Web Hosting, Domains & Website Management
Business software, shared files and email can run on a server in your own building or in the cloud, on a provider's servers reached over the internet. Each depends on different things: a local server on your power and upkeep, the cloud on your internet connection.
What you will learn
Applies to
Tools Required
No tools needed.
Before you start
Important
Step-by-Step Guide
1 / 6 steps
Step 1
Local server: everything in the building
Staff reach the server over the office network. It is fast and keeps working when the internet is down, but you look after power, cooling and backups.
Expected result: Fast local access, with all the upkeep on you.
Staff in the office, at branches or at home reach the same service over the internet. The provider runs the hardware and power.
Expected result: Access from anywhere, as long as there is internet.
With the office link down, a local server keeps working inside the building, but cloud services cannot be reached until the connection returns.
Expected result: You can see why a backup internet link matters for cloud systems.
A local server must stay on a UPS long enough to ride through short cuts or shut down cleanly. Cloud services keep running, but office devices still need power.
Expected result: Power protection is part of the cost of a local server.
Email and collaboration in the cloud, a local server or NAS for large files and offline systems, connected through the office router.
Expected result: Balanced cost, speed and resilience.
Copy the local server to an off-site or cloud backup, and back up important cloud data separately. Keep one copy offline or unchangeable.
Expected result: No single failure, theft or ransomware attack can take every copy.
Troubleshooting
Likely cause The internet connection is too slow or shared by too many users.
Solution Measure usage, upgrade the connection, and keep heavy files on a local server or NAS.
Likely cause Everything depends on one connection.
Solution Add a second connection on a different technology, or keep critical systems available locally.
Likely cause No UPS, or the UPS cannot shut the server down cleanly.
Solution Fit a correctly sized UPS with automatic shutdown and test it.
Likely cause Sync copied the deletion everywhere; there was no separate backup.
Solution Restore from the service's version history if available, and set up a separate backup.
Likely cause No secure remote access set up.
Solution Set up a VPN or another secure remote access method; never expose the server directly to the internet.
In Depth
Business software, shared files and email can run on a server in your own building or in the cloud, on a provider's servers reached over the internet. Each depends on different things: a local server on your power and upkeep, the cloud on your internet connection.
For public websites the answer is almost always a data centre; we cover that in shared hosting vs VPS vs cloud. This guide is about everything else: business systems, files, email and internal applications.
Note Extrion supplies hosting and installs servers, and earns from both. No provider paid for or reviewed this comparison.
Local (on-premises) hosting means a server in your office or server room runs your applications and stores your files. You own the hardware, and you are responsible for power, cooling, physical security, updates and backups.
Cloud hosting means a provider runs the servers in a data centre. You rent capacity, or subscribe to a finished service such as cloud email, file storage or accounting, and reach it over the internet. The provider is responsible for the hardware and the building; you remain responsible for your accounts, data, settings and who has access.
| Local server | Cloud | |
|---|---|---|
| Upfront cost | Server, UPS, rack and set-up | Usually low; monthly or annual fees |
| Running cost | Power, maintenance, replacement after some years | Subscription that grows with users and storage |
| Internet outage | Office keeps working on the local network | No internet, no access |
| Power cut | Server needs a UPS, and ideally a generator or solar | Provider handles power; your office still needs power for devices |
| Remote access | Needs a VPN or another secure remote access method | Available anywhere with internet |
| Speed in the office | Fast on the local network | Depends on your internet connection |
| Backups | Your responsibility; an off-site copy is essential | Often some protection built in, but check what is included |
| Security | You control it and must maintain it | Strong platform security; you must secure accounts |
| Scaling | Buy new hardware | Add capacity quickly |
Internet reliability. If your connection is slow, shared by many users or often down, cloud systems feel slow and can stop work. A second connection on a different technology (for example fibre plus 4G) reduces that risk.
Power. A local server needs a UPS sized for your outages, ideally backed by a generator or solar, and a cool, dry, secure room. Servers that lose power repeatedly risk corrupted data and failed disks.
Data protection. Tanzania's Personal Data Protection Act, 2022 covers personal data whether it sits on an office server or in the cloud. In outline:
If a cloud provider would store your customers' or staff's personal data abroad, check these points and your sector's own rules first. This is a summary, not legal advice.
Local support. Someone must be able to reach a local server when it fails, including at weekends. For cloud services, check where support is provided and in which time zone.
Many businesses combine the two: email and collaboration in the cloud, a local server or NAS for large files or a system that must work offline, and backups of both kept somewhere else. This often balances cost, speed and resilience well.
Wherever your data lives, keep at least one copy somewhere else, test that you can restore it, and keep one copy offline or unchangeable so ransomware cannot reach it. A cloud service is not automatically a backup: a deleted or encrypted file can be synchronised everywhere within minutes. Our backup and disaster recovery guide explains the 3-2-1 rule, and our backup and disaster recovery service can set it up.
For most small and medium businesses, cloud email and collaboration tools are a sensible default, with business applications chosen case by case. Keep a local server only where it clearly earns its place, and count power, cooling, replacement and backups as part of its cost. Whatever you choose, plan for the day the internet or the power fails.
If you are deciding where your systems should run, Extrion offers cPanel hosting (shared hosting, VPS servers and dedicated WordPress hosting). See our hosting and backup and disaster recovery services, or contact us.
This guide is general information. Procedures, product features and firmware change, so check your own equipment's documentation before you start.
FAQs
Large providers invest heavily in physical and technical security, but most cloud incidents involve stolen passwords or wrong settings. Use multi-factor authentication and review who has access. A well-maintained local server can be secure too; a neglected one is risky.
Yes, with planning. Data migration, user accounts and how each application will run in the cloud need to be worked out first, and the internet connection may need upgrading.
Many businesses plan to replace servers after several years, when warranties end and failures become more likely. Budget for replacement from the start.
Yes. Someone still needs to manage accounts, devices, security settings, backups and the office network.
Possibly. The Personal Data Protection Act, 2022 restricts transfers of personal data abroad, and the PDPC asks organisations to apply for a cross-border transfer permit first. Check the current requirements with the PDPC or a lawyer before moving customer or staff records.
It depends on the number of users and what they do. Email and accounting need little; large shared files and video calls need much more. A second, backup connection matters as much as speed.
We set up backups you can restore from, test them, and write the recovery plan with you.
Ask for clarification, tell us a problem this did not solve, or suggest a topic. An engineer reads every message, and we use them to improve the Knowledge Center.
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