How to build a cloud strategy fit for modern business

According to Gartner research, worldwide end-user spending on public cloud services will hit $591.8 this year; a rise of 21% from the previous year. Businesses across all sectors are seeing the benefits of cloud strategies, which can offer flexibility, scalability and agility to those operating on tight budgets. But, with rising business costs and tighter budgets, some businesses are considering on-premise solutions that might offer a more favourable ROI in the long run. In this article, Richard Nelson, senior technical consultant at Probrand, explores how to regain control of your cloud strategy and how to decide on the best approach for your business.

Cap-ex versus pay-as-you-go

For businesses just starting out, cloud computing is often a much cheaper option than investing in servers and an on-premise infrastructure upfront. If your business is in its infancy, it’s a no-brainer to use cloud solutions until you can answer questions such as how much data you will be storing and processing, how many employees will require email accounts and where the peaks and troughs of your operations will be. However, as your business matures, you might find that your cloud usage and associated costs become much higher, possibly prompting you to consider alternatives.

There is an argument for taking a longer term view to compare the upfront capital expenditure of on-premise infrastructure against the accumulated cost of cloud solutions. This is usually the point at which we are approached by clients who ask to move their entire operations to on-premise to recoup future savings. However, an ‘all or nothing’ approach fails to consider how different types of technology can work together to respond to the intricacies of each business and its users. A holistic approach to IT is typically more cost effective and can be a much more efficient way to manage your business needs.

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Maximise on existing investments

In many cases, when we delve into requests to move all operations out of the cloud, we find that existing cloud solutions have not been configured in a way that maximises the investment. If your IT provider has simply lifted and shifted your entire operations to the cloud from on-premise, you are likely to be paying for more than you need. A hybrid approach that is selective about what actually needs to be in the cloud and what could be moved to existing on-site infrastructure can result in cost savings and take your IT to the next level.

For example, you might have old data that you need to retain but which doesn’t require any updates. This could be stored on a small server in your business, so that your cloud usage can be kept for live projects. There are certain sectors where on-site data storage is a regulatory requirement, so this must be factored into your needs, but there will likely be an element of the cloud that is also beneficial. These might be SaaS applications like emails and Microsoft Office 365, which can be expanded as your business grows. Hosting these in the cloud can free up your existing on-site infrastructure to be used for something else, with the added benefit that SaaS versions tend to be much cheaper than licensing for physical equivalents. This flexible configuration is likely to make IT work better - and more efficiently - for your business. You can also help your budget go further by ensuring you are utilising any existing licences. Check which features are included in your subscriptions and whether there is a tool you are already paying for (but haven’t switched on) that could meet an emerging business need.

Security is paramount

A key advantage to keeping an element of the cloud in your IT strategy is that, typically, cloud solutions offer the very latest security updates. They are being constantly refreshed to scan for the latest versions, providing users with the best available services and security patches. Security threats to on-premise solutions can be much harder to manage, particularly if your business does not have a dedicated IT team. In the event of a threat, most providers now prioritise fixes for cloud users before rolling out updates to on-premise clients, meaning you may have to wait much longer for a resolution. For some businesses, the financial impact of this delay could prove catastrophic.

Once you have conducted a holistic assessment of your current cloud and on-site needs, the next phase of cloud maturity is to flex your usage according to the specific patterns of your business, rather than committing to a fixed amount every month. In some industries, these peaks and troughs are more obvious than others. Retailers, for example, would be wise to plan their cloud strategy around key calendar dates such as Black Friday and seasonal sales, when traffic and activity is likely to spike before returning to normal levels. Purchasing different amounts of storage accordingly can save money in the long run and ensures your on-site infrastructure is able to operate as efficiently as possible.

If you are currently considering your cloud usage and tempted to move to entirely on-premise, taking a step back and assessing the benefits of a holistic strategy can pay dividends. You might find that infrastructure-as-a-service is best handled on-site by a smaller provider, while the likes of Microsoft and Google are the perfect solution for your software as a service needs. A one-size-fits-all approach is rarely the best solution in business. Introducing a tailored IT strategy that combines cloud with physical infrastructure could help your budget to go further and best respond to your evolving business needs.

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