Deciding whether to keep your business servers on-site or move them to the cloud is a key choice that affects how your company stores data, runs applications, and protects information. On-site servers are physical machines located at your business premises, while cloud servers are hosted remotely by a service provider and accessed over the internet. Each option has implications for cost, security, reliability, and how your team works every day.
Why this matters for Canadian SMBs
For small and mid-sized businesses in Canada, this decision impacts downtime risk, data security, and compliance with privacy expectations such as those outlined in PIPEDA. On-site servers can offer direct control but require ongoing maintenance, physical security, and backup management. Cloud servers shift much of that responsibility to the provider, often improving uptime and disaster recovery but requiring trust in a third party and reliable internet connectivity.
Downtime or data loss can disrupt operations, reduce staff productivity, and damage customer trust. For example, if your on-site server fails and backups are incomplete or slow to restore, your team might be unable to access critical files or applications for hours or days. Conversely, a well-chosen cloud provider typically offers redundant systems and automated backups, reducing that risk.
A practical example
Consider a Canadian manufacturing company with 50 employees that runs inventory and sales software on an on-site server. When a power surge damaged their server hardware, they lost access to sales data for two days, delaying orders and frustrating customers. After consulting with an IT partner, they migrated critical applications and data to a Canadian cloud provider with strong security and backup policies. This change improved their system availability and allowed staff to work remotely during outages or emergencies.
What to ask your IT provider
- How do you handle data backups and disaster recovery? Are backups stored off-site or in multiple locations?
- What security measures protect on-site servers versus cloud environments? How do you manage updates and patches?
- Can you provide uptime guarantees or service level agreements (SLAs)? What happens if there's downtime?
- Where are cloud servers physically located? Are they in Canada or compliant with Canadian data privacy regulations?
- How do you support remote access and mobile work securely?
- What are the ongoing costs for hardware, maintenance, and cloud subscriptions?
Simple internal checks
- Review your current backup process: Are backups automated, tested regularly, and stored separately from the primary servers?
- Check physical security for on-site servers: Are they in locked rooms with restricted access?
- Verify user access controls and password policies to minimize insider risk.
- Assess internet reliability and speed if considering cloud hosting, as connectivity is critical.
Choosing between on-site and cloud servers involves balancing control, cost, security, and business continuity. A trusted managed IT provider or advisor can assess your specific needs, risks, and compliance requirements to recommend the best approach. Engaging with a knowledgeable partner helps ensure your infrastructure supports your business goals reliably and securely.