Cloud Computing: The Future or Marketing Hype?
Is cloud computing really the future or just the latest marketing hype by large technology companies? Well, let us consider the following cloud based solutions:
- Email systems such as Google Apps and hosted Microsoft Exchange
- Storage and backup solutions such as Amazon Web Services (AWS)
- CRM solutions such as Salesforce.com
Few would argue the above services or the companies that manage them are fly by night operations. To the contrary, they are solutions that solve real problems for real companies. However, many CIOs still ask, “But how does cloud solve my problems?”
To answer this question we really need to journey back to a time when many companies embraced the cloud long before it was the “next big thing”. Think about it. What would you call website hosting? This is cloud computing at its best. You manage the content, not the infrastructure. It represents huge savings in cost, power, time and personnel. Today we think about this as a no brainer because it just makes sense. The ROI is easy to illustrate and is realized almost immediately. Making a case for other services traditionally managed in house was not as easy. What a difference a few years can make.
Although consumers have enjoyed the benefits of cloud computing solutions for years, CIOs are just starting to see the benefits. This is partly due to the cost decline of high speed data connections, increased reliability of those connections and wide spread use of virtualization. Additionally, the steady rise of IT costs and the fledgeling economy have forced many businesses to rethink how they deliver IT services. CIOs and managers are being told to cut costs without sacrificing the quality of service. Cloud computing is the future because it solves these problems, not because it is marketing hype.
So where do we start? The first step is to ask the right questions:
- What areas of my operations can I safely and reliably offload to the cloud in order to cut costs and focus on my core business?
- What are the areas that are extremely costly (specialized servers, consultants, software) and require special levels of expertise?
Honest answers to these questions could present some real opportunities for reducing operational costs and boosting a company’s bottom line. Ignoring these questions could put you and your organization at a competitive disadvantage, forcing you to play catch up in years to come.