Is the cloud right for your business?
Many big tech giants are pushing cloud services as the next big thing. They promote these services as a kind of panacea for small and medium business owners.
The promise is that companies can reduce costs and enjoy cutting-edge software and other virtualization by sharing these cloud services. The goal is to greatly reduce the expenses associated with desktop-by-desk purchases for office, CRM, and other products. In the long run, it provides savings for on-site server upgrades and maintenance.
For those unfamiliar with the cloud, the wiki dictionary defines it as “the use of computing resources (hardware and software) that are delivered as a service over a network (typically the Internet”).
End users can access cloud-based applications through a web browser or a lightweight desktop or mobile application, while business software and user data are stored on servers in a remote location.
Many claim that cloud computing allows businesses to get their applications up and running faster, with improved manageability and less maintenance. They say it allows IT to adjust resources more quickly to meet fluctuating and unpredictable business demand.
How does it work? Cloud computing relies on sharing resources to achieve consistency and economies of scale similar to that of a utility (such as the electric grid) over a network. The foundation of cloud computing is the broader concept of converged infrastructure and the sharing of services.
There are four types of cloud computing available to suit most business needs.
One is the public cloud. Public cloud applications, storage, and other resources are available to the general public through a service provider. These services are either free or offered on a pay-as-you-go model with access only available via the Internet.
Another is the community cloud. Community Cloud shares infrastructure among multiple organizations in a specific community with common concerns. They are managed internally or by a third party. Costs are spread across fewer users than a public cloud (but more than a private cloud), so only part of the cost-saving potential of cloud computing is realized.
Hybrid Cloud is a composition of two or more clouds (private, community, or public) that remain single entities but are tied together, offering the benefits of multiple models. By using “hybrid cloud” architecture, businesses and individuals can gain local usability without relying on Internet connectivity. Hybrid cloud architecture requires both on-premises resources and off-site (remote) server-based cloud infrastructure.
Finally there is the Private Cloud. It is a cloud infrastructure operated solely by a single organization, either managed internally or by a third party. It is hosted internally or externally. Undertaking a private cloud project requires a significant level and degree of commitment to virtualize the business environment. When done right, it can have a positive impact on a business, but every step of the project raises security issues that need to be addressed to prevent serious vulnerabilities.
While the cloud has some benefits for email, marketing campaign tools (such as email newsletters), customer relationship management (CRM) systems, and office applications, maintaining an entire network in the cloud It is still cost prohibitive.
Under current pricing structures, a more efficient option for a small to medium-sized business is to purchase its own hardware and share it in a data center or company facility.
The concept of virtualization (one physical computer with many virtual servers running on it) would provide cost savings if a company built the infrastructure itself. Purchasing virtual servers from a large corporation like Amazon is still a more expensive proposition.
Regardless of which direction a company chooses, it must be managed by qualified engineers.
For smaller businesses establishing or maintaining a relationship with an IT or managed network services company, it is appropriate to discuss and recommend which facets of the cloud are appropriate for their needs.
In addition, the IT company can oversee cloud functions and provide day-to-day technology support, such as 24/7 remote support, unlimited on-site support, a help desk, and even a virtual CIO.
Larger organizations can take advantage of the technology company’s engineering team and use their knowledge and skill set to help with any transition, whether it includes going full virtualization or developing a hybrid cloud model.
While the cloud is well advertised and certainly attractive, it may not be appropriate or affordable for all organizations. Business owners should consult with a technology professional to determine if the cloud is a good fit for their business operations.