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Video Streaming on Cloud vs. On-Premises | Cost and Benefits

By Sabika Tasneem & Rabeea Tahir
A comparison of video storage on cloud vs. storage on premises.

Looking to set up an on-premise video streaming server, or want to use the cloud for video streaming? VIDIZMO EnterpriseTube, a secure YouTube-like enterprise video platform, allows you to create multiple video portals for external or internal use cases to stream video from your premise, or AWS, or Azure, or any cloud you prefer. The question is: is it more feasible to opt for deployment on an on-premise video streaming server or go for a cloud deployment? In this blog, we will explore just that. Learn what on-premise video streaming entails and how does VIDIZMO's video content management system costing differs for an on-premise video streaming server compared to the cloud.

 

The World is Shifting to Cloud

Businesses are increasingly relocating their critical operations, workflows, and applications to the cloud. Worldwide spending on cloud services including its components and professional services is expected to exceed $1.0 trillion by 2024, according to research firm IDC. The shift is driven by a range of factors stemming from rising demands for storage, scalability, security, mobility, innovation, and more – all of which begs the question regarding video hosting costs of cloud vs. on-premises deployment scenarios.

With enterprise video gaining momentum across industries, businesses turn to the cloud to optimize the cost burden associated with mounting needs for video hosting, including its storage, processing, management, security, accessibility, innovation, and more.

Read More: How To Choose The Right Cloud Deployment Model For Your Organization?

With the cloud deployment model seeming to offer such scalability and innovation, why even consider the on-premise deployment option? Let us explore the benefits that on-premise video streaming might entail for your organization:

Benefits of Having a Video Streaming Server On-Premise

On-premise video streaming is best suited for enterprises operating in highly regulated industries that require extensive security measures in place. For instance, government agencies, financial institutes, healthcare organizations, etc. The stringent privacy needs force these enterprises to ensure higher control of business-critical operations. That does not mean that these businesses cannot benefit from video streaming.

Moreover, on-premise video streaming also is suitable for long-established enterprises with extensive on-premise IT infrastructure and data centers that can be cost-efficiently utilized to deploy our solution.

VIDIZMO has flexible deployment models, on-premise being one of them. You can set up our streaming server on your local virtual machines. Setting up and utilizing on-premise video streaming servers through VIDIZMO has several benefits that fulfill the above-mentioned organizational use cases:

  • Air-tight Security: Securely stream your videos by hosting videos behind the company firewall and put in place stringent access control to ensure only authorized individuals have access to your content.
  • Maintain Control: Have the solution be entirely deployed and managed by your in-house IT team.
  • Fulfill Compliances: Ensure and maintain implementation of any government or industry-regulated compliances to avoid any non-conformity.
  • Reduced Data Migration Expenses: Host your videos on your on-premise datacenters to assist with a faster migration process that has reduced expenditure. 

On-Premise Video Streaming infographic

Learn More About VIDIZMO On-Premise

Learn More About All Features Offered in EnterpriseTube That You Can Install on Your Premise

County of Los Angeles Uses VIDIZMO On Their Premise to Keep Data Secure - Read More on This Story

Contact us to get a demo of our video platform and our team will also be happy to assist you in setting up our application on your premises. 

See a Live Demo of  What You Can Create Using VIDIZMO

Contact Us

 

Benefits of Having Video on Cloud

However, on-premise video streaming is limited in its scale and capacity, only useful in some specific scenarios depending on the budget available. Video cloud has helped companies reach a whole new scale. Following are the ways in which storing video on the cloud and streaming on cloud video platform benefits your business to grow in this tech-driven era:

Cost-efficient: Opting for a video cloud provider allows you to benefit from the economies of scale due to their massive infrastructure. Plus, the pricing is also lowered due to the rising competition between these cloud storage providers.

Remote Access: With cloud video hosting, employees in an organization are free to utilize all streaming video and digital media content anytime, anywhere, which allows them the flexibility to work on the go while traveling or remotely work at home. This especially came in handy during the current pandemic.

Accessibility: Cloud video hosting makes all digital media accessible on any device, may it be laptops, smartphones, or tablets, giving employees the convenience to use whichever device they prefer. Cloud video hosting also encourages organizations to promote a ‘bring your own device’ culture to save costs.

Security: Major cloud service providers like Azure, AWS, and Google (to name a few) have employed the highest level of technological security and compliance policies in their cloud ecosystem, which provides a highly fortified environment for all cloud video hosting. 

Scalability and Flexibility: Cloud solutions are infinitely scalable which gives organizations the ability and flexibility to scale their video hosting and digital media capabilities and operations, and innovate without worrying about the physical expansion of the video hosting infrastructure or resources.  

Centralization: Cloud offers centralized access to all video hosting infrastructure, which is best suited for companies operating multiple offices in different geographical locations with a geographically dispersed employee base. 

Learn More About VIDIZMO Cloud Video Platform

 

How to Measure Cloud vs. On-premises Video Hosting Costs?

Here is a detailed breakdown of tangible video hosting costs involved in an on-premises infrastructure compared to the cloud, particularly in the Software as a Service (SaaS) model:

 

Video Hosting Cost Factors  On-Premises Video Hosting Costs  Cloud Video Hosting Costs (SaaS)
License and subscription

High cost for perpetual yearly license for video hosting application or software; an additional cost may be applied if new users or modules are added to the system.

