If you take it from the mouths, or pens I suppose, of some of the most prestigious analyst firms in the world, 2014 is going to be another big year for the cloud. And continuing with our trend this month of featuring ways to better yourself and your business in 2014, we are going to discuss the power of the cloud, and what exactly makes it the right choice for your organization.
According to IDC “spending on cloud services and the technology to enable these services ‘will surge by 25% in 2014, reaching over $100 billion.’ IDC predicts ‘a dramatic increase in the number of datacenters as cloud players race to achieve global scale.'”
They also predict that cloud service providers will drive the IT market in a bigger way than ever before. “As cloud-dedicated datacenters grow in number and importance, the market for server, storage, and networking components ‘will increasingly be driven by cloud service providers, who have traditionally favored highly componentized and commoditized designs.’ The incumbent IT hardware vendors will be forced to adopt a “cloud-first” strategy, IDC predicts. 25–30% of server shipments will go to datacenters managed by service providers, growing to 43% by 2017.”
The primary reason that organizations choose the cloud these days is cost. If you use the words of Amazon, you are trading capital expense for variable expense. In other words you are trading those hefty up-front costs (for data centers and other heavy duty on premise solutions), for a monthly subscription, while still getting the same value (arguably).
“Cloud computing for the first time allows you to directly correlate the cost of running the application to the application itself … We now know in dollars and cents terms how much the application costs to run.” – Treb Ryan, CEO, OpSource
With the cloud, you are paying while consuming resourse. This makes the cloud more versatile than an on-premise solution. The problem with an on-premise solution is that you are forced to pick a solution that meets the demands of your organization AT THE TIME OF PURCHASE. But an on-premise solution often has a lengthy implementation and roll out process and meanwhile the world is creating new technology and the industry and customer base is changing as a result, and then your organization is stuck with a very expensive solution that doesn’t necessary approach these changes head on. The cloud allows for easy adaptability. Even if the cloud provider you have doesn’t offer what you need as your organization grows and changes, you aren’t tied to a solution that you have already paid a significant about of money for.
According to Forbes, the cloud enables a business “to react to market opportunities, communicate and collaborate internally and externally, design and test new products, and become more agile.”
According to Ellen Rubin, the founder of CloudSwitch, “the ability to have resources spin up when needed is a compelling business need. You don’t need to buy 100 servers when you need 100 servers for one week.” Instead of having to predict capacity as you would with an on-premise solution, the cloud allows you to change your capacity when needed. Instead of making a capacity decision prior to deployment that could mean limited resources or wasted money, you have the ability to make the decision WHILE using the cloud solution.
The cloud works well with the ever changing technological landscape. It doesn’t tie an organization down, it is scalable and adaptable, it doesn’t require a large upfront investment, and it grows with your organization. Gone are the days of long, drawn out implementations and go-lives. With growing data needs, new BI developments, and more, the cloud is helping organizations stay competitive and fit for business.
Our data auditing solution Observato is a cloud based independent data tracking solution. To find out more on how this cloud software can change your organization for the better download our e-book here.