DIY can still make sense
Operating your own data centre has its pros and cons. There are a few main factors to consider when ascertaining whether running sophisticated software on-premises remains the best option for your firm.
The primary pluses of doing so are 1) that you have full flexibility to customize the software in a way that best serves your needs; and 2) that you retain full control over it. The degree of both is something the cloud cannot offer. You choose the hardware (or have already done so) that your system runs on and can optimize it for your specific requirements.
Operating costs represent the main disadvantage of hosting a system yourself. They can run vastly higher than in a cloud computing environment. An on-premises setup necessitates major investment in server hardware, software licenses, sophisticated data security, integration capabilities, and employing IT specialists to support the installation and manage any issues that arise from it. There is also the maintenance you’ll be forced to budget for when something breaks down or doesn’t work.
The key questions to ask are: Will your company genuinely benefit from managing your back-office business operations yourselves? Do you have the necessary knowledge and experience to do so? As a financial firm, does investing in IT and IT staff create value? Is this an area that you want to devote significant resources to?
For multinational companies with large installations the answer might be yes, because they can achieve economies of scale. Organizations that are not in a position to move to the cloud at present might also find operating Avaloq on-prem a good interim move until they are better situated to opt for Software as a Service later.
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