This is the second in our series of articles about Cloud Computing. In this article, we will take a look at the “On-Premise” vs. “Cloud-Based” solutions.
Undoubtedly, you’ve heard of cloud computing – hosted software in the cloud – and have wondered, “Is this something I should consider?” Since cloud computing is coming at the small and mid-size business (SMB) market like a Tsunami, I am writing a series of articles for our monthly newsletter.
Cloud computing – an umbrella term for a wide range of online services – is an attractive proposition for SMBs seeking to make the most of the technology available today at lower costs and lower risk. The “Cloud” gives users access to remote services over a data network. The upfront investment is low, they do not need to invest in software / hardware, licensing and renewal costs are kept to a minimum, total cost of ownership is reduced, and they only pay for what they use.
Furthermore, it guards against obsolescence and transfers typical ownership risks and responsibilities — such as maintenance, management, and upgrades — from the buyer to the seller. While many companies remain concerned about security, systems’ redundancy, functionality, and who has access to their data in the Cloud, the cost benefits very often outweigh these considerations.
The Software as a Service (SaaS) market is expected to grow to 18% by 2013, up from 6% of software sales in 2007, Gartner estimates show. The market for SaaS and Cloud services is showing strong and consistent growth, however this estimate also shows that at 82%, the on-premise delivery model is still the leader and it will take something special for Cloud services to balance the numbers.
Yet, judging by the hype surrounding the Cloud and SaaS, it is not surprising that the market is experiencing this level of growth. More and more SMBs are ‘aware’ of the benefits of moving into the Cloud and they can see tangible benefits.
As the price of storage and bandwidth continues to drop fast, Cloud-based services are becoming more and more attractive to SMBs seeking to reduce costs, avoid recruiting IT staff, and focus fully on their core responsibility – growing their business. Although the Cloud provides SMBs with a cost-effective alternative, companies need to be wary and not fall into the ‘all Cloud’ solution trap. There is no one-model-fits-all.
Rather than diving headfirst into the Cloud, SMBs would do well to see how they could maximize the benefits of their existing set-up as well as those that a Cloud-based service can give them. With a hybrid delivery model, SMBs can have the best of both worlds without long-term commitments, unnecessary expenses, and the inefficiencies of hosted and on-premise models.
The solution: A hybrid model
Today, SMBs tend to do one or the other, focusing their efforts in one direction or another thus limiting the possibilities that a multiple-solution, single-vendor strategy can offer.
The hybrid approach, however, sees SMB customers getting the best of both worlds by allowing them to maximize the benefits of both a hosted delivery model and those of the on-premise model.
The benefits of the hybrid model vary from one customer to another, but can be summed up as follows:
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Run applications where they are most needed and fit best into the business infrastructure
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The hybrid delivery model makes sense for all companies whatever their size or infrastructure
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The benefits of the hybrid approach can be maximized by a 10-employee company or a 500-employee company
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All that changes is the environment in which the solutions are used
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Enables them to choose what suits them best depending on their existing and future infrastructure requirements
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Enables them to maximize the strengths of both hosted and on-premise models
To find out more about the benefits of cloud computing and how it can make sense for your company, contact IntegrIT Network Solutions at 425-787-0193 or click HERE to send us an email now.
Be sure to read the other articles in our Cloud Series:
