Across London and the UK, many businesses continue to run critical operations on ageing on-premise IT systems. Servers, storage arrays and network devices installed years ago — once state-of-the-art — now struggle to keep up with modern demands. As warranties expire and software reaches end-of-life, the usual instinct is to replace like for like.
But is investing in new hardware always the best option? Increasingly, companies are exploring cloud alternatives that promise flexibility, scalability and lower overheads. However, moving entirely to the cloud is not necessarily the right choice for every organisation.
As a trusted MSP in London, Proxar IT Consulting works with companies of all sizes to assess these decisions. In this article, we explore the real costs of sticking with on-premise infrastructure, the compelling benefits of cloud, and the scenarios where keeping some systems on-site still makes the most sense.
The true cost of replacing on-premise hardware
On the surface, swapping out ageing servers for newer models seems straightforward. Modern equipment is faster, more power-efficient, and typically comes with better management tools. However, businesses often underestimate what a full refresh actually involves:
- High upfront capital costs: Purchasing enterprise-grade servers, storage and networking gear is a major investment, especially once redundancy and licensing are factored in.
- Installation and migration: Transitioning from old to new equipment requires careful planning to avoid disruptions. Even with the best project management, there’s often some downtime.
- Ongoing maintenance: New hardware still needs power, cooling, monitoring and regular updates. And it will start ageing from day one, bringing you back to the same refresh cycle in a few years.
Replacing on-premise infrastructure without exploring alternatives can lead to unnecessary capital expenditure and lock the business into a cycle of continual hardware investment.
Why the cloud is so attractive
Cloud computing has matured considerably in the last decade. Today, it offers far more than just offsite storage or virtual servers. Leading cloud platforms deliver secure, resilient, and scalable environments that allow businesses to pay only for what they use.
A Managed Service Provider often helps organisations unlock key benefits such as:
- Operational cost model: Rather than investing heavily upfront, cloud services are billed monthly or annually, turning IT into an operational expense (OpEx). This preserves cash flow and makes costs more predictable.
- Scalability on demand: Whether you’re expanding into new markets or experiencing seasonal peaks, cloud resources can scale up or down without waiting weeks for new hardware.
- Robust security and compliance: Major providers invest heavily in physical and cyber security measures, as well as certifications that small businesses would find hard to achieve on their own.
- Business continuity: Built-in redundancy, backup and disaster recovery options minimise risk and help ensure operations continue even if a local issue arises.
- Support for modern working: With remote and hybrid working now common, cloud-based systems make it easier for staff to collaborate securely from any location.
But cloud is not always right for everyone
Despite these advantages, moving to the cloud isn’t a universal solution. For some businesses, keeping systems on-site still makes sense — or a hybrid approach might be the best fit.
Reasons to retain on-premise infrastructure include:
- Legacy or specialist applications: Certain industries rely on applications that were never designed for the cloud and would be costly or risky to re-engineer.
- Strict data sovereignty or compliance rules: Organisations handling sensitive data may need to keep information within their own facilities to meet contractual or regulatory requirements.
- Predictable, steady workloads: If your IT needs are stable and you already own depreciated equipment, sticking with on-prem can sometimes be more cost-effective over the long term.
- Connectivity limitations: Cloud performance depends on reliable, high-speed internet. For sites with limited bandwidth or frequent outages, on-premise infrastructure may remain essential.
A hybrid approach: often the best of both worlds
In reality, many businesses find that a hybrid strategy delivers the greatest value. This might involve moving email, collaboration tools and customer-facing services to the cloud, while retaining critical databases or production systems on-premise.
As an experienced MSP in London, Proxar frequently designs hybrid solutions that give clients:
- Greater flexibility: The ability to keep sensitive systems local, while leveraging the scalability of the cloud where it makes sense.
- Improved resilience: Using cloud-based backups and disaster recovery for on-prem workloads adds an extra layer of protection.
- Cost efficiency: Combining models can help control spend, avoiding over-provisioning either on-site or in the cloud.
How a Managed Service Provider adds value
Deciding whether to refresh on-premise equipment, move to the cloud, or combine the two isn’t easy. Each option comes with financial, technical and operational implications.
A trusted Managed Service Provider brings expertise to navigate these choices, offering:
✅ Independent assessments: Helping you weigh up costs, risks and performance needs without being tied to any one vendor.
✅ Smooth migrations: Whether to new on-prem hardware or into the cloud, ensuring transitions are seamless and downtime is minimised.
✅ Ongoing support: Proactively managing your environment, whether on-prem, in the cloud, or hybrid, so you can focus on running your business.
