The rapid adoption of cloud-delivered technologies over the past few years continues to affect how organisations get work done. Cloud-based web services allow organisations of all sizes to leverage a wide range of functionality from externally-based providers. Everything from word processing to file system management and even IT operations can be delivered using a web service.
The commercialisation of these cloud-hosted web services created an industry of its own with providers purveying a collection of "as a Service" offerings known by their acronyms: SaaS for Software as a Service, PaaS for Platform as a Service and so on. Infrastructure as a Service (IaaS) encapsulates the functions of the old-fashioned computer room -- server hardware, data storage, networking equipment, etc. -- allowing organisations to contract their IT operations role to an external IaaS provider.For your organisation, does it make sense to take advantage of an IaaS provider or should all things IT be kept on premise? The ultimate answer lies in the details.
The case for IaaS
Focus on running your organisation
IaaS providers have experts who manage the IT needs for an organisation, allowing directors to run their organisations without worrying about installing the latest server update or virus protection software.
Cost savings and cost certainty
Using an IaaS provider offers a measure of cost certainty when it comes to IT expenses. Since all server and networking hardware is owned and administered by the provider and essentially rented to their customers on a monthly basis, a small organisation doesn't have to make the large capital expenditures typical of maintaining an on-premise IT department.
Leverage mobile for operational efficiency
One technology trend that matches the cloud’s massive growth rate is the wide adoption of mobile devices at the workplace. Using an IaaS system allows an organisation's employees to access the organisations technical assets no matter their location. Organisations gain the extra operational efficiencies derived from keeping their workers engaged and able to work when out of the office on a business trip or at a client location.
The case for on-premise IT
Depending on the nature of an organisation's work, there are still some valid arguments for keeping the organisation’s IT assets on premise. If an organisation is responsible for sensitive data -- financial, healthcare or otherwise -- security and/or legal considerations may dictate that the systems that maintain the data must remain in-house. In that scenario, the extra costs incurred by managing an on-premise IT operations department are part of the cost of doing business.
If the organisation only consists of a few employees and therefore does not have a need for a robust IT infrastructure, it might be more cost effective to keep everything internal. Situations like this usually dictate that one or two workers add the role of IT administrator to their daily routine. Ultimately, it still might be worth researching IaaS providers to see if they offer enough benefit for the price to effectively serve the smallest of organisations.
Next steps
Determine requirements before choosing an IaaS vendor
If you ultimately decide to forego your on-premise IT for an IaaS provider, it is vital to determine the technology requirements beforehand. While many providers are able to scale their offerings as an organisation grows, it is better to confirm before an initial contract is signed.
The number of concurrent users, the amount of data storage needed and the type of work performed all play a factor in right-sizing IaaS offerings. An organisation that only does spreadsheet and word processing work can probably get away with less from an IaaS provider than a firm involved with a lot of multimedia production activity. Security also plays an important factor; providers offer public, private and hybrid (a mixture of the two) cloud services.
Find the right IaaS vendor
With the Australian IaaS market expected to hit $380 million by 2017, organisations shouldn't have much difficulty finding a provider able to meet their needs. Some of the giants of technology offer cloud-based infrastructure services in Australia, including Amazon and their AWS (Amazon Web Services) product, Rackspace, Microsoft Azure and for non-profit organisations, Connecting Up IaaS.
Additionally, traditional IT firms and managed service providers that offered consulting services to organisations with on-premise IT have also entered the IaaS game. These vendors include IBM, HP and Fujitsu. Going with an industry veteran might make sense for organisations transitioning from on-premise IT to a cloud-based service.
IaaS vs on-premise
For most organisations, leveraging an IaaS offering in lieu of on-premise IT infrastructure results in improved operational efficiency with notable cost savings. However, before you jump into anything, upfront analysis and due diligence helps ensure the correct decision is ultimately made.