Public cloud has become almost a buzzword, and its popularity has soared due to its many benefits, such as scalability, flexibility, and cost-effectiveness.
However, many companies still run workloads or application on-premise and have a hybrid approach to cloud adoption. In this article, we will explore why companies tend not to move to the public cloud, as well as the advantages and disadvantages of on-premise solutions.
Why on-premise is still a thing
The short answer is that on-premise solutions are more familiar and quite common, so they give a sense of control and security.
A longer answer would be that this path allows companies to customize their hardware to fit their specific needs, making sure that their data and applications are stored and processed in a way that aligns with their security and compliance necessities.
However, there are more reasons. For example, the predominant mindset to “if it isn’t broken, don’t change it”, which becomes even stronger when paired with the normal fear involved in stepping into the perceived uncertainty of a “new” technology or business model.
However, even though the cloud offers benefits like flexibility and scalability, it isn’t always the right fit for every company or industry. Perfect examples where regulations lead to challenging situations for a public cloud approach can be found especially in the public sector, health or finance – all areas in which data privacy is strictly regulated: There, pushing cloud adoption may be harder, especially for the big hyperscalers.
Another key argument in favor of on-premise solutions is that owning and maintaining hardware can be cheaper over time. Companies that choose on-premise solutions don’t have to pay recurring fees for data storage and processing, which can add up over time.
Of course, the upfront costs of purchasing hardware could be higher than opting for a public cloud solution; On the other hand, cloud providers claim to significantly reduce the total cost of ownership (TCO) by offering the usage of their certified and strongly regulated datacenters through SaaS, PaaS, and IaaS offerings.
The Problem with On-Premise Solutions
Keep in mind that on-premise solutions can be costly to maintain and upgrade. You’ll need to have IT staff with specialized skills to handle hardware maintenance and upgrades, and there is always the risk of downtime due to hardware failure or maintenance, which would directly translate into lost revenue.
You’ll need to have clear upfront planning in such risks and ne aware of the significant investment in hardware, software, and IT staff. This includes even your networking requirements, to ensure that they can support their your business operations.
Going hybrid
Public cloud solutions provide scalability, flexibility, and accessibility. For those not wanting to go that far yet (or ever), a hybrid cloud approach can bring together the best of both worlds to fit a company’s specific needs.
A hybrid approach will enable you to e.g., keep your sensitive and critical data on-premise, while utilizing the public cloud for non-critical applications or workloads that require flexibility and scalability. This solution can also help you avoid the complexity of migrating your entire infrastructure to the cloud, while still enjoying the benefits of cloud computing.
This will help you leverage the benefits like high availability and scalability for your applications running in the public cloud, while maintaining your critical infrastructure on-premise.
However, which parts of a infrastructure should remain on-premise and which parts should be moved to the cloud, cannot always be answered that easily.
There’s no one-size-fits-all. Digitalization strategies, especially when deployed with the help of an experienced partner, can help companies identify their IT needs and develop a plan for either implementing on-premise solutions or migrating (parts) to the cloud – as you do in a hybrid approach.
Migrating successfully
When companies decide to migrate, planning and execution are critical to ensure a successful transition. The result of this process will most likely be a remarkable difference in how you serve your end user, and how you process your data: This is what we did our client Frauscher, a company in the railway industry that went from on-premise to the cloud.
The first step in developing a successful migration strategy understand your business processes, your clients and cour client needs. You’ll need then to see how your current processes serve your customers and understand driving factors of your current businesses. Then, you should identify critical systems (applications, infrastructure) and highlight any challenges that may hinder the migration process
Proper training and education for your employees are also critical to the success of a migration. You need to provide your employees with the necessary training and education to adapt to the new system. This includes training on new software applications and processes, as well as educating employees on how the new system will impact their work.
Ideally, you would be forming a migration team that includes representatives from each department, so that they can help you identify potential issues and provide feedback to ensure success.
Wrapping up: How to digitalize your business fast
Technology is changing the world.
From how we do our daily jobs to how we run companies, change is only becoming more and more common. If you’re reading this, there’s a high chance that you know it already, but: The only way not to be left behind is to move forward. Regardless of how effective your existing format is, staying in place won’t cut it.
Digitalization can help you optimize their, improve customer engagement, and gain a competitive edge. Just as we mentioned Frauscher before, it is worth bringing up Rosenbauer, the world’s leading manufacturer of emergency vehicles. They saw digitalization as the best way to express their full potential, and we supported them by delivering a Connected Fleet that makes their vehicles more reliable, more advanced, and always improving.
A hybrid cloud approach can facilitate your digital transformation by providing the scalability, flexibility, and accessibility required to meet their digitalization goals.
At Cloudflight, we assist companies in their digitalization journey by providing them with the necessary tools, resources, and expertise to develop and execute a successful digitalization strategy. Our team of experts can help you assess your IT current infrastructure, identify potential digitalization opportunities, and develop a plan that addresses all aspects of your business.
We are committed to helping companies stay at the top of their industry by facilitating their digital transformation.
