What are the benefits of cloud computing? Understanding the benefits of cloud computing compared to on-premise computing and key points to avoid failure

In recent years, we have been hearing the word "cloud" more and more, but in many cases people are still considering it without being clear about what the benefits are and how it differs from on-premise systems.

The cloud is not a panacea that will necessarily lead to cost reductions and improved business efficiency when introduced. However, if the purpose and usage are clearly defined, it can also be an option that can reduce the burden of system operation and create an IT infrastructure that is resilient to change.

In this article, we will organize everything from the basic concept of cloud computing to its specific advantages and disadvantages, the differences with on-premise computing, and points to consider when making a decision.

What is the cloud in the first place?

The term cloud is widely used, but if you proceed with your consideration without properly understanding how it works and its prerequisites, it's easy to make a mistake. First, let's clarify the basic concept of cloud and how it differs from on-premise systems.

The idea of ​​"using without owning a server"

Cloud computing is a system that allows you to access IT resources such as servers and storage as needed over the internet, without having to own them yourself. Rather than purchasing, installing, and managing physical servers as in the past, the premise is that you "rent" an environment prepared by an external provider on a per-use basis.

The key point is that IT infrastructure is treated as a "service to be used" rather than "property." Rather than requiring capital investment or maintenance, the cloud's distinctive feature is that it can be flexibly adapted to the business and operational situation.

Differences from on-premise

On-premise is a system where a company purchases its own servers and network equipment and operates them in its own facilities. This requires the company to handle everything from hardware selection to installation, maintenance and troubleshooting, resulting in a large initial investment and operational burden.

On the other hand, with the cloud, the service provider is responsible for procuring hardware and managing data centers, allowing users to select the performance and capacity they need and focus on configuration and operation.

The biggest difference is whether you think about it based on the facilities or the usage.

On-premise systems are suited to stability and fixed operations, while cloud systems tend to be chosen in cases where adaptability to change and scalability are important.

Clarifying the terms "cloudification" and "cloud services"

"Cloudification" refers to the migration of systems and business processes that were previously operated on-premise to a cloud environment.

On the other hand, a "cloud service" is a specific service provided on the cloud. It can be anything from infrastructure services to application services.

• Cloud Computing: Approach and Initiatives

• Cloud services: Specific services used

It will be easier to understand if you organize it like this.

Why the benefits of cloud computing are gaining attention

The widespread use of cloud computing is not simply a technological trend, but is a result of changes in the IT and business environments themselves. We will summarize the prerequisites that make cloud computing a popular choice.

Changes in the IT environment

In recent years, many companies have been facing a shortage of IT personnel. When you consider not only the stable operation of systems but also security, fault response, and improvement measures, it is becoming increasingly difficult to maintain the same system as before.

In addition, with the changing business environment, systems now require speed.

There are an increasing number of cases where IT operations, which are based on a preparation period of several months, are unable to keep up with the launch of new services and changes to business operations.

Business continuity plans (BCPs) are becoming increasingly important as a means of preparing for natural disasters and system outages. Operations that centralize systems at a single location are also being called for to be reconsidered from the perspective of risk management.

Issues that are likely to arise with on-premise operation

In an on-premise environment, you must procure, install, and maintain your own servers and network equipment, which can lead to high initial costs and limited flexibility when you want to change the system configuration.

Furthermore, the longer the operation continues, the more likely it is that the work will become dependent on the individual in charge and that knowledge will become biased. Every time a person in charge changes, handover costs are incurred, and in some cases the burden of dealing with problems increases.

Regarding BCP measures, additional investment is required to distribute operations to multiple locations and to establish backup systems, and there are cases where operations continue without sufficient measures being taken.

Why Cloud is a popular choice

Cloud computing is an option that allows you to avoid having to take on too much in-house. By leaving hardware management and data center operations to the service provider, you can focus on system design and business utilization.

In addition, because necessary resources can be used when needed, it is easier to adjust to changes in business and operations.In terms of BCP measures, it is also highly rated for the fact that it is relatively easy to incorporate a system that assumes multiple bases.

Rather than being chosen because it is convenient, the cloud is increasingly being chosen as an operational format that is easy to adapt to current IT and business environments.

7 Key Benefits of the Cloud

Here we will explain seven of the most common benefits that can be cited when considering implementation.

Easy to get started with low initial costs

You can start using it without purchasing any servers or equipment, which helps keep initial costs down. You can use it when you need it and as much as you need, so there is no need to assume large capital investments.

For testing environments or small-scale business systems, it is possible to start with a minimum configuration and gradually expand. This allows you to avoid excessive investment in anticipation of future needs at the time of implementation. However, if you continue to use it for a long period of time or on a large scale, the cumulative costs may become high. It is necessary to understand not only the initial costs but also the costs assuming continued use.

Flexible increase/decrease depending on usage

With the cloud, you can increase or decrease the amount of resources you use depending on the situation. This makes it easier to handle busy periods or temporary increases in access, and reduces the need to be tied to fixed facilities.

