be in New York, and it takes another four to five months to begin to get that in place and to order servers, and they then deploy their servers in New York.

5. Twist in Business

Sometimes few twists come in business-like here the Users that were interested in the platform in New York have already moved on to the other Social Media Platforms.

That affects on build system like they have all of these servers and their data center building in New York is hardly used, and they have put a significant investment in getting it up and running.

That type of situation can increase the chances of huge loss and the shutdown of business because of over-expansion, similar to other limitations of on-premises cloud we will see below.

Top Limitations of On Premises cloud:

1. Upfront Investment:

When you are looking at On-Premises cloud (traditional data centers), it takes an initial up‑front investment and a pretty large one at that.

Organizations have to plan to either build a new data center or rent space within an existing data center. Next, forecasting demand is difficult.

Even the best organizations struggle at this, understanding how many users are going to latch on to a new solution, whether it’s an external one, like a social network, or even an internal business application.

2. Slow in deployment

On-premises cloud or Traditional Data System building and deployment is a very time-consuming process that needs more effort to make.

It is slow to deploy new data centers and servers, so not everything can be deployed overnight to see the result the next day.

There are times when it will be very difficult to get up and running if you need to respond to a change in demand quickly.

3. Less Security and compliance

In the on-premises cloud, you own all of the security and compliance burdens with each of those data centers that mean you need to maintain all the security practices every time.

The thing is that nobody wants to get hacked, and nobody wants to be sued for being hacked, but if you’re an organization owning those datacenters, that entire responsibility rests on your shoulders.

Another thing is that using the right data and organizational security compliances to be sure that you are following all of the industry best practices but that is hard to manage in an on-premises cloud.

4. Expensive In maintenance

Traditional data center maintenance is too expensive, like managing the all server properly is a very complex task like in most cases there is a failure, data loss or security issues, etc.

For example, Firstbook for every new data center that they spun up, are going to need to add dedicated resources, dedicated individuals, to maintain that server infrastructure at each of those data centers, and that’s a cost that’s ongoing.

Similarly, for easy and time to time maintenance data centers require few people and time to manage each and every task that leads to extra cost.


Traditional data centers or private cloud systems or on-premises servers are way much costly and hard to maintain systems that lead to heavy usability.

On the other hand still mostly of the business build their own private cloud for data security and hybrid cloud for more flexibility.

Top 10 Benefits Of Cloud Computing.

What Is Cloud Computing? – Example, Components, Platforms

What Is A Virtual Private Cloud In AWS?

What Are The Types Of Cloud Computing