Public and private cloud computing are quickly picking up steam among midmarket organizations, according to IDC research. IDC reported in January of this year that approximately 30 percent of midsize companies (100-999 employees) expected to deploy a public cloud solution within the next 12 months, while 20 percent plan to develop a private cloud. IDC also predicts that investments in cloud computing among small-to-midsize businesses will grow 20 percent each year for the next five years.
A Deloitte survey found that 53 percent of midmarket executives think technology can make their organizations much more competitive. Cloud computing provides these companies with access to enterprise-class technology and solutions that would otherwise have been too cost-prohibitive and risky to implement. This explains why 56 percent of respondents to the Deloitte survey are already leveraging some type of cloud-based solution.
Cloud computing has three primary service models:
Cloud Software as a Service (SaaS). The service provider’s applications are accessed by users on desktop and mobile devices through a cloud infrastructure, which is managed and controlled by the service provider.
Cloud Platform as a Service (PaaS). Users have the ability to access the tools and services needed to develop, test, deploy and maintain applications. The user controls these applications while the service provider maintains control of the cloud infrastructure.
Cloud Infrastructure as a Service (IaaS). Users have the ability to provision basic computing resources and deploy their own operating systems, applications and other software. Users control these resources and software while the service provider maintains control of the cloud infrastructure.
There are also three cloud computing deployment models: public, private and hybrid.
Public cloud computing involves the use of IT infrastructure that is hosted offsite and owned by a service provider who provides access to users through a high-speed Internet connection. This is typically a turnkey service with a use-based pricing model. Services and technology are shared by multiple customers, with basic support and automatic upgrades available to all users.
This is the most popular cloud deployment model for midmarket organizations due to its simplicity and potential cost savings — it enables organizations to get out of the business of owning and managing IT. In order to maximize performance and efficiency, most midmarket organizations call upon value-added resellers (VARs) or technology service providers to develop design, maintain and monitor their cloud infrastructure and develop a deployment strategy.
The private cloud model allows an organization to leverage cloud benefits in a private setting — generally, the organization owns the infrastructure and hosts it onsite or in a colocation facility. This provides the highest level of security and is ideal for a company that needs to maintain full control of its data, such as a bank or medical facility that must meet regulatory compliance standards for customer or patient data.
A hybrid cloud is a combination of a public and private cloud that enables various levels of control over certain corporate data, providing organizations the flexibility to alter their approach according to need, workload and budget.
Cloud computing is a practical business solution that makes it possible for midmarket companies to reduce capital and operational costs. Cloud computing also enables these organizations to leverage the service provider’s expertise and the latest technology to simplify and centralize IT management, support heavier workloads, improve network performance and accessibility, and boost employee productivity – all while relieving pressure on IT departments that are stretched too thin.
In Part 2 of this post, we’ll address common concerns about cloud computing among midmarket companies and factors you should consider when evaluating cloud-based solutions.