Organizations are researching and investing their IT infrastructures away from on-premise solutions and toward cloud service providers. Similar to the logistics behind purchasing a rental car, you must consider whether you need insurance in case you damage the car, the credibility image you wish to present in your upcoming customer engagement, and the miles in which you intend to travel.
Following this analogy, cloud service providers offer flexible plans at a consistent rate with no hardware maintenance costs – IT scalability at its finest! To summarize the trend of cloud versus on-premise, 2014 saw the first year where the majority of IT workloads shifted to cloud (51%) over the traditional on-premise solution. By 2017, Cisco predicts cloud-computing to increase to 63%.
Organizations are sprinting toward cloud solutions like a moth to a flame; not because it is the latest technology trend, but because of its ability to simplify IT challenges and efficiently scale workloads. As a kick-starter to your cloud transition research, consider the below overview points to further your understanding of the benefits of cloud solutions over on-premise hardware:
According to Tech Republic, 84% of CIOs report cutting IT costs by moving their applications to the cloud.
Cloud services eliminate the need to maintain equipment. Consider these words of wisdom: “updating is cheaper than upgrading.” When it comes to Software as a Service with products such as Microsoft Office or Adobe Creative Suite, upgrading to their respective cloud versions – Office 365 and Creative Cloud – reduces CapEx costs significantly and OpEx costs consistently over time. This translates directly into a capital expenditure (CapEx) versus an operational expenditure (OpEx) justification, with OpEx and cloud being more like paying a monthly utility bill.
The total cost of ownership (TCO) of an on-premise datacenter is increasing in correlation to its growing level of complexity, while the TCO of cloud computing is decreasing alongside its widespread usability. Maintaining an on-premise solution implies you submit to the biggest economics blunder – the Sunken Costs Fallacy. Essentially, you realize you’re spending too much on your IT infrastructure, you know there’s a more affordable solution, but you’re in too deep to turn back now.
Cloud computing provides the agility necessary for responding to business needs as they arise. While your on-premise competitors are busy roadmapping their processes for implementing a comparable solution that aligns with legacy products, you’ve already launched your solution with cloud’s on-demand resources.
This time-to-market agility raises productivity and ensures the rapid deployment of resources based on defined cost metrics, such as an increased level of monitoring for costs-per-resources consumed. If certain resources are consumed more frequently than others, then simply reallocate bandwidth to increase resources in the project’s needed area.
Horror stories of cloud breakdowns make us believe that on-premise solutions are safer, but is this true? Simply put, cloud is the latest phenomenon, and therefore generates more electrifying press.
Security is a major concern for many IT traditionalists. The incentive for service providers to maintain heightened security awareness is much greater as their revenue depends on the reliability of their network. No cloud service provider boasts a 100% live effectiveness year-round, yet top providers such as Microsoft, Amazon, and Google boast a 99.9% effectiveness. Cloud providers boast strong SLAs to ensure network availability and, in the case of an outage, datacenter migration or persistent server imaging for local data storage.
These three areas function as the incipient research for escalating your cloud adoption strategy. For more expert advice, contact a cloud migration specialist to enroll in a Cloud Readiness Assessment.