Virtually everyone has now heard about the “cloud” and most of us even utilize it to one extent or the other.  Unfortunately, very few of us really understand what the cloud is and how (or if) it interacts with what we generally refer to as “IT”.  Both IT and the Cloud are available in many forms and relate to each other differently depending on how that relationship is structured.

As you can see in the graphic, there are four basic forms that illustrate the IT / Cloud relationship:  On Premise (Traditional IT), Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).  Each form has its own set of benefits and drawbacks.

The traditional IT model, On Premise, is what many of us are most familiar with.  In this model you must maintain all of your own systems, software, and data.  In today’s world, this is typically the least efficient model because you must have the personnel, equipment and expertise to control and maintain the entire system.  While you do have a significant amount of control, this model generally has a higher opportunity for failure and requires a significant investment of capital in equipment, software, and ongoing personnel requirements.

The IaaS (Infrastructure as a Service) model is most clearly seen in the “data center” model.  In a data center, the equipment component is eliminated because you are using someone else’s hardware, but you are still responsible for the software that is installed on it.  This has some benefit over the On Premise model since you no longer have to worry about hardware failure.  However, this model still requires a knowledgeable staff to maintain the software and systems, providing  updating, connections, security and everything else that goes into maintaining complex networks.

In the third model, Platform as a Service (PaaS), the vendor controls the hardware and the core software on a server.  The provider then gives the subscriber limited access to change the data and structure on top of the base system.

Website hosting is an excellent example of the PaaS model.  The website is on someone else’s server.  They have an installed operating system and core software, but the subscriber has complete control over the content of the site.  This is a perfect marriage of the service provider and service user.  The custom side of Salesforce is another example.  Salesforce has the platform built, the subscriber must follow the rules (code) of their platform, but can still track anything desired such as, opportunities, clients, participants, contracts, etc.  Salesforce can also be used in a SaaS (Software as a Service) model while website hosting is a strictly PaaS solution.

Software as a Service (SaaS) consists of software on the web that is a hosted application – you must “log into” it.  Much like traditional software, there may be a significant list of preferences that you can customize, but at the core, the application is out of the box.  In this model, the hardware, software, platform, and basically the entire package is completely taken care of by the vendor.  You do not need to know anything about code, platforms, or IT in order to utilize this kind of service.

Box.net, AtTask, Salesforce and Google Apps are all examples of the SaaS model.  Typically, large support packages are also included as a part of your subscription or membership.  This model eliminates the need for a large number of highly trained IT personnel and is generally the most cost effective option over all if you can find the right programs to meet your needs.  It is important to note that SaaS and PaaS models are both updated automatically so that you are always working with the most current version which is a great benefit.

While each of these models has its benefits in today’s marketplace, careful thought and investigation should go into which model will provide the most benefit at the best cost for your organization.  Generally speaking, a PaaS or SaaS system will provide the most easily customizable options with the least investment, especially when the ongoing expense of personnel to “manage” more traditional solutions is factored in as part of the expense.

Also keep in mind that it often makes sense to mix and match solutions to best meet your needs, for instance it may make sense to use a SaaS program for your email and an IaaS provider for your data storage.

The landscape of IT and Cloud relationships is quickly changing and expanding.  Now is the time for most organizations to investigate their potential entrance into this new world.  The new models that are now available can provide a level of flexibility, at a reasonable investment, far beyond what has traditionally been accessible.

For more information on cloud models and how to go about auditing and converting your organization please contact Daniel Nice from our Partner organization Parachute Applications, LLC at 303-800-4525 or at daniel@parachuteapplications.com