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In-house Server vs. Cloud Hosting: Which One to Choose?

Saurabh Dhariwal

7 min read

Whether you’re running a big company or just getting your startup off the ground, there comes a time when technology becomes super important for your growth. You might be in the middle of growing your business and wondering how to handle all your tech stuff smoothly. Or maybe you’re just starting out and want to make sure you’re setting up your tech right from the get-go. Either way, you’ve got a big decision to make: do you go for in-house servers or jump into the world of cloud hosting? In this article, we’ll break down these options in simple terms to help you make the best choice for your future success.

What are In-House Servers and Cloud Hosting

An in-house server is like having your own personal computer system at your workplace. It’s physical hardware that your business owns and takes care of right there on your premises or in your own data center. This single server does all the heavy lifting – storing your data, running your programs, and managing everything you need for your business to function smoothly.

Now, onto It! Instead of having your own server sitting in your office, cloud hosting providers offer servers that are located somewhere else. These remote servers work like magic, storing your data and running your programs over the internet. It’s like renting space on someone else’s super-powerful computer system, which can expand or shrink based on your needs.

In-house vs cloud servers: what is the difference

Let’s break down the differences between having your own server and using Cloud based hosting in simple terms:

  1. IT Infrastructure:

Having your own server means you need space for it in your office or building. With help of that, you don’t need physical space because your data is stored on server room owned by another company.

  1. Data Accessibility:

If you have your own server, you can access your data locally without needing the internet. But with cloud based hosting, you can access your data from anywhere with an internet connection, making it easier to work remotely.

  1. Time Savings:

It makes fully managed software easier since you can access applications through a web browser from any device. But with your own server, you might need to install software on each device, which can take more time and might require IT help.

  1. Security & Data Backup:

Cloud based hosting providers usually have strong security measures and backup systems to protect your data. If you have your own server, you’ll need to take care of security yourself, which can be a big responsibility. Cloud computing services also offer better disaster recovery options.

  1. Scalability:

Scaling up your own server can be complicated and expensive because you need to plan for more space and hardware. With hosting on cloud, it’s much easier to increase or decrease your resources based on your needs.

  1. Cost:

Having your own server involves various costs like buying hardware, paying for energy, and maintaining everything. It works on a pay-as-you-go model, so you only pay for what you use, which can be more cost-effective, especially for smaller businesses.

Pros and cons of in-house server

Let’s look at the pros and cons of having your own server in simple terms:


  • With your own server, you have full control over where your data is stored, which can make you feel more secure.
  • Once you’ve set up your server, ongoing costs are mainly about maintenance, so you know what to expect in terms of spending.
  • Keeping your data local can feel safer because it’s not floating around on the internet where anyone can access it.


  • You need to make sure your server can handle busy times, even if they don’t happen often. This means investing a lot upfront in hardware and software to handle occasional spikes in demand.
  • Running a server all the time means you’ll have ongoing costs like electricity and cooling, even if nobody’s using it at the moment.
  • If your business grows quickly, you might need a bigger server. But upgrading can be expensive because you might have to buy a whole new, larger server, which can really add up.

Also Read: How to Upgrade Your Hosting Plan for Reliable Performance?

Pros and cons of cloud hosting

Let’s break down the pros and cons of using cloud based hosting in easy words:


  • It is great for startups and new businesses because you don’t need to spend a lot of money upfront on buying hardware or software licenses.
  • Your team can access data from anywhere with an internet connection when you use cloud servers, which makes it easy to work remotely.
  • It’s simple to adjust how much storage or resources you need with cloud services, and you only pay for what you use, which can save you money.
  • Cloud providers usually have strong security measures to protect your data, which can be better than what you might have with your own IT team.


  • If your internet goes down, you can’t access your data stored in the cloud, so you might need a backup internet connection to avoid downtime.
  • While cloud services are great, they can get expensive over time, especially if you need really reliable service. Setting up your own super-reliable server would cost a lot, but cloud based hosting costs can add up too.
  • It can be a bit worrying to trust a company you’ve never met, who might be far away, to keep your data safe. So, it’s important to make sure you’re comfortable with your cloud provider’s security measures.

When to Use Cloud vs In House Server

Let’s simplify the options for you:

Cloud hosting:

  • If you want to access your data from anywhere with an internet connection without worrying about maintaining servers, Cloud hosting is the way to go.
  • It’s great for businesses with remote workers who need to access data easily and for those who prioritize backup and recovery.

Also Read : Red Flags to Avoid When Choosing a Cloud Hosting Provider

In-House Servers:

  • If you want full control over your servers and prefer to keep your critical data on-site with no third-party access, then having your own servers is the way to go.
  • It’s ideal for businesses that prioritize strict data security, have legacy applications that need to stay on-site, or have specific compliance requirements.


  • Think about what your business really needs, like whether your team needs to work remotely, how much you can spend upfront and ongoing, and how reliable your internet connection is.
  • Both cloud and in-house solutions depend on a good internet connection, but in-house servers can work locally if the internet goes down.

Making the Choice:

  • Deciding between cloud or in-house models should match your business goals, data security needs, and budget.
  • If you’re unsure, it’s always a good idea to get expert advice to make the right decision for your business.

Remember, cloud based hosting offers a lot of flexibility, especially nowadays. It allows you to integrate different systems and resources seamlessly. For example, our AI system for real estate harnesses the full power of Cloud based hosting for data integration and processing.

Investing in cloud hosting services can truly revolutionize the way your business operates. Whether you’re a startup striving for efficiency or an established company aiming for scalability, the benefits are clear. With options like WeWP’s cloud based server hosting, you can enjoy the flexibility, accessibility, and security you need to thrive in today’s digital landscape. Let us help you elevate your business to new heights with our top-notch cloud solutions.

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