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Cloud Rush: Overrated or Worthwhile?

Has the past decade been lucrative for organizations?

Overview

The past few years have witnessed many businesses rushing to the cloud. The move has not been easy though. Organizations faced and continue to face numerous hurdles because of the complexity of modern IT applications, coupled with the scarcity of skills in cloud technologies. Having successfully adopted the cloud after enduring all the hardships, it is natural to wonder if the move to the cloud has been worthwhile for the organizations. Is this all just for cost savings of doing away with expensive datacenters?

"Do organizations like Netflix at the forefront of cloud usage innovation see any benefits beyond what meets the eye?"

CHALLENGE

Bloomz platform's rich functionality helped spread its reputation, attracting a huge customer base. This in turn increased the feature requests. As teams ramped up features development across the system, they kept hitting severe constraints imposed by their shared "QA, Staging environment". Dev, QA, Ops had to continuously coordinate to deploy the changes. This :

  • slowed down the teams
  • delayed the release of features
  • reduced productivity across all levels

which Bloomz could ill afford in this growth phase.

On the surface, it may seem that Cloud just helps organizations offload critical datacenter operations that are non-differentiating and are non-core activities. Cloud does tremendously help with this aspect since managing a datacenter is no easy task warranting skilled IT workforce and therefore, diluting the primary focus of the organization. However, the cloud offers many other benefits that are not immediately obvious.

Six compelling reasons for companies to adopt cloud services:

1. CHANGE AGILITY:

Organizations at the forefront of cloud usage are able to roll out hundreds of enhancements per day. Only a handful of organizations had such an ability a decade ago. This agility, in turn, is driving business innovation into high gear. Businesses are able to experiment a lot faster, identify the combinations that work and quickly move to subsequent opportunities.

2. RELIABILITY:

With the scale of operation, all large cloud providers are able to offer features that significantly improve reliability:

  • Cloud providers have better redundancy at each data center level from power supply to internet providers to internal networks and network devices etc.
  • Organizations have fallback options of multiple independent datacenters within a region, and multiple regions within all major continents, with the ability to move applications from one region to another seamlessly.
  • Organizations have access to sophisticated tools and technologies required to failover within a region, country or continent.

3. SCALABILITY:

Predicting data center capacity a few years ahead has always been a challenge. However, organizations across the spectrum face data-explosion this has become even more daunting. At the same time, the value of scalability has been increasing. Data is the new oil. As new tools and algorithms are becoming available to extract intelligence to improve sales, improve product quality, reduce costs etc. a fixed sized data center can become a drag. Cloud alleviates the need for upfront capacity estimation. Cloud not provides the scale when required but also the necessary tools to achieve the same at significantly lower costs.

4. SECURITY:

Cloud providers have been rolling out numerous innovations on the security front. From security compliant storage encryption to simplified modeling and rollout of network firewall rules, granular audit trails, tools to monitor network flows and real-time analytics and alerts enable InfoSec department to run a more secure environment. Achieving the same in an on-prem data center requires highly skilled System admins, Network admins, Security experts.

5. REDUCED COSTS:

Cloud enables organizations to run leaner IT. Organizations have been able to achieve 90% reduction in off-peak cloud spend as compared to peak traffic cloud spend. For online systems operating 24x7 with peak traffic for 12 hours on weekdays, has over 65% offpeak hours. For offline and batch processing systems, the off-peak hours could be even higher.

6. BUSINESS FOCUS:

Reliable and Secure IT infrastructure is as essential as electricity and phones to operate businesses. Similar to electricity, setting up and operating IT infrastructure is non-core and non-differentiating activity. An on-prem datacenter ties down organizations scarce and skilled talent in operations, in addition to taking precious time from management for oversight. Properly setup cloud frees up skilled employees to focus on activities of higher value-add, helps organization overall spend less time on operations and more time on development.

Cloud Services offer greater efficiency, improved collaboration, increased security and above all - cost-effectiveness.
According to Capgemini and Sogeti: Companies using the cloud to automate their legacy applications and IT operations processes systems are gaining a significant advantage over those behind the curve.
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