ARTICLE
Hosting at Atfinity: Should You Choose SaaS, a Private Cloud or On-Premise?
Whenever a new client decides to partner up with Atfinity, they have to choose whether they want to host their data on premise, on their private cloud or on our Atfinity Cloud.
Each choice comes with a set of pros and cons, and so far, we’ve had happy customers in all three camps. That being said, I would like to discuss the differences between the three so that you can easily decide which option fits your business.
SaaS vs Private Cloud vs On-premise
SaaS: Software as a Service or SaaS hosting means that Atfinity does the hosting for you. This is generally ideal for financial institutions that don’t want to tax their own IT department as Atfinity takes on the burden of maintaining and adapting the cloud infrastructure. However, this also means giving up some control.
Private Cloud: A private cloud deployment likewise has either Atfinity or your IT department deploy the software in a cloud you have control over. This gives you the benefits of cloud hosting, but also full control. The downside is that you either have to shoulder the maintenance yourself or rely more on our IT support, which also comes with added costs.
On-premise: On-premise hosting is probably the simplest to understand and has been around for as long as there has been hosting. It means Atfinity is deployed by either us or your IT department on servers you have full control over.
“On-premise” is still a bit flexible, as it can be in your actual building or you rented space in a server centre. However, in general, it means you control the actual computers and you take full responsibility of maintaining the whole server, including the operating system. This gives you even more control over the deployment, but also further increases the burden on your IT department.
With those distinctions out of the way, let’s take a closer look at all three options and see in which areas they excel.
The benefits of SaaS cloud hosting at Atfinity
Cloud hosting has become the norm in many ways, with 94% of companies worldwide utilising cloud computing in some fashion. And SaaS cloud hosting is becoming more and more popular, as more and more companies and startups successfully use this approach to scale up their business without needing to invest too much into their IT infrastructure.
Hosting your data on our Atfinity Cloud comes with a few key benefits. Namely:
• Atfinity manages the cloud for you
• Added security
• It’s easier to scale up your business
• Smaller upfront cost
• Data recovery options
• It’s quicker and more adaptable
Let’s quickly go over all of these points and clarify how you stand to benefit from them.
Atfinity manages the cloud for you
The most noticeable difference between a SaaS solution and a private cloud or an on-premise solution is that you don’t have to worry about the cloud infrastructure at all.
Whether it’s regular maintenance, security or upgrading the cloud to keep up with rising demand, Atfinity handles all of these tasks in your stead. In contrast, a private cloud will still require an IT team to keep tabs on how the cloud is set up and run, as well as address new requests and issues.
And on-premise servers are even worse in this regard, with your IT department having to work on both the software and the operating system of your servers for your system to stay functional and secure.
Added security
We don’t take security lightly. Therefore, when it comes to both our software and our Atfinity Cloud, we strive for air-tight security.
From a technical point of view, this means that data is encrypted and only accessible to authorised persons. Specifically, we use two-factor authentication, as well as SAML SSO and LDAP to ensure that proper authentication and authorisation is given before accessing any sensitive data.
From a boots-on-the-ground view, we’ve built a work culture based around security, heavily lowering the odds of any breach points. And with human error being the most common cause of data breaches, this aspect is just as important as our technical precautions.
Lastly, to prove that both of these aspects are monitored, maintained, and made even better, Atfinity has also been ISO 27001 certified.
And once again, when it comes to a private cloud or an on-premise server, such advanced security is possible but not guaranteed.
It’s easier to scale up your business
A major benefit of cloud hosting is that it adapts to your usage. In other words, small businesses that don’t require a lot of processing power will get exactly how much they need.
However, increasing your cloud capacity is quite simple as you’re only renting one part of the cloud. In other words, as your business grows, you can just rent a larger part of the cloud. And if you specifically opt for the Atfinity Cloud option, this process is completely painless as even if some issues do arise, we’re the ones who will quickly find a solution.
On the other side of the spectrum, businesses that want to own their own servers, which is becoming extremely rare, would have to allocate additional resources every time they need to amp up their storage.
Small upfront cost
Hosting in the cloud means renting the computer power, so both SaaS and a private cloud will have a small upfront cost – unlike traditional on-premise solutions that are quite expensive to initially set up due to the needed hardware. However, there can be a difference between the two cloud options when it comes to setting up the system.
We for one use the same pricing model for both private clouds and SaaS solutions, so there isn’t a disparity between the two. With that being said, initially setting up your private cloud can be more expensive than connecting to our SaaS Cloud depending on your hosting provider.
So, depending on your specific hosting provider, a private cloud can be the pricier option. However, this doesn’t have to be the case – especially if you opt for a well-established, budget-friendly cloud provider.
Data recovery options
Losing even the tiniest fraction of your data can be catastrophic, both for the functionality and the reputation of your business. Local servers generally struggle in this department, as even if you have physical copies of your data, there will be downtime while it’s booted up onto the main server.
Cloud hosting on the other hand won’t miss a beat. Cloud hosting typically involves one or more backups of all your data that are stored independently. And in the case that you opt for our Atfinity Cloud option, there will always be offline backups of all of your data.
Therefore, if one dataset is somehow lost, there won’t be any permanent damage. However, this isn’t exclusive to just SaaS hosting, as private clouds also offer data backups.
It’s quicker and more adaptable
If you don’t have an in-house IT team, making any changes to how your local server is set up can take a very long time. This is especially true for hard-coded legacy systems that weren’t designed to be malleable.
Therefore, any larger changes would inevitably suffer from significant lag in execution, ranging from a few weeks to a few months or years (depending on the scope).
And while private clouds are customisable, any changes to the infrastructure would require your IT team to dedicate a lot of their time to that one task, as opposed to developing ways to make your business even better.
