Where should your company’s servers be located?

IT operations are a frequently overlooked yet critical core business service. Deciding where to place hardware and servers has significant implications for security, flexibility, and cost. In an era of heightened uncertainty, making an informed choice is more important than ever.

The geopolitical climate means political tensions can trigger sudden and unpredictable consequences for cloud customers. With increasing risks of industrial espionage and growing compliance requirements, the need for secure and stable IT infrastructure is rising.

Businesses have several strategic options for server placement. They can retain infrastructure in-house, outsource part of it to a private cloud, opt for a bespoke European cloud solution, or rely on major international cloud providers like AWS, Azure, or Google Cloud. Each option has its own advantages and drawbacks that must be carefully weighed against the company's needs and risk profile.

Balancing control and flexibility

Hosting servers in-house gives maximum control over data and systems. It supports GDPR compliance, offers predictable costs and provides direct access when making changes but requires significant investment in hardware, physical security, and IT expertise. Without sufficient internal resources, there may be challenges from the dependency on key individuals and meeting maintenance requirements.

A hybrid setup, where servers are owned by the company but managed by an external partner, can offer a better compromise. It removes the burden of providing physical security and the power supply, while retaining ownership and control. However, the hardware still needs updating, and reliance on a third party may reduce flexibility.

Cloud solutions – scalable but complex

A private cloud can provide a tailored balance of control and flexibility. Initial costs are lower, and companies benefit from SLAs that ensure stable operations and backups. However, service offerings may be more limited compared to the major providers, and vendor lock-in remains a concern.

Public cloud services offered by tech giants deliver scalable, flexible platforms with access to advanced tools and fast implementation. This supports the rapid development of new IT solutions and agility in the market. However, they can bring unforeseen costs, complex management, and potential GDPR issues – especially with data transfers outside the EU. The Schrems II ruling has already highlighted the need for strong governance in this area.

Migration requires planning

Once a strategy is chosen, the next step is to plan the migration. This complex process involves moving systems and data without disrupting daily operations. A thorough mapping of the IT environment, a clear timeline, and effective onboarding of any new suppliers are essential for a successful transition.

IT strategy demands action – not delay

For many, moving away from big tech providers can feel overwhelming, and some hope the EU will offer alternatives. But waiting is rarely the best strategy. Businesses should actively assess their IT infrastructure now to guard against future risks and make the most of existing opportunities. A well-informed decision can deliver both financial and security benefits – and it's a strategic priority that shouldn’t be postponed.

Read the article in Danish Computerworld.