Former CIO, U.S. Department of Education CEO, BINARC
Senior Strategic Advisor, BINARC Senior Solutions Architect
Cloud computing has been around since approximately 2006, and while most large- and medium-sized companies and many government entities have migrated some or all of their mission-critical activities to the cloud, many are still confused about the true value of this “new” paradigm.
Some still see it as simply computing through network technology (which has been a reality since the late 1960s). Others see it as a place to store data (and while the cloud does provide massive storage capabilities, such is merely one of its many benefits). And though cloud computing has historically lingered in the technical realm, adopting and migrating to the cloud should really be more of a business decision.
While estimates vary, all indications are that cloud adoption will continue to increase dramatically in the coming years—and for good reason. In fact, according to a recent MarketsandMarkets forecast, the global cloud computing market will more than double over the next five years, from $371.4 billion in 2020 to a staggering $832.1 billion by 2025.
Here are 10 reasons why cloud computing makes good business sense:
- Cloud computing saves money.
- Cloud computing supports the expanding remote/virtual work environment.
- Cloud computing provides scalability (up or down) and flexibility to accommodate changing needs.
- Cloud computing offers cybersecurity based on a desired service level (i.e. cybersecurity requirements).
- Cloud computing puts your IT resources in the hands of the experts.
- Cloud computing allows you to focus on your mission—not IT.
- Cloud computing provides sufficient redundancy without high costs.
- Cloud computing allows you to switch service providers more quickly.
- Cloud computing supports robust Service Level Agreements (SLAs).
- Cloud computing simplifies the traditional IT inventory challenge.
Reason #1 - Cloud computing saves money.
Often, when organizations invest in hardware and software to install and maintain on premises, they utilize only a small percentage of their IT capacity. This is necessary given the need to plan for and be capable of accommodating spikes in both concurrent usage and heavy processing loads. The downside is that you are paying for much more than you regularly need.
What if you could pay only for what you need—when you need it? This is exactly what the cloud computing paradigm provides. Its elasticity allows you to increase or decrease your computing power and capacity on demand. Ultimately, you pay for what you actually use instead of equipment that may lay dormant for large periods of time.
Reason #2 - Cloud computing supports the expanding remote/virtual work environment.
In order to reduce traffic congestion, lower pollution, and improve work/life balance, organizations continue to look for ways to have its workforces operate more virtually. Additionally, local and national disasters such as COVID19 and Hurricane Katrina have served to illustrate the need for more remote work capabilities.
Cloud computing is uniquely qualified to tackle this challenge. Not only does cloud computing centralize unified communications, it also provides redundancy across different weather grids to help support contingency and disaster recovery planning. This capability costs significantly less than investing in and standing up this level of mirroring for an organization.
Reason #3 - Cloud computing provides scalability (up or down) and flexibility to accommodate changing needs.
As mentioned previously, the elasticity of cloud computing is a powerful tool that companies can use to provide high-quality services to their customers. There is comfort in knowing that when more storage or processing capacity is required, it can be obtained in a matter of hours (or even minutes) as opposed to days.
Purchasing, shipping, installing and configuring an on-premises solution with the same capabilities is likely to take months—and by that time, the need will probably be over, and your customers have already suffered a poor computing experience.
Reason #4 - Cloud computing offers cybersecurity based on a desired service level (i.e. cybersecurity requirements).
Secure computing is at the top of every CIO’s priority list, and billions of dollars annually are spent on security hardware and software. In March 2020, the Forbes Technology Council predicted that “[c]loud adoption will be supercharged by security-first thinking”.
Again, leaving this critical task to experts allows CIOs and business leaders to focus on the true mission of their organizations. Holding cloud providers accountable for specific service levels surrounding security makes good business sense since you pay only for the security capabilities the provider uses and you can hold providers financially responsible in the event of a breach.
Reason #5 - Cloud computing puts your IT resources in the hands of the experts.