For example, you can increase processing power only during a campaign period and then return to the original configuration after it ends. This makes it easier to make short-term adjustments that would be difficult with on-premise systems.

However, if you continue to use the service without paying attention to the increase/decrease settings, your usage may increase more than expected, so it is essential to understand your usage and operate it in an appropriate manner.

Fast implementation and change

With the cloud, servers and environments can be prepared in a short time. There is no need to wait for procurement or installation, and you can start using them immediately when you need them.

It also allows for the speedy launch of new systems, configuration changes, and preparation of test environments. The advantage is that IT responses do not have to be postponed in response to changes in business or operations.

On the other hand, if speed alone is the focus, design and rules tend to be put off. Even if you start early, it is necessary to have a basic design and management policy in place.

Can be used anywhere

Because the cloud is accessible via the internet, it is not dependent on a specific location. The same system can be used from anywhere, even outside the office. This makes it easier to accommodate remote work and distributed work styles, and allows for flexible design of the usage environment.

However, because an internet connection is required, consideration must be given to the quality and availability of the communication environment, and the design must also take into account the impact of network failures.

Easy to prepare for disasters and disasters

The cloud is an environment that makes it easy to incorporate systems that assume multiple locations and to design preparations for disasters and failures. Data backups and redundant configurations can be incorporated relatively easily.

For example, it becomes easier to store data at a different location or prepare a system to switch over in the event of a failure. BCP measures, which tend to be expensive when on-premise, also become more practical.

However, using the cloud does not automatically guarantee perfect disaster prevention measures. Users must decide how far they want to go in planning for disaster prevention measures.

It is easy to reduce the burden of operation and maintenance

With the cloud, there is no need to maintain hardware or manage data centers in-house, which helps reduce the burden of daily operations. Freed from tasks such as responding to server failures and updating equipment, you can spend more time on improving your business and considering how to utilize the cloud.

However, this does not mean that operations will no longer be necessary, as new operations such as configuration management, monitoring, and cost management will become necessary.

Easy to standardize security measures

Cloud services often come with security features pre-installed, making it easier to implement a certain level of security. This reduces the burden of building a system from scratch in-house. Basic security features such as access control, log management, and encryption can be used in combination. Another feature is that it is easy to standardize operational rules.

However, not everything can be left to the service provider. Users must be aware that incorrect settings or operation can increase the risk.

Disadvantages and points to note about the cloud

If you use it incorrectly or make incorrect assumptions, you may not get the results you expect. Here we will summarize the disadvantages and points to keep in mind before introducing it.

Costs may increase depending on usage

Cloud computing is based on a pay-as-you-go system, so you only pay for what you use. While the system itself is flexible, if you continue to use it without understanding your usage, costs will increase more than expected.

For example, if you leave unnecessary resources unattended or operate them without noticing an increase in usage, your monthly costs will likely increase. This is different from the fixed costs that are easily visible in an on-premise environment.

When implementing a system, it is necessary to understand which uses affect costs and to review them periodically. Cost management must be considered as part of the design and operation.

Dependence on the internet environment

Because the cloud is accessed via the internet, it is dependent on the communication environment. Network failures or degradation of line quality can have an impact on business operations.

In particular, if your locations and users are dispersed, you need to consider redundancy of communication routes and lines. It is important to note that unlike on-premise systems, the system cannot be completed within the company's internal network.

Design and operational rules are necessary

Cloud computing tends to have an image of being "easy to use," but using it without considering its design and operation can easily lead to problems. In particular, if you put off authority management and resource management, management can easily become complicated.

For example, if you start operations without clarifying who can operate what, the risk of configuration errors and information leaks increases. If the scale of the system expands while operational rules remain unclear, it will become difficult to organize them later.

Approach to service change and termination risks

Cloud services add new features and change specifications relatively frequently. While this has the advantage of rapid evolution, it can also have an impact depending on how you use them.

There is a possibility that the content of the service may change or be discontinued in the future. If you rely too heavily on a specific function, it may be difficult to deal with this. Therefore, when implementing a service, it is important to be aware of "how much you will rely on a specific service" and also consider alternative means and ease of migration.

Cloud vs. On-Premise

It's not as simple as saying which is better, cloud or on-premise. Because each has different characteristics, it's important to choose the format that best suits your company's objectives and assumptions. Here, we'll explain the differences from a typical perspective.

Cost/scalability/operational burden/BCP/security

• cost

  • On premises

    • While the initial investment tends to be large, it is easier to estimate costs for long-term use.

  • In the cloud

    • While initial costs are easy to keep low, monthly costs will vary depending on usage.

• Scalability

  • On premises

    • In many cases, capital investments are required with an eye to the future, making it difficult to increase or decrease investments in the short term.

  • In the cloud

    • The structure makes it easy to increase or decrease resources when needed, making it easy to respond to changes.

• operational load

  • On premises

    • You will need to manage and maintain your equipment yourself.

  • In the cloud

    • Since hardware management can be left to the service provider, it becomes easier to distribute operational burdens.

