Is the cloud your only future option?

As the world of enterprise IT continues to evolve, businesses are faced with a question: Is the cloud the only viable option for the future, or is there still room for on-premises solutions?

The truth is, there’s no one-size-fits-all answer. Each organisation must assess its unique needs, challenges, and opportunities to develop a sustainable and effective hosting strategy.

Cloud computing has transformed how businesses manage IT infrastructure, offering flexibility, scalability and cost efficiency. However, ‘the cloud’ is not a single concept, but rather an umbrella term encompassing several cloud models:

1. Software as a Service (SaaS): Fully managed applications like SAP Rise, Salesforce, and Workday. SaaS solutions offer excellent scalability and automatic updates, but businesses may have limited control over their cloud strategy as they rely heavily on the vendor’s roadmap.
2. Platform as a Service (PaaS) / Hyperscalers: Leading providers like AWS, Azure, and Google Cloud offer powerful infrastructure and services. PaaS gives businesses more control over their cloud environment, allowing them to bring their own licences (BYOL) and customise their architecture. However, the complexity of these systems can lead to hidden costs if not carefully managed.
3. Managed Hosting (Private Cloud): This model offers a middle ground, providing compute and storage resources via a private vendor. Managed hosting can deliver the lowest cloud costs with high customisation options that might not match the scalability of hyperscalers.
4. On-premises solutions: While cloud solutions dominate the market, on-premises hosting is not obsolete. For organisations that require complete control over their infrastructure, on-premises solutions offer unmatched customisation and security. However, this model often demands higher maintenance costs and specialised skill sets.

Is on-premises hosting making a comeback?

Despite the widespread adoption of cloud solutions, on-premises hosting remains relevant for specific use cases. Organisations with strict regulatory requirements, data sovereignty concerns, or legacy systems may benefit from keeping certain workloads on-premises.

A hybrid approach is also gaining traction, where businesses blend cloud and on-premises environments to maintain flexibility and optimise performance. This hybrid strategy can help organisations ‘stay on cloud nine,’ combining the scalability and innovation of cloud services with the control and stability of on-premises systems.

Maximising ROI with hyperscalers

Hyperscalers like AWS, Azure, and Google Cloud promise substantial returns on investment, but it’s essential to navigate these offerings carefully. Businesses should evaluate regional availability, understand the true cost of cloud services, and avoid the temptation of a simple ‘lift-and-shift’ migration strategy.

A well-architected cloud strategy considers not only the infrastructure costs but also the expenses associated with data migration, integration, testing, and long-term maintenance. By adopting a holistic approach, companies can avoid the common pitfalls of overprovisioning resources or underestimating the complexity of cloud projects.

Key considerations for your cloud strategy

When deciding on the best hosting strategy, consider these critical factors:

• What are your business requirements?
  Align your IT strategy with your business goals. Understand whether cloud adoption will support growth, improve efficiency, or reduce costs.
• What could the Total Cost of Ownership (TCO) be?
  Look beyond initial migration costs. Consider operational expenses, hidden fees, and potential savings over time.
• What are the risks?
  Evaluate security, compliance, and the potential impact of cyber threats. Ensure your cloud or on-premises solution meets your organisation’s risk appetite.
• What about performance and scalability?
  Choose a solution that can scale with your business needs without compromising performance.
• Is your business future focused?
  If your organisation is looking to modernise its IT landscape, a cloud-first or hybrid approach may provide the agility needed to innovate quickly.

The bottom line: Choose what works best for you

The cloud is not an all-or-nothing choice. Many businesses find success with a hybrid strategy, leveraging the best aspects of cloud and on-premises environments. The ultimate goal is to build a resilient, cost-effective, and scalable IT infrastructure that aligns with your business strategy.

By understanding your options and tailoring your approach to your specific needs, you can optimise your IT landscape and ensure your organisation is ready for whatever the future holds.