Business in the cloud

1. Business in the cloud

Hi there. We have seen how cloud computing has revolutionized the way businesses operate. In this video, we will take a closer look at the business side of things.

2. The business difference

The main difference between on-premises and cloud infrastructure for day-to-day business operations lies in their location and management. On-premises infrastructure requires businesses to own and maintain their hardware and software, typically housed within their own facilities. This model provides businesses with complete control over their IT environment but at the cost of higher capital expenditures and operational demands. In contrast, cloud infrastructure, hosted and managed by a third-party provider, offers flexibility and scalability, with reduced upfront costs. However, it also means that businesses have less control over their physical IT resources.

3. The finances

Using a cloud service like GCP for business also transforms the financial model. It shifts the major expenditure from capital (CapEx) to operational (OpEx). On-premises requires more CapEx due to the upfront investment in hardware and software. Conversely, cloud services operate on a subscription or pay-as-you-go basis, converting these costs into regular, operational expenses. However these operational expenses can also accumulate if not managed properly. Nonetheless, this shift enables businesses to scale up resources as needed and ensures the option to scale down. The cloud model, if implemented correctly, lowers the Total Cost of Ownership (TCO). This is the total cost of implementing, using, and retiring a technology. It achieves this by eliminating the need for ongoing hardware maintenance, reducing staffing needs for IT maintenance, and improving cost efficiency through scalable resources.

4. Responsibility

A business bears the full responsibility for its IT infrastructure in an on-premises setup. This encompasses everything from maintaining hardware to updating applications and ensuring security. The landscape changes when we consider cloud service models like Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

5. Cloud service types

In IaaS, the cloud provider manages the physical infrastructure, while the customer oversees the operating systems and applications. PaaS extends the provider's responsibilities to include operating systems and middleware, leaving the customer to handle applications, user access, and data. The most comprehensive, SaaS, has the provider managing the entire stack, from applications to hardware, with the customer responsible only for their data and user access. IaaS, PaaS, and SaaS, each with distinct benefits and trade-offs, cater to different business needs.

6. IaaS: flexibility and control

IaaS reduces TCO by eliminating the need for physical hardware investments, though it requires more in-house technical expertise and management. IaaS is ideal for companies needing customization and control over their infrastructure but comes with the responsibility of managing and maintaining more layers of the technology stack.

7. PaaS: balancing ease and flexibility

PaaS enables businesses to focus on application development and management. PaaS lowers the TCO further by reducing the need for in-depth infrastructure management. This makes it suitable for developers who want to build applications without the complexity of maintaining the platform. However, it offers less control over the environment compared to IaaS.

8. SaaS: minimum effort

SaaS provides the highest level of management and the lowest TCO. All aspects of the service, from the infrastructure to the application, are managed by the provider. This eliminates the need for specialized staff, making it an excellent choice for businesses without extensive IT resources. While SaaS offers the least flexibility and control, it's the most user-friendly, allowing businesses to focus on using the software rather than managing it.

9. Let's practice!

Now let’s practice what we know about all this cloud business!

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