Cloud computing for business transformation
Increasingly, companies and individuals across the world are adopting “Cloud” computing, which is only set to continue as a trend over the next five year if industry experts are to be believed. However, moving into the Cloud doesn’t come without its challenges and IT leaders have to face down a number of serious issues with the model in order to fully realise the benefits Cloud computing can offer their business. These challenges include:
- Security
- Data privacy issues
- Alignment of IT and Business Strategy
These issues arise largely because Cloud computing means “no limits” – the user (and the operator alike) can be, figuratively speaking, anywhere, at any time, for as long or as short a time as they choose. But this freedom can come at a cost, even if that’s not monetary, with so much information online, reliance on 3rd party providers and limitless potential.
But first of all, what is Cloud computing?
Cloud computing considerations diagramEssentially it is doing anything computer related via the internet and/or secure Virtual Private Network (VPN) connections – i.e. “in the Cloud” – from infrastructure to platforms to software. This means if companies don’t want to, or are too small to, invest in their own data centre, they can rent their Infrastructure as a Service (IaaS) from a hosting company and it’s completely scalable; the provider can flex up or down as quickly as the customer needs capacity. Equally, a platform or operating system doesn’t need to be purchased; it too can be “rented” from a provider (PaaS). And finally, Software as a Service (SaaS) gives users access to any number of applications, all accessible via the Internet/VPN with no installation or licence purchase required, which has enormous potential cost savings and flexibility benefits for users.
Companies can go as far into the Cloud as they choose and this freedom is particularly important for businesses going through transformation as it is for small and growing businesses. For example, small businesses that need an email system can turn to companies such as Microsoft or Google as their service provider for a fixed monthly cost and go-live immediately. They don’t need to have any servers; they don’t need to know where their data is stored, they just need to know their applications are ready, online and the Cloud Services Provider (CSP) will take care of the rest. As well as email, File Servers and Intranets, all the business applications a company needs to trade are now available in the Cloud. With hundreds of CSPs now able to serve up IaaS, PaaS or SaaS.
The choice and flexibility Cloud computing offers doesn’t just bring benefit to small businesses though. Larger companies that have bought software and configured it until it’s completely bespoke to their organisation will know this means losing the ability to change quickly and cost effectively when transformation is needed. While it may be wise to have a proportion of an IT system that is tailored and immovable in a business, in an economy that’s shifting each week, it’s just as wise to have part of it that’s in the Cloud and can be scaled up or down, added to or even removed altogether.
Nowhere is this more applicable than in companies looking at M&A opportunities – if Company A is planning to acquire a target, they can put part of their IT infrastructure into the Cloud and when they buy Company B, with its own in-house IT systems and processes, Company B is able to come on-stream at an accelerated rate. If IT is online some can be configured and operating within hours, not weeks and months, which is an essential advantage in post-merger integration.
There is always a downside however, the acquiring company will have to address security and data privacy issues as part of its Cloud adoption strategy. If they don’t, it may achieve its acquisition goals and deliver stakeholder value, but have to go through complex and expensive re-design if issues come to light.
While it may make sense to move all, or part of an IT system into the Cloud, it isn’t always a simple process to align strategically or culturally, and then to execute effectively. ExcelSource can help organisations plan their IT strategy and business transformations to realise the benefits Cloud computing can offer. We can also help businesses decide which part or parts of their IT system would be best put in the Cloud versus those that should remain static.
If you would like to discuss how your company can profit from the move towards Cloud computing and maximise the flexibility it offers, please call us on +44 (0)1206 580 125 or contact us today.