The cloud-versus-on-premise question comes up in almost every infrastructure assessment we run for manufacturers in Gifu and Aichi. Vendors on both sides present their position as obviously correct. The honest answer is that it depends on factors specific to each organisation. This article sets out the framework we use to think through the decision.
Connectivity reliability varies more than people expect ¶
Cloud infrastructure depends on a stable internet connection. For most offices in Gifu City, this is not a concern. For manufacturing plants in more rural parts of Gifu or Mie Prefecture, or for operations that need to function during network outages, the reliability of the internet connection deserves serious scrutiny before committing to a cloud-first architecture. A hybrid approach, where critical production systems run on-premise and less time-sensitive functions move to the cloud, is often the most practical answer.
Data residency under the Act on the Protection of Personal Information ¶
If your organisation handles personal data, the data residency policies of any cloud provider need to be reviewed against your obligations under the Act on the Protection of Personal Information (個人情報保護法). Some cloud providers store data in data centres outside Japan by default. This does not automatically create a compliance problem, but it requires careful review of the data processing agreement and, in some cases, explicit consent from the individuals whose data is being processed.
Internal maintenance capacity is often the deciding factor ¶
Cloud infrastructure shifts the maintenance burden to the provider. On-premise infrastructure requires someone to manage it: applying patches, monitoring hardware health, managing backups, and responding to failures. For organisations with limited internal IT capacity, this is often the most important factor in the decision. If the person managing your on-premise servers leaves, you have a problem that cloud infrastructure would have avoided.
There is no universal right answer to the cloud-versus-on-premise question. The right answer is the one that fits your organisation's specific situation, budget, and risk tolerance. Our Infrastructure Roadmap engagement is designed to help you reach a well-reasoned conclusion based on your actual circumstances.