The Definitive Guide to On-Prem vs. Cloud Databases

September 20, 2024

Learn the difference between database management systems to know which one is best for your business

If you’re a modern business, your database is the heart of your tech stack and organization. Selecting the best approach to database software is mission-critical, especially when choosing between on-prem vs. cloud services. It’s essential to have an agile, reliable, flexible, and cost-efficient database management system (DBMS); without it, your business may struggle to stay competitive.

This realization has driven companies of all sizes to adopt cloud databases and shed their legacy on-premises technology. Cloud solutions have positioned themselves as the way of the future – not just for DBMS but for nearly every aspect of the modern IT stack.

A business needs to find the database strategy that is right for them rather than just choosing what’s trendy. Every organization has unique needs and specific benchmarks for its resources. With all the options available – on-prem, cloud, hybrid, and more – understanding the nuances and distinctions between these solutions deserves your time and attention.

This blog will help you find the perfect DBMS strategy for your enterprise.

On-Prem vs. Cloud Computing: Pros and Cons

While on-premises storage for database software was the dominant choice for many years, the cloud has gradually pulled more and more businesses away from the on-prem approach. It is often believed that a future dominated by "cloud-first" or "cloud-only" strategies is unavoidable. However, it’s more complicated than that, and will continue to be for some time.

When considering the adoption of on-premises versus cloud-based solutions, it is important to examine how each option impacts various aspects of business operations. This analysis will provide the advantages and disadvantages of both on-premises and cloud-based systems across critical areas, enabling an informed decision.

Deployment

Deployment is the biggest difference between on-prem and cloud-based solutions. With a public cloud provider, deployment is relatively simple. Once you’ve paid for your license, you can hit the ground running. Your cloud service provider hosts your database, and you have access to all their resources. However, you’re not in charge of building, deploying, and maintaining any cloud servers.

With an on-premises storage approach, it’s the opposite. Your in-house IT team is 100% responsible for deploying and managing your server hardware. Every database element is yours to maintain. Should you have physical server issues, these issues are for your teams to address.

Control

That level of responsibility for on-prem database solutions also comes with a fair amount of control, which is why some businesses opt to stick with an on-prem strategy. Because you have total ownership of your servers, you also have total ownership of all data stored on them. For enterprises in highly regulated industries, this can be extremely valuable.

With cloud storage, you relinquish some control by putting your database architecture in the hands of a commercial provider. This can mean limitations on what tools you can integrate into your database or how to expand your DBMS infrastructure. However, it’s important to note that the "managed" approach commonly associated with a cloud service provider is not one-size-fits-all when it comes to managed vs. self-service options. By carefully comparing different cloud data storage options, you can find one where you don’t feel like you’ve given up agency of your data management project.

Security and compliance

With questions of control come questions about security and compliance, and the distinctions here are like those we’ve discussed. Highly regulated enterprises such as the government or banking industries will prefer on-prem databases because managing all data in-house ensures greater protection against bad actors or other security risks. The same goes for compliance; if you’re a government agency or healthcare provider that must closely adhere to regulations, having full control over your data is appealing. It would likely be the best fit!

However, since you take full responsibility for your database with an on-prem approach, you must address possible breaches and outages on your own. While cloud providers can alert businesses to potential issues in advance, those who manage their DBMS in-house might not catch problems as quickly.

As with control, exploring different cloud providers and their solutions is key to achieving robust security and dynamic compliance. Not all providers are created equal, and these subjects should be front of mind when evaluating a potential cloud DBMS.

Cost

Finally comes the question of cost, an area where the cloud has done everything it can to dominate the conversation. Cloud evangelists will tell you that you only pay for what you use with a cloud service provider. You don’t have to spend money and other resources maintaining your entire infrastructure; that’s on your provider.

However, estimating the cost of a cloud database can be more complicated than providers would have you believe. While many used to tout the cloud as cheaper, the reality is that cloud is just “differently expensive.” With a comprehensive strategy for comparing databases, you can cut spending, but you must invest time into breaking down what you’ll be paying for.

This brings us back to on-prem databases, where you pay for everything. Even with a new understanding of cloud costs, it’s difficult to argue that on-prem databases aren’t the more expensive option. That said, organizations who pay more for them do so for a reason. If having full control of your data, security, and compliance practices with no middleman is essential to your business, then there’s a good chance you can justify the additional costs.

