The New Utility : CLOUD

The Everyday things that we take for granted took a lot of effort from many brilliant minds but the invention of electricity (the bulb) by Thomas Edison in 1879 gave mankind a great boost in starting a revolution on a global scale. There was never looking back after this.
As the industrial revolution began many years after this invention, The next phase came when electricity / power was generated by many factories themselves to power their factories which had nothing to do with their businesses. It would be standalone unit only supplying power to the factory. This then leads to the next Revolution which mainly led to the war (between George Westinghouse & Thomas Edison) of providing electricity as a utility to every home, business, cities, country, globally.

Same can be said for the Companies in the industrial revolution 3.0 i.e companies depend a lot on the IT infrastructure that their businesses run on along-with maintaining it by themselves. Here the IT Infra = utility for running their business. This means procuring and managing their own data-centers (IT Infrastructure) which is the backbone of the company and completely disconnected to the business productivity. This IT Infra has to make sure an efficient working of all the business functions( Finance, HR, ERP, MRP). These Data centers would only manage how the company should work efficiently without any breakdown of its business. This would mean the companies would need to provide themselves with more than what was actually needed because of what they envisioned for future. This would mean greater CAPEX(capital expenditure) and unnecessary lead time over establishing the whole ecosystem that they needed.

Enter Cloud :

Cloud is the new industrial revolution 4.0 and cloud is doing what the electricity war provided us with – the 4th Utility after Electricity, Power & Gas.
In simple terms, Cloud is nothing but a datacentre which is provided by an independent service provider. Cloud gives companies the flexibility with whatever they need and it can be a three-fold advantage for moving into the cloud.

  1. Cost Effectiveness
  2. Pay as you go
  3. Scalability
Cost Effectiveness :

Whenever we go out shopping, we always like to have the things in our hands the moment we buy it. Same goes when you have to buy hardware for your company IT infrastructure. The Infrastructure setup on premises can create problems when the company expands in terms of people and business growth. The procurement cycle from IT personnel to purchase department to finance department for budget approval and so on can have a very long lead time. If the lead time for procurement is not decided early on then the company IT personnel will have a lot of problem with delays. After procurement, The company will need to buy, install & maintain this hardware and at good operational costs.

Moving to cloud negates this whole process which in turn saves time, saves operational costs on IT personnel, space, power and so on. With the cloud, companies need not worry about hardware & will have access to state of the art hardware without the hassle of maintaining/upgrading their own hardware. The company IT personnel can then concentrate more on innovation rather than just maintaining the IT ecosystem.

Pay As You Go:

With a prepaid sim card, the usage is only when you make a call or send an SMS. Wouldn’t it be nice if we could only pay for what we use rather than completely buying something?. That’s exactly what it is when you move to cloud. No need to provision for extra infra or buy new hardware on a 3-5 year expansion plan. Cloud allows you to pay for the Infra only as much as you use, not even a single dollar extra. You can manage what you want to use and provision based on the trends you see for your company in a matter of minutes. With monitoring tools, your company can have a good outlook on how your IT personnel are running the Operations.

In addition to the cost benefits from the previous point, your company gets to save a lot on capital investments along with very less operational costs. A win-win situation.

Scalability:

One of the other biggest advantages that cloud provides is how you can scale your IT infra as and when required and not in days but minutes. Cloud allows you the flexibility to reduce your needs as per your company trends. In traditional terms, your company has provisioned for Infra based on growth considering business aspects/personnel/ sales. This means there is extra spending in CAPEX for accumulating this growth which might not be the required throughout the year. This in turn only means that your company has spent more than it requires on an average day. With the cloud in the picture, the company can rest assured that scaling would not be a problem but also that you can scale down as per the needs. This ties with ‘pay as you go’ from above point which means more savings for your company.

The icing on the cake is that this scaling up/down can be done without any manual intervention which adds to the less operational costs in the overall benefits.

Summary :

There was a time when every household, town, farm or village had its own water well. Today, shared public utilities give us access to clean water by simply turning on the tap; cloud computing works in a similar fashion. Just like water from the tap in your kitchen, cloud computing services can be turned on or off quickly as needed. Like at the water company, there is a team of dedicated professionals making sure the service provided is safe, secure, and available on a 24/7 basis. When the tap isn’t on not only are you saving water, but you aren’t paying for resources you don’t currently need.” (Vivek Kundra in a CIO government speech)

The industrial revolution 4.0 is here now and to keep pace with many leading companies, moving to the cloud is the way to go and bring in more innovation around your actual business. There are many other benefits which come with moving to the cloud which has not been covered here but the sales team from GS lab would be happy to expand on same in person.
If you think it’s a good idea to have a conversation based on the above, feel free to connect over to GS Lab which has vast experience in Cloud consulting, Cloud architecting/re-architecting, Cost optimization services, Cloud migration services which shall help you in riding the wave that is the industrial revolution 4.0