Editorials

Going to the Cloud

Can big business go to the Cloud? Unless I am mistaken, the only way many big companies are going to make it into the cloud is when their survival depends on it. Maybe even then it may not happen.

Large organizations are entrenched in ideas and methodologies that have been proven for years. They often have huge investments in software and hardware that they find difficult to change. Instead of moving off legacy platforms, they enhance them with external applications that look pretty, don’t’ require paper, or provide a more useful interface. But the same underlying core operations continue to be hosted on legacy, big iron, or the likes.

There is a further distrust of the cloud. These companies have investments in infrastructure and individuals to keep the lights on. Sending hosting to the cloud is a concern for cost, security, and availability. I remember the first time a gateway to the internet went out for a company where I was engaged. It was as if someone had turned the lights off. We could not connect with the web. Email was internal only.

So why not outsource things like Email. Google provides that service for corporations at a highly reduced cost. Even Google docs is winning over many smaller organizations. But, the big ones are worried about what google will do with their email contents. Will google be forced to hand over traffic to government bodies?

As Amazon and Azure hosting costs drop, there is still a distrust to commit to the cloud. The costs may be lower now. But what will happen when they rise? Big companies cannot transition quickly. Rising costs could be highly detrimental.

For now, in my perception, the cloud is going to remain for the brave and the bold. Those companies that have limited budget and benefit from the massive power of the cloud will continue there. But those big companies that move slowly, there is not enough motivation to make them change; at least not for their core systems.

Cheers,

Ben