In the contemporary digital era, the allure of cloud services is undeniable. The promise of cost savings, scalability, and convenience has enticed a multitude of businesses to migrate their operations to the cloud. However, beneath the glossy veneer of these apparent benefits, lurk hidden dangers and limitations that can pose significant threats to an organisation's cash flow and control. This article aims to shed light on these often-overlooked aspects of cloud services, providing real-world examples to illustrate the potential pitfalls.
Cloud Services: Death to Cash-flow and Control by a Thousand Knives
The first major concern is the phenomenon known as 'cost creep'. At first glance, cloud services appear to be a cost-effective solution. The pay-as-you-go model, which eliminates the need for substantial upfront investment in hardware and software, is particularly attractive for small to medium-sized businesses. However, the reality can be quite different.
Consider the case of a mid-sized e-commerce company that migrated its operations to the cloud, lured by the promise of reduced IT costs. Initially, the company did indeed enjoy significant savings. However, as the business grew and its reliance on cloud services increased, so did its monthly bills. The cost of additional storage, increased bandwidth, and extra computational power began to add up. Over time, the company found itself spending far more on cloud services than it had on its previous on-premise setup. This is a classic example of cost creep, where the expenses subtly increase over time, often going unnoticed until they become a significant burden.
The second major concern is the potential loss of control. When businesses move their operations to the cloud, they are essentially entrusting a third-party provider with their critical data and processes. This can lead to a number of issues.
Take, for instance, the example of a financial services firm that decided to use a cloud-based customer relationship management (CRM) system. The firm was initially pleased with the system's capabilities and the ease with which it could be integrated into their operations. However, when the CRM provider decided to update the system, the firm found itself at the mercy of the provider's schedule and decisions. The update resulted in changes to the system's interface and functionality, disrupting the firm's operations and causing frustration among its employees. This loss of control over critical business processes can have serious implications, affecting productivity and potentially leading to loss of business.
Future Business and Future Hosting: A Balanced Approach to Cloud Services
While Future Business and its sister company, Future Hosting, provide cloud services and support, we are always at pains to inform clients that in the long run, bespoke software with proper data control will be more cost-effective, especially in the Software as a Service (SaaS) world. Yes, there will be a higher upfront cost, but it's important to take into consideration that the client will always own their own data. We always ensure robust backups and are excited to launch a new dedicated onsite client backup solution for even more safety and control.
This new service will provide dedicated Client OnSite Network Attached Storage (NAS) solutions for data integrity and ownership. This will be in conjunction with one of the world's leading NAS providers. This ensures that our clients not only have full control over their data but also have the peace of mind that comes with knowing their data is securely backed up and easily accessible.
In conclusion, while cloud services offer numerous benefits, it is crucial for businesses to be aware of the potential dangers and limitations. Cost creep can turn an initially cost-effective solution into a financial drain, while the loss of control can disrupt operations and pose security risks. Therefore, businesses considering a move to the cloud should conduct a thorough cost-benefit analysis, taking into account these potential pitfalls. It is also advisable to negotiate clear and comprehensive service level agreements (SLAs) with cloud service providers to ensure that expectations and responsibilities are clearly defined.
In the world of cloud services, the old adage 'buyer beware' holds true. While the cloud may seem like a silver lining, it is essential to be aware of the potential storms that may come with it.
If you want to comment, argue or disagree, you can do so here >:¬} https://www.linkedin.com/pulse/cloud-services-hidden-perils-cost-creep-control-erosion-alex-gogan
