White Paper

Cloud VERSUS On-site

OR Cloud PLUS On-site?

Is it realistic to run your business completely in the cloud

or do you need on-site technology as well?

www.servicedcloud.com
Black, white or grey?
For some time now, the debate about choosing the right technology platforms for business has been characterised as Cloud versus
On-site.

While such black and white, good versus bad narratives are the stuff of Hollywood multiplex blockbusters, they poorly reflect the real
world. Reality is more complex than the simple choice between either, and or; there are subtleties and nuances all around us that
often mean compromises need to be made.

Often, the real world is shaped by the process of economic determinism. On the macro scale of globalisation, this might mean
manufacturing enterprises simply follow the trail of cheap labour across emerging economies to ensure the lowest manufacturing
costs. On a micro scale, it means individuals purchase the cars that they can afford.

Cloud technology offers significant advantages, in that it maximises financial and workforce efficiency while reducing costs; so, when it
comes to choosing technology platforms for a business, for many, the case for cloud is economically determined.

However, the complexity of the real world means that for some it may be impractical to switch some technology platforms to the
cloud because the organisation cannot ditch essential legacy, on-site applications and systems for financial or technical reasons.

In this world of grey reality, here we discuss the case for hosted solutions and how to move to the cloud where there is a necessity to
retain legacy applications and systems.

Key considerations when choosing between

cloud and on-site
There are a number of key areas where the case for cloud is beyond doubt.

IT security

Digital and network security

In terms of data privacy, cloud solutions are hosted in data centres secured to ISO27001, the de facto standard for
IT security.

256-bit encryption is something of a default standard for data in motion and at rest in the cloud. It is unlikely
that 256-bit encryption would be available by default for all data in transit or storage on standard office systems.

Physical security

Any data centre secured to ISO27001 also meets requirements for standards for physical security. This exceeds the
physical security of any standard office environment or business premises, and includes 24x7 security guarding, access
control measures, CCTV and other electronic security, no unaccompanied access to data halls, and locked rooms
and doors.

Essentially, the best cloud solutions offer digital and physical security that cannot be matched by an on-site approach to IT.

40 Beaufort Court Canary Wharf London E14 9XL Email: talk@servicedcloud.com Phone: 02070936020 www.servicedcloud.com
Backup and DR
Redundancy and Resilience

For both cloud and on-site, Backup and DR requirements are determined by the levels of redundancy and
resilience of the infrastructure.

In a data centre, where there is plenty of redundancy and resilience, a Backup and DR plan may be seldom if ever
invoked. (But never say never!) If we consider power alone, backup batteries and diesel generators provide redundancy
to ensure continual resilience. Data may well be protected by a raid array (capable of self-healing once a blown disk is
replaced) and be mirrored to another array in a secondary data centre. This is all protected by a system of alerts to
ensure timely human intervention when sudden failure occurs or problems are predicted.

In an office there may be a UPS (Uninterruptible Power Supply) with a 1 hour runtime if there is a mains power
outage - basically theres an hour to shut the sever down to avoid the stress of a sudden powerdown. An office is far
more likely to have data on a single server, so Backup and DR contingency planning is far more important.

Essentially, theres far less redundancy and resilience in the on-site approach and the cloud presents a much better option when it
comes to avoiding disruption to business as a result of technology or utility services failure.

Latest software updates

Security

To prevent the vulnerabilities which may exist in software applications it is essential for updated versions or security
patches to be applied as soon as they are released. New viruses are rapidly created to exploit newly discovered
vulnerabilities, so speed is of the essence.

Functionality

Software application version updates provide the latest features many of which may accelerate productivity, so it is
good to have these from the point of view of workforce efficiency.

Software updating is often included in services from cloud providers but frequently has a cost attached for those electing for an
on-site approach. The cost is either for in-house staff to perform patching and updating or for a 3rd party to provide service.

Maintenance and Upgrades

Maintenance and housekeeping

General systems housekeeping might include data archiving, configuring backup and maintaining documentation.

Looking after hardware and software across the IT estate

Asset management of hardware and auditing software are necessary.

Admin they may be, but avoidable they are not! Once again, these often included with cloud services but have a cost within an on-site
model.

40 Beaufort Court Canary Wharf London E14 9XL Email: talk@servicedcloud.com Phone: 02070936020 www.servicedcloud.com
Voice
Voice calls

On-site telephony is now considered a legacy approach to providing business voice services. The underlying
connectivity, ISDN, is obsolete and is due to be terminated by BT. Cloud PBXs offer significant advantages, especially
when it comes to scalability and connectivity across multiple locations such as head offices and satellite sites.