Hybrid Cloud Solutions: The Best of Both Worlds

While there’s an ongoing debate about cloud vs. on-prem databases, that doesn’t mean your organization needs to pick a side. The hybrid cloud approach has become increasingly popular in recent years, uniting the flexibility and cost of the public cloud with the feeling of total control promised by an on-prem approach. With a hybrid cloud, you have your public cloud database, managed by a provider of your choice, integrated with a private cloud database, which you can build in-house or access through a hosted private cloud provider.

Databases like Postgres have evolved specifically to help accommodate this DBMS strategy, ensuring that enterprises are not torn between two equally compelling options. This approach to your databases is the most modern of all, designed to help you navigate the ever-changing landscape of your industry dynamically and confidently.

Maximize Your DBMS – On-Prem or in the Cloud

At EDB, your database is king. It’s why we’ve worked hard over the years to help organizations of all sizes experience what a powerful and personalized DBMS can accomplish. With Postgres, businesses learn that their data management strategy doesn’t need to face either/or choices. How they make the most of their assets and applications should only depend on what they want to achieve and how they want to achieve it.  With diverse solutions like EDB Postgres Advanced Server and our fully managed Postgres cloud solution EDB Postgres® AI Cloud Service, we’re helping enterprises elevate themselves from the database up.

When it comes to on-prem vs. cloud, each has its benefits. Let’s find the best solution for you.

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What is a PostgreSQL cloud database? chevron_right

It is a PostgreSQL relational database run in a cloud environment that provides benefits like cloud computing, including increased speed, improved scalability, greater agility, and reduced costs.

What cloud deployment models are typically available for PostgreSQL? chevron_right

PostgreSQL cloud databases are available in five deployment models:

  • Virtual machine
    PostgreSQL can be installed on virtual machines in cloud environments, providing more control over the database server and environment. This is for users who require custom configurations not supported by fully managed services.
  • Hybrid
    PostgreSQL can be deployed in a hybrid environment, with some components managed on-premises and others in the cloud. This can be useful for organizations that need to keep sensitive data on-premises for compliance reasons while still benefiting from the scalability of the cloud.
  • Containerized
    PostgreSQL can be deployed in containerized environments using Kubernetes, which provides high availability, failover, and other cluster operations. EDB Postgres Distributed for Kubernetes is one example where PostgreSQL is deployed using a Kubernetes operator.
  • Database-as-a-Service (DBaaS)
    These fully managed services handle most database management tasks, such as installation, maintenance, and upgrades. This allows users to focus more on their applications rather than database operations. Examples include EDB Postgres® AI Cloud Service, Amazon RDS for PostgreSQL, and Azure Database for PostgreSQL.
How secure and reliable are PostgreSQL cloud databases? chevron_right

PostgreSQL cloud databases offer advanced security and compliance features expected of a modern cloud service, including:

  • Data encryption
    All data is encrypted in transit and at rest, using TLS 1.2 or higher for network traffic and AES-256 for data at rest, protecting sensitive information from unauthorized access.
  • Access controls
    Granular access control is implemented using SSO and RBAC policies, managing user access and permissions to enhance security.
  • Compliance
    Many providers ensure compliance with critical standards and regulations like SOC2 Type I and II, PCI, and GDPR, which is crucial for organizations with specific regulatory requirements.
  • Network isolation
    Network isolation provides an additional layer of protection from unauthorized access, critical in preventing potential cyberattacks.
  • High availability and disaster recovery
    Many services offer up to 99.99% availability in disaster recovery scenarios as part of their SLA, ensuring databases remain operational and minimizing downtime and data loss.
  • Monitoring and support
    24/7 monitoring and support are standard, ensuring prompt identification and resolution of security issues, which are essential for maintaining database integrity and security.
Are PostgreSQL cloud databases vulnerable to vendor lock-in? chevron_right

PostgreSQL databases allow you to avoid vendor lock-in scenarios in several ways, including:

  • Multi-cloud support
    Leading Postgres solutions operate across multiple cloud service providers (CSPs), including AWS, Azure, and GCP, allowing users to deploy PostgreSQL databases in a cloud-native environment without being tied to a single provider.
  • Access controls
    Granular access control is implemented using SSO and RBAC policies, managing user access and permissions to enhance security.
  • Open source compatibility
    PostgreSQL's open source nature helps avoid proprietary technology lock-in, providing users flexibility and community support even when using a managed service.
  • Flexible deployment options
    To help avoid vendor lock-in, managed Postgres database solutions should allow users to deploy their own open source database in their preferred CSP environment or a hybrid/multi-cloud environment. This keeps data isolated and under user control, reducing dependency on any cloud vendor.
  • Standardized tooling
    Some solutions, like EDB Postgres® AI Cloud Service, are integrated with standard cloud tools and provide a consistent user interface across CSPs, reducing the learning curve and dependency on specific vendor tools, making it easier to switch providers if needed.

