On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Security   

• Stronger integration with directory services like Active Directory  
• Straightforward configuration with existing company firewalls   
• Software, servers, and infrastructure can be fully optimized for your unique business case   
• Software updates are largely within an administrator’s control  

• Security options are only as good as the humans who create and use them, and the security of your on-premise file servers rests on your in-house administrators avoiding any mistakes or oversights  
• Software updates can be burdensome and introduce risk  

• Two-factor authentication methods are often built in  
• Administrators will have a smaller software updated load in this environment  

• Possible limitation to file transfer protocols/ encryptions 
• A third-party provider becomes a new threat vector  
• Breach liability can be difficult to trace if cloud provider outsources data security  
• Regulatory compliance in strict environments may prevent cloud usage  

On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Access 

• Flexibility to use proprietary/in-house security tools  
• Greater control over directory access permissions  

• On-premise file servers generally require more set-up time  
• Configuring access for distributed users outside your local network can be challenging 

• User access is generally straightforward  
• Set-up is typically faster than an on-premise solution due to pre-configured options

• Small visibility into all access activity on a shared server/data center  
• Interactions with corporate network security protocols may require fine-tuning

On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Data Control 

• Administrators have full control over all data backup locations and file retention policies  
• Logging and reporting can be fully customized based on the organization’s requirements  
• For strict compliance organizations, on-premise file servers present the most transparent data custody  

• Setting up and executing back-up and failover configurations can be time-consuming  
• Monitoring and enacting file retention policies can be time-consuming  
• Enforcing user policy adherence may take significant effort from administrators

• Generally offers plug and play back up and recovery options that do not require additional administration  
• Often have universal policy controls that make compliance requirements easier to implement  

• Often no guarantee that providers will adhere to your data retention policies  
• Your data may be exposed on your provider’s back-up or other servers without your knowledge  
• Available logging tools may not provide the granularity your organization requires

On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Speed  

• File transfer is generally faster due to the data being stored on the same local network as your users  
• Specific protocols can be chosen to enhance transfer speed  
• Compression and encryption settings can be fine-tuned to optimize for speed

• Distributed users may experience slow performance due to distance, VPN usage, etc.  
• Organizations serving data across larger geographies may require distributed infrastructure to transfer files at speed   
• Speed limited by server capabilities and network bandwidth  

• Often provides faster transfer out of the box  
• Transfer speeds can be more consistent across geographies  

• Price tiers may affect file transfer speed  
• Available file transfer protocols may not be ideal for all business uses  

On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Scaling and Resilience 

• On-premise environments can often be augmented with cloud solutions for load spikes  
• Administrators can customize their failover solutions to fit business requirements

• Bandwidth volume and storage space needs to be regularly monitored and adjusted  
• Scale and failover investments often present significant upfront costs  
• Failover testing requires significant administrative time beyond normal business hours

• Bandwidth and storage is easily scalable and can be adjusted based on demand.   
• Resilience is often baked in to a cloud solution, with automatic backups and a lack of risk due to distributed data centers  

• Costs can rise quickly based on high bandwidth or session demand 

On-Premise File Server  

Cloud File Server  

Criteria  

Pros  

Cons  

Pros  

Cons  

Cost 

• On-premise environments typically provide the most cost control  
• Budgets have flexibility to be adjusted to fit business circumstances as opposed to a constant monthly bill 

• Hardware and software expenses and upgrades will be ongoing budget line items  
• Initial infrastructure expenses can be significant  

• Cloud solutions often have extremely affordable entry prices  
• You will not be required to purchase or update/upgrade any hardware  

• Cloud solutions tend to rise in price over time  
• Over the long term, cloud file transfer is generally more expensive