11.0.3 Cloud vs On-Premises

The Big Decision: Build or Rent?

Think about transportation:

On-Premises = Owning a Car

  • You buy it ($30,000+)

  • You maintain it (oil changes, repairs)

  • You insure it

  • It sits in your garage when not used

  • You control everything

  • When it breaks, you’re stuck!

Cloud = Using Uber/Taxi

  • Pay only when you need a ride

  • No maintenance worries

  • Always available

  • Different car for different needs

  • Don’t need parking

  • If one breaks, another comes!

Detailed Comparison

┌──────────────────────────────────────────────────────────────┐
│                    ON-PREMISES vs CLOUD                      │
├────────────────────────┬─────────────────────────────────────┤
│   On-Premises (Your    │    Cloud (Provider's Servers)       │
│      Own Servers)      │                                     │
└────────────────────────┴─────────────────────────────────────┘

Cost Structure

On-Premises

Cloud

High upfront cost

No upfront cost

($50,000-$500,000 for servers)

(Start for free!)

Fixed monthly costs

Variable monthly costs

Pay whether you use it or not

Pay only for what you use

Example: Want to start a website?

On-Premises:
- Buy server: $5,000
- Networking: $2,000
- Setup: $3,000
- Power/Cooling: $200/month
- IT person: $8,000/month
────────────────────────
Total Year 1: $110,400

Cloud:
- Small server: $50/month
- Storage: $50/month
- Network: $10/month
- Maintenance: $0 (included!)
────────────────────────
Total Year 1: $1320

Time to Deploy

On-Premises

Cloud

Order servers: 2-4 weeks

Click button: 30 seconds

Delivery: 1-2 weeks

Already available!

Setup: 1-2 weeks

Automatic

Testing: 1 week

Ready to use

Total: 1-2 months

Total: Less than 1 minute

Container Deployment Comparison

On-Premises Container Setup:
┌────────────────────────────────────────┐
│ Week 1: Order hardware                 │
│ Week 2-3: Hardware delivery & setup    │
│ Week 4: Install OS and Docker          │
│ Week 5: Set up Kubernetes cluster      │
│ Week 6: Configure networking           │
│ Week 7: Set up monitoring              │
│ Week 8: Security hardening             │
│ Week 9: Finally deploy your app!       │
└────────────────────────────────────────┘

Cloud Container Setup:
┌────────────────────────────────────────┐
│ Minute 1: Create EKS/AKS/GKE cluster   │
│ Minute 2: kubectl apply -f app.yaml    │
│ Minute 3: Your app is running!         │
└────────────────────────────────────────┘

Maintenance & Updates

On-Premises

Cloud

You do everything

Provider does infrastructure

Hardware failures = Your problem

Provider replaces hardware

Security patches = Your job

Automatic security updates

Software updates = Your time

Managed by provider

Night/weekend emergencies = You!

24/7 support team

Geographic Reach

On-Premises

Cloud

One location (your office)

Global locations available

Want another city? Build new

Want another city? Click button

datacenter

and select region

Cost: $$$$$

Cost: Same price!

Time: 6-12 months

Time: Seconds

Scalability

On-Premises

Cloud

Need more power?

Need more power?

→ Buy more servers

→ Slide a scale up

→ Wait for delivery

→ Get it instantly

→ Install and configure

→ Automatic

→ Weeks/months

→ Seconds

Real-World Story:

Gaming Company Example:

OLD WAY (On-Premises):
- New game launches
- Everyone wants to play!
- Servers crash
- Players angry
- Can't add servers fast enough
- Lost players = Lost money

NEW WAY (Cloud):
- New game launches
- Set auto-scaling: "Add servers when load > 80%"
- System automatically adds 50 more servers
- Everyone happy!
- Game finishes trending?
- Scales back down automatically
- Only paid for extra servers during peak!

Kubernetes-Specific Comparison

On-Premises Kubernetes:

# What YOU have to manage
cluster-setup:
  master-nodes: "Install and configure"
  worker-nodes: "Install and configure"
  networking: "Set up CNI (Calico, Flannel)"
  storage: "Configure persistent volumes"
  load-balancer: "Install and configure (HAProxy, nginx)"
  monitoring: "Set up Prometheus + Grafana"
  logging: "Set up ELK stack"
  backup: "Configure etcd backups"
  updates: "Manually update Kubernetes"
  security: "Configure RBAC, network policies"

Cloud Managed Kubernetes:

# What the CLOUD PROVIDER manages for you
cluster-setup:
  master-nodes: "Fully managed by provider"
  worker-nodes: "Auto-scaling node groups"
  networking: "Pre-configured with cloud networking"
  storage: "Integrated with cloud storage"
  load-balancer: "Cloud load balancer integration"
  monitoring: "Built-in cloud monitoring"
  logging: "Integrated cloud logging"
  backup: "Automatic backups"
  updates: "Automatic Kubernetes updates"
  security: "Cloud IAM integration"

Your GitHub Actions Pipeline Stays the Same!

# This workflow works with both on-premises and cloud Kubernetes
name: Deploy to Kubernetes

jobs:
  deploy:
    steps:
      - name: Build Docker image
        run: docker build -t myapp:${{ github.sha }} .

