The Business Case for Cloud Computing
|Benefits of Private Cloud Computing in SaaS Development
I have to share this experience as the manager of OTPortal, a SaaS hosted application:
We have a virtual server in our private cloud that hosts both the production and test sites for OTPortal. We needed to put the test version on a separate virtual server so that we could do more thorough testing without impacting production.
Within an hours work and 1 phone call between our systems administrator, our lead developer, and myself we had a test server in our private cloud that was an exact duplicate version of the production server!
Our systems administrator made a “copy” of the production virtual server then “pasted” it back to our Private Cloud then renamed it. It was like copying, pasting and renaming a word document.
Online Tech Tests and Proves the Business Case for Private Cloud Computing
After several years of using server virtualization technologies, Online Tech decided to go ‘all in’ by moving their entire IT infrastructure to the cloud. Immediate benefits included supporting all the same company systems with a mere tenth of the physical servers used before the cloud.
“We were thrilled by the resource savings when we reduced the number of servers required to support our entire IT infrastructure from 24 physical servers to just 2,” says Mike Klein, President of Online Tech. “The benefits to our bottom line were significant, and convinced us that private cloud computing could help other businesses the same way it helped us.”
Cloud Computing's Impact on SaaS Migration
Software companies continue to evolve how they deliver software. Eighteen years ago when I started my first software company, our application was delivered on a stack of 3.5” floppy disks that needed to be inserted one disk at a time during the installation process. Over time, the software industry delivery model evolved to CDs and downloading the software over the Internet.
Today, many software companies are facing another transition in their delivery model. The Software-as-a-services (SaaS) delivery model, where the software is accessed through a browser or thin client and never installed on the user’s desktop, is becoming more prevalent across the industry.
SaaS has many advantages over the traditional software delivery model. The recurring revenue stream, simpler maintenance and application updates, and the lower cost of delivery and distribution are especially attractive for both the application provider and the end users.
However, unlike previous transitions which were changes in manufacturing or delivery technology, the transition to SaaS presents dramatic changes to both the migration and the delivery of the software solution.