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Value of On-Premise and Hybrid Cloud Solutions

| April 26, 2019

By Tim Scott, Vice President, Cloud, CSS International, Inc.

“The various stats and forecasts for cloud speak to our increasingly hybrid world: There’s no one-size-fits-all story in these numbers. Rather, IT leaders have an increasing number of appealing options for their environments across private cloud, public cloud, and traditional data center infrastructure.”

This quote comes from an in-depth statistical look in 2017 that focused on the future of the cloud. Hybrid models were expected to be the most common choices in upcoming years, the stats indicated, with nearly all companies having made, making, or planning cloud migrations.

In fact, by 2020, Gartner predicts, companies that still have a formal “no-cloud” policy will be about as common as “no-internet” policies are today. “You’re about as likely to see Bigfoot or the Loch Ness monster in your office,” the commentary notes, “as you will be to encounter a no-cloud rule.” This doesn’t mean that every single company will move every single function to the cloud. Instead, it means that the cloud will be playing a part of company usage and in plans almost universally in varying iterations, with hybrid cloud solutions being exceptionally common.

We were drawn to the sources we’ve quoted because key conclusions match ours. First, there is no-one-size-fits-all cloud solution. Plus, the question of “cloud or no cloud” has largely been reframed into queries about what workloads should be migrated to what cloud environment, on what timeline.

Here’s something else to consider. If any data is still maintained in a traditional data center, what moves should your company make to the cloud in anticipation of growing costs associated with aging infrastructure? How practical is it to continue to maintain these data centers? How practical would it be to invest significant dollars into upgrading them? Many companies are deciding that traditional data centers are becoming costly money pits, and Gartner therefore predicts that 80% of enterprises will have shut down these data centers by 2025.

No two enterprises will ever answer cloud-related questions in the exact same way. That’s because, for some companies, there are clear benefits for going all-in with the cloud, but there are also valid reasons why some companies should choose a hybrid model or an on-premise private cloud solution.

Advantages of Hybrid Cloud Solutions

Earlier in the post, we talked about how companies once questioned if they should move to the cloud, with that yes/no question evolving into how and when workloads should be moved, into what type of cloud. Today, increasing numbers of companies are recognizing how, for them, the straightforward question of “Should we use the public cloud or a private one?” also needs to evolve, because not all workloads work optimally in the same type of deployment environment. Here are more specifics to consider.

Enterprise-sized companies have numerous workloads to manage, with some fitting better in a public cloud application and others in a private cloud. For example, your company may find that application development fits best in a public cloud so that IT teams can efficiently collaborate. Meanwhile, some client records may require sensitive handling and are therefore best managed in a private cloud setting. And, you may find that some records and/or applications can still be best managed in a physical server, off-cloud. The bottom line: Hybrid cloud solutions allow you to manage discrete workloads appropriately.

Here’s something else to consider. Different cloud solutions come with different costs, and hybrid cloud solutions often allow you to optimize your cost management most effectively. You may, for example, find that one particular workload is especially expensive because you are heavily using your in-house IT team for it. If this workload could be moved to the public part of the cloud, that may provide cost savings. Or, do you have seasons when sales are much more significant? Some companies with seasonal workloads choose to use on-premise solutions for more typical activities, then utilize the public cloud for any overflow work.

Another advantage of hybrid cloud solutions is that they allow your enterprise to test the public cloud for each of your relevant applications to see if it’s a more effective choice. Some companies use hybrid clouds, then, as a transitional strategy.

Also think about how, by using the hybrid cloud, companies can avoid becoming locked into a single-faceted approach that no longer works well for them. Avoiding this trap allows enterprises to become more flexible, more nimble, more able to change direction to meet needs and demands—whether those are the needs and demands of customers, suppliers, logistics teams, and/or another group entirely.

What matters is what offers up maximized solutions for your unique needs, boosting performance, streamlining efficiency, reducing costs, and otherwise providing solutions that dovetail with your company’s challenges and opportunities.

Advantage of Private Cloud Solutions

Private clouds make good sense when you need significant control over your data and infrastructure, and they also give you complete control over the level of security provided. No other company would have access to these servers, which creates a private environment. (Of course, this also means that your enterprise is responsible for devising the security controls, implementing them, and overseeing them.) If your company is part of a uniquely regulated industry, you can create your private cloud system to be in accordance with applicable regulations and laws. And, as part of a global enterprise, your company may have locations where the public cloud is not readily available and/or not available to the degree that you would like. In that case, the private cloud makes the best sense.

The CSS Cloud Advantage

When moving to the cloud or upgrading your cloud ERP, there are multiple crucial decisions that must be made—and that’s when you’ll need our experience. No matter what your business needs, we can leverage our own unique approach and, when combined with Oracle best practices, can create a holistic solution that is just right for you.

Contact us online or call 1-800-814-7705 so we can answer your questions and so you can get started.

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