NAS vs. Cloud: Choosing the Best Storage Solution for Your Business

Remote cooperation and growing data volumes, among other reasons, lead organizations to install and maintain shared storage repositories. NAS and cloud are the two leading solutions for such cases. While these solutions may seem similar initially, differences emerge once you dive into the comparison of NAS vs. cloud storage.

In this post, we define NAS and cloud storage and briefly explain how each works. Then, we list the pros and cons of every storage type. Based on this cloud vs NAS storage comparison, you can pick the most suitable option for your organization.

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What is Cloud Storage?

Cloud storage is an off-site data repository that you can access through the web. Users can upload data (files, documents, images and other objects) to these remote storage servers and change or download objects. Cloud storage has two subtypes: private cloud and public cloud.

A public cloud is multi-tenant storage for clients who purchased or rented specific volumes inside the provider’s pool. With public clouds, service providers take responsibility for their servers’ availability, hosting, hardware maintenance, management and data security. Modern public cloud providers typically offer a subscription model, which allows you to pay for the required capacity when you need it.

Private clouds (also known as data centers) work differently: an organization can build an entire infrastructure to store data there. This includes hardware, software and storage disks, among other things required to run a data center. Alternatively, organizations can rent ready-made infrastructure from a vendor. The key is that such storage can logically be inside an organization’s perimeter, providing more control and compliance maintenance.

What is NAS?

Network Attached Storage (NAS) is a specialized, purpose-built storage device you keep on site. Simply put, this is a standalone computer with an operating system that serves as a shared LAN data storage. NAS appliances typically have multiple disks united in a single logical volume. For additional data redundancy and performance optimization, you can set up these disks in a RAID (Redundant Array of Independent Disks) configuration.

With NAS, file access is implemented via standard protocols such as Server Message Block (SMB) and Network File System (NFS). Users can store, access and edit files after connecting to a NAS through the local network. The noteworthy benefit of working with NAS is that the load on other servers inside the organization’s LAN area is reduced. Thus, with a NAS appliance doing the file server’s job, you can optimize network performance.

You can manage your network attached storage using a proprietary web-based interface (such as QNAP Q’center) or another specialized tool (for instance, OpenMediaVault). This can simplify administration and data management, saving time and effort for other IT-related tasks.

Comparing Cloud Storage vs. NAS: Pros, Cons and Key Differences

Let’s dive into the detailed comparison of NAS server vs. cloud storage. Below we highlight the advantages and disadvantages of the two solutions.

Cloud storage: Pros and cons

Cloud storage pros to consider include:

  • Offsite data repository: Cloud storage’s key feature is its remote location. Connected via the Internet, cloud storage is an offsite repository that can help you protect your data in case of a major disaster at the main site. Whether it’s a power outage, flood, fire or earthquake, cloud data remains accessible and usable.
  • Security enhancement: Cloud storage vendors care about compliance and security, implementing security measures like multi-factor authentication and data encryption. A cloud vendor keeping up with the latest security requirements and solutions can help client businesses safeguard their cloud data.
  • Flexible scalability: Modern cloud storage vendors can provide you with as much capacity as your business requires. The enterprise cloud storage capacity can range from terabytes to petabytes. You can rent a lot of space at once or add storage as your database grows and reduce available volumes when you don’t need them anymore.
  • Availability: You only need a stable internet connection to access cloud data. This provides global team collaboration opportunities and enables efficient data backup strategies.
  • Maintenance optimization: Hardware and software maintenance, security audits, patches and improvements are usually the cloud vendor’s responsibility. By using cloud storage services, businesses offload their in-house IT teams and can devote more resources to production tasks.
  • Cost-effectiveness: A subscription model for cloud storage is the main licensing policy among cloud vendors. Organizations pay for as much storage space as they need, when they need it. Additionally, thoroughly implemented data retention policies can help balance storage requirements and further optimize data TCO.

Cloud storage also has certain weaknesses:

  • Network dependencies: Cloud storage requires stable network access, which adds internet providers to the supply chain and can mean more disruption risks. Connectivity issues can lead to the unavailability of cloud data and production downtime.
  • Cost over time: When comparing cloud vs. NAS, the former’s subscription-based pricing model is simultaneously a benefit and a flaw. While cloud storage can have lower costs, subscription renewals and increasing storage requirements over time can raise the TCO and negate the initial savings.

