The Best of Both Worlds: Cloud-Prem Infrastructure for Security, Flexibility, and Control

Cloud computing was a breakthrough in convenience and cost compared to housing and maintaining on-site servers for companies’ data and applications. But the landscape has shifted, thanks to greatly heightened security risks, higher data transport demands from applications like AI, and a growing need for both control and flexibility that the cloud can’t offer. 

This has led to more interest in a “best of both worlds” approach increasingly known as “cloud-premises computing,” or just “cloud-prem.” Also sometimes known as Hybrid Cloud, this approach involves separating user data storage from application and execution, with the “data plane” generally hosted and managed on-site and the “control plane” managed in the cloud, often by a vendor.

Cloud-prem reduces vendor lock-in, reduces data latency, can improve security, and makes compliance easier.

You Control the Data – Not Your Vendor

A hybrid approach to hosted services generally means an on-site server that handles user data, and a cloud instance that runs the application layer, sometimes with help from a software vendor. For instance, a health service might store patient data locally, while a software provider integrates edge computing for patient monitoring in the cloud.

This approach lets an in-house IT administrator deploy all applications with uniform, pre-set data controls. Direct, physical control of data also means long-term flexibility: In the event of a vendor switch or new integration, having data on your own servers keeps handovers worry-free. Using standard data approaches such as Kubernetes and PostgresDB makes shifting or expanding to a new front-end app practically plug-and-play.

The practical benefits can be massive if you deal with a lot of vendors. In a pure cloud-SaaS model, 12 services can mean 12 different databases, each controlled by a vendor. By putting you back in control of your data, cloud-prem can make interaction among the data for all these applications much simpler. Overall, a customer who controls their own data also has more control over their own applications.

Security In Your Hands

For even slightly sensitive applications, the cloud has always been a dicey proposition. Cloud SaaS struggles to provide the necessary safeguards for handling a lot of PII or health information, and newer AI and data-monitoring applications need extensive access permissions, meaning higher risk in a cloud environment. As one commenter put it, “Securing cloud assets that may be open to the public or accessible via API means battling a Medusa.”

The changing threat environment makes this challenge even bigger: major data breaches and ransomware attacks rose sharply in 2024. More and more attackers are backed by hostile governments, and the average cost of a data breach reached $4.88 million, according to Nordlayer. Cloud breaches were even more damaging, averaging $5.17 million.

It requires in-house expertise that’s not always cheap, but local data control offers greater control over security measures, from individual and application privileges to the ability to simply take data offline entirely in a catastrophic situation. That could be particularly important in a ransomware scenario, and those attacks have become increasingly frequent and costly.

Location, Location, Location

Where your data “lives” geographically is important for reasons other than security. For a long time, high-grade broadband meant there was plenty of bandwidth, even for tasks like streaming video. But the advent of AI has begun to push up against those boundaries, making “data gravity” an issue.

One example is in finance, where algorithmic fraud detection is now nearly ubiquitous. This and similar applications require significant privileges over sensitive data. Keeping data and processing near each other can be a security advantage while reducing bandwidth costs and even shaving down service latency.

The cloud-prem hybrid model also addresses regulatory controls on data’s physical location. While the U.S. has no Federal data localization law, specific regulations or rules cover data handling by health care providers (HIPAA), the financial industry (PCI DSS), and government contractors. Specific state regulations, such as California’s CCPA, may also have implications for your data localization and control duties. While cloud providers can offer specific data locations, the assurances may not be sufficient for higher-risk or regulated sectors. 

So, if you’re facing localization requirements, need to go the extra mile for more agility and security, or want to get the most out of innovations in artificial intelligence, cloud-prem could be a strong fit for your secure computing strategy. 

Learn More about Cloud-Prem

At SpruceID, we leverage cloud-prem computing to ensure secure, flexible, and compliant data management for our clients, providing the best of both worlds in an increasingly complex digital landscape. If you're looking to enhance your organization's data security and control when it comes to verifiable digital credentials, contact us today to learn how we can help you implement a tailored solution.

About SpruceID: SpruceID is building a future where users control their identity and data across all digital interactions.