Cloud services vs on-premises: making the right choice for your business in 2026

As we move into 2026, the cloud has matured into a highly secure, scalable option for most workloads. But on-premises systems still hold value for organisations needing full control, data sovereignty, or ultra-low latency.

So, which direction makes sense for your business?

Cloud services are hosted by third-party providers and accessed online. You only pay for what you use, and your cloud provider manages system maintenance, security, and updates.

On-premises infrastructure on the other hand, is owned and managed internally. Your organisation is responsible for all hardware, software, and ongoing maintenance, but retains complete control.

Cloud adoption continues to accelerate across the UK, and for good reason:

• Scalability & flexibility: Instantly scale resources up or down as your needs change.
• Predictable costs: Replace significant capital investments with a pay-as-you-go model.
• Enhanced resilience: Enterprise-grade security, redundant data centres, and built-in disaster recovery options.
• Seamless remote work: Empower employees to work securely from anywhere.
• Automatic updates: Save time on managing updates and upgrade projects.

The cloud excels when agility, collaboration, and cost predictability are top priorities.

While cloud-first strategies dominate headlines, in some contexts, on-premises setups remain vital:

• Compliance & data sovereignty: Certain sectors, such as finance or healthcare, must store sensitive data locally.
• Performance requirements: Manufacturing control systems or CAD applications often perform best on local networks.
• Legacy integrations: Some older or highly customised systems are better suited to in-house servers.
• Long-term cost management: After the initial capital expenditure, on-premises infrastructure can appear more cost-effective over time.

For on-premise infrastructure, it’s important to consider the ongoing requirement for skilled technical IT resources to maintain, secure and support the environment.

 

In contrast, cloud services typically shift this operational burden to the service provider, allowing businesses to reduce internal IT overheads and focus resources elsewhere. For many organisations, an internal lack of technical expertise can become a key deciding factor in the cloud versus on-premises decision.

For some organisations, the smartest approach is hybrid, which combines the flexibility of cloud with the control of an on-premise server.

A hybrid environment allows you to:

• Host sensitive data locally while running everyday apps in the cloud.
• Modernise legacy systems gradually, avoiding disruption.
• Optimise performance and cost across different workloads.
• Maintain resilience and business continuity.

At Curveball, we design and manage secure hybrid IT environments that align with your business goals and compliance requirements, without unnecessary complexity.

What to consider before deciding on a cloud, on-premise or hybrid solution.

1. What are your compliance and data residency obligations?
2. How critical is uptime, and how resilient is your current setup?
3. Do you have the internal skills to manage a 24/7 infrastructure?
4. How fast is your organisation evolving?
5. What’s your preferred cost model, capital or operational?
6. Can your IT provider effectively integrate both environments?

Answering these questions helps clarify which model best supports your long-term strategy.

Your IT infrastructure is the backbone of your organisation. Whether you choose a cloud, on-premises, or a hybrid solution, the decision should align with your business strategy, not just technology trends.

The goal is to build an IT environment that’s secure, scalable, and sustainable, while also empowering your people and protecting your operations.