An Introduction to the Cloud Services

Cloud services contain multiple information technology resources which are provided by a service provider or vendor, directly to the end-user. These professional IT services include selection, deployment, maintenance, management of various cloud-based resources & services.

Cloud computing is robust and provides elasticity so that consumers can use the services on-demand and opt-out when no longer needed. Generally, cloud vendors provide dynamic pricing plans such as monthly, yearly, and pay-as-you-go arrangements. These plans are seen as enterprise-friendly and remove the barrier of upfront infrastructure costs and hefty software license fees. Nonetheless, this payment structure allows the cloud to become an operational expense rather than a capital expense, prompting the fulfillment of other business goals and opportunities that weren’t otherwise attainable.

Larger companies prefer data warehousing due to its ability to integrate data from multiple independent sources that support ad-hoc queries, business intelligence, and more. However, the idea of on-premise, data warehousing might be broken. These systems typically exceed opportunity and capital costs, burdening companies with a primary focus on software-based enterprise solutions. By transitioning to a cloud-based data warehouse, companies can develop rapidly without having to expend a large sum of capital on infrastructure costs. Ultimately, this allows the organization to maximize its operational capabilities as well as see a significant ROI.

In a world with multiple options and vendors to choose from, organizations continually seek different cloud providers for multiple capabilities and a wide range of services. While each vendor ensures support, security, and reliability, the market is dominated by three giants – Amazon Web Services, Google Cloud, and Microsoft Azure.


It’s Time to Switch

Research by GCN, suggests that one-third of businesses using a data warehousing solution have migrated to the cloud. As cloud-based data warehousing surges, usage and adoption are set to double in the next 5 years. There are many reasons why traditional, on-premise data warehouses are switching towards the cloud. Primarily, as the cloud matures, enterprises can provide custom solutions at inexpensive rates to their end-users and forge into new markets.


Looking Back

A major transition has taken place over the last 5 years. During this period, implementing a data warehouse forced many companies to manage various risks related to data quality and business agility. Barriers like long planning periods and the estimation of storage and computing power made it a cumbersome task. For instance, If the IT team requested too little infrastructure and hardware, then the capacity would run out, resulting in delayed projects and a negative impact on business. On the other hand, requesting too much infrastructure would be expensive and the under-utilized hardware would increase the total cost. In the end, on-premise data warehousing was deemed to be a failure for most companies.

Luckily, the cloud changed these hindrances by allowing organizations to pay only for what they needed when they needed it. This helped to mitigate the risks and costs associated with on-premise warehousing and led to the migration to cloud data warehousing as a sustainable solution.


Looking Ahead

By adopting cloud data warehousing, organizations enable agile growth, flexible workload management, and provide multiple cost points for various workloads. While the cloud is development-friendly, migration and adoption of the cloud are supported by multiple players to ease the entire process and lifecycle.

While we can’t predict what the future holds, the next 5 years look to be quite challenging as well as opportunistic for cloud-based data warehousing. In a nutshell, there is immense potential for cloud services to penetrate new markets.

 

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