BY LEE VOIGT
The cloud is a complex solution and many organizations struggle with finding the right fit for their needs. While some are unsure whether the cloud is the optimal solution for them, the potential cost and process efficiencies warrant a close look at the variety of platforms.
The public cloud is the typical starting point for many organizations”™ journey. The public cloud is generally commoditized with products such as Microsoft Office 365; it is another delivery method for the software. The solution is less expensive than an on-premise platform and transitions technology to an operational expense rather than a capital expense. In an on-premise solution, each employee must have a license to use an application.
However, as needs scale up or down, the business retains those licenses that were already paid for. In the public cloud, you pay month-to-month for the licenses you need. As a business owner, it keeps more cash in your pocket.
Microsoft Dynamics CRM, Salesforce.com and NetSuite are typical first steps into the cloud for tasks including general ledger, accounts payable, accounts receivable and sales force automation. One downside to the public cloud is that it is not very customizable.
The private cloud is a more dedicated environment, so you can make customizations and shape it into the solution you need it to be.
In terms of security, the private cloud is a much more protected environment. In many cases, you don”™t have any administrative level access to the environment; you only have the ability to configure the applications that you use. If you are looking at current regulatory requirements like the Dodd-Frank Act and the Health Insurance Portability and Accountability Act, where very clear controls and security measures are required, the private cloud is often the best option.
Companies that turn to infrastructure as a service, or IaaS, solutions don”™t want to maintain a data center or buy the necessary equipment. Beyond the hardware expense associated with data centers, physical security is also required, as well as a solid structure that can withstand severe weather and several redundancies that you must build in.
The three levels of IaaS are facility, compute and storage. “Compute” is how many physical servers and virtual servers you need for the processing power necessary to operate your environment. “Storage” generally involves implementing a storage area network to store your important data and documents.
IaaS also allows for varying degrees of control. At one end of the spectrum, some organizations may want a provider to replace their server room and let existing staff administer it. These organizations pay a monthly fee, based only on how much compute and how much storage they are using at any given time. At the other extreme are fully managed solutions. If you do not have an information technology staff, you are still charged only for the compute and the storage that you use, along with a monthly fee to maintain your environment.
Some organizations can benefit by utilizing multiple cloud solutions. Your technology adviser can help evaluate the technology you are using, build a business case for each of your cloud and on-premise applications and determine where your systems should optimally reside.
With the depth of solutions available and the inherent flexibility of cloud solutions, there is a platform to help meet the needs of your business.
Lee Voigt is a principal with McGladrey, with its headquarters in Chicago and a 200-employee presence in Stamford and New Haven.
