Some software suppliers let you pick between an on-premises (self-hosted) version and a cloud version. Both solutions have their benefits and drawbacks, as usual. However, do not be alarmed by the term “self-hosting”; it is simpler than you might think and has numerous advantages you may not have thought of.
You have complete control over your data when you self-host your program. The program can be used behind the firewall of your own company. Your sensitive information is maintained internally, and no one else has access to it. It is crucial that you can access your data without an internet connection. Hosting it inside also ensures that the on-premises solution is dependable and that the firm can retain control over it in a way that the cloud frequently cannot.
You can simply comply with any legislation if you have your own data center or an off-site data center that is operated by a third party, which makes data governance simpler. There is no doubt regarding the location of the data storage and the laws that must be followed as you choose the terms and conditions. You can choose to have no subprocessors or just a few. This is crucial for preserving medical records in highly regulated areas like the healthcare industry.
Because some software suppliers don’t offer an on-premises option, you can find yourself in a bind and reliant solely on the vendor. It’s a difficult choice to entrust your business-critical data to a software vendor. You might become reliant on this service, and moving your data to a new environment and possibly reformatting it is quite challenging and complex if the vendor stops providing the service or does so in a subpar manner. You get freedom and dependability for long-term planning as a result of hosting yourself.
Open source on-premises software gives you the freedom for customisation. To make the code fit the requirements of your business, you can add or modify it. Additionally, customization gives users additional control over the handling and archiving of their data.
You can integrate any program and use data across system boundaries if your product provides you with a robust API like OpenProject.
Disadvantages of self-hosting
While you can typically expand the number of software users or storage space with a cloud solution with a click, self-hosting can have an impact on the hardware and uptime and takes more planning and preparation. Additionally, you might need to increase capacity beyond what is necessary because, for instance, new hardware doesn’t come in incremental increments.
A group of committed technicians are needed for self-hosted software’s continuing maintenance and updates, as well as for continuously identifying and resolving technical problems. You should only choose a self-hosted solution if you have this knowledge to offer. Additionally, software users could need support, which must also be managed internally.
To ensure that you are not at risk of data loss in the event of a disaster, you must create a plan for backups and data recovery while self-hosting. Otherwise, you might have needless delays in the daily operations of your company.
The question of which is more affordable—self-hosting vs a hosted solution—is not clearly answered. It all depends on your organization’s size, the team you already have, and your needs for hardware, support, scalability, etc. It depends entirely on your needs if one version costs more than the other. Self-hosting can, however, often be more expensive because it calls for your own IT staff, can result in CAPEX and maintenance costs, and you might be paying for more capacity than you actually need.