• BCP (Business Continuity Plan)

  • On premises

    • Implementing BCP measures requires significant costs, such as setting up multiple bases.

  • In the cloud

    • It tends to be easier to adopt a distributed configuration and easier to design BCP measures.

• Security

  • On premises

    • Since in-house management is assumed, there is a high degree of freedom, but the quality of the measures depends on the system.

  • In the cloud

    • Standard security features are available, but configuration and operation are the responsibility of the user.

Cases where the cloud is suitable

The cloud is suitable when the following conditions are met: If you value the ability to adapt to change and flexibility, the cloud is a strong choice.

• It is difficult to predict fluctuations in usage scale and load

• I want to prepare and change the environment in a short period of time.

• Want to reduce the burden of IT operations as much as possible

• We want to prioritize disaster prevention and decentralized bases

Cases where continuing on-premise is suitable

On the other hand, there are cases where continuing on-premise operations is appropriate. If you place importance on making the most of your existing assets and systems, on-premise operations can be a rational choice.

• Usage requirements remain largely fixed for a long period of time

• Highly dependent on specific hardware and configuration

• The company has sufficient operational systems and know-how

• I want to avoid dependency on external networks as much as possible.

The "hybrid" option combines both

There is no need to use either the cloud or on-premise systems. There is also the idea of ​​a "hybrid configuration" that combines the two depending on the nature of the business and the characteristics of the system.

For example, you could continue to use your core system on-premise, while using the cloud for peripheral systems and backups. Rather than forcing a complete migration, you can use the cloud in stages to reduce risk.

A checklist to avoid failure

In many cases where cloud adoption stumbles, it is not so much the technology itself, but rather a lack of clarity about the "prerequisites for decision-making." Here, we will organize the points you should check during the consideration stage in the form of a checklist.

Are the objectives clear (cost/speed/BCP, etc.)?

The first thing to check is the purpose of introducing the cloud. The configuration and approach you choose will vary depending on whether it is cost reduction, speed of launch, or disaster recovery.

If you proceed with your objectives unclear, you are likely to end up in a situation where you feel that the results are not as good as you expected or that you don't know what to evaluate. Even if you have multiple objectives, it is important to organize your priorities.

Have you decided how much to cloud?

It is not necessary to migrate everything to the cloud. It is important to decide in advance which systems and to what extent you will put them on the cloud.

For example, the degree of difficulty and risk will vary greatly depending on whether you start with the testing environment and information systems, or whether you include the core systems. If you proceed without dividing the scope, you will likely find it difficult to make decisions along the way.

Has the operation and management system been taken into consideration?

Even after adopting the cloud, operation and management will continue. It is necessary to consider a system for managing the settings and responding to problems.

Depending on the number and skills of IT staff, it may be a burden for a company to operate the system on its own.

In that case, it would be realistic to consider operational support and utilizing external services as options.

Are security and rules in place?

In the cloud, many security measures are "configured" by the user. It is essential to organize rules regarding who can access what level of access and what operations are permitted.

If you start operation without determining rules at the beginning, it will be difficult to maintain control later. Setting the bare minimum of rules from the beginning will lead to stable operation in the long term.

How to proceed with cloud adoption

To successfully implement cloud computing, it is important to proceed step by step rather than making a sudden, major switch. Here we will summarize the basic steps to keep in mind when implementing cloud computing.

Start small and see the results

A feature of the cloud is that you can start using it with a minimal configuration, so it is practical to start by trying it out for applications that have a small impact.

For example, starting with an environment where the impact of failure is limited, such as a test environment or a small-scale in-house system, makes it easier to understand the characteristics of the cloud. Through actual operation, you can determine whether it is suitable for your company.

Costs are calculated as "usage fee + operational load"

Cloud costs tend to be judged solely on the monthly usage fee, but in reality, you also need to consider the labor required for operation and management.

The time spent changing settings, monitoring, and managing costs can also be considered actual costs. The burden will vary depending on whether you handle the process in-house or use external support. It is important to understand costs from a holistic perspective, including operations, rather than just looking at usage fees.

Decide on post-migration operations first

Cloud adoption doesn't end when the migration is complete. You need to think ahead about how you'll operate the system after the migration.

Deciding who will manage the system and how to respond in case of problems will help prevent confusion after implementation. Designing with operation in mind will lead to stable use.

My Feelings, Then and Now

The cloud is not just a new system to replace on-premise systems, but also a way of thinking that allows for flexible operation of IT environments. While it is easy to keep initial costs down and is resistant to expansion and changes, depending on how it is used and designed, it may not produce the expected results.

The important thing is not to make "using the cloud" an end in itself. You need to clarify the issues your company wants to solve, such as cost, speed, and BCP, and then decide to what extent you should utilize the cloud.

On-premise and cloud computing each have their own appropriate uses. It's not necessary to completely switch over; gradual implementation and hybrid configurations are also valid options. Starting small and then determining the best fit for your company through operation will lead to successful cloud utilization.