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Cloud-Based vs On-Premises Security: Where to Process and Host Data

Cloud vs On-Premises Security.
In this article, we look at the main differences between cloud and on-premises security to help IT and Compliance professionals plan their strategy to protect data and sensitive information such as videos wherever it resides.

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 to decide how to keep video assets secure from both internal hazards and cyber threats, and 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 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 and on-premises security to help IT and Compliance professionals plan their strategy to protect data and sensitive information such as videos wherever it resides.

Cloud-based vs on-premises security against data breaches for compliance.

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.

Understanding the differences between these two 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 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 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 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 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.

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 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 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 due 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 due 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 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 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

  • Integration with existing systems and applications

  • Cost of different recovery strategies

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 approaches that leverage the strengths of both models 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 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 storage solution combines the security benefits of both 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

If you have questions about the relative security of in-house and cloud video processing, data redaction, or best-practice storage, we’d be delighted to answer them.

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