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Should You Host Legal Data On-Prem or in the Cloud?

October 27, 2025

6 min read

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On-premise legal data is expensive, but it allows corporations and law firms complete control over their data. Cloud storage and deployment are more scalable but depend on an internet connection for access. There are pros and cons to both options, so neither legal data on-prem or cloud-based software is inherently better than the other.

Companies know this, too. There's about an even split between those who use cloud-based vs on-prem technologies. CloudZero reports that 55% of businesses prioritize on-premise systems while 45% prefer public or private clouds.

Here, we'll help you weigh the pros and cons of on-prem vs. cloud hosting for legal data. We'll focus on compliance, security, and performance for a holistic outlook. Read on to learn the importance of the ability to decide for yourself... and why you should apply platforms that allow that to happen.

What Does Data On-Prem Mean?

Legal data on-prem is hosted on an organization's private servers. These servers are usually on-site at a:

  • Corporate legal headquarters or department
  • Independent law firm
  • LSP
  • Public records office

Instead of being held by a third-party vendor, on-premise data is 100% handled by the legal team using it. Many people believe this enhances security by giving them complete control over their information. Some law firms think this is especially important when complying with industry-specific regulations and managing subpoena requests.

The Pros and Cons of Legal Data On-Prem

Complete data control is just one benefit of on-premise networks. They can also offer a lot of security if the network is strong. Internal resources can ensure that there are minimal chances for data breaches, which IBM reports can cost up to $4.4 million.

On-premise solutions are also more customizable than their cloud-based counterparts. If your legal team has specific needs because of your location or industry, you can tailor-make a platform that meets those needs. It'll be hard to scale, but it will work for the team you have now and their individual data management requirements.

A lack of scalability is the biggest disadvantage of on-prem legal data storage. Teams need to buy and configure new hardware if they want to scale. This is expensive and takes a lot of time, especially as your team learns how to deploy it.

It's also more expensive to set up an on-premise solution than a cloud storage system. You'll need to pay for:

  • Hardware
  • Extra hard drive space
  • Software applications
  • Infrastructure changes

These upfront purchases can cost a lot of money, and you'll need to keep paying over time as you attempt to scale.

How Does Cloud Hosting Work?

Cloud data storage solutions for eDiscovery are hosted by third-party providers. The provider stores your data on their servers and makes it accessible to you through a subscription fee.

The robust security and authentication features make it a safe way to store information. You can also access it from multiple devices for easy review.

Cloud Based eDiscovery Benefits and Downsides

A low setup cost is one of the greatest advantages of cloud storage. When you invest in cloud space, you pay a yearly or monthly subscription to access pre-existing, off-site software. You don't need to pay any extra money for hardware and infrastructure.

These resources are also extremely easy to scale. You just need to ask your hosting provider to give you more space as you grow. You can also use more space in some months and scale down in others to save money.

Cloud hosting benefits also include:

  • The ability to access your data from anywhere that there's an internet connection
  • Automatic backups of all data
  • Records of past data to prevent spoliation during eDiscovery
  • Built-in disaster recovery features
  • Easier collaboration between teams because of real-time sharing

There are, however, a few disadvantages of cloud storage. While you can access data from any device that connects to the internet, you can only get the information if there's a reliable connection.

Long-term costs are also hard to predict. This is because data usage and subscription fees add up and might eventually cost more than you expect them to.

Frequently Asked Questions

How Does Reveal Let You Customize eDiscovery Hosting

Reveal RPD is made for private deployment. It's made for you to host wherever and however you want, providing a customizable experience to legal teams across both the US and EMEA.

You can deploy the technology on:

  • On-premises solutions
  • Private cloud networks
  • Public cloud space
  • Hybrid options of deployment in eDiscovery

Our team will help you migrate and make the transition regardless of your chosen hosting method.

From there, you'll get complete power over the platform. This means accessing the full range of top-notch Reveal features like:

  • Advanced AI tagging and filtering
  • Simple search functionality
  • An integrated, all-in-one data dashboard
  • Generative AI summaries of complex data
  • Analytics of data needed in litigation or criminal cases
  • GenAI visualizations, like clusters and heatmaps, that let you interpret data easily

They'll perform just as our AI-driven SaaS solutions would!

This lets legal teams:

  • Retain full ownership of their data
  • Meet compliance and security requirements through built-in Reveal features
  • Choose whatever infrastructure works best for you
  • Enhance the best features of that infrastructure while ironing out problems

How Does Reveal RPD Enhance Compliance?

If you're governed by strict data sovereignty laws, Reveal's software is made to ensure that you comply with them. Whether you're a US-based healthcare facility that must comply with HIPAA or an EU enterprise governed by the GDPR, protecting your ESI is a top priority.

Our tool lets you have complete control over how your data is stored and processed. This ensures that it complies with your local and industry regulations so you can avoid fines and reputational damage.

Streamline Your Litigation Hold Process Today

Now that you know the ins and outs of legal data on-prem vs cloud storage systems, it's time to streamline deployment regardless of which option you choose.

Reveal is committed to offering software that seamlessly integrates with your preferred infrastructure. This enables you to meet modern eDiscovery demands at all steps of the process while enhancing security and compliance regardless of your location.

We're excited to help you make complex processes simple and scalable, so schedule a demo today and see what we're capable of!

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