How to Choose

Cloud, on-premise, or hybrid: what banks and government should choose

Strategic infrastructure model choice for a bank, government organization, or other regulated business. Selection criteria walk-through between public cloud, on-premise infrastructure, and hybrid model considering Uzbekistan and Central Asia regulatory requirements.

Discuss Your Challenge

Comparison article: cloud, on-premise, and hybrid for banks and government sector. Selection criteria considering regulatory requirements and regional realities.

What is being compared

Three infrastructure models for banks, government organizations, and other regulated regional enterprises. Public cloud — using AWS, Azure, GCP, or local cloud providers (Yandex Cloud, Uzbek data centers). On-premise — own data center with full control. Hybrid — combination: critical regulated data on-premise, the rest in cloud.

When option is justified:Public cloud

Public cloud is justified when regulatory data localization requirements do not block (justified for most non-banking and non-government companies), high load elasticity is required (e-commerce with seasonality, marketing campaigns), modern managed services are needed (BigQuery, Lambda, AI/ML), there is no talent for own operational team. Usually cheaper and faster for development. For banks and government — limited applicability due to regulation.

When option is justified:On-premise

On-premise is justified when regulatory data localization requirements are strict (banks, government, defense), there are restrictions on using international cloud providers, data sovereignty requirements are critical, there is an own operations team with mature processes, volumes are such that own infrastructure is cheaper than cloud. Usually more expensive at start, cheaper over time at large volumes.

When option is justified:Hybrid

Hybrid is justified for most regional banks and government organizations. Sensitive data (customers, transactions, government data) — on-premise or in local certified data centers. Analytics, development, testing, non-sensitive services — in public cloud. Between them — controlled exchange contours. Path of mature banks and government programs. More complex to operate but provides optimal balance.

Common mistakes when choosing

Choosing public cloud without verifying regulatory requirements — bank or government organization falls under regulator sanctions
Choosing on-premise on the principle 'we have always done it' without economic analysis at current scales
Hybrid without clear data separation — critical data ends up in cloud, bank breaches regulation
Choosing international cloud provider for government — political risks and access constraints
Ignoring local alternatives — Yandex Cloud, Uzbek data centers can cover much of the tasks while complying with regulation
Underestimating on-premise operational expenses — talent, updates, security, equipment replacement cost a lot

Criteria for decision-making

Regulatory data localization and sovereignty requirements — for banks and government often block public cloud
Data sensitivity — customer data, transactions, government registries require special approach
Operations volume and load — large stable loads often more economical in own infrastructure
Requirements elasticity — variable load suits cloud better, constant — own data center
Talent and operational maturity — own data center requires a team that may not exist
5-7 year strategy — infrastructure model choice is hard to change, requires long-term vision

→

What else is worth exploring

Topics from the same area we usually explore together

Solution

These are not just articles

I do not just write about this. I can come in, examine your situation and design a solution for your specific landscape.

Discuss applying this →

← Back

Ready to discuss your challenge?

Tell me what's not working or what needs to be built. First conversation — no obligations.

Discuss Your Challenge Write on Telegram

Usually respond within a few hours