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Guide to IT Infrastructure for Your Small Business

When you're setting up a small business you have decisions to make about IT infrastructure. This guide is for you!

6 min read
Guide to IT Infrastructure for Your Small Business

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Navigating the vast world of IT infrastructure can be daunting, especially for small businesses. But understanding your choices and their implications is essential for smooth operations, scalability, and security. If you've ever wondered how to set up IT infrastructure for your small business, this guide will walk you through key considerations and benefits, focusing on cloud services.

On-Premises vs. Cloud Infrastructure: The Basics

Businesses often decide between on-premises and cloud-based solutions when setting up IT infrastructure. Both have their advantages and challenges. To make an informed decision, it's essential to have a comprehensive understanding of both avenues.

On-Premises Infrastructure

On-premises infrastructure refers to hosting servers, networking hardware, storage devices, and other critical equipment within the business premises or in a third-party data center.

Physical Requirements

  • Space: Adequate room for housing the equipment, which may include server racks, storage arrays, and networking gear.
  • Cooling & Ventilation: Servers and networking equipment generate heat, making cooling essential to ensure they operate efficiently and have a longer lifespan.
  • Electrical Needs: Robust electrical infrastructure to handle the power demands of the hardware. Also, backup power solutions like UPS (Uninterruptible Power Supply) or generators are crucial to maintaining uptime during power outages.
  • Security: Physical security measures such as restricted access areas, surveillance cameras, and biometric access controls to protect against theft or tampering.

Operational Considerations

  • Maintenance & Upgrades: Regular maintenance, including software updates and hardware upgrades, is necessary. This often entails downtime or reduced operational capacity during updates.
  • Capital Expenditure: Requires a significant initial investment in hardware, software licenses, and infrastructure setup. This also includes potential replacement costs for obsolete or malfunctioning hardware.
  • In-house Expertise: Requires skilled IT personnel for setup, maintenance, and troubleshooting.

Cloud Infrastructure

Cloud infrastructure is a virtual environment hosted by third-party cloud service providers into which you can move or initialize your business data, applications, and processes.


  • Dynamic Allocation: Resources can be scaled up or down depending on the business needs, allowing for flexibility and cost savings.
  • Global Reach: Many cloud providers offer a global network of data centers, enabling businesses to deploy their applications closer to their customers for better performance.

Operational Benefits

  • Pay-as-you-go: Businesses can adopt a subscription-based model instead of high upfront costs, paying only for the resources they use.
  • Automatic Updates: Cloud providers handle software updates, security patches, and other maintenance tasks, ensuring that the business consistently has access to the latest features without the associated operational overhead.
  • Backup & Recovery: Many cloud providers offer automated backup solutions and disaster recovery services, ensuring business continuity.

Accessibility & Collaboration

  • Remote Access: Business data and applications are accessible from anywhere with an internet connection, fostering collaboration and remote work.
  • Integration: Cloud platforms often provide integrations with third-party applications and services, streamlining business processes.

Security & Compliance

  • Encryption: Data in transit and at rest is often encrypted, providing security against breaches.
  • Compliance: Many cloud providers offer infrastructure compliant with global regulations and standards, reducing the compliance burden on businesses.

While on-premises solutions offer more direct control and can cater to specific business needs, they come with significant upfront costs and maintenance challenges. Cloud infrastructure, on the other hand, provides scalability, flexibility, and cost-saving benefits, making it an attractive option for many businesses, especially SMBs. The decision should hinge on the business's specific needs, growth projections, and budget considerations.

Why Choose the Cloud for Your Small Business? Revealing the Advantages

For the uninitiated, the cloud is another tech buzzword. However, with the increasing digital age demands, the cloud has proven to be a game-changer, especially for small businesses. Here's why you should consider leaping:

