Why do companies prefer local hosting over web hosted software applications? The most heard reason is data security. Yes, we all want our data to be located where only we can access it. But will the local hosting make my data security absolute?

Let us compare them:

Self-hosted Application

Merits:

• Security
• Better speed.

Demerits:

• Hardware infrastructure and maintenance cost.
• Need for staff to manage IT infrastructure.
• Limited accessibility.
• No instant support.
• No easy recovery if lost data.

Hosted (cloud) Application:

Merits:

• IT infrastructure and services outsourced.
• Accessibility over internet.
• Smooth product upgrades and support.
• Specialized data center services.
• Automated backups.
• Easy exit option.     

Demerits:

• Data stored in remote location.
• Internet connectivity.

Trends

As per the Gartner groups research, SaaS market is growing every year at the rate of 20%. Its current total valuation stands at $12.1 Billion and is expected to reach $21.3 Billion by 2015.[1]

Security

Hosting your data locally and keeping it offline will protect your data from online hackers. But it cannot be protected if an insider leaks your data. Someone can easily backup companies confidential data in flash drive and walk away. Self-hosting may not be as secure as you think.

IT Infrastructure Outsourced

Every company needs to focus on its core competency which contributes to growth, and have the software take care day-to-day operations and other repetitive task.

Product Upgrades

Upgrades are a lot smoother in web hosted application. The service providers can remotely upgrade, monitor and provide support on new feature releases.

Concludingly, if you can trust your expensive and confidential possessions with courier company, why not trust software company for your data??

Reference:
1. Gartner groups research on SaaS market.