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PROS AND CONS OF CLOUD

BY EDWIN J. FRONDOZO, CO-FOUNDER


Free 5-day course to learn how to build resiliency and business continuity for
your business


It’s time to update your company’s server. The question is what kind of
equipment to buy and how to migrate all your data and operations. Your next big
decision is whether or not to take your business off of your physical server and
make a move to the cloud. Cloud computing is a hot topic these days, but is it
the right choice for you and your business? Cloud computing has the advantage of
being on-demand and completely scalable. But it also has some hidden risks and
costs.


ADVANTAGES OF CLOUD:

 * Low initial investment – An application server can cost up to tens of
   thousands of dollars. The initial setup costs of cloud computing are much
   lower, and in many cases, the provisioning cost is zero.
 * Speed – An on-premise solution can require days to launch and update. Cloud
   solutions can start in a matter of seconds, completely on demand.
 * Scalability – Traditional servers usually have a capacity plateau. First, you
   are overcapacity, then ideal capacity, then under capacity, as your business
   grows. With cloud-based solutions, you can scale up or down as your business
   grows or your budget tightens.
 * Burst ability – Burst ability is when you need that extra capacity for a
   short period. The cloud offers this feature, while a dedicated server cannot.
 * No single point of failure – Cloud datacenters have built-in redundancies and
   backup. If one component fails, other parts, sometimes up to an entire
   redundant datacenter, take over in milliseconds.
 * Energy Efficient and good for the environment – Cloud data centers are
   designed with efficiency in mind. Many get rated by the government and
   not-for-profit agencies for their green technology. Some even buy carbon
   offsets for a carbon-neutral business model.
 * Available anywhere, anytime, by anyone – The cloud is not tied down to a
   single location. A cloud-based solution is a great fit for small offices
   spread throughout. If your business needs to collaborate on a project,
   cloud-based solutions can benefit you immensely.
 * Increased storage capacity – The cloud offers nearly unlimited storage
   capacity and much lower costs than buying physical hard drives.




DISADVANTAGES OF CLOUD:

 *  Unexpected initial migration problems – Your apps must be recoded to work in
   a virtualized environment. Your data must be reformatted to sync with the
   SaaS provider formats. Although the costs of starting your move to the cloud
   may look cheap in the beginning, associated costs can bring that cost right
   back up.
 * The risk of new government regulations – The government, for better or worse,
   is always making new laws. If a law is passed that sets strict privacy rules
   that force a business to keep information in-house, your company may have to
   take back data from the cloud and account for accuracy. If you have a
   contract with a cloud provider, you’ll have to break your contract and pay
   penalties. And you’ll have to buy that new on-premise server after all.
 * The risk is out of your hands – A cloud provider may have sophisticated
   anti-malware tools, but it’s because they need them. The bad guys, for
   personal gain or fun, attempt to hack into primary servers often. A private
   server is unlikely to be a target for hackers. It may be better to risk a
   problem that can be fixed in-house than to risk an issue out of your hands.
 * Loss of “That Human Touch” – When you have an IT-team, they get to know your
   needs and anticipate them. There are specific software and hardware
   requirements that are unique to your company or at least specialized. Having
   an outsourced solution could lead to you losing the competitive advantage
   that is your IT team.
 * ROI may turn out to be a dud – While every company is different, many
   businesses are finding out that the long-term costs of a cloud solution are
   about the same as purchasing new servers. You have to do the math before
   moving to the cloud to see if it’s the right move for you.
 * Reliance on an Internet connection – If your business is in the cloud, but
   you can’t access the cloud, you’re in a lot of trouble. Any problem with your
   in-house system affects cloud systems as well.  Any problem with the cloud
   provider’s servers instantly becomes your problem as well.
 * You may be taking money away from local businesses – By definition, the cloud
   exists in no one location, although the primary data centers are usually in
   one place. By the same token, most every cloud service offers 24×7 support,
   but to do that, many cloud providers hire workers outside the US.  If you
   want to support local businesses and promote local talent, perhaps it’s best
   if you stay out of the cloud.

Infrastructure-as-a-Service (IaaS) has the business model of an ongoing expense,
rather than the big capital investment required by buying a server. IaaS usage
is metered and priced on the number of units consumed or times used. As you can
see, there is more to consider than price alone.

Adapted and revised originally written by Robert Pepper, VoIP Enthusiast

Free 5-day course to learn how to build resiliency and business continuity for
your business

Want to learn more?  Read these related articles:

 * BUSINESS SURVIVAL TACTICS: WHEN DISASTER STRIKES

 * 11 KEY BENEFITS OF MOVING TO CLOUD-BASED BUSINESS VOIP
   
    



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