With all the recent attention around the Cloud, it appears that the line of questioning for determining strategy should begin with “how” and not “if.” The Cloud is already emerging, and while the lining is still blurry, there’s no question that an understanding and response is in order. Many analysts seem to suggest that Cloud-based services, such as Amazon EC2, are a very compelling choice, especially for emerging SMB’s seeking to maximize the value of an elastic, cost-effective, easily scalable platform, in a recessionary climate. But there are certainly cases where it may not make sense to entrust core infrastructure to an external Cloud.
A key determinant in evaluating the appropriate investment into a Cloud-based service is the degree of relative criticality of IT infrastructure to the core business. Regarding IT infrastructure, I am referring here to the collection of hardware, operating systems, networking, data, and back-end applications which comprise modern Data Centers. If your core business is driven from your IT infrastructure, why would you rush to cede control of strategic technologies to an outside vendor? Several few years ago, I managed IT operations for an online gaming company based in Los Angeles, and made a conscious decision to de-couple the central office and Data Center, separated without a WAN or permanent VPN connection. One day a technician from our ISP was onsite in the office to upgrade the Internet connection. Unfortunately, he snipped the wrong fiber cable, and the office was completely disconnected from the Net. Yet the online games hosted from the co-located Data Center continued to operate normally throughout the day and generate revenue, albeit with limited support and monitoring. Here is a very concrete illustration of the heightened criticality of IT infrastructure in a particular business environment, to the degree that having the office offline for a full business day was of minimal impact. In this case, a move to external Cloud-based services would be ill-advised, given the central role of infrastructure in this online gaming business.