This commonly asked question is actually a false dichotomy – in reality, neither the cloud nor a data center is better, because the cloud is a data center. “The cloud” is often used as a buzzword to give the impression of technological sophistication. Some companies that use cloud-based IT services promote themselves as being “in the cloud,” implying that this makes their products and services somehow “high-tech” and therefore high value. But the fact that a company operates in the cloud doesn’t really tell us anything about the quality of its applications. And it doesn’t, by itself, provide any net benefit to the end user.
Read this article for the real scoop on eDiscovery in the cloud vs. eDiscovery in data centers.