How cloud computing can improve your operations and bottom line

What if a company needs customized or specialized applications that are not offered as a service?

Applications that are specific to a company’s business require a different model, but can still make great sense to move to the cloud. Instead of using a SaaS provider’s software, a company can move its own data and applications to dedicated servers in the cloud. Users can then access via remote desktop technology such as Citrix or terminal services. This enables a company to have all the advantages of cloud computing while still running its specialized applications.

When should a company consider making the move?

The best time to consider a move to cloud computing is when there is a need to upgrade major components of the infrastructure such as buying new servers or upgrading software licensing. There are two reasons why this is the best time to move. One is that many companies prefer to take on operating expenses, which impact the P&L rather than capital expenses that show up on the balance sheet. Capital expenses consume cash, which is especially painful for smaller firms with limited access to financing. Cloud computing requires little up-front investment as there are no software licenses or servers to purchase or lengthy and expensive system installation and implementation.

A second reason why an upgrade is the best time to move to the cloud is that a significant cost of upgrading hardware or software is the labor component. Instead of spending that labor on moving data and applications to new hardware that is housed locally, a company can spend that same labor on moving to a cloud computing infrastructure.

Are there situations where moving to cloud computing doesn’t make sense?

Small, stable companies with one server where most all the work is done in the office may find it cheaper to keep their processing in-house. They may use SaaS providers for common services like e-mail and remote backup. But with stability, simple requirements and little need for Web-based access, there’s not a huge incentive for these firms to move to the cloud.

Companies that have graphic-intensive applications like graphic design, video production, computer-aided design (CAD) and other similar applications generally need fast local processing to handle real-time graphic and video rendering. The bandwidth required to make these applications run smoothly via the cloud is not yet cost effective. It will be a number of years before the technology is available to make these sorts of applications viable via the cloud.

However, the current trend is that the majority of small to mid-sized businesses are finding that the advantages of cloud computing are impressive and compelling enough to warrant serious consideration.

Steven Vicinanza, Ph.D., is CEO of BlueWave Computing LLC. For more information, visit www.bluewave-computing.com.