 

Medium-high cost for monthly subscription-based license for video hosting application; vendor may increase rates upon expiration of subscription term. With BYOSL, customers may enjoy flexibility of using their pre-existing cloud licenses.

 

Installation and setup 

 

High cost for installation of video hosting application, database configurations etc.; a major upgrade installation in the future would also incur high costs.

 

Low-medium installation fee charged by vendor for video hosting application; no cost for upgrades as upgrades are incremental in nature.  
Hardware / capital expense

 

High cost for capital expenditure on video hosting hardware, applications, database servers, PC and networking infrastructure, operating systems, middleware.

 

Low video hosting hardware costs with zero in-house servers.
Data migration Medium-high cost for upfront data migration; low-cost data transfers between systems, no internal migration cost.

 

High costs for outbound data or egress traffic as transfers over basic monthly allowances are charged on a per GB basis; high cost for downloading data from the cloud; Inbound data transfer (ingress traffic) is usually free.

 

Training & hiring High cost for hiring IT experts and training staff for management and maintenance of critical onsite video hosting hardware and datacenters.

 

Medium cost for setting up vendor training sessions, bringing trainers on-site, participating in webinars, custom courses; low cost for SaaS video hosting application that involve online training or in-line help functions.

 

Storage High cost of buying additional storage because it extends capital expenditure on video hosting storage servers.

 

High cost for additional storage but cloud storage costs continue to decrease over time; extra storage can be added without expenditure on additional video hosting hardware.

 

Customizations & integrations High customization and integration costs because on-premises systems are usually heavily customizable to improve developer tools and integration with existing systems.

 

Low customization costs because SaaS systems offer limited customization options. However, this may change with increasing customization and integration options in SaaS systems.

 

Maintenance & management

 

High cost for video hosting infrastructure maintenance, monitoring and management of on-premises infrastructure such as power, cooling, rackspace, site maintenance etc.

 

Low-cost basic maintenance fees are bundled into subscription fees. 
Support

 

Medium costs for support are included in annual maintenance contracts.

 

Basic support is bundled in monthly subscription fees but there is a high cost for premium support options.
Operational/ monthly expense

 

Low operational expenses as there are fewer extra charges on top of the annual contract.

 

High operational expenses due to monthly expenditure on cloud subscription and usage costs for video hosting application.
Bandwidth Medium-high cost for bandwidth consumption for video hosting application; buy and install more computing resources to increase bandwidth. 

 

High cost for bandwidth usage if bandwidth usage is less predictable and customers might end up using a lot on bandwidth depending on video hosting workflows. Unpredictable bandwidth usage could be cost-prohibitive in the case of a cloud video hosting scenario.

 

Downtime cost More downtime experienced on-premises incurring higher business costs and revenue losses as a result.

 

Cloud providers like Microsoft guaranteeing SLA of over 99% uptime means downtime cost is significantly minimized.

 

Resource planning (scaling up/ scaling down) High cost for scaling up because video hosting hardware has to be bought and set up; high cost for storing over-provisioned hardware once usage drops because scaling down is not easy or practical.

 

Medium cost for scaling up as a customer is charged for increased usage of resources; no video hosting hardware expense; no cost-inefficiencies as users can scale down anytime, no over-provision cost.

 

Hardware replacement Video hosting hardware is replaced every 3-4 years, again incurring high costs for capital expenditure.

 

Low cost as vendors pays for hardware replacements and customers pay small incremental costs.

 

Upgrades

 

High cost for in-house video hosting software upgrades and feature enhancements because it is expensive and time-consuming.

 

Upgrades are automatic and often included in the monthly subscription fees costs.
Security

 

High costs for onsite security and compliance policy implementation.

 

Security and compliance expenses are borne by the cloud vendor or adjusted in cloud services; free services are charged once they surpass the restriction threshold.
Backup & disaster recovery

 

Medium costs of the on-site backup stored onsite or offsite for disaster recovery.

 

Backup and recovery costs include cloud membership or subscription costs.
Other costs

 

Insurance costs; antivirus; unplanned repair in case of server crashes and data recovery

 

Maxed out virtual server can inflate costs overtime; too many registered admin

 

 

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What about the intangible video hosting costs?

Taking a deeper dive into the cloud’s intangible video hosting capabilities reveals cloud has become essential to most 21st century video-driven work culture. With organizations becoming increasingly globalized, the need for greater accessibility, mobility and scalability in a secure environment has expanded into all areas of business – all of which is further facilitated by cloud-enabled video hosting.

 

For more information regarding VIDIZMO's cloud vs. on-premises video hosting costs, please contact us or sign up for a free 30-day trial

Cloud vs. On-Premise Whitepaper

Posted by Sabika Tasneem & Rabeea Tahir

This article is written jointly by Sabika Tasneem (Product Strategist) and Rabeea Tahir (Product Strategist).

Tags: Live Streaming, Webcasting, Webinars, EVCM, Deployment Models, Video Cloud Storage, On-premise Video Streaming

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