Our Atfinity Cloud on the other hand is extremely malleable. And since the people implementing changes to the server are also the ones who created the Atfinity software, you won’t have to worry about any technical issues cropping up.
Therefore, when it comes to implementing changes to your cloud infrastructure, SaaS has the edge over a private cloud, and on-site hosting is far below either option.
Benefits of a private cloud
A private cloud is the preferred choice for anyone that wants most of the aforementioned benefits of cloud hosting but also wants a higher level of control and privacy. As noted before, it typically requires more resources than a SaaS solution but if you already have an in-house IT team, which is quite common for larger banks, the discrepancy isn’t too significant.
It’s also worth mentioning that depending on how exactly your private cloud is set up, there will be minor differences in some of the benefits we’re going to discuss. With that being said, a private cloud can offer the following benefits:
• A flexible cloud infrastructure
• More privacy
• Easier integrations
• Potentially an easier set up
A flexible cloud infrastructure
While configuring the Atfinity software isn’t an issue regardless of which option you choose, changing the cloud architecture is only possible if you have a private cloud.
Therefore, if your business needs a highly specialised cloud environment, opting for this solution could be the way to go. However, it’s also important to point out that customisation can be a double-edged sword. Namely, standardised software is generally more stable and will evolve naturally over time while a highly customised infrastructure can run into issues if not maintained properly.
Therefore, while this is a huge benefit of having a private cloud, it does require forethought of how the cloud infrastructure will be maintained and updated.
More privacy
While the SaaS model and a private cloud have a comparable level of data privacy, the private cloud can sound like the better option. After all, it’s even called a private cloud!
And seeing how our clients are banks, where keeping your data safe is crucial, private clouds are rather popular. This is because they typically have very advanced firewalls and authorisation software, as well as entire teams dedicated to keeping the infrastructure safe from threat actors.
With that being said, they’re still not as private as an on-premises solution. But we’d argue that as long as the cloud has an up–to-date, good security system, your data won’t be in any danger either way.
Easier integrations
If your business already has a private cloud on which it hosts its Core Banking, CRM or ERP systems, integrating Atfinity into that ecosystem can be easier to accomplish. This is especially true if the software is relatively old. It could also be more responsive when integrated this way as opposed to having it communicate with a separate SaaS system, but this depends.
The difference generally won’t be anything too astonishing but it will be present. And in situations where you run a huge array of software systems, such as an on premise Core Banking and a CRM solution, this can make the entire operation smoother.
Potentially an easier set up
Lastly, on a similar note to the previous section, the initial setup can be a bit easier in cases where you already have a private cloud of your own. Since your IT team is likely already familiar with the infrastructure of your private cloud, it cuts down on some of the leg work that would be required to connect a SaaS system to your existing software.
Therefore, if quickly integrating Atfinity’s software into your system is a high-priority task, hosting it on a private cloud can speed up the process.
Benefits of on-premise hosting
Having a large and capable on-premise server isn’t easy. As we’ve mentioned, this typically requires large server rooms that need special equipment, highly-trained staff and a large upfront budget. However, there still are some benefits to this approach. They are:
• Having more control over your data
• Complete privacy
• Better suited for small, niche businesses
• Fewer potential break points
• Better protection from some types of malware
Having more control over your data
Likely the biggest benefit of locally hosting your servers is that your team is the sole authority on the matter. Therefore, you can do whatever you please with your data without anyone being the wiser.
And while this isn’t a benefit that you will likely feel on a daily basis, it can be very important for businesses that value privacy and control above all else.
Better privacy
Similarly to the previous point, local servers are inherently more private, as only your team will be working on them.
And since it’s your own team, you can detail exactly who can or can’t access any piece of data that is on your server. With that being said, this is a very extreme precaution, as the odds of a cloud provider abusing their access to your data is next to zero.
Better suited for small, niche businesses
Since having a local server usually entails building it up yourself from the ground up, they are a lot more customisable. Therefore, you can add the features that mean the most to your business.
On top of that, if your business is relatively small and only requires the bare essentials, local servers can be more convenient. This is because you don’t have to worry about any additional features or processes that your business might not need.
With that being said, it’s important to keep in mind that the initial setup can be both pricey and complex. In other words, when I talk about convenience, I mean it strictly in the context of cutting out unwanted features.
Fewer potential break points
While extremely unlikely, there have been cases where threat actors have managed to get through cloud firewalls of tech giants. For example, the ICloud data breach back in 2014.
And while no system is completely attack-proof, on-premise solutions do narrow your field of worry in a way. Namely, you don’t have to worry whether Amazon or Apple get hacked. As long as your own system isn’t compromised, your data is safe.
Therefore, in the context of preparing for the worst case scenario, having only your own security to worry about can be a benefit for some.
Better protection from some types of malware
An on-premise server is typically going to be more resistant to cyber attacks as the perpetrator would have to be on the premises themselves, as opposed to tucked away half-way across the world.
Therefore, even though cloud servers typically have more security measures in place, they are more accessible to threat actors as well.
And while we are very confident in our security, some people might prefer to have their servers “off the grid” per se.
Verdict
Generally, which option you go for will depend on what your business values the most. In most cases, clients opt for one of the two cloud options, as having data backups and a way to quickly scale up your business is invaluable.
But whether you choose a private cloud or a SaaS solution isn’t as clear cut. Generally, our SaaS solution is a much better option for businesses that don’t have their own IT team or do but want them to focus on other projects.
Likewise, private clouds are generally going to be the preferred option for larger banks that already have multiple systems in place and want to integrate everything quickly and efficiently.
Book your demo today and see why leading financial institutions
worldwide trust Atfinity to drive their digital transformation.
Book your demo today and see why leading financial institutions worldwide trust Atfinity to drive their digital transformation.