Cloud Storage or Server Storage? Which is best for your company?

| Updated on October 5, 2023

When it comes to the best digital asset management tools, many people get confused about leveraging cloud storage or server storage.

However, this article will help you make a great choice between the two as we’ll look at what they both are and their pros and cons.

In the last ten years, cloud storage gained popularity in business circles as it has amazing features like the following;

  • Disaster recovery
  • Cloud-based apps
  • File syncing

However, some companies use server storage to store their data and find it hard to migrate to cloud storage. Therefore, we want to look at both forms of storage to see which is better.

What is Cloud Storage?

Cloud storage signifies that a third-party service provider like Daminion will host your company’s data with their infrastructure.

Not only that, they’ll be the ones to procure, install, and maintain all the hardware and software that keeps your data alive.

One of the selling points of cloud storage is that it enables instant digital asset management. You can access your files from anywhere around the world.

All you need is an internet-enabled device like a personal computer, mobile phone, tablet, etc.

That’s not all,

What is Server Storage?

Server storage signifies that you’re hosting your company’s data within your in-house server installed in your premises by a third-party service provider like Daminion.

Furthermore, the server storage digital asset management system is controlled and maintained by your in-house IT team or Daminion’s engineers.

With your server storage, you’re able to share data between the computers in your local network.

With that said,

What are the Advantages and Disadvantages of Server Storage and Cloud Storage?

The comparison of cloud storage and server storage will cover the following;

  • Maintenance and costs
  • Security and threat protection
  • Scalability

This comparison will help you make the right choice between cloud storage and server storage digital asset management platforms.

Security and Threat Protection

Regardless of whether your database is on your premises or cloud-based, the security of your data should be at the top of your list.

Meanwhile, let’s look at the advantages and disadvantages of cloud storage and server storage related to security.

Server Storage

Most companies who opt for server storage believe that it enables them to control their data with fewer data breaches.

In essence, fewer people will have access to the server storage, eliminating any potential security breach.

However, server storage requires constant maintenance and monitoring of your physical infrastructures like servers, office space, hardware, and network.

Also, it requires high-level security experts to set up a formidable firewall, encryption, and safe access control.

Cloud Storage

Cloud storage simplifies the process of maintaining and monitoring your data center because a third-party service provider handles everything for you.

Although, regardless of whether you chose server storage or cloud storage, Daminion digital asset management service provider will help you secure your data in the following ways;

  • Network protection
  • Threat monitoring and assessment
  • Access control systems
  • Data redundancy
  • Mass file deletion protection
  • Application security
  • Suspicious login monitoring
  • Suspicious activity monitoring
  • Continuous validation
  • Etc

Maintenance and Costs

Many business owners make business decisions by considering the costs involved. However, when the security of your data is at stake, money shouldn’t stand in your way.

Meanwhile, let’s look at the differences between cloud storage and server storage related to cost and maintenance.

Server Storage

For the server storage, you’ll spend more to set it up compared to the cloud storage.

The reason is that you’ll need to set aside a huge capital to procure the hardware, data backup, IT services, software licensing fees, and much more.

When Daminion helps you install your digital asset management system, you’ll need internal IT support staff to monitor the system and provide adequate security.

Furthermore, you’ll have to upgrade the software license and the hardware once a better version is available to the public.

This may look like a big investment if you’re a new business just starting.

Although, with the server storage, you won’t need to pay for cloud storage subscription fees.

Also, you’ll reduce your internet bills since your infrastructure does not consume much bandwidth like cloud storage.

Cloud Storage

The biggest selling point of cloud storage is that you don’t need a huge capital to do the initial setup.

Instead, your third-party digital asset management master data service provider like Daminion will handle everything from their end, and you’ll only have to pay for their services.

With Daminion, you’ll have to get in touch with us to evaluate your needs before we tell you the costs of using either the server storage or the cloud storage.

Furthermore, the maintenance/support, software, and security upgrades fall within the Daminion’s domain.

Also, in most cases, the cost to set up cloud storage is far less compared to server storage.

The reason is that with server storage, you’ll need a big space, electricity costs, cooling equipment, etc. However, your service provider handles everything with cloud storage since it’s online.


When your business begins to grow, you’ll want to scale up, and if your business starts to perform poorly, you might also need to scale down.

However, how does scalability affect server storage and cloud storage?

Server Storage

When you discover that your server storage can no longer store your data as it should because of your growth, you’ll need to get the following;

  • New software or hardware
  • Increased memory
  • Computing power    
  • etc

Since the components are physical, you’ll need to pay for the upgrades.

Cloud storage

With cloud storage, the reverse is the case. It is very easy to scale up and down because you don’t need to stack servers all over the place.

With a few mouse clicks, you can leverage the features of your cloud storage to increase your computing power, memory and update your system software.

The Bottom Line

With the modern technology in today’s world, small, medium, and large businesses ought to take advantage of cloud storage.

Cloud storage can safely store your files, and it provides you with so many features that can grow your business.

At the same time, if you still wish to go the old-fashioned way (server storage), we can help you with the installation.

If you still have more questions about whether to leverage server storage or cloud storage, you can contact us with your questions, and we’ll simplify things for you.

Book a free demo with us today to see how Daminion digital asset management software can help your business.

Alex Jones


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