One out of five organizations has noticed cloud technology as the key business transformer. Businesses that embraced cloud have gained 1.9 X higher revenue and 2.5X higher gross profit than their conservative counterparts, who abstained from it, found IBM’s 2013 Global Cloud study, based on the active participation of more than 800 cloud decision makers and users, business leaders of all stripes – Finance, Sales & Marketing, Product Development and more.
How cloud attributes benefited them? Or by what margin they (referred as Pacesetters) were able to surpass competitors (referred as Chasers) as we discussed above? Find it below:
- Strategic reinvention (reviving customer relationship, products and services, and business model)
- Better decisions (Use analytics extensively to derive insights from big data; share data seamlessly across applications; and make data-driven evidence-based decisions)
- Deeper collaboration (Make it easier to locate and leverage knowledge of experts anywhere in ecosystem; improve integration between development and operations; and collaborate across organization and ecosystem)
Thus, considering cloud adoption as a boon, more and more businesses are getting off their shackles. As per the Gartner study, by 2016 the bulk of new IT spending will be in the cloud technology alone owing to its scalable and elastic IT-enabled capabilities. “Cloud computing continues to grow at rates much higher than IT spending generally,” said Ed Anderson, research director at Gartner. “Growth in cloud services is being driven by new IT computing scenarios being deployed using cloud models, as well as the migration of traditional IT services to cloud service alternatives.”
However, the dilemma lies in selecting a particular cloud model as per your business needs from the range – the public cloud, hybrid clouds, and private clouds. Before discussing the gauzing parameters, it’s essential to understand the terms public and private cloud.
Public cloud services are hosted remotely by a vendor, using the partner’s data centers and infrastructure. Clients can focus on their core business, as the maintenance and support task regarding data availability and security remain a subject matter of the concerned vendor.
Private cloud advocates keeping business’ data, applications and infrastructure in-house, protected by the firm’s firewalls. And thus, the responsibility for managing the solution remains a concern of its internal IT department. It’s recommended for a business dealing with highly sensitive consumers’ data.
Thus, one has to ponder upon reasons and requirements before adopting and investing with any particular cloud model. Below is a sort of decisive questionnaire that could help:
What kind of control do you want?
You have to subtly evaluate the control and convenience factors. No doubt, investing with public clouds, brings worry-free experience in terms of data, network or server maintenance, but often it comes with certain limitations.
How concerned are you in terms of security?
Private clouds are managed internally by a company, hence, the IT department can track, monitor and amend data flow. Moreover, it diminishes the governance issues surrounding where the data is kept, or what would happen to it when the contract terminates.
How would you withstand future growth?
Scalability and flexibility are the two cardinals of public clouds, which businesses often need to cope with the growing business needs and changing consumption trends of the market. Encompassing both, your business can stay sustainable without making any extra investment in terms of hardware and software licensing fees. Thus, you can manage short-term spikes in activity or plan more effectively for longer-term growth.
To what extent you can take stress to manage your business processes?
Can you control every aspect of your cloud deployment yourself? If yes, private cloud, should be your take. Though it brings satisfaction and peace of mind, as you have the direct control on your business assets, it demands much efforts and times.
Remember, the right choice, can make a big difference. However, considering the competitive marketplace with myriads of fluctuating demands, it’s practically hard to rely on either of the solution in its entirety. Thereby, nowadays, most businesses are coming under the umbrella of hybrid cloud. Responding on the suitability of a particular cloud model for a business, entrepreneurs came with a split verdict in the survey conducted by Cloud Pulse. 40 percent of the respondents went with public cloud, 38 percent with hybrid, and 22 percent with private cloud model.
Finally, the ball lies in your court; however, the Fonbell consulting services can help you pick the right one too.