Just some basic tradeoffs here. On site can initially be considered more secure, and yet you might want to have copies elsewhere, in case the on site copy (or copies) become demolished. So offsite storage, at least, will almost always be a good idea, even if it can't be retrieved electronically.

The other fairly obvious tradeoff is sharing the database with your colleagues. Having the database only on your premises makes it difficult to have many people collaborating in your work. Especially these days, it's unusual for projects to be run only from one office location.

Albert Manfredi

Thank you for sharing your insight IN this important discussion point.