Cloud
computing is already underway and businesses are swearing by it for
better outcome. In fact, there are numbers to back it up too; An
Intersect360 Research reveals that the cloud market is supposed to grow
at a rate of alteast 10.9% annually in the period 2016-2020, one also
needs to know that industry segments like the High Performance Computing
(HPC) contributes just 2.4% revenue for cloud computing.
However, in the world of technology, not everybody sees cloud
computing with the proverbial ‘rose-tinted glasses’, like HPC and big data
analytics. Challenges such as security, data control and also the hidden costs
involved in adopting to cloud computing continue to dissuade businesses from
embracing the cloud. Therefore, to say, cloud is the way to go, every CIO
should know certain fundamentals.
1) Data location and control
Mostly when addressed as a technology, people mention that their
data is ‘on cloud’, as if to denote that the cloud is one single place like a
city locality, or a place in one’s home. But that obviously is far from the
truth, as the cloud which is on the internet as a virtual entity, has no
definite location such as a particular server or computer. In such a case
scenario, one needs to analyze, where the data and applications are being
stored, how and when can the content be accessed, who will be controlling the
data flow and information, considering the content is not on premise.
At the same time, questions like how will the availability of
applications be ensured, or how is one to retrieve something back from the
cloud if needed be, and would that be in the same condition as earlier left?
With the Internet of Things (IoT) which is perhaps the biggest subscriber as a
design, to cloud technology, needs to address this question, as location of
data is just about as important, as crucial data for various functions could be
something like a Google server partition, or perhaps some other independent
server closet located somewhere remote.
2) Payment of unused services
Cloud service companies are obviously into the business to make
profit. What this means is, that the deals that they offer, may sometimes
contain unused computing cycles for which the consumer ends up paying for.
Unlike the image of cloud computing like a ‘pay-as-you-go’ buffet,
cloud technology might actually end up being an extra cost, especially if there
are some aspects of the ‘packaged services’ one does not use, nor can it be
transferred to other users who might find utility. So, there needs to be a closer
combing of needs to see the utility served on cloud computing services,
vis-a-vis the costs involved.
3) Off-premise cloud cheaper than on-premise cloud
Another commonly assumed benefit of cloud computing, is that
off-premise cloud could be cheaper than on-premise cloud. To be really making
sense, one obviously needs to look into this issue deeper. When an
organization’s IT needs are relatively stable, it makes little sense to go on a
public or off-premise cloud, as a significant portion of the unused computing
cycle becomes an additional indirect cost paid by organizations.
Also, cloud service providers are considered to be reaping the
benefits of economy of scale, acquiring components and other IT resources on a
large scale, which should translate into cheaper cloud services. However, it
does not turn out true, as any economy or saving achieved from the initial or
preliminary purchases, could then be used up as costs for maintaining those
resources and keeping the operations running.
However, for organizations that have a variable need in cloud
computing and IT infrastructure, it does make sense for them to take up a
‘pay-as-you-go’ model, based on their flexible utility.
Cloud is here to stay
Cloud computing is a technological force, that is here to stay,
and the market figures prove that, especially with the steadily growing
expansion rate. There are organizations who have become more agile and have
indeed benefited on the cost front, by maintaining a cloud based infrastructure
(off-premise), but they are majorly those enterprises whose needs are flexible.
For them, their business scaling and modeling is such, that even the overhead
and maintenance costs added, it works out to be a profitable deal, or perhaps
even adopt the basic ‘pay-as-you-go’ model.
However, there will be market segments where this will never
really apply, as the costs change everything for them. Maintaining a separate
off-premise infrastructure may not be in their best interest, and perhaps a
private on-premise cloud or even a hybrid cloud setup would make sense. To
conclude, it is about picking the adequately matching choice of infrastructure
to the needs of the organization.
