October 27, 2025
Welcome Back,
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
Cloud, Hybrid & On-Premises: What They Are and Why They Matter
In today’s tech world, companies have different ways to run their computing systems. These ways affect speed, cost, and security. Three big options are: on-premises (on-prem), public cloud, and hybrid cloud. We’ll explain what each means, how they differ, and how you might pick what’s right.
What is On-Premises?
“On-premises” means the servers, hardware, and software live on-site at the company’s physical location (office or data centre). Everything is managed by the company.
Key points about on-premises:
You have full control over your hardware, network, and data.
Great for highly sensitive or regulated data (think finance, healthcare).
But you must invest in buying, housing, cooling, maintaining servers.
Upgrades and scaling may be slow or expensive.
What is Public Cloud?
The “cloud” means computing services (servers, storage, databases) run by a third-party provider and delivered over the internet. You rent capacity instead of owning the hardware.
Key points about public cloud:
Pay-as-you-go model – you use and pay for what you need.
Scales easily: good for growing demand, global users.
Maintenance (hardware, updates) is handled by provider.
But you may have less direct control over security, data location or latency.
What is Hybrid Cloud?
A hybrid cloud is a mix of on-premises and public cloud (and sometimes private cloud) that works together as one system. It gives companies flexibility to choose where to run specific workloads.
Key features of hybrid cloud:
Sensitive or regulated data stays on-premises or in private cloud; less sensitive workloads go into public cloud.
Companies can scale into public cloud during busy periods (“cloud bursting”) and keep core systems on-site.
Workload placement is flexible: you match each application to what fits best (cost, performance, security).
Why Does This Matter?
For anyone reading about tech (and especially business tech), understanding these models helps you make smart decisions. Here’s why:
Cost Efficiency: On-premises means big upfront costs. Public cloud spreads cost over time. Hybrid lets you optimize cost by placing workloads where they fit.
Performance & Latency: If many users are local and need low delay, on-premises or private might win. Cloud can suffer delay if network is weak.
Security & Compliance: Some industries must keep data in certain places (data residency) or keep max control. Hybrid or on-premises might help.
Scalability & Flexibility: Cloud (and hybrid) shine when demand spikes or you launch new apps quickly.
When to Use What: A Simple Guide
Scenario | Best Fit | Why |
|---|---|---|
Company runs fully predictable, steady-workload, no major changes | On-premises | You already know what you need, hardware can be optimized. |
Company has many fluctuating demands, lots of growth, global users | Public Cloud | You scale fast without big upfront cost. |
Company needs some systems very secure and local, but others flexible and global | Hybrid Cloud | You get best of both worlds. |
Real-World Example
Imagine a healthcare company. They have patient records and must comply with strict regional laws. They might store those records on-premises. But for their website or mobile app downloads (less sensitive), they use public cloud to scale easily. That is a hybrid cloud strategy.
Wrap-Up: What You Should Take Away
On-premises = full control, high cost, good for stable & sensitive workloads.
Public Cloud = flexible, scalable, lower upfront cost, shared infrastructure.
Hybrid Cloud = mix of both; ideal when you want control + flexibility.
The “best choice” depends on your specific needs: cost, performance, security, growth.
Tech is evolving fast, so even if you choose one now, many companies move towards hybrid over time as needs change.
If you’re reading this as a tech-enthusiast, start by thinking: What matters most for my project (or company)? If you were to build an app today, maybe start with public cloud, then decide if later you need a hybrid or on-premises model.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.