Organizations seek to maximize value and minimize cost. They move technology away from an on-premise approach and into a cloud environment because the economics make sense and the benefits gained are compelling. For most companies, at least some (if not all) cloud technologies are adding up to big benefits and they're seeing a lower TCO (Total Cost of Ownership).
What is a "Cloud" Service?
When it comes to technology for your company you can either build it yourself or you can buy it from someone who has already built it. A cloud provider has significantly more infrastructure because of their size and they typically have the level of redundancy that most organizations cannot build on their own. So why build it all yourself when you can get better performance and more up-time, especially if it comes at a lower cost? Why devote capital to software when you can move that into an operating expense that is both affordable and scalable? A cloud service means you're not buying servers or phone systems or software, you're buying a "service" that meets your dynamic and changing needs.
Build vs. Buy Analogy:
Andrew Pryfogle, industry expert and thought-leader in the cloud space, uses a great analogy to help explain the build vs. buy aspect of what a cloud service really is. Imagine you need to fly from the east coast to the west. You have two basic choices, you can build a plane from the ground up or you can buy a few seats on someone else's plane. Both options get you to your destination so how do you choose the one that is right for you? Clearly the benefits of both have to be weighed by the costs right? Again, why build your technology from the ground up when you can simply just "buy a few seats on a plane" from a top notch cloud provider? We're not saying that you should never build. Sometimes it does make sense to build your own plane but without a doubt one should carefully consider the build vs. buy decision.
The Four Categories of Cloud Services:
IaaS (Infrastructure as a Service) - Servers, Data Center Needs, Online Storage & Backup.
This is where a lot of companies find their entry-point into the cloud. Do you bother to replace that end of life server or simply move that infrastructure need into a data center with either a public, private or hybrid cloud approach?
SaaS (Software as a Service) - CRM, Document Management, Office Suites etc.
Almost everything is moving to a "SaaS" approach. Why spend money on a license that you may not need in a year when you can buy a "service" that expands or contracts based on your dynamic needs? Not to mention that you may not want to be tied to a particular software for a long period of time. SaaS gives your organization choices and mitigates the risk of being stuck with a technology you may not want or an investment you cannot get back.
CaaS (Communications as a Service) - Hosted Phone Systems, Contact / Call Center Solutions, Unified Communications, Video, Mobility
Everyone wants their workforce to stay connected and a cloud-based communications approach is perhaps the simplest and most effective way to make that happen.
ITaaS (IT as a Service) - Virtual Desktop, Hosted Exchange, Hosted Sharepoint, Disaster Recovery and Business Continuity, Managed Services
Organizations are rethinking the way they approach IT. One thing is for sure, IT professionals are finding that instead of spending their time on all-night upgrades or fixing a slow laptop, they're able to spend more time focused on helping their organizational leverage innovative technologies. Instead of being bogged down with break/fix issues all day they are able to stay proactive and ahead of the curve. Instead of being seen as a "cost" to the organization they are seen as vital to revenue generation and strategy. Cloud solutions don't replace good IT professionals, they actually help make IT even more prominent in the organization.
Feedback
For thoughts or feedback on this overview please feel free to e-mail me at rwilliams@stellistechnology.com
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