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Cloud Makes Sense Most of the Time, But Not Always

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July 03, 2013

Cloud Makes Sense Most of the Time, But Not Always

By Erin Harrison, Executive Editor, Cloud Computing

There are many benefits of cloud customer relationship management (CRM), including enhanced customer satisfaction and retention, increased value from existing customers and reduced costs associated with supporting and servicing them, as well as improved profitability.

In many places today, cloud is written or spoken about as though it’s the “end-all, be-all” solution for every business on the planet. But in reality, that’s not always the case. Even the biggest proponents of cloud believe that not every situation is a good candidate for a cloud solution.

A recent TechRepublic blog post by Thoran Rodrigues highlighted some uses cases where the cloud would not provide any particular benefits to organizations. For one, security remains a foremost concerns for companies considering adopting cloud-based services, however, the real issue is external dependency, to the point where it creates a fundamental business risk.

“What this mean is that it can make sense to avoid the cloud if your company is worried about the risk (which goes far beyond a simple security risk) of relying on external vendors for their infrastructure,” Rodrigues explained.

Cost is another legitimate concern – and conversely, one of the most frequently touted benefits of the cloud is enabling cost optimizations. However, scalability comes at a cost, which means the cost per hour for a cloud server can actually be greater than the average hourly cost of a server when it is amortized over its lifespan.

“This means that, for some companies, with certain computational workloads, it might actually make more sense to run those workloads internally rather than putting them on the cloud,” Rodrigues explained.

Situations when this will arise is when workloads need servers to be running full power, 24 hours a day, seven days a week. In addition, for organizations that have already laid out costs such as hardware investments and personnel, it may make more sense to invest a little more on the hardware side in an effort to reduce overall costs.

Like any other business decision, the choice to move to cloud CRM or any other cloud-based service must be weighed in the same manner of making any other major technological change at the company. The realization that cloud may not be all things to all people will help cloud to mature as this disruptive force continues to evolve.

Edited by Rachel Ramsey
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