Cloud-Based vs On-Premises: Introduction to Security
The Case for On-Premises Video Redaction
Cloud-based vs On-premises Security: Introduction. Facit’s Identity Cloak is an on-premises (in-house) video redaction solution. Many of our customers hold high-risk, highly sensitive data, such as in the NHS healthcare sector. By redacting video to produce compliant records of events and incidents, they are already implementing data protection best practices to ensure that people’s personal data is not compromised. The next step is tackling cyber security and deciding how to keep video assets secure from both internal hazards, cyber threats and emerging threats. IT professionals must evaluate whether on-premises storage offers the best security.
Our customers, from large retailers to national transport organisations, have decided that it introduces risks of data breaches to allow data to leave their own IT environments, for processing, redaction or storage.
Facit’s on-premises video redaction solution offers more security by running entirely within a company’s own IT infrastructure. By keeping sensitive video data behind the organisation’s firewalls, it minimises exposure to external threats and eliminates the need for cloud transfers.
Processing video in-house means compliance with strict data privacy regulations and full control over access and storage. Ultimately on-premises solutions provide a more secure and reliable environment for handling and redacting confidential video content.
On-Premises and Cloud Computing Security Guide
In today’s digital world protecting sensitive data from external and internal threats has never been more complex as organisations navigate between cloud and on-premises security solutions.
With cyberattacks getting more sophisticated, understanding the fundamental differences between cloud-based vs on-premises attacks is key to implementing a security solution that fits your organisation’s needs.
In this article, we look at the main differences between cloud computing and on-premises security to help IT, Compliance professionals and security professionals plan their strategy to protect data and sensitive information such as videos wherever it resides. Is cloud data storage secure enough for health insurance portability, for example?
Introduction to Data Security
Data security is a big issue for any organisation; it’s about protecting sensitive data from external and internal threats that could compromise its confidentiality, integrity or availability. As organisations continue to digitise, security has never been more important.
Cloud security and on-premises security are two different approaches to securing organisational data. Cloud security relies on the cloud provider to manage the underlying security infrastructure; on-premises security gives the organisation full control over their security measures.
Cloud Computing Definition
Cloud computing is the delivery of computing services - such as servers, storage, databases, networking, software and analytics - over the internet, to enable flexible resources and economies of scale. Key features include on-demand self-service, broad network access, resource pooling, rapid elasticity and measured (metered) service.
Cloud computing allows users with software licences to scale resources as needed, access services globally, reduce IT costs and improve efficiency. Cloud subscription models include public, private and hybrid clouds, all of which offer various levels of control, flexibility and security.
On-Premises Computing Defined
On-premises (on-prem) computing refers to IT infrastructure hosted and operated within an organisation’s physical location. All hardware, software and all data are managed internally, to reap the full benefits of control and customisation. Key features include high security, direct access to data, compliance with strict regulations and industry standards, and minimal internet dependency. On-prem is the preferred option for organisations needing full oversight of data and specialised systems.
Understanding the differences between cloud computing and on-prem is important for several reasons:
Different attack vectors for cloud and on-premises environments
Resource requirements and cost structures are very different
Regulatory compliance may favour one over the other
Security teams face different operational challenges in each environment
Security professionals must weigh up the impact of data breaches, access control and governance requirements when deciding between cloud and on-premises security solutions.
Cloud Computing Security Defined
Cloud computing offers a new way of storing and processing data by providing scalability and flexibility that traditional infrastructures can’t match. But this convenience comes with unique security considerations that organisations must address.
Cloud security refers to the practices, technologies and controls deployed to protect data, applications and infrastructure in cloud environments. Unlike traditional security models, cloud security operates on a shared responsibility model where both the provider and customer have different security obligations.
Cloud providers invest heavily in security to protect their infrastructures including:
Advanced encryption for data in transit and at rest
Multi-factor authentication and sophisticated access control systems
Regular security audits and compliance certifications
Distributed denial-of-service (DDoS) protection
Continuous security monitoring and threat detection
These robust security features and cloud controls allow organisations to benefit from the expertise and resources of dedicated security teams without having to maintain extensive in-house capabilities. But this reliance on third party providers introduces potential vulnerabilities that must be managed carefully.
The cloud model distributes data across multiple physical locations, which creates a different attack surface than on-premises environments. When an organisation uses cloud services, they expose themselves to attacks targeting their specific cloud computing provider. If a threat actor compromises a cloud vendor all client organisations using that provider’s services will be affected as collateral damage.
Trust becomes a key factor when evaluating cloud security solutions. Organisations must thoroughly assess their cloud software vendors’ security practices; even excellent internal security protocols can’t compensate for vulnerabilities in the underlying cloud infrastructure.