That said, although users are theoretically not locked in to a particular CSP, they can find themselves practically locked in without the vendor-agnostic features mentioned above. For example, users may be forced to use a CSP-specific API to provision databases, impacting efficiency and flexibility.

What are the advantages of various cloud models for PostgreSQL? chevron_right

The cloud model for hosting PostgreSQL databases depends on your organization's needs and goals. The advantages of each of the five models are:

  • Private cloud (on-premise or remote)
    Private clouds allow organizations to fully customize their infrastructure to meet performance, security, or regulatory needs. They provide enhanced security since resources are kept private, crucial for handling sensitive data or strict compliance. Costs are also more predictable, usually fixed based on capacity rather than variable usage, which helps with budgeting and planning.
  • Public cloud
    Public clouds offer scalability, allowing PostgreSQL databases to scale up or down based on demand quickly. They're cost-effective for variable workloads with a pay-as-you-go model and provide access to a broad ecosystem of integrated services and innovative tools to enhance database functionality.
  • Hybrid cloud
    Hybrid clouds combine the advantages of private and public clouds, keeping sensitive data on-premises while leveraging public cloud scalability for non-sensitive applications. This mitigates single points of failure, ensures higher availability, and helps meet regulatory requirements.
  • Multi-cloud
    Using multiple clouds can prevent vendor lock-in, allowing organizations to choose the best services and pricing from different providers. This approach optimizes operations, reduces downtime risks, and enhances business resilience by not relying on a single cloud provider.
  • Polycloud
    Polycloud lets organizations use specialized services from different providers when their unique capabilities are best for specific PostgreSQL management tasks. This harnesses each provider's strengths for efficiency, performance, and a competitive edge. For instance, one cloud could gather and process IoT data while another handles complex analytics.
Can PostgreSQL cloud databases scale automatically? chevron_right

Yes, most PostgreSQL cloud databases offer automatic scaling, a feature that dynamically adjusts resources based on workload demands. This capability ensures optimal performance while maintaining cost efficiency, making it easier for developers to manage and scale their databases without manual intervention.

What backup and recovery options do CSPs provide for PostgreSQL databases? chevron_right

Cloud providers ensure data durability and availability through various backup and recovery features. These include automated backups, which regularly create snapshots of your database; point-in-time recovery, which allows you to restore your database to a specific timestamp; and streamlined replication setups, which enable easy creation of database replicas for high availability and disaster recovery purposes.

How does performance in cloud-based PostgreSQL compare to on-premise? chevron_right

PostgreSQL cloud databases can match or surpass on-premise deployments depending on the configuration and the cloud provider's infrastructure.

Cloud-based deployments allow developers to dynamically adjust performance settings and scale resources to optimize application performance. However, they remain vulnerable to network connectivity and multi-tenant workloads, which can impact performance.

To ensure a successful migration, developers should assess their performance needs, evaluate the provider's SLAs and infrastructure, and thoroughly test the chosen configuration.

How easy is migrating a non-PostgreSQL database to a PostgreSQL cloud database? chevron_right

Many cloud providers offer various tools and services to simplify the migration of existing databases to the cloud.

For example, EDB’s Migration Portal assesses Oracle database compatibility with EDB Postgres Advanced Server (EPAS). At the same time, the EDB Migration Toolkit helps migrate smaller databases from Oracle, PostgreSQL, or EPAS to EDB Postgres® AI Cloud Service.

More sophisticated migrations can leverage tools like the EDB Replication Server, an asynchronous replication system that enables data replication between PostgreSQL databases or from non-PostgreSQL databases to PostgreSQL.

What security features do DBaaS products typically offer? chevron_right

Most DBaaS products offer a comprehensive set of security features, including automatic encryption for data at rest and in transit, support for customer-managed encryption keys, database authentication via Cloud IAM, network access controls through VPC, and configurable firewall settings.

While many DBaaS providers adhere to security standards and privacy regulations like SOC, PCI, GDPR, and HIPAA, organizations with highly sensitive data or stringent compliance needs may find the lack of direct control over data storage and management in DBaaS challenging.

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