Cloud Computing for Enterprise VS SMBs- Key Differentiators

With the growing demand and hype around cloud computing and its related services, it is not a surprise when boards have endless heated discussions on whether it’s time to switch to cloud computing services while leaving traditional enterprise software behind. However, the “me too” attitude is only good as long as the environment is favorable to you, as it is to your next door neighbor.

What many organizations, SMEs and enterprises, tend to oversee is if it the right time/cause to jump to cloud computing services. The answer to this question needs to be heavily weighed and assessed; just a marketing pitch doesn’t suffice. As contrary to popular belief, not all cloud computing services may be the right ones for every business.

A careful examination and comparison is a must. Also, do not limit this to different cloud providers alone. Before you embark on the cloud, ensure that is in the best interests to move from your enterprise software. Though cost effectiveness is a great advantage for SMEs, it doesn’t alter much for enterprises. So is the case with overall operating costs. Enterprises cannot consider benefits like these in order to move to the cloud.

For an enterprise to reach out to cloud computing service providers, you need to look at things from a slightly different perspective. Security and performance risks can be your focus when you are sifting through cloud service providers. Seemingly minor security breaches or regular outages and downtimes, can cause irreversible damage to enterprises. Like with any enterprise, being unable to cater to clients in real time can result in a huge loss. Though cloud service providers are quick to scale and expand to adjust to your ongoing needs, have you analyzed their capacity? You need to evaluate their scale-out plans with regards to infrastructure.

According to a research, many cloud based ERP systems are reported to lack the infrastructure to accommodate interoperability with existing applications. Cloud based services may limit extensive customization of the system. With users spread across various departments, it becomes imperative to adapt the system as per individual teams, constraints to do so result in inadequate performance and procedural rigidity.

In another research by Forrester, enterprises are concerned about stability, and dedicating a team for the maintenance of the system.

These are some of the factors that enterprises need to think through before availing cloud related services. Going with largely marketed concepts of lower costs and perceived scalability will only prove diminutive in the future.