On-Premises Security Defined
On-premises security solutions involve managing security infrastructure on-site which gives organisations full control over their security measures and data protection strategies. Unlike cloud environments on-premises security has all systems within physical locations managed by internal teams.
On-premises security is preferred by organisations that need total control over their sensitive data and security infrastructure. On-premises solutions are important to organisations that hold high-risk data such as medical and financial information. In an on-prem environment security teams know exactly where all data resides and can implement comprehensive protection measures tailored to their organisation’s needs.
The characteristics of on-premises security are:
Physical control over all hardware and infrastructure components* Control of all security systems and controls
Defined security perimeters with boundaries
Customised security configurations
Visibility into all security operations and data flows
On-premises can offer more protection against certain types of threats than cloud. With a clear security perimeter organisations can implement strong boundary defences and control access to sensitive resources. IT departments have experience managing these traditional systems with many established security products to secure on-premises perimeters.
But on-premises security requires investment in physical infrastructure and security personnel. Organisations must buy, maintain and upgrade hardware, deploy security measures and employ skilled staff to manage these systems. This can be a challenge for organisations with limited resources or fluctuating security needs.
Despite these challenges, on-premises security still offers advantages for organisations with specific security requirements, particularly those in highly regulated industries or handling sensitive data.
Private Cloud Options
A private cloud offers another hosting option. Depending how it is configured, a private cloud can provide cost savings, as it does not require investment in hardware infrastructure, and can provide robust security and auditability for organisations that have to comply with strict industry regulations.
A private cloud is a dedicated cloud computing environment used exclusively by one organisation, that offers enhanced control, customisation and security.
Unlike public clouds, a private cloud is hosted on-premises or by a third-party provider but is isolated from other users.
Security considerations include robust access controls, data encryption, regular security audits and compliance with industry standards like HIPAA or GDPR.
Organisations must address insider threats, ensure proper network segmentation and implement disaster recovery plans to maintain confidentiality, integrity and availability of data.
Key Differences Between Cloud and On-Premises Security
The main difference between cloud and on-premises security is the level of control and management of security infrastructure. This fundamental difference drives many of the operational and strategic differences.
In cloud security responsibilities are shared between the organisation and the cloud provider. The provider manages the cloud infrastructure and the organisation secures data, applications and access. This shared responsibility model can create security gaps if not clearly understood and implemented.
On-premises security gives organisations more control over their security posture and customised security configurations and direct visibility into all security operations. But this control comes with more responsibility for maintaining security infrastructure and responding to threats.
Other key differences:
Security Perimeters
On-premises has defined boundaries often with a DMZ to protect external facing services
Cloud has fluid boundaries that require different security approaches focused on identity and data protection rather than perimeter defence
Physical Security
On-premises has physical servers that can be compromised if an attacker gets physical access
Cloud has data distributed across multiple locations making physical theft harder but introduces different security concerns
Scalability and Flexibility
Cloud can scale quickly to meet changing needs
On-premises requires capacity planning and potentially significant investment for growth
Cost Structures
Cloud security is OpEx with monthly costs
On-premises is CapEx for infrastructure and operational costs
Incident Response
On-premises allows direct physical access to systems during security incidents
Cloud is remote management which can complicate response to certain types of attacks
Hybrid cloud has emerged as a middle ground, where organisations can keep sensitive data on-premises and use cloud for non-critical functions. This combines the security of both models while mitigating their weaknesses.
Data Protection and Governance
Data protection is the foundation of any security strategy, encompassing the policies, procedures and technologies to protect sensitive information from unauthorised access or data breaches. Both cloud and on-premises require robust data protection but the implementation is very different.
In on-premises data protection benefits from having a defined perimeter to defend. Security teams know exactly where all data resides which makes comprehensive monitoring and protection possible. Even if data is duplicated without authorisation, it’s usually within the protected perimeter and subject to existing security controls.
Cloud distributes data across multiple locations which requires different protection strategies for:
Strong encryption for data at rest and in transit
Granular access controls and least-privilege models
Data loss prevention (DLP) technologies
Data classification and tagging
Regular security assessments and vulnerability testing
Data governance is another key consideration when comparing cloud and on-premises security. Governance is about establishing policies, procedures and standards to ensure data accuracy, completeness and security throughout its lifecycle.
On-premises offers direct control over data location, processing and access which simplifies compliance with regulations that restrict data movement across geographic boundaries. Organisations subject to strict data sovereignty requirements may find on-premises more suitable for compliance purposes.
