Cloud-based hosting solutions are extremely popular and it certainly serves an
important role in many organizations, however, on-premises infrastructure is still a suitable option for some organizations and merchants.
You need to consider several factors before choosing on-premises hosting, including significant sunk costs, a readily available pool of competent/cost-effective IT expertise, and the fact that on-premises applications can often be more readily tailored and adapted to an organization’s needs.
When compliance regulations, such as when data must be stored in a specific geographic location, on-premises hosting solutions are more advisable. Many organizations are more likely to stick with on-premises hosting when they are still depreciating their hardware and software costs and they have no compelling technical or economic reason to change.
Keep in mind that to effectively leverage all that the cloud has to offer, business often must rewrite traditional applications designed on a microservices architecture. In most instances, a “lift and shift” to the cloud doesn’t result in tremendous savings.