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Cloud services or "cloud" are currently in focus. And everything indicates that this is not just a fad. Instead, it is natural that the period of "onpremise" is coming to an end and that all IT operations will be handled by an external party rather than in the local basement. But does external IT operation automatically mean it is a cloud service? Or?
In the past, when discussing how operations should be managed, one chose between "own operation" or "outsourced operation". Although this discussion still occurs today, the terminology is different, which can create some ambiguity about what is meant. Let's take the example of a customer actively choosing to purchase their system instead of subscribing to it but choosing to have the operation handled by an external operations vendor. By definition, this is "onpremise" but simultaneously "outsourced operation".
Today, one often hears customers claiming to have a "cloud strategy". But what does this really mean? Does it only mean refraining from local operation of their applications, or does it mean exclusively subscribing to so-called "public cloud applications"?
There are many consequences of transitioning from local operation of purchased applications to subscribed cloud applications. These consequences are a mix of positive and negative, but the extent to which they are positive or negative varies from customer to customer. Some examples of consequences are: A. The need for local technical operations expertise decreases; B. The ability to influence when/how software upgrades are performed decreases; C. The possibility for customer-specific customisations decreases; D. Operational reliability increases. These are just a few examples of many consequences.
Integration has always been a problematic area. It is always a weak link in the overall infrastructure, and the risk remains over time as applications are upgraded and replaced. And the issues largely remain even with cloud services. The extreme case in the application of cloud services is when the customer, for example, has a cloud-based ERP system, a cloud-based HR system, a cloud-based WMS, a cloud-based CRM system, a cloud-based payroll system, etc., and where all applications are so-called public cloud services. This means, in practice, that data for each application is stored in completely different places and that integration is required between all applications. To manage this smoothly, some form of integration platform may be necessary.
If we add the aspect to the example above that, in addition, the customer has some local applications for, for example, managing their production systems (MES), maintenance systems, and badge clocks for time reporting, the picture becomes a bit more diffuse. The customer has a focus on "cloud" but still has an infrastructure that is a hybrid between different models.
From time to time, customers also mention having an Azure strategy, but what does that mean? Likely, it means they have chosen Azure as the platform and infrastructure for their applications, but these may still be purchased applications that they have chosen to place in Azure to handle their operations. Is that then a cloud service?
A question that often arises when a customer transitions from a locally implemented system environment to a cloud-based architecture based on public cloud applications is how system administration should be handled. Moving from upgrades every three years to receiving new upgrades four times a year has a very large impact on the organisation to prepare for and receive these upgrades. Although it sounds convenient to receive continuous upgrades, there is no standard model for how the customer should adopt the new features introduced in the system or how the customer should secure their customer-specific integrations.
The purpose of this blog is not to argue for or against cloud services. Instead, the aim is to highlight the issues around the cloud and that "cloud strategy" is about much more than simply choosing to strive for applications with external operation. And today, unfortunately, we meet far too many customers who lack insight into "HOW" they should transition to cloud services, what prerequisites are required, and what impact it will have on the organisation as a whole.