Cloud requires careful planning to ensure regulatory compliance, especially for organisations subject to industry specific regulations like HIPAA or GDPR. Many cloud providers now offer region specific solutions to address data sovereignty concerns but organisations must still assess their compliance requirements when choosing cloud security solutions.
The split of security responsibilities is also very different. With on-premises solutions the organisation is responsible for all aspects of data protection. In cloud environments the responsibility is shared between the provider and the customer, the exact split depends on the service model. This shared responsibility model requires clear understanding to avoid security gaps.
Access Control and Security Measures
Access control is a key part of data security, it’s about using security measures to determine who can see, modify or delete sensitive information across your environment. The implementation of access control is very different between cloud and on-premises deployments.
On-premises environments typically have:
Physical access controls to server rooms and data centres
Network segmentation and traditional perimeter security
Role-based access controls managed through on-site directory services
Network monitoring and intrusion detection systems
Manual security updates and patch management
Cloud security solutions often have more advanced access control capabilities:
Automated identity and access management (IAM)
Multi-factor authentication and single sign-on (SSO)
Continuous access verification and zero-trust models
AI-powered anomaly detection and threat intelligence
Automated security updates and patch management
Physical security is another big difference. On-premises solutions require significant investment in physical security controls to protect server rooms and data centres, including surveillance systems, access card readers and environmental monitoring. Cloud providers have industrial-grade physical security at their data centres which is often better than what an individual organisation could do themselves.
Network security approaches are also very different. On-premises environments rely on traditional network perimeters protected by firewalls and intrusion detection systems. Cloud environments use more distributed security models with multiple security layers and micro-segmentation strategies that can provide better protection against certain types of attacks.
Security monitoring is different in each environment. On-premises systems allow direct access to security logs and events but require significant investment in monitoring tools and trained personnel. Cloud security solutions often have robust monitoring capabilities but provide less visibility into the underlying infrastructure.
Organisations must carefully consider these differences when designing access control strategies especially in hybrid cloud environments where the same security policies must apply to both cloud and on-premises resources.
Data Breaches and Cloud Solutions
Data breaches are one of the biggest security risks facing organisations today with potential consequences of financial loss, regulatory penalties and reputational damage. The type of data breaches and mitigation strategies are different between cloud and on-premises environments.
In on-premises environments data breaches are usually caused by:
Perimeter security failures
Insider threats from employees or contractors
Physical security compromises
Unpatched vulnerabilities in systems or applications
Social engineering attacks targeting internal users
Cloud security solutions face different breach scenarios:
Attacks on the cloud provider’s infrastructure
Misconfigured cloud resources exposing sensitive data
Account hijacking through compromised credentials
API vulnerabilities or insecure integrations
Shared technology vulnerabilities affecting multiple customers
If a cloud provider is targeted by a sophisticated attack all organisations using that provider could be affected as collateral damage. This is a concentration risk not present in on-premises deployments. However major cloud providers invest heavily in security measures that often exceed what an individual organisation can do, potentially reducing the overall breach likelihood.
The attack surface is very different between these models. Cloud-based assets have a larger attack surface owing to internet exposure and potential vulnerabilities in the shared infrastructure. Systems are vulnerable to different attack vectors, especially physical access or insider threats.
Organisations must develop breach prevention strategies tailored to their infrastructure model. Cloud security solutions have advanced threat detection and response capabilities, on-premises security has more visibility and control over security operations. In either case security professionals must monitor for potential vulnerabilities and implement robust security measures to protect sensitive data.
Data Recovery and Business Continuity
Data recovery and business continuity are critical components of any security strategy. The ability to recover from a security incident or disaster can mean the difference between a minor disruption and a major failure.
On-premises environments require organisations to implement and maintain their own backup and recovery infrastructure. This approach gives complete control over the recovery process but requires significant investment in redundant systems, backup technologies and disaster recovery sites. Organisations must also test recovery procedures regularly to verify they work during an actual emergency.
When dealing with denial-of-service attacks on-premises solutions have the advantage of physical access to the affected systems. If a server becomes unresponsive owing to an attack IT staff can physically restart the equipment to restore service. This direct access can be useful during certain types of incidents but requires on-site personnel to implement recovery measures.
Cloud software and cloud environments have built-in redundancy and disaster recovery capabilities, often spread across multiple geographic regions for resilience against localised disasters. These systems can provide automatic failover during outages and simpler recovery procedures than traditional approaches. However, they can present challenges during certain attack scenarios; if a cloud-based server becomes unresponsive to remote commands during an attack, recovery could be more complicated than with physical access.
