Charlotte Colocation Hedges the Risk of Cloud Computing

Business leaders and Charlotte colocation providers alike have heard the claims of the nearly limitless benefits associated with migrating IT operations to the cloud to the point of “cloud nausuem.”  Most would likely agree that cloud services provide value to businesses that lower cost and complexity of operations; however, placing full operational dependence on a cloud provider positions any company in a high stakes gamble with its very livelihood at stake.  Wise companies understand how to manage risk, and well-grounded IT executives and owners listen to logic, not the hype of well-funded cloud services marketing departments.

For those unaware of the relationship, cloud services are essentially a myriad of services delivered via high-speed internet connectivity from data centers.  These services can range from providers simply delivering a software as a service (SAAS), to a platform as a service (PAAS), and are able to scale to achieve the delivery of computer infrastructure as a service (including full architectural control of hardware, software, raw storage, etc.) known as IAAS.  The objective of cloud service providers is to service their clients (businesses) by mimicking the delivery of utility services (electricity, natural gas, etc.) in a “pay per consumption” model.  Though highly economical, this arrangement can result in a total loss of business operations in the event of a service disruption from the cloud service provider or the connectivity provider.  When faced with a scenario of zero productivity for unknown periods, business executives tend to rethink the perceived value of the pure cloud model.

At the core of the decision is the hard fact that companies are required to make tough decisions in today’s business market to remain competitive, and sometimes simply to remain profitable.  Leveraging cloud services can be economical yet highly risky; therefore, many companies are bridging the move to a full service public cloud by leveraging privately operated data centers.

For most companies considering a move to a full cloud model, a challenge they face is attaining a respectable rate of return on their often-extensive hardware and software investment.  High dollar purchases are often financed, and the idea of a company continuing to pay for IT assets that are no longer in service is very often considered financial irresponsibility.  Colocation service providers help satisfy the needs of a CTO/CIO who is searching for the benefits of reliable network uptime, as well as the cost effectiveness of retiring IT assets as their usefulness degrades, on the company’s timetable.  By relocating a company’s existing infrastructure to a fiber connected data center that offers colocation services (replete with enough core redundancies to make IT administrators giddy), companies have the luxury of retiring IT assets on their own timeline in a financially prudent manner and moving them to the public cloud.

Mission critical applications and secure data can be retained in the colocation facility in a private cloud arrangement.  Private clouds located in a colocation facility make full use of a company’s existing IT assets in a private, flexible, and scalable manner, but are typically more expensive.  Unlike public clouds, private clouds are not infinitely scalable; they are only as scalable as the limits of the company’s hardware in which the company has invested.

Hybrid clouds have become very appealing to companies that wish for the best of both worlds.  A hybrid cloud combines the high security and tight controls over mission critical applications in a private environment, while permitting predetermined business operations the ability to automatically acquire public cloud computing services on demand as needed; proper architecture is paramount in the success of any hybrid cloud solution.  Point of information: recent reports have shown that not all applications are created equal, and issues may arise with applications when they are transitioned to the cloud; therefore, every organization should exercise due diligence when considering the feasibility of moving their entire operations to the cloud.

Considering the enormous impact that a misstep could have on business operations, a wise roadmap to the cloud should not be equal to a sprint to the goal line for any IT department, but rather a meticulously well-devised strategic initiative.  It should begin with dialogue that includes business stakeholders, risk officers, and company leaders weighing the various benefits and challenges.  A lower cost and more effective IT department via the cloud is an ambitious objective.  Champions of this effort must understand and prioritize what an organization’s priorities are and determine the best fit.  Total cost of ownership (TCO) and an organization’s appetite for risk (including the risk of not leveraging cloud or colocation services) will likely play a significant role in the decision; especially for companies that operate regionally, nationally, or globally.

About DC74 Data Centers

DC74 operates four data centers in the eastern United States that offer a myriad of data centers services designed to assist companies to whom network uptime is critical, while safeguarding data in secure facilities.  DC74 has offices in three states and focuses on providing Baltimore, Washington DC, and Charlotte colocation services.