In previous articles, we’ve explored how business needs are translated into processes, how those processes are implemented in enterprise software, and how data flows through and between systems. But none of this is possible without a solid foundation: Infrastructure, the hardware and software that enables everything else to function.
This is the base layer of the digital enterprise. Without it, the rest collapses.
But what kind of infrastructure should we build on? Should it be on-premise, cloud-based, or a hybrid of the two? The answer, as always, depends on context—and in industries like aerospace, defence, and nuclear energy, the stakes are particularly high.
If we first consider on-premise infrastructure. This choice offers control and compliance as it’s strongest side. On-premise infrastructure means that everything like servers, storage, networking is physically located and managed within your organization.
The following points speak in favour of such a solution: It yields full control over data, systems and security protocols. It is at least easier to meet strict regulatory requirements like ITAR, NIST, NRC, IAEA. Such a solution supports air-gapped environments for classified or safety-critical systems, as well as offering lower latency for local operations and real-time control systems. On the negative side, on-premise solutions often come with: High capital expenditure and ongoing maintenance costs. Limited scalability where adding capacity takes time and money. It will also require in-house expertise for updates, patches, and security.
For nuclear energy and defence, on-premise is often non-negotiable for core operational systems. These industries demand data sovereignty, physical security, and resilience—all of which are easier to guarantee when infrastructure is under direct control.
The second option would be a cloud infrastructure where the strongest arguments are agility and innovation. Cloud infrastructure offers a flexible, scalable alternative. Resources are hosted by third-party providers and accessed over the internet. On the bright side, cloud infrastructure is: Scalable on demand which is ideal for simulations, analytics, and R&D. It offers lower upfront costs, usually with a pay as you go model. It will offer your organization access to cutting-edge technologies like AI/ML, digital twins, and big data platforms, and you generally have built in disaster recovery and high availability.
On the other hand, your organization must ensure that providers meet industry specific standards. There is less control over physical infrastructure and data locality. Vendor lock-in risks and potential long-term cost creep must be considered and evaluated, and you are dependent on internet connectivity, which may not be acceptable for mission-critical systems in some industries.
As an example, in aerospace, cloud is increasingly used for collaborative engineering, supply chain integration, and predictive maintenance—but rarely for core control systems
What about a hybrid infrastructure, will it offer the best of both worlds? A hybrid approach combines on-premise and cloud infrastructure, allowing organizations to balance control with flexibility. It would allow you to keep sensitive data and real-time systems on-premise while using a cloud for non-sensitive data, analytics, collaboration, and innovation. Furthermore, it could enable gradual transformation without disrupting critical operations.
This model is particularly well-suited for regulated industries. It allows organizations to modernize while still meeting compliance and security requirements.
When considering what model to choose, it is important to consider the regulatory landscape your organization operate in, meaning, what are the compliance requirements (e.g., NRC, IAEA, ITAR)? What level of control and isolation is needed? What are your operational needs? Are real-time systems involved? Your need for scalability and innovation, will you have to scale quickly and adapt new technologies? The cost structure, what will fit your financial model, CapEx vs OpEx?
Your digital enterprise is only as strong as its foundation. Infrastructure decisions are not just technical they are strategic. In industries where safety, security, and compliance are paramount, the right infrastructure can mean the difference between transformation and stagnation.
In the end, the goal is not to chase trends, but to build a resilient, adaptable enterprise, one that can evolve with the times while staying grounded in its responsibilities.
Bjorn Fidjeland
This is the base layer of the digital enterprise. Without it, the rest collapses.
But what kind of infrastructure should we build on? Should it be on-premise, cloud-based, or a hybrid of the two? The answer, as always, depends on context—and in industries like aerospace, defence, and nuclear energy, the stakes are particularly high.
If we first consider on-premise infrastructure. This choice offers control and compliance as it’s strongest side. On-premise infrastructure means that everything like servers, storage, networking is physically located and managed within your organization.
The following points speak in favour of such a solution: It yields full control over data, systems and security protocols. It is at least easier to meet strict regulatory requirements like ITAR, NIST, NRC, IAEA. Such a solution supports air-gapped environments for classified or safety-critical systems, as well as offering lower latency for local operations and real-time control systems. On the negative side, on-premise solutions often come with: High capital expenditure and ongoing maintenance costs. Limited scalability where adding capacity takes time and money. It will also require in-house expertise for updates, patches, and security.
For nuclear energy and defence, on-premise is often non-negotiable for core operational systems. These industries demand data sovereignty, physical security, and resilience—all of which are easier to guarantee when infrastructure is under direct control.
The second option would be a cloud infrastructure where the strongest arguments are agility and innovation. Cloud infrastructure offers a flexible, scalable alternative. Resources are hosted by third-party providers and accessed over the internet. On the bright side, cloud infrastructure is: Scalable on demand which is ideal for simulations, analytics, and R&D. It offers lower upfront costs, usually with a pay as you go model. It will offer your organization access to cutting-edge technologies like AI/ML, digital twins, and big data platforms, and you generally have built in disaster recovery and high availability.
On the other hand, your organization must ensure that providers meet industry specific standards. There is less control over physical infrastructure and data locality. Vendor lock-in risks and potential long-term cost creep must be considered and evaluated, and you are dependent on internet connectivity, which may not be acceptable for mission-critical systems in some industries.
As an example, in aerospace, cloud is increasingly used for collaborative engineering, supply chain integration, and predictive maintenance—but rarely for core control systems
What about a hybrid infrastructure, will it offer the best of both worlds? A hybrid approach combines on-premise and cloud infrastructure, allowing organizations to balance control with flexibility. It would allow you to keep sensitive data and real-time systems on-premise while using a cloud for non-sensitive data, analytics, collaboration, and innovation. Furthermore, it could enable gradual transformation without disrupting critical operations.
This model is particularly well-suited for regulated industries. It allows organizations to modernize while still meeting compliance and security requirements.
When considering what model to choose, it is important to consider the regulatory landscape your organization operate in, meaning, what are the compliance requirements (e.g., NRC, IAEA, ITAR)? What level of control and isolation is needed? What are your operational needs? Are real-time systems involved? Your need for scalability and innovation, will you have to scale quickly and adapt new technologies? The cost structure, what will fit your financial model, CapEx vs OpEx?
Your digital enterprise is only as strong as its foundation. Infrastructure decisions are not just technical they are strategic. In industries where safety, security, and compliance are paramount, the right infrastructure can mean the difference between transformation and stagnation.
In the end, the goal is not to chase trends, but to build a resilient, adaptable enterprise, one that can evolve with the times while staying grounded in its responsibilities.
Bjorn Fidjeland
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