Video streaming in the cloud vs. on-premises: costs and benefits

Video streaming refers to the process of delivering video content over the Internet in real time. This allows users to watch videos without downloading them. Instead, the video data is sent in a continuous stream so viewers can watch the video as it is delivered. Video streaming is popular in various fields such as entertainment, education, and business. Hosting your video streams can be done on-premises or in the cloud, and each solution has its benefits.

Cloud video hosting is the storage and streaming of video content through a third-party cloud-based service. Instead of hosting your video files on a server, manage your content with a remote cloud hosting provider. That provider uses video-optimized infrastructure to store, transcode, and deliver your videos to your viewers.

The world is moving towards cloud-based solutions, and video streaming is no exception. Recent years have seen a huge shift to cloud computing.

Many businesses and organizations are now adopting cloud computing, which provides a more flexible and scalable way to access and manage computing resources. Businesses can now leverage the resources of cloud providers, scale up or down as needed, pay only for what they use, and have access to the latest technology.

As a result, cloud computing is quickly becoming the preferred model for businesses and organizations.

Cloud providers adhere to many compliance standards by default, which can save you time. Having security experts protecting your network means you can focus more time on delivering your streaming experience.

Being on the cloud means you can access your infrastructure from anywhere. This allows for more flexibility when it comes to recruitment.

Another benefit of cloud hosting is scalability. This means you can handle sudden spikes in traffic without worrying about your servers crashing or being overloaded. This is especially important for video hosting, as traffic can be unpredictable and bandwidth-intensive.

On-premises video streaming refers to hosting video files on a server. This means that you are responsible for purchasing and maintaining the hardware and handling all associated costs and maintenance tasks. Just because you’re hosting the infrastructure doesn’t necessarily mean you need to handle everything software-related. You can use solutions that are explicitly optimized for on-premises streaming. Many cloud stream providers will also offer on-premises software solutions.

The most important benefit of on-premises video streaming is control. Hosting your server gives you complete control over your infrastructure. This is especially important for companies with specific security and compliance requirements. If you prefer, on-premises solutions are more customizable overall than cloud-based solutions, allowing you to customize your streaming experience.

Certain customers, such as government agencies, financial institutions, and healthcare providers, have particular needs for more specialized solutions, such as having video available only on their corporate intranet.

And because your data is in your control, you can invest more in protecting it and thwart bad actors with more confidence than if you trusted a third party.

Additionally, you have complete control over your infrastructure, allowing you to optimize your hardware to meet your specific needs. This helps you avoid overpaying for resources you don’t need.

There are several important factors to consider when comparing cloud and on-premises video hosting.

With cloud hosting, you typically pay a monthly fee to your provider based on the amount of traffic and storage you’re using. This means you only pay for the resources you need. This is especially beneficial if you’re just starting out or experience a sudden spike in traffic. Additionally, your cloud hosting provider will take care of the maintenance and upgrades for you, so you won’t have to worry as much about investing in server hardware or hiring dedicated professional staff.

On-premises video streaming can have higher initial costs because you must maintain your own hardware and IT staff. Although it requires a significant upfront investment in hardware compared to cloud solutions, this path can also offset the cost over several years in certain situations. It is also suitable for organizations that have already established an on-premises IT infrastructure through a physical data center.

Below is a direct breakdown of specific cloud and on-premises video hosting cost factors.

On-premises video hosting requires purchasing and maintaining hardware, which can be a significant capital expense initially. You will also have to research and wait until the equipment arrives. Cloud video hosting eliminates the need to purchase and maintain hardware because the provider handles everything, the provider already knows which hardware stack is best for you, and has enough inventory to deploy quickly without waiting too long. have.

On-premises video hosting requires you to install and configure video hosting software, which can be expensive and time-consuming. With cloud video hosting, your provider will install and set it up for you, and you can set it up to be provisioned automatically. Additionally, your hosting provider will handle all future upgrades, usually at no additional charge.

On-premises video hosting typically requires you to purchase a license and subscription for video hosting software or pay a developer to create or extend functionality. Cloud video hosting allows you to pay subscription fees, including special software licenses, at a much lower cost.

On-premises video hosting is prone to downtime and can be costly. Cloud video hosting typically offers better availability guarantees with uptime service level agreements (SLAs).

On-premises video hosting can be more difficult to scale up or down, require expensive hardware upgrades or replacements, and can be under- or over-utilized. Cloud video hosting allows you to easily scale up or down when you need to, using only the resources you need.

On-premises video hosting offers more flexibility when it comes to customization and integration, but may also require additional development and maintenance costs. Cloud video hosting offers fewer customization options, but provides more cost-effective video-specific add-on services that are reliable, tested, and scalable.

On-premises video hosting requires periodic replacement of hardware, which can be costly, complex, and time-consuming. With cloud video hosting, your provider handles hardware replacement in the event of a failure.

On-premises video hosting may require you to hire additional technical staff to be available on-site 24/7. In the event of an emergency, you may be able to respond more quickly. With cloud video hosting, technical support is typically included in your subscription fee at a much lower cost, and you have access to highly specialized personnel. However, response times and quality of support may vary.

On-premises video hosting requires you to hire and work onsite staff to manage the hardware, software, and network infrastructure. The provider handles most of the management on the cloud video hosting side, reducing the need for additional staff to maintain the hardware. The cloud also allows you to outsource your workforce by allowing your team to access your cloud infrastructure from anywhere.

On-premises video hosting is more expensive due to the need to maintain physical security, cyber security, and compliance staff. With cloud video hosting, you may have to pay for application security, but your provider will cover it for you.

On-premises video hosting requires managing backup and disaster recovery solutions. For cloud video hosting, providers typically manage backup and disaster recovery as part of your subscription.

On-premises video hosting requires ongoing operational costs such as power, on-site physical security, and cooling. Cloud video hosting is typically just an ongoing expense each month, but if you exceed your bandwidth limits or experience unexpected price increases, you can end up paying hefty bills.

When deciding between cloud and on-premises video hosting, it’s important to consider factors such as video hosting cost, scalability, control, and security. Cloud hosting offers ease of use and lower upfront costs, while on-premises hosting gives you more control over security, compliance, and software stacks. Regardless of the option you choose, it’s important to prioritize security, scalability, and reliability.

Still have questions? The most helpful people at Liquid Web’s Hosting® will be happy to help.