Cost

Cloud squashes many of the costs including:

Hardware - desktop

Thin Clients or Zero Clients for a hosted desktop cloud solution reduces costs by around 60% compared with desktop
PCs in an on-site system.

Hardware - servers

With cloud, servers and associated infrastructure items are eliminated, offering a complete saving of something in the
ballpark of 25,000 for a firm with 50 seats.

Software

Software costs for cloud solutions are absorbed within the subscription fees for the service, so theres no direct cost
for software licensing or upgrades. Typically, for a firm of 50 people on-site software licensing may exceed 30k
per annum. As an annual subscription, the same amount of money buys you an entire cloud solution including servers,
software licensing, telephony, support, DR and set up fees.

Power and cooling

Electrical power to run servers and network, PCs and monitors and air conditioning is reduced by up to 90%.

IT Management

A capable in-house IT manager is unlikely to leave you much change out of 50k. With a good cloud solution support is
part of the service bundle and the IT managers role is allowed the space to become more strategic. Do you want to
pay the thick end of 50k for a strategic thinker that can add value to your business or a firefighter running to keep up
on a treadmill of technical issues?

As can be seen in this section, cost plays a huge role in making the case for cloud. In a world where decisions are frequently economi-
cally determined, perhaps it is the strongest part of the proposition.

40 Beaufort Court Canary Wharf London E14 9XL Email: talk@servicedcloud.com Phone: 02070936020 www.servicedcloud.com
Summary
The cloud is an extremely strong business proposition. There is little doubt that the best cloud solutions offer unparalleled value. In
many instances they offer superior capability, flexibility and security while significantly reducing costs when compared with an on-site
approach.

Items such as physical and network security, software updates and maintenance come as standard with a good cloud solution but
incur significant costs in any scheme that uses an on-site approach to provision business technology.

However, sometimes there may be elements such as proprietary line-of-business applications, or legacy systems for which it is
essential for the firm to continue with in their on-site form.

Faced with such realities, for many organisations the best choice is to adopt a compromise position, retaining only the on-site
applications that are absolutely necessary while putting as much as possible into the cloud.

Cloud and on-site the Serviced Cloud way

Serviced Cloud is a specialist provider of cloud technology solutions to the professional services sector. Serviced cloud has the
expertise and experience to help service sector companies and those supplying services to regulated businesses to meet their
regulatory obligations or follow guidelines on the use of technology.

It is our confirmed belief the cloud offers outstanding opportunities for services sector firms to leverage technology so it returns more
value to their businesses. Faced with the reality of needing to continue with some on-site systems and applications, the best solution
is to adopt a hybrid approach. The best option is to put as much as possible into the cloud, while only retaining an on-site approach
for the elements for which it is an absolute necessity.

Serviced Cloud works with in-house compliance experts or external consultants to ensure any solution exceeds interpretation of the
applicable regulatory code(s). Serviced Cloud provides the appropriate level of services required by the majority of SME businesses,
whether governed by a mixture of state legislation and frameworks devised and enforced by regulating authorities or by professional
standards bodies and trade associations.

40 Beaufort Court Canary Wharf London E14 9XL Email: talk@servicedcloud.com Phone: 02070936020 www.servicedcloud.com
About Serviced Cloud
Serviced Cloud is a close knit and highly professional team of technology professionals that are evangelists for cloud solutions. This is
because we believe the benefits are unrivalled by equivalent on-site approaches to provisioning business technology.

The business benefits of the cloud are regularly highlighted in the press and deliberated in boardrooms. Cloud technology is a topic
about which the vast majority of business leaders are likely to have more than a passing interest.

Based in the heart of London in Canary Wharf, Serviced Cloud was incorporated in 2009 with a clear and simple vision. We are
dedicated to helping business leaders in financial service organisations find the best way of successfully adopting cloud technology in
their businesses.

We offer best of breed Hosted Cloud Services in our ISO27001 London data centres, and help clients to create their own Private Cloud
systems in their own offices or data centres.

Our friendly and professional engineers and consultants have extensive experience, proven track records and can-do attitudes. We
offer independent advice but partner with the leading cloud technology companies to ensure seamless support. We are serviced
focused; our clients satisfaction is paramount.

References and further reading

Cloud Services FAQ guide
Serviced Cloud
https://www.servicedcloud.com/white-paper/cloud-services-faq-guide

Talking your way to a more successful business - A cloud PBX guide

Serviced Cloud
https://www.servicedcloud.com/white-paper/talking-your-way-to-a-more-successful-business

40 Beaufort Court Canary Wharf London E14 9XL Email: talk@servicedcloud.com Phone: 02070936020 www.servicedcloud.com