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Migration to the Cloud: Yes or No?

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By: Sasha Radenovic

July 20, 2017

Сродна сликаHow to move the company's information system into the cloud:On the one hand, you hear that "everyone" is working, and on the other hand, you get stories about the big expenses of something that should actually save you money. It only remains to precisely assess your needs and move forward, step by step. Cloud is expanding and more and more companies are adopting it for segments of their business. The cloud provider's revenue grows. According to statistical company Statista, global revenue from public cloud services is estimated at 175 billion dollars. And that's not all, revenues from cloud storage services globally amount to $ 2.35 billion, of software as a service (SaaS) around 23.72 billion. Cloud services are growing at more than 15 percent globally. As far as the domestic market is concerned, the 2016 RZS study says that only 9.3 percent of companies use cloud services, but hopes that close to 70 percent of employees in companies have remote access to email, documents or applications, which may be a step toward Cloud migration.
  • Let start from Office
If we "zoom in on a picture" a little, and we only look at the best-known office suite for Microsoft Office 365, which includes standard Outlook tools, word processing, spreadsheets (Excel) and PowerPoint, To spot this trend. Of the 1.2 billion Office 365 users globally, more than 60 million are active commercial users, and more than 90 percent of them work in small and medium-sized enterprises. This was the case in the fourth quarter of 2016. The last official figures are around 85 million commercial users, while in the first half of 2017, 100 million active commercial users are expected. The number from which you rotate in the head when looking at the situation from the corner of the domestic market.Business does not end up on clients - we also have virtual servers, backup solutions, anti-virus protection, applications, various business software, and many other cloud-based solutions ... and similar twisted numbers. The trend is obvious - cloud services are winning the market and will be increasingly present in the future.
  • Climbing to the cloud
The benefits of computing in the cloud were infrequent and widely so only a brief reminder: lower initial costs, assumed ease of use, up-to-date (always the latest version), scalability and mobility. All these advantages of the company can and should not be experienced, especially in the market where investment and IT spending are minimal and are seen as necessary evil, and not as something that can really bring a competitive advantage. The reasons are varied for this situation, but such a situation may be an opportunity to prove the untapped advantages and potentials of IT through cloud solutions.In order to experience the benefits, companies should approach cloud solutions in the same way as any new technology. Cloud solutions need to be evaluated, understood and ultimately accepted only if they bring a competitive advantage, reduce costs and improve daily business processes. The trend is that over the next 10 years, most IT services will be relocated to something that will resemble the current model of electricity distribution, that is, treating IT as consumer goods. This means that cloud offers will be substantially simpler and everything that companies should know will be costly.
  •  Maybe we already started, but we don't know...
Some things are probably already in some sort of cloud, but it's not so visible or called it. Computer networks, server, and the Internet exist for a long time. Most companies that have their own domain, Web site and e-mail address keep things away from the local computer network, most often with the hosting provider. These services are somehow naturally "stored" in the cloud. Companies that have an internal IT infrastructure can also think about cloud solutions that would lead to a hybrid cloud.Storage and file sharing and collaborative work on documents (collaboration) have always been a challenge. Cloud tools solve this problem elegantly. Some of them already use the company, say Google Drive, Dropbox, OneDrive or some similar service. If security is important (and is), companies should be asked how to manage these services to prevent potential leakage of confidential information. The question is how many people already use those services before companies do not know that the data is on these services. And this should be taken into account when migrating. We highly recommend backup and storage of backup data outside the company's location, and cloud can be a solution that needs to be considered.
  • In the end, for your CFO it's all about costs?
Depending on what is being shifted to Cloud, there are also different costs. Taking into account all the benefits of the clouds most often spoken about, costs are easily overcome, both their existence and the amount. It is therefore important that each company calculates the true costs of existing IT systems, as well as to try and anticipate and calculate the future cost of an equivalent or better cloud solution. Direct costs are relatively easy to calculate and estimate because they are seen by invoices of IT suppliers: hardware and software acquisition, maintenance, or support. The problem is the costs that are not visible and obvious, they are far more complex to calculate.Migrating to the cloud could eliminate part of the local IT infrastructure, but it should not be forgotten that companies will still need computers to access applications and data. Different things require different levels of work comfort, but if we take for example the ERP solution, a serious desktop or laptop computer is required for a more comprehensive and convenient data entry. The cost of the existing IT infrastructure and the assessment of the needs of the future cloud infrastructure, combined with the possibility that only a few things companies migrate into the cloud further complicates the calculation. Therefore, as well as due to the fact that migration to cloud eliminates only part of the existing costs while some remain.
  • Advantage will not come over night
Migration to the cloud should give companies a competitive edge either in reducing costs, raising efficiency, mobility ... If it is estimated that an organization would not get much migration to cloud at this moment, it's better not to work.If IT becomes in some way comparable to consumer goods, it means that without it today it can not be done. In this sense, like without power, mobile phone or computer, an electronic business can not be imagined, so it might soon be with a cloud. When everyone benefits from the benefits of the cloud, it will no longer be an advantage; it will be the conditio sine qua non, a condition without which it can not be.New technologies are exciting, but the use of technology alone does not bring the true value. It should be used not because of the "newspaper" factor but rather because of business demands and needs. Moving some applications to the cloud may be a step in the right direction, but poorly designed solutions will not be improved just because they are moved to the cloud.
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