  1. Cost-Effectiveness
    • No Upfront Costs: Traditional IT infrastructure requires a hefty investment in hardware and software licenses upfront. In contrast, cloud services typically operate on a subscription-based model. This translates to minimal initial expenses and a predictable monthly or yearly fee.
    • Operational Expenses vs. Capital Expenses: Cloud services fall under operational costs instead of capital expenses involving purchasing and depreciating assets. This can offer tax benefits and smoother cash flow management for businesses.
  2. Scalability and Flexibility
    • Adaptable Resources: As your business grows or experiences fluctuations, the cloud allows you to scale resources up or down, ensuring you only pay for what you use.
    • Rapid Deployment: Launching new applications or services becomes faster, letting small businesses respond swiftly to market changes or customer demands.
  3. Business Continuity and Disaster Recovery
    • Automated Backups: Regular backups mean that a recent version of your data is always available even if something goes wrong.
    • Geographic Redundancy: Cloud providers store data in multiple locations, ensuring that your business remains online and functional even if one data center faces issues.
  4. Remote Work and Collaboration
    • Anywhere Access: With the cloud, your team can access files and collaborate from anywhere with an internet connection, a boon for businesses looking to adopt flexible work arrangements.
    • Unified Tools: Platforms like Microsoft 365 or Google Workspace offer an array of collaboration tools, from email to document editing, all integrated seamlessly into the cloud.
  5. Advanced Security Features
    • State-of-the-art Security Protocols: Cloud providers invest significantly in security, often providing better protection than a small business could afford. This includes encryption, firewall protection, and intrusion detection systems.
    • Regular Updates: Security patches and updates are regularly rolled out, ensuring vulnerabilities are addressed promptly.
  6. Access to Cutting-Edge Technologies
    • Innovation: Many cloud providers offer access to advanced technologies like Artificial Intelligence, Machine Learning (a subset of AI), and Big Data analytics as part of their service suite. This lets small businesses harness potent tools that would otherwise be out of reach.
    • Integration Capabilities: Cloud platforms frequently support integrations with other software and tools, allowing businesses to create a customized, interconnected IT ecosystem.
  7. Environmental Impact
    • Green Computing: With cloud computing, businesses share resources, leading to more efficient energy usage and a reduced carbon footprint. This benefits the planet and can enhance a company's reputation among eco-conscious consumers.

For small businesses, the cloud offers unparalleled flexibility, cost savings, and access to advanced tools. By leveraging the cloud, even the smallest enterprises can compete in today's digital marketplace with agility and innovation. If you're looking for a solution that grows with your business, supports remote work, and prioritizes security, the cloud should be at the top of your consideration list.

What Small Business Functions Require On-Premises IT Infrastructure?

Even in a world where the cloud is rapidly becoming the standard, there are specific small business functions where on-premises IT infrastructure may still be the preferable, or even necessary, choice. Let's investigate these functions to understand why local solutions might be favoured.

1. Specialized Hardware Operations:

  • Industrial Equipment Control: Some manufacturing or industrial processes might require real-time control systems, where latency could disrupt operations. Directly connected on-premises systems are often favoured for such critical tasks.

2. Data Sensitivity and Security:

  • High-security Operations: For businesses dealing with highly classified, sensitive, or proprietary data, having on-site infrastructure provides an added layer of control and security. This opens the door to hybrid-cloud solutions.

  • Physical Security Measures: Biometric systems, surveillance cameras, and access control systems might be better managed on-site due to real-time requirements and integration with physical security hardware.

3. Legacy System Operations:

  • Aging Systems and Software: Older, legacy systems that aren't compatible with modern cloud environments or would be costly to migrate may be better kept on-premises.

  • Legacy Data: Historical data that isn't accessed frequently but needs to be retained for compliance or other reasons might remain on older on-premises systems.

4. Real-time Processing Needs:

  • Immediate Data Processing: Businesses that need to process data in real-time, without any latency, might opt for on-site servers, especially if cloud solutions cannot guarantee the required speed.

5. Network Reliability:

  • Unstable Internet Connectivity: In regions or specific locations where internet connectivity is spotty or unreliable, relying on cloud infrastructure isn't always viable. On-premises solutions can ensure business continuity in such scenarios.

6. Regulatory and Compliance Mandates:

  • Data Residency Laws: Some jurisdictions have strict data residency laws that mandate certain types of data remain physically within the country or region. In such cases, businesses might opt for local servers to ensure compliance.

  • Industry-specific Requirements: Some industries, like finance or healthcare, have strict guidelines about data handling, processing, and storage. On-premises solutions can offer more direct control in meeting these guidelines.

7. Customization and Specialized Needs:

  • Highly Customized Solutions: Some businesses may use highly specialized software or systems tailored to their needs. It might be difficult or impractical to shift to a standard cloud solution.

8. Cost Considerations:

  • Economic Feasibility: If a business has already made significant investments in on-premises hardware and infrastructure, it is more economical to continue using these resources rather than transitioning to the cloud.

While the cloud revolution is undeniable, it's clear that on-premises solutions are still relevant for specific business functions. Companies must critically evaluate their operations, requirements, and future growth trajectories to determine the best IT infrastructure mix that suits their unique needs.

In Conclusion

Crafting the proper IT infrastructure for your small business is about embracing the latest technology and aligning it with your long-term business vision. While on-premises setups might cater to specific niche requirements, the cloud, especially with platforms like AWS, provides unparalleled scalability, flexibility, and cost-effectiveness. Whether you're a budding start-up or a growing SMB, the cloud promises to be a dependable partner in your journey.

This guide only scratches the surface of what's available in AWS. See what some business leaders learned when trying to set up IT infrastructure on their own. Setting up the IT infrastructure for your small business isn't something you need to do on your own – Pilotcore is here to help! We are a registered AWS partner with decades of combined experience, so our team can help set up the ideal infrastructure for your business needs. Contact us today to learn more!

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