Cloud vs. on-prem SFTP hosting: which is right for your business?

Both models can serve different needs depending on the business concerned, its use-case, resources and priorities. On-premise hosting might appeal to organisations with their own existing infrastructure serving internal-only processes and have the IT staff to manage it, while cloud hosting is often seen as a more flexible and efficient option. 

Here, we’ll break down the key differences between cloud-based and on-premise hosting across a range of areas – including maintenance, security, reliability and scalability – giving you a clearer idea of which option is likely to be best suited to your business. 

Maintenance and management

On-premise hosting means that you’re responsible for the full lifecycle of your infrastructure. This includes managing all the physical hardware, applying software updates and patches, and configuring firewall rules. Your IT team will also have to work with long and complex log files when auditing system activity, which can be time-consuming as well as resource-intensive. These responsibilities can quickly become overwhelming for firms without a large, in-house IT department. 

With cloud hosting, these challenges are handled for you. Your provider takes care of patching, updates and hardware maintenance, ensuring the system remains secure and resilient. Some providers also offer web-based reporting and auditing tools, making compliance checks far easier to manage. Also, because cloud solutions are typically clustered across multiple servers, they offer built-in resilience that on-premise systems can struggle to match without additional resource and cost. 

Security

Security is, of course, a crucial consideration for any file transfer system. With on-premise hosting, your organisation must define and enforce its own security policies. This includes implementing encryption at rest (sometimes requiring additional tools such as a key management system or TPM) and carefully managing any open network ports. These open ports, while necessary for access, can leave your internal network exposed if not maintained correctly. 

Cloud hosting simplifies this considerably. Providers build in advanced security features such as malware detection and automated monitoring for malicious behaviour. Because cloud systems are externally hosted, no inbound ports need to be opened on your internal firewall, keeping your network better protected and entirely segregated from external parties connecting to your Secure FTP service. 

Encryption is also handled for you, with end-to-end coverage including secure protocols like FTPS, SFTP, HTTPS and encryption at rest as standard, with some providers. The end result is a secure environment imposing far less of a day to day burden on your team. 

Compliance 

Adhering to compliance obligations can be another major challenge for on-premise hosting. Your business is solely responsible for running audits, ensuring best practices are followed and configuring secure protocols. Depending on the software used, web-based or end-user management options may not even be available, making it even more complicated to demonstrate compliance. 

Cloud providers, however, are often certified against key standards including Cyber Essentials, ISO 27001 and ISO 9001. This means they not only follow a strong compliance framework, but it also demonstrates best practices to your end users such as clients and suppliers. Some providers include built-in reporting, auditing and compliance support so you can remain compliant with less effort and complexity. For firms in industries where compliance is a top priority for you and/or your users, this additional reassurance can be invaluable. 

Scalability and access 

Scaling up an on-premise hosting solution can be disruptive and expensive. Adding more storage or servers means investing in new hardware and may require downtime during installation. On-premise hosting may also be limited to traditional protocols like standard FTP, with no web-based options for end users. In addition, in most cases, providing external Secure FTP services requires a static public IP address, which can open up your firewall and introduce further security & networking complications. 

Cloud hosting avoids these pain points. You can scale instantly without downtime, with no need to purchase or maintain additional hardware. Cloud solutions also support a wider range of access options, from SFTP and FTPS to HTTPS and browser-based portals. This flexibility makes it easier for both technical and non-technical users to connect securely, without the limitations of older systems. 

Making the right choice 

On-premise hosting continues to play a role, most commonly for internal-only projects in organisations with in-house IT infrastructure and specialist staffing. For these businesses, the control and customisation on-premise hosting provides makes it an attractive option, so long as they have the resources to invest and the ability to manage the ongoing complexity involved. 

However, for most organisations, cloud hosting is a more practical alternative. Its lower maintenance requirements, stronger security out of the box, built-in compliance support and ability to scale effortlessly makes it an excellent option for most businesses. 

At Ridgeon Network, we provide hassle-free, UK-based SFTP hosting that’s designed to be secure, scalable and always available – supported by our dedicated UK team. Get in touch with us today and let’s explore your hosting options.