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The cloud based option is going to cost less and require less expertise to deploy. It’s like racing, if you ride a Ducati but don’t know what you are doing, you are still going to lose. With the cloud based option, you are going to have people monitoring the situation that (hopefully) know what they are doing, since THIS is what they do. It’s going to take more capital, expertise and personnel to go the hardware route, but for a large company with a strong IT staff it could be the better option. Here is a link to an interview with the CTO from DOSarrest, a company that specializes in cloud based solutions. Obviously he has some bias, but there is still some good general information in the article.