Cloud providers do one thing: build and maintain IT infrastructures to allow clients to operate their mission-critical applications. They typically do not build applications or involve themselves in specific lines of business (e.g. finance, contracting, grant-making, etc.). They specialize in data centers, hardware, system software, communications tools and other devices required to process and store data.
While many large and medium-sized organizations maintain their own data centers and IT units, such is not their mission. Many of these same organizations are beginning to migrate to the cloud so that they can leave the IT mission to experts, allowing them to focus only on their mission. They then sign contracts to hold their cloud services provider accountable for the quantity and quality of services they provide.
Reason #6 - Cloud computing allows you to focus on your mission—not IT.
Again, if you are in the finance business, for example, most of your energy should be spent on providing the highest quality financial services that you can. Any time you spend worrying about your IT infrastructure is time you could spend on strategies to improve your financial services.
Reason #7 - Cloud computing provides sufficient redundancy without high costs.
Many (if not most) organizations fail to adequately plan for disasters. Even organizations that develop and publish a Disaster Recovery Plan (DRP) and stand up a backup site fail to adequately test the site to ensure that it operates properly.
Moreover, many of these sites are far from a mirror image of the production site and will likely be unable to support real-time processing in the advent of a disaster. This is considered a Single Point of Failure (SPoF). In other words, when your production site goes down, you are effectively out of business for hours, days, or even months.
Cloud computing solves this problem. Most best-of-breed cloud services offer mirror cloud footprints in multiple energy and weather grids and real-time data replication, allowing you to be back in business within a matter of minutes in the event of a disaster.
Reason #8 - Cloud computing allows you to switch service providers more quickly.
There are perpetual problems associated with computer equipment as it becomes antiquated, needs repairs and, ultimately, requires replacement.
Further, like a new car, the second you drive it off the lot, it begins to depreciate. Unfortunately, you have signed the contract and the “car” is yours. Yes, you can sell or trade the car, but that typically comes with significant effort and financial loss.
Cloud computing solves this problem by providing an “evergreen” environment in which you can shift your focus from the type and age of your equipment to the services you receive. As long as your SLA (which includes cybersecurity) is met, you need not be that concerned about the investment made in the data center or its operations.
Reason #9 - Cloud computing supports robust Service Level Agreements (SLAs).
This has been addressed (indirectly) previously. However, it is important to mention again the value of paying for only what you use.
Examples like student loan borrowing or mortgage payment processing clearly illustrate how data processing needs are both cyclical and seasonal. For example, there are large periods of a calendar year during which the U.S. Department of Education has little data processing around student loan applications. Similarly, there are parts of a month where banks and mortgage companies have low processing around loan payments. Why not pay for this processing only when you need it? Cloud computing provides this capability.
Reason #10 - Cloud computing simplifies the traditional IT inventory challenge.
Many government entities fail their IT inventory audits. Due to the constant changes occurring in data centers (e.g. sunsetting end-of-life equipment, the introduction of new equipment and equipment failures), maintaining an accurate inventory is challenging, at best. With proper procedures and internal controls, it can be done. However, the reality is that few do it well.
Again, this is where cloud service providers excel. Their primary job is to ensure they know where every piece of equipment is, how old it is and how it is performing. Losing sight of these critical facts would spell disaster for a cloud provider because these are the tools required to meet their SLAs. Cloud migration makes a large portion of your IT Inventory problems disappear.
Conclusion
While technologists talk ad nauseam about the “cool factor” of cloud computing, the true return on investment of the cloud is exciting for business owners who are responsible for providing whatever service their mission touts.
Additionally, these same business owners are responsible for stretching the IT budget as far as they can while delivering secure and best-of-breed services to their stakeholders. Proper cloud adoption and migration can deliver that—and more.
BINARC is a seasoned cloud adoption, migration and maintenance company that can help you realize the potential of the cloud. Whether you are seeking a company to perform a robust cloud readiness assessment, develop a roadmap, or execute your cloud migration, BINARC has the experience and expertise to get the job done.
For more information, contact Dimitri Dizna at 202-681-7787 or visit our website.