NAS: Pros and cons

The advantages of NAS vs cloud storage include:

  • Data control and security: This is probably the main advantage of network attached storage compared to cloud repositories. With a NAS, your organization controls the data stored on that appliance’s disks and solely defines access policies. Additionally, as the storage is inside the organization’s LAN, you can implement specific security measures according to your needs.
  • Scalability customization: Hardware vendors offer many NAS appliances with various quantities of drive bays, from 2 to 40, and more. You can add new disks to empty bays whenever you need to expand storage. Alternatively, you can purchase higher-capacity disks: a modern HDD can fit up to 32 TB of data. Upgradable volumes and up-to-date app hosting and virtualization features provide users with significant scalability.
  • Top performance: In the NAS vs. cloud service comparison, a network attached storage can work via the organization’s local network, unlike cloud repositories. NAS speed is mainly limited to the organization’s LAN speeds. Also, NAS appliances have onboard CPUs and RAM pools to handle I/O operations, enabling fast data access, processing and transfer without increasing the load on other nodes in the environment.
  • Data redundancy: Using appropriate RAID configs, you can make your network attached storage data redundant and increase resilience to issues such as hard drive failure.
  • Cost-efficiency: A NAS appliance usually requires a single upfront payment to buy the hardware and (if necessary) the licensed software. After that and once installed, your storage just works, requiring maintenance and management on schedule.
  • Streamlined management: The software installed on NAS hardware can streamline data and access management. For example, NAS data synchronization capabilities can enable efficient team collaboration. Additionally, with specialized software such as NAKIVO Backup & Replication, you can turn a NAS into a fully functional all-in-one backup appliance.

While NAS offers numerous advantages for centralized file storage, there are some notable limitations to consider:

  • Configuration and maintenance: You need certain IT qualifications to set up and maintain a NAS. This storage’s initial assembly and proper configuration require technical expertise and infosec knowledge. NAS appliances also need regular maintenance and “health checks”, including disk replacements, to stay functional and provide the expected performance.
  • Remote work weaknesses: You can create a NAS cloud (a NAS-based private cloud or hybrid cloud solution) by configuring remote web access to this appliance. Although this adds versatility to the device, setting up an online connection instantly reduces data security. Thorough NAS data protection configuration, security updates, encryption and access restrictions are vital to mitigate these risks.
  • Scalability issues: NAS is a scalable and flexible solution, but like any physical device, it has limits. Plus, depending on your scaling requirements, appliances with more disk bays and HDDs of higher capacity require bigger investments.
  • Data vulnerability: NAS is a physical storage with typical weaknesses such as hardware and disk malfunctions, physical damage due to natural disasters, improper maintenance or power outages. Ransomware, cyber breaches, compromised credentials and other issues can threaten NAS data with corruption, theft or loss, regardless of the protection measures. Regular automated NAS backups are the most reliable solution to mitigate this vulnerability.
  • Performance overheads: NAS appliances have onboard resources to use but those resources have limits. Intensive workflows, frequent requests and software failures, among other issues, can impact NAS performance. LAN bandwidth is another limiting factor that can reduce data transfer speeds and operational efficiency overall, especially during peak hours in enterprise organizations.

Which is Best for Your Business: NAS, Cloud, or Both?

The direct comparison of NAS vs. cloud storage highlights the differences and also underlines the main idea: each solution has its own use cases. The choice depends on the required functionality and scalability. Expectations for data accessibility, transfer speeds and overall performance also play a role here. You might want to additionally consider the preferences and skills of the organization’s IT experts to provide them with optimal features and functionality. Last but not least, you need to consider the available and planned budget for data storage systems.

For example, an SMB with a relatively stable amount of data to store and process might find cloud storage more beneficial because of lower initial investments. However, if the data contains sensitive records (i.e., customer information, business secrets or important documents), the organization might opt for on-site storage for more control over security and access. A single-time purchase of a NAS appliance is more suitable in this case. The SMB can then purchase disks with a double capacity reserve to cover operational needs and can consider a device with spare disk bays for scalability.

On the other hand, an enterprise organization with many departments worldwide might have constantly growing datasets to store and prioritize remote collaboration. Scalable cloud storage with built-in data synchronization features is more suitable here due to global availability. The choice between private and public cloud depends on the desired level of control over data access and security policies.

Hybrid cloud: Leveraging the best of NAS and cloud

A hybrid cloud approach means an organization has both an on-site repository and cloud storage. This can provide the strengths of both options while canceling out their weaknesses.

You can use an on-site NAS to enable quick data access, top performance and reliable control. Cloud storage, in turn, provides data availability and redundancy. This option can be especially beneficial when implementing the 3-2-1 rule.

It is worth noting that a hybrid cloud has two main downsides. First, this approach increases infrastructure complexity: setting multiple data repositories on different media requires environment adjustments and significant effort for proper management and maintenance. Secondly, the initial and ongoing expenses increase the entry price and TCO to sums that only large enterprises can afford over the long term.

Conclusion

When choosing between NAS storage vs. cloud, you should first understand your organization’s storage needs, infrastructure specifics and available budgets. A NAS is an on-site storage that enables fast data access and reliable control but requires maintenance and management expertise. A cloud storage repository ensures global data availability and smooth collaboration at the cost of increasing the supply chain complexity. With NAKIVO Backup & Replication, you can store your backups on NAS and in the cloud to eliminate a single point of failure and ensure recoverability in any scenario.

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