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June 7, 2023

The IT Industry's Skyward Journey: Glimpsing through the Window of Cloud Adoption

Over the past decade, cloud services have steadily ascended to prominence in the Information Technology (IT) sector, often heralded as the pinnacle of organisational aspiration. Chief Information Officers (CIOs) and other IT leaders have started to assess how these services can revolutionise IT departments, while organisations at large are exploring ways to utilise cloud offerings to bolster their commercial portfolio. As this shift in mindset unfolds, the once ambitious project of "We need to develop a mobile app" is now standard practice for many organisations.

According to a Gartner press release, Infrastructure as a Service (IaaS), Desktop as a Service (DaaS), and Platform as a Service (PaaS) experienced substantial growth in 2022, with an estimated total spending of USD 500 billion. The report also predicted that end-user spending would reach almost USD 600 billion.

Moreover, data from Statista on enterprise spending for cloud and data centres from 2009 to 2022 indicates a consistent rise in cloud adoption. However, spending on on-premises solutions or data centres seems to fluctuate at an average level.

Despite the upward trajectory of cloud adoption, some organisations have chosen to swim against the current. David Heinemeier Hansson from Basecamp is a dissenting voice who argues that the cloud does not support his business model due to the potentially steep costs and wanting to own hardware and write it off over many years. You can read about his arguments in this article.

It's worth noting that many organisations are hesitant to move to the cloud for reasons such as the residual value in existing Infrastructure and technical debt. Consequently, transitioning to complete cloud services may not make financial or operational sense for these entities.

Interestingly, cloud services initially deployed marketing messages using terms like "cloud bursting". This term, still relevant today, refers to the strategy of leveraging cloud servers or services to execute specific tasks over short periods. This approach often leads to significant cost savings, especially when juxtaposed with the expenses of procuring new hardware and the time implications involved.

From personal experience, there have been instances where cloud services were a more practical choice than constructing a data centre or opting for colocation. However, the decision largely depends on the specific circumstances of each case.

The concept of multi-cloud strategies has also garnered interest, primarily due to organisations' reluctance to rely entirely on a single provider. Instances of significant disruption caused by hyper-scaler outages have further heightened this interest. For more details on multi-cloud strategies, refer to this source.

Software such as Parallels Remote Application Server (RAS), which delivers end-user computing services, demonstrates an impressive ability to connect to both on-premises solutions and multiple cloud platforms. It's disappointing that adopting multi-cloud strategies has not been as widespread as possible. In this regard, it would be encouraging to see more vendors adopt a similar approach to Alludo's Parallels RAS, prioritising customer choice.

In conclusion, adopting cloud services is indisputably on an upward trajectory, yet some organisations remain cautious about immersing themselves in the 'cloud river'. Others have decided to exit the cloud entirely, citing the associated costs as outweighing the benefits of maintaining their own data centres. Interestingly, many organisations are exploring multi-cloud strategies to avoid over-reliance on a single provider, a shift driven by past disruptions caused by hyper-scaler outages. It's clear that while the cloud holds great potential, its adoption and implementation are complex and multifaceted, demanding careful consideration and strategic planning.

Finally, the subject of cloud exit planning is another important yet often overlooked aspect. Specific industries, such as finance, must have contingency plans for exiting the cloud. The Financial Conduct Authority (FCA) and Microsoft have provided guidelines for cloud exit planning in the financial services sector. Organisations must be prepared with proper strategies and guidelines in place if the need to exit the cloud arises. In my opinion, this should be a strategy considered by all organisations, not just finance.


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