      - name: Push to registry
        run: |
          # On-premises: docker push private-registry.company.com/myapp:${{ github.sha }}
          # Cloud: docker push gcr.io/project/myapp:${{ github.sha }}

      - name: Deploy to Kubernetes
        run: |
          kubectl set image deployment/myapp myapp=myapp:${{ github.sha }}
          kubectl rollout status deployment/myapp

Responsibility Model

YOUR RESPONSIBILITY LEVELS:

On-Premises (You manage everything):
┌─────────────────────────┐
│  Your Application       │ ← You
├─────────────────────────┤
│  Runtime & Framework    │ ← You
├─────────────────────────┤
│  Operating System       │ ← You
├─────────────────────────┤
│  Virtual Machine        │ ← You
├─────────────────────────┤
│  Physical Servers       │ ← You
├─────────────────────────┤
│  Networking             │ ← You
├─────────────────────────┤
│  Storage                │ ← You
├─────────────────────────┤
│  Data Center Building   │ ← You
└─────────────────────────┘

Cloud (Shared responsibility):
┌─────────────────────────┐
│  Your Application       │ ← You
├─────────────────────────┤
│  Runtime & Framework    │ ← You
├─────────────────────────┤
│  Operating System       │ ← Provider
├─────────────────────────┤
│  Virtual Machine        │ ← Provider
├─────────────────────────┤
│  Physical Servers       │ ← Provider
├─────────────────────────┤
│  Networking             │ ← Provider
├─────────────────────────┤
│  Storage                │ ← Provider
├─────────────────────────┤
│  Data Center Building   │ ← Provider
└─────────────────────────┘

You focus on your app!
Provider handles infrastructure!

When to Use Each?

Use On-Premises when:

VERY strict data regulations (some government/financial)
Already invested millions in infrastructure
Unique hardware requirements (specialized chips)
Existing staff and expertise
Internet connectivity is unreliable
Predictable, steady workloads
Complete control required

Use Cloud when:

Starting something new (startup, new project)
Want to launch quickly
Usage varies (peaks and valleys)
Want global reach
Don't want to manage infrastructure
Want to try new technologies easily
Focus on application development
Need automatic scaling

Migration Strategy: The Smart Way

Don’t Move Everything at Once!

Phase 1: Start Small (Lift and Shift)
┌────────────────────────────────────┐
│ Move: Development/Test environments│
│ Keep: Production on-premises       │
│ Learn: Cloud basics safely         │
│ Risk: Low                          │
└────────────────────────────────────┘

Phase 2: Cloud-Native (Re-platform)
┌────────────────────────────────────┐
│ Move: New applications to cloud    │
│ Use: Managed databases, Kubernetes │
│ Keep: Critical legacy systems      │
│ Risk: Medium                       │
└────────────────────────────────────┘

Phase 3: Full Cloud (Modernize)
┌────────────────────────────────────┐
│ Move: All suitable workloads       │
│ Use: Serverless, AI/ML services    │
│ Keep: Only compliance-required     │
│ Risk: Managed                      │
└────────────────────────────────────┘

Container-First Migration Strategy:

Step 1: Containerize Applications Locally
- Package apps in Docker containers
- Test with docker-compose
- Validate functionality

Step 2: Deploy to Local Kubernetes
- Use minikube or k3s
- Learn Kubernetes basics
- Create deployment manifests

Step 3: Move to Cloud Kubernetes
- Same YAML manifests work!
- Just change image registry
- Configure cloud-specific features

Cost Optimization Strategies

Smart Cloud Cost Management:

Development Environment:
┌─────────────────────────────────┐
│ Auto-shutdown at night          │
│ Weekend shutdown                │
│ Use spot/preemptible instances  │
│ Monitor and set budget alerts   │
└─────────────────────────────────┘

Production Environment:
┌─────────────────────────────────┐
│ Auto-scaling based on metrics   │
│ Use appropriate storage tiers   │
│ Choose optimal regions          │
│ Right-size your containers      │
└─────────────────────────────────┘

GitHub Actions Cost Optimization:

# Optimize CI/CD costs
name: Cost-Efficient Pipeline

jobs:
  build:
    runs-on: ubuntu-latest  # Free for public repos
    if: github.event_name == 'push' && github.ref == 'refs/heads/main'

    steps:
      - name: Build only on main branch
        run: docker build -t myapp .

      - name: Deploy only during business hours
        if: |
          github.event_name == 'push' &&
          contains(fromJSON('["main", "production"]'), github.ref_name) &&
          contains(fromJSON('[1,2,3,4,5]'), fromJSON(format('{0}', github.event.head_commit.timestamp)))
        run: kubectl apply -f k8s/

Note

Most modern companies use cloud! Even if they have some on-premises infrastructure, they’re moving to cloud for new projects.

The trend is clear: Cloud is the future!

Your containerization skills make you cloud-ready!

Warning

Important: Moving to cloud doesn’t automatically save money!

  • Monitor your spending actively

  • Use cost management tools

  • Set up budget alerts

  • Regularly review and optimize

  • Turn off unused resources

Think of it like leaving lights on: - Leave resources on 24/7 = High cloud bill - Turn off when not needed = Low cloud bill

Same principle applies!