Cloud Computing: Newer Models To Mitigate Risks

Sumed Marwaha, Regional Services Vice President and MD, Unisys India | Thursday, 22 August 2019, 11:57 IST

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Sumed Marwaha, Regional Services Vice President and MD, Unisys IndiaLately, the trend witnessed in India is that enterprises have been moving to the cloud for storage and computing. While the concept of cloud has been around for over two decades, it is only now that it is seeing growing acceptance. Today, cloud has become an integral part of many small and medium enterprises alongside the government. The growth of Infrastructure as a Service (IaaS) and Software as a Service (SaaS) has picked up steam, driven by the demands that exist among different enterprises and that in turn has lent itself to the adoption of cloud. This is a trend that is expected to grow to almost 3 to 4 times more than any other area in IT, over the coming years.

According to a survey by NASSCOM, India's cloud market is set to cross USD 7 billion by 2022. Indian IaaS spending was estimated to be about USD 1 billion in 2018 and is forecasted to grow at 25 per cent per annum to reach USD 2.3 - 2.4 billion in 2022.Currently the predominant module adapted by enterprises, apart from start-ups, is the hybrid cloud architecture and driven by business and technical reasons, CIO’s will adopt multi-cloud systems. That could entail that they work with their own legacy systems and private clouds, to create a multi cloud environment.

The challenges with the hybrid IT and hybrid cloud environment are

• How to keep tabs on operational costs from a cloud standpoint and

• How to effectively track the usage of the cloud and ensure it is utilized effectively

One of the most glaring challenges faced by large corporates since adopting cloud, is that of the cost implications. Initially, CIO’s viewed the cloud as a cheaper alternative to their regular IT infrastructure and thought that they could do away with need of taking refreshes etc., but over a period of time what CIOs have realized, is that they are losing control over the costs. That is an area that needs to be addressed and resolved.

While new models of cloud will continue to evolve, the need of the hour is to also create new financial structures and tools that can give the CIO a means to track the usage of cloud, across users at multiple geographies, while also providing the CIO the ability to oversee the spend incurred.

With the ushering in of the 5G era, it is likely that edge computing will become even more prominent with the availability of high-speed networks in very remote corners. Edge computing can aid in building an innovative financial model for use of the cloud.

When cloud first started, it was based on a financial model that was basically converting the capital investment into an operational cost, which will continue. But the new models could take this a step further. Edge computing will continue to enhance the cloud computing environment, especially in the logistics world like in travel &transportation where there is a hub and spoke model and a distributed environment. This is where costs can be shared.

Many large service providers have already started working on these new financial models and it is likely that financial modelling around edge computing will now come into play, where the cost of computing at the edge is passed on to the partners rather than the main company or the CIO, bearing the entirety of it.

Ultimately, organizations need to take an informed view of their own requirements and adopt a model that works best for them from a cost benefit and a workload equation to make the most of cloud computing.

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