Many cloud vendors and providers offer disaster recovery services that can enhance business continuity capabilities compared to traditional approaches. These services typically include:
Automated backup systems with point-in-time recovery options
Geographic redundancy across multiple data centres
Rapid failover for critical systems
Continuous data replication and synchronisation
Simplified recovery testing and validation
When evaluating data recovery options consider:
Recovery time objectives (RTOs) and recovery point objectives (RPOs)
Geographic distribution of backup and recovery resources
Testing and validation procedures for recovery processes
Compare third party provider and data centre standard security measures with advanced security measures, such as those associated with private cloud services or continuous monitoring options.
Integration with existing systems and applications
Cost of different recovery strategies
Data storage capacity offered by cloud-based services and data centres, and the relative costs of increasing storage capacity in-house, i.e, infrastructure costs
Ultimately the choice between cloud and on-premises recovery solutions should align with your broader business continuity objectives and risk tolerance. Many organisations are using hybrid cloud computing environment, a cloud computing model that leverages the strengths of both environments to increase overall resilience against security threats and disasters.
Conclusion
Understanding the fundamental differences between cloud-based vs on-premises attacks is key to developing a security strategy that fits your organisation’s needs and resources. Both have their advantages and challenges that security professionals must consider.
Cloud security solutions offer scalability, advanced security features and lower infrastructure costs but require organisations to trust third party providers with their sensitive data. Cloud service providers invest heavily in security measures that often exceed what an individual organisation can do independently but also introduce shared infrastructure risks that must be managed.
On-premises security gives complete control over security infrastructure and data protection strategies which allows organisations to implement customised security measures to their specific needs. This provides more visibility and direct management of security operations but may require significant investment in physical infrastructure and security personnel.
Many organisations are finding that hybrid cloud solutions offer the best of both worlds by keeping sensitive data on-premises and using cloud for less critical functions. A hybrid data storage solution combines the security benefits of both data handling models while mitigating their respective drawbacks.
Regardless of which approach you choose security requires:
Comprehensive understanding of attack vectors
Clear definition of security responsibilities
Robust access control and data protection measures* Security testing and vulnerability scanning
Incident response plan
Best Practice Hosting: Video Processing
As organisations transmit increasingly large file sizes generated by security cameras, transmission speeds and image quality can be affected by the type of Internet connection and variable traffic conditions on public networks. Connectivity is another important consideration when making your cloud vs on-premises security decision.
If you have questions about the relative performance or security of in-house and cloud video processing, data redaction, data protection compliance or best-practice storage, we’d be delighted to answer them.
Q&A: Cloud and On-Premises Security Pros and Cons
Q: Which is more secure: cloud or on-premises?
A: It depends. Both have strengths and risks. Cloud providers often offer stronger baseline security, but on-premises can offer greater control if managed well. The weakest link is usually configuration and maintenance, not the platform itself.
Q: What are the key security advantages of cloud?
A:
Advanced security tools (AI-driven threat detection, DDoS protection, etc.)
Regular patches and updates by the provider
Redundant data backups and disaster recovery capabilities
Shared responsibility model encourages clear security roles
Scalability and centralised monitoring
Q: What are the key security advantages of on-premises?
A:
Full control over hardware, software and policies
Customisable to unique compliance or operational needs
Data sovereignty; no data leaves the premises
Avoids reliance on internet connectivity
Q: What’s the shared responsibility model in cloud security?
A:
Cloud provider secures the infrastructure (data centres, hardware, network)
Customer secures data, identity/access management, app-level security
Misconfigurations by customers are a common vulnerability
Q: What are typical security concerns with cloud?
A:
Data breaches owing to misconfigurations or weak credentials
Vendor lock-in or lack of transparency
Multi-tenancy risks (though largely mitigated in practice)
Data residency and compliance with regional laws
Q: What are typical security concerns with on-premises?
A:
Underfunded security teams
Delayed patching and updates
Physical security risks
Lack of 24/7 monitoring
Higher risk from internal threats if not well-audited
Q: Which is better for compliance-heavy industries (e.g. finance, healthcare)?
A: Both can meet compliance standards (HIPAA, GDPR, etc.), but:
Cloud providers often have certified environments
On-prem may be preferred where full data custody is required
Decision often depends on specific regulatory interpretations
Q: Is security more cost-effective in cloud or on-prem?
A:
Cloud: Security is baked into the subscription licence cost and scales with use
On-prem: High upfront costs for hardware, software, staff
Long-term, cloud is often more cost-effective, especially for smaller organisations
Q: Which is better for rapid threat response?
A:
Cloud providers often offer real-time monitoring, auto-remediation and 24/7 SOCs
On-premises security can lag behind without dedicated resources or tooling
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