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Cloud Is for Flexibility and Not for Cost Savings

There are these five instances where you can achieve cost savings

Sure – you might save cost by moving to cloud. There are these five instances where you can achieve cost savings:

  1. You have a compute intensive application needs to run once in a while.
  2. Size of your organization is small to medium where renting works out better for you.
  3. You are planning to revamp your CRM or Email solution.
  4. You expect large number of tablets (iPad and others) getting used in your organization and you will need an alternate to Microsoft Office.
  5. Your data center requires an overhaul where you can leverage virtualization / private cloud technologies.

However, if you approach the problem of moving to the cloud by looking at your application portfolio and attempting an analysis of “ROI vs. Risk vs. Effort”, you are not likely to get anywhere. You will conclude that most applications cannot be moved.

Wearing the Flexibility Cap
Or you might want to say – looking at the application portfolio through the flexibility lenses – you will see a different picture. Since, in cloud, the cycle time to add or remove computing power is close to zero, you will be able to evolve a different decision making style.

  1. You can defer all decision on how much computing power is required.
  2. As a startup you don’t have to worry about under investing or over investing on hardware.
  3. You don’t have to worry about sudden increase in transaction volume.
  4. Trial and error, gradual rollout becomes much easier to handle.
  5. On course correction becomes much simpler.
  6. Upgrades and release management becomes less of a risk because of no down time and easy fall-back option.
  7. DR planning becomes straight forward.

Is an Application Cloud Ready?
Answer four simple questions

  1. Will I gain from the flexibility?
  2. Are there any technical hurdles for hosting the application in the cloud?
  3. Are the security risks acceptable?
  4. Are there any compliance issues?

If you answer “Yes” to the first question and “No” to the others, then just go ahead and move the application to the cloud.

Read the original blog entry...

More Stories By Udayan Banerjee

Udayan Banerjee is CTO at NIIT Technologies Ltd, an IT industry veteran with more than 30 years' experience. He blogs at http://setandbma.wordpress.com.
The blog focuses on emerging technologies like cloud computing, mobile computing, social media aka web 2.0 etc. It also contains stuff about agile methodology and trends in architecture. It is a world view seen through the lens of a software service provider based out of Bangalore and serving clients across the world. The focus is mostly on...

  • Keep the hype out and project a realistic picture
  • Uncover trends not very apparent
  • Draw conclusion from real life experience
  • Point out fallacy & discrepancy when I see them
  • Talk about trends which I find interesting
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