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Choosing Cloud – A Mixed Forecast

As the choice of cloud services has grown, CIO’s and IT Managers are now faced with difficult decisions in choosing between providers, understanding Return on Investment, Total Cost of Ownership, and partner financial stability. The current economic climate has also increased the importance of selecting the right IT model.

For the majority of businesses, there are several options for operating computer room or data centre facilities:

1/ Host your own assets to provide complete control and governance over your operations.

The main disadvantages for businesses include the heavy costs associated with purchasing and operating their own facilities, and the need to manage variability in electricity prices.

2/ Host your services with a specialist.

This option offers more predictability of pricing in power usage and lower capital investment.

3/ The third option comes in two flavours:

i. colocation of your own assets

Colocation provides companies with continuing return on investment on existing capital IT hardware and is generally the preferred solution for businesses that require guaranteed security, performance or scalability. But companies should choose carefully – only a limited number of providers will offer high service levels on customer-owned hosted solutions across all of these areas.

ii. a private cloud service

Private cloud offers a number of benefits for businesses that are able to operate within assured secure 3rd party solutions where the performance thresholds are defined by private cloud suppliers. Rental resources are available immediately, saving businesses setup time, reducing costs and minimising risks. The service also becomes easier to procure and manage as it is now a utility operated through one partner interface rather than via multiple hardware, software, professional services and hosting providers.

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