Strategically Aligning Cloud Adoption with Business Objectives: Advice for Selecting Your Cloud Model

13/10/23, 10:00 am

Cloud computing involves a multitude of decisions. It's not just about selecting between public, private, or hybrid cloud models—it's about understanding and handling the complexities involved. By aligning a cloud strategy with unique business objectives, a tailored solution that drives growth and success can be achieved.
 

Understanding the basics

Before we delve into the specifics, let's establish a shared understanding of what public, private, and hybrid clouds are.

The public cloud is a platform that uses the standard cloud computing model to make resources, such as virtual machines (VMs), applications, or storage, available to users remotely via the internet.

Private cloud refers to computing services offered either over the internet or a private internal network, only to select users instead of the general public. A hybrid cloud is a solution that combines a private cloud with one or more public cloud services, with proprietary software enabling communication between each distinct service.

The Public Cloud

The allure of the public cloud lies in its cost-effectiveness and scalability. By leveraging shared resources, companies can drastically reduce their hardware refresh and maintenance costs. Moreover, the pay-as-you-go model offers immense scalability and elasticity, allowing businesses to adjust their services based on demand.

However, these benefits come with trade-offs. Adopting cloud technologies requires both a mindset and procedural transformation. With your data now stored in a cloud provider's infrastructure, there are numerous security considerations that may not have been previously necessary.

Ensuring robust security measures is paramount, especially if your business handles sensitive information, as any oversights could potentially compromise security and control.

The Private Cloud

On the other hand, the private cloud provides a higher level of security and control. Since resources are not shared, businesses have greater oversight of their data and operations. For example, a healthcare organization storing sensitive patient data might opt for a private cloud to maintain strict regulatory compliance.

The trade-offs here involve cost and complexity. Private clouds require significant investment in hardware, software, and in-house IT expertise. They also lack the pay-as-you-go scalability of public clouds, which can limit operational agility.

The Hybrid Cloud

The hybrid cloud presents a middle ground, offering flexibility by combining aspects of both public and private clouds. Companies can keep sensitive data on a private cloud while using the public cloud for high-volume, less sensitive data. This approach could be beneficial for a retail business that wants to secure its financial transactions on a private cloud while handling high-traffic website operations on a public cloud.

But this flexibility comes with increased complexity. Managing a hybrid cloud requires sophisticated technical skills to ensure seamless integration and movement between the two environments. Additionally, security strategies must be robust enough to protect data across different platforms.


Strategically Aligning Cloud Adoption with Business Objectives

Regardless of the cloud model your organisation chooses, it's paramount to harmonise this decision with your overall business objectives. Different cloud models carry varying benefits and trade-offs, making the decision much more than a matter of preference - it's about aligning with your strategic goals.

Innovation and Speed-to-Market

If your company's primary aim is to innovate rapidly and bring products or services to market swiftly, the scalability and elasticity offered by a public cloud could be highly advantageous. It allows you to adjust capacities based on demand, thereby enabling prompt response to market changes.

Data Security and Compliance 

Conversely, if your business deals with sensitive data or needs to maintain strict regulatory compliance, the enhanced control offered by a private cloud could be more appropriate. It provides heightened security and enables you to govern your data and operations more tightly.

Balancing Cost-Effectiveness, Security, and Scalability

If your objectives necessitate a blend of cost-effectiveness, security, and scalability, then a hybrid cloud could be the optimal solution. It allows you to secure sensitive data on a private cloud, whilst leveraging the public cloud's cost-effectiveness for less sensitive, high-volume data.

The key is to understand the objectives and then choose the most suitable cloud model as part of your broader business strategy.


Choosing the Right Cloud Model: A Practical Approach

Deciding between public, private, or hybrid cloud isn't a matter of choosing the 'best' choice, but rather opting for the option that best aligns with your unique business needs and objectives. Let's delve deeper into these options with a few practical examples.

Suppose you run a start-up with a limited budget, you might find the public cloud the most attractive option. For example, a fledgeling tech company developing a digital product might leverage the scalability and cost-effectiveness of the public cloud to deal with fluctuating user demand without the need for expensive hardware infrastructure.

Private cloud is suited to highly regulated businesses like financial and healthcare institutions. Large organisations that require advanced and custom data centre solutions also benefit from private cloud.

A hybrid cloud could be the solution if your objectives require a balance of security and scalability. For instance, a financial institution might use a private cloud for storing sensitive customer data, while running its high-traffic online banking services on a more scalable, cost-effective public cloud.

Remember, selecting a cloud model is not a one-size-fits-all decision. It requires careful consideration of various factors, including your existing IT infrastructure, data sensitivity, regulatory requirements, and budget limitations. At the end of the day, the right decision is the one that closely aligns with your business needs and objectives.
 

Conclusion

Selecting a cloud model is a complex decision, fraught with trade-offs. However, by understanding these trade-offs and aligning your cloud strategy with your business objectives, you can make an informed decision that supports your company's growth and success.

  • Selecting a cloud model presents a multifaceted decision, where the 'right' model is less about finding an ultimate solution and more about navigating the inherent trade-offs tied to each model. The most suitable choice hinges on careful consideration of these trade-offs.
  • Cloud strategy must be in harmony with business objectives, whether it be innovation, data security, cost-effectiveness, or scalability. Each cloud model—public, private, or hybrid—can support different aspects of these objectives.
  • Remember, there's no one-size-fits-all decision in cloud selection. Instead, the optimal decision is the one that aligns closely with your specific business needs and objectives, mindful of the inevitable trade-offs each choice presents.

Considering a shift to the cloud? Our team of experts is here to guide you through the complexities of cloud decision-making. Contact us today for personalized advice and assistance tailored to your unique business needs.

Pankit Mehta

Yang Liu
National Portfolio Manager, NEC Australia
yang.liu@nec.com.au