Enterprising Developments

Why Cloud May Not Work for Some Data Centers

Joe McKendrick
Insurance Experts' Forum, July 8, 2013

Many enterprises are rushing headlong into cloud computing, responding to its compelling value proposition related to incremental costs and on-demand expertise. However, at least one voice out there is advising that business and technology executives look before they leap.

Mark Thiele, EVP of data center technology at Switch, squashes advice to simply shut down and move applications from on-site centers to the cloud in an attempt to gain infrastructural efficiency.

Factors complicating a move from on-premises systems to cloud include the introduction of big data, which opens up a pandora's box of security and migration issues. Plus, there is increasing the diversity of enterprise IT infrastructure, meaning “that many applications will be locked to specific hardware, network and storage,” Thiele warns. “Legacy applications and infrastructure can take years to migrate off of.”

Thiele is especially concerned with the use of cloud data centers for resiliency and backup. Instead of moving everything lock, stock and barrel over to a cloud data center, he advocates a hybrid strategy that still leverages on-site resources:

“There are many out there that are trying to sell you a solution to a problem you don’t have. When you consider the entire picture of what a data center is, where it fits, and how it’s best utilized, it becomes clear that distributing your critical systems around in some cheap widgets isn’t necessarily the best approach. A hybrid approach to applications, locations, and data centers is likely to provide the best combination of cost, performance, agility and protection.”

The bottom line is that on-premises approaches still have their advantages, along with processes and skill bases that have been built up over the years. It ultimately may be more expensive to attempt to move these assets to the cloud.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Too Much Manual Effort is a Show Stopper

Examining the administrative burden of doing business in the E&S market.

The Efficiency CIO vs the Agility CIO

There is a role for both types of CIO, each organization has different priorities whether they’re an insurer, intermediary, vendor, start-up, etc.

Becoming a 24/7 Insurer

Insurers should be in the business of making life safer and better for consumers all the time.

Putting Your Investments Where Your Transformation Is: Part 2: Optimizing Your IT Investments Portfolio

Sam Medina continues a 3-part series on Transforming the IT Investment Budget in order to fund new programs and initiatives without the necessity of additional capital expense.

The Mobile Side of Digital: From OK to Great

What are the mobile leaders, including Allstate, Progressive, State Farm and Geico, doing to go from standard to strong?

Using the Data Deluge to Empower Consumers

Insurers can learn from the use of activity tracking in other fields to help their customers make better decisions.