Cloud computing models offer businesses a cost-effective way to outsource IT applications and infrastructure services to a third-party service provider. It allows them to use applications and store data hosted on servers and databases that are owned, managed and supported by the service provider. A company simply pays for the cost of using the on-demand service and leaves the management, upgrades, maintenance and support tasks to the cloud vendor.
Over the past few years, a growing number of large, medium and small companies have moved to the cloud to reduce the complexity and costs of their on-site IT infrastructure. Technology consulting firm Gartner Inc. expects that a majority of firms will have their IT applications delivered as a cloud service over the next few years. According to the International Data Corporation, spending on cloud computing in 2014 will be over $100 billion.
Popular Misconceptions
Despite the tangible benefits of the cloud, several misconceptions have persisted in the industry over the viability of cloud computing. One of the biggest concerns involves data security and data availability. Cloud vendors typically use a shared infrastructure to host and deliver their services. Applications and data from multiple companies are often hosted on the same server, prompting some to raise questions about data leakage, improper access, data theft and loss of confidentiality. Many also worry about catastrophic service disruptions as the result of cloud hardware and network failures.
Another popular misconception involves data residency. Many organizations in regulated industries such as financial services and healthcare have strict requirements about how their data is handled and where it’s stored. Large cloud vendors typically have highly distributed architectures and many of them use servers located around the world to host customer applications and data. As a result, companies that have data residency requirements have been reluctant to use cloud services for fear of transgressing regulations.
Perhaps the biggest misconception involves a loss of control. Many believe that outsourcing to the cloud results in an automatic loss of control over IT functions. Since enterprise data is hosted on servers owned and managed by a third party, companies often fear they have less control, or even no control over their critical data assets.
Vendor Investments
Although such concerns may have been valid a few years ago, they certainly are not true these days. Cloud vendors are acutely aware of how such issues can affect adoption decisions. Most cloud providers offer secure access control, user authentication, intrusion detection and encryption tools for protecting information in hosted cloud databases. Many have highly redundant architectures for handling server and network failures. Though vendors may use a shared infrastructure to host data, most have technologies and procedures in place to ensure proper data segregation and access control. Many vendors also offer contractual guarantees and service level agreements to ensure that data residency requirements are met. Plus, a plethora of hosting options is available for companies concerned about a loss of control.
Planning for the Cloud
As a small business owner, you should certainly be aware of all these issues, but you shouldn’t let them deter you from taking advantage of the cloud. The best way to move to the cloud is to do it in small steps. Cloud vendors allow you to outsource as little or as much of your IT operations as you want. Many companies start by migrating common applications such as e-mail and office productivity to the cloud.
Most large cloud vendors also offer a choice between a hosted and a fully managed model. With a hosted model, the vendor will let you use its infrastructure to run your applications, but you’re ultimately responsible for managing the application. With a cloud-managed IT service, the vendor assumes full responsibility for hosting and managing your IT applications and services. If security is a primary concern, vendors offer a dedicated hosting model under which your applications and data will be hosted on a server reserved exclusively for your use.
The key to a successful cloud deployment lies in knowing what questions to ask. Before you embark on a journey to the cloud, ask why you are doing it. Is it for the cost savings, for the flexibility or the reduction in complexity? Make sure you have a realistic idea of the return on investment. If you already have a large IT infrastructure in place, your real ROI may lie in the reduced complexity and not necessarily in reduced costs. Make sure you understand the operational and technical issues you’ll need to overcome for cloud computing to work in your environment. Most importantly, vet your vendor thoroughly. Before you hand over your corporate jewels to a cloud vendor, make sure the company has the technical and professional resources to handle your data in a safe and responsible manner.
Cloud computing is here to stay. The benefits are real and tangible for companies that take the time to understand cloud computing and how to take advantage of its innovations.
