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Mykhailo Vihovskyi shared recommendations on choosing local, cloud or hybrid infrastructure

On January 9, 2024, Intecracy Group hosted an online expert webinar where Mykhailo Vihovskyi discussed the strategic criteria for choosing between on-premises, cloud, and hybrid infrastructure.

On January 9, 2024, Intecracy Group consortium held its regular online event in the format of the Intecracy Expert Webinar, dedicated to one of the most pressing topics in modern IT management — the strategic choice between on-premises, cloud, and hybrid infrastructure. The keynote speaker of the event was the prominent IT expert Mykhailo Vihovskyi. During the webinar, the participants thoroughly discussed the architectural and strategic approaches to building a modern digital environment for organizations. The central focus of the discussion was a detailed analysis of the criteria for selecting an infrastructure model, taking into account information security, financial optimization, and specific requirements for data storage and processing.

The event was led by SL Global Service, an Intecracy Group member.

On-Premises vs. Cloud Technologies: Finding the Balance

Modern businesses and public institutions often find themselves at a crossroads when it comes to upgrading legacy IT systems. The traditional approach, which relies on local on-premises servers, guarantees complete physical control over equipment and corporate data. However, it demands significant initial capital expenditures (CapEx), alongside ongoing costs for maintaining dedicated IT staff and servicing power supply and cooling systems. On the other hand, the concept of Cloud and Hybrid Infrastructure offers unparalleled flexibility, rapid scalability, and a transition to operational expenditures (OpEx). Yet, blindly following cloud trends without a clear understanding of architectural nuances can lead to unexpected budget growth and introduce new security vulnerabilities.

The Hybrid Model as a Flexible Management Tool

This is why special attention during the webinar was paid to the hybrid approach. A hybrid infrastructure allows organizations to combine the best features of both local and cloud environments. For instance, mission-critical databases containing customer personal data or trade secrets can remain within the secure local perimeter of the organization. Meanwhile, less critical services, front-end applications, or testing and development environments can be successfully migrated to a public cloud. This distribution optimizes workloads and ensures high system fault tolerance during peak usage periods without compromising data confidentiality.

“The choice between local architecture and cloud services should never be a tribute to fashion or the result of a spontaneous decision. It requires a deep engineering and financial calculation. Every organization must clearly assess its regulatory constraints, network latency requirements, and the real total cost of ownership over a three-to-five-year horizon. A hybrid approach often becomes the ideal compromise, as it allows keeping control over critical assets within the security perimeter while simultaneously utilizing the limitless computing power of the cloud to scale business applications. The main task is to build correct and secure communication channels between these two environments,” noted Mykhailo Vihovskyi during his speech.

Economic Analysis and Regulatory Compliance

An important aspect analyzed in detail by the speaker was the regulatory and legal requirements for data storage. In many industries, such as the financial sector, healthcare, or public administration, strict rules apply to data localization. Organizations are legally required to store the personal data of citizens exclusively within national borders. Under such conditions, using foreign public clouds exclusively becomes legally impossible. This is precisely where Cloud and Hybrid Infrastructure solutions demonstrate their maximum efficiency, allowing organizations to build a private cloud based on their own or leased local data centers and integrate it with global cloud platforms for tasks that do not fall under strict regulations.

Data Security as the Cornerstone of Infrastructure

Cybersecurity remains the number one priority for any Chief Information Officer. On-premises infrastructure often creates an illusion of complete security due to physical isolation. However, it remains vulnerable to internal threats and requires colossal efforts to protect against modern advanced persistent threats (APTs). Cloud providers, conversely, invest billions of dollars in security systems, compliance certifications, and incident monitoring, making their platforms extremely resilient. Nevertheless, cloud security is based on a shared responsibility model: the provider is responsible for the security of the cloud itself, while the client is responsible for securing their data and access configurations within it.

Decision-Making Methodology for Businesses

In conclusion of the webinar, a basic decision-making algorithm for IT leaders was presented. The first step is to conduct a thorough audit of current systems and classify data by criticality levels. The next stage is calculating the Total Cost of Ownership (TCO) for each scenario, including costs for communication channels, software licensing, and staff training. Only after this can one proceed to design the target architecture. Integrating modern infrastructure solutions allows companies not just to adapt to market changes, but to create a reliable technological foundation for business continuity under any crisis conditions.