Clouds in my coffee: Four questions to ask before putting your application in the cloud

I'm on vacation. I wake up early and have my morning cup by the pool.  As I was stare into a nearly perfect espresso, I suddenly notice them; there are clouds in my coffee, and the words of Carly Simon's song come to mind. I had some dreams. They were clouds in my coffee...

You're probably asking what all of this has to do with business and information technology.  A lot, actually.  

I remember the words of our CTO before I left on vacation.  He said that cloud computing promises efficiency, agility and reduced investment that allows a business to get what it needs on a pay-as-you-go basis. As a business person, all of these benefits are interesting to me, but as a CEO, even as the CEO of a software company, I am worried about rising expenditures in technology and eager to find ways to reduce my technology spend.

"Clouds in my coffee" brings my attention back to the confusing aspects of the cloud, which I thought I could escape on vacation.  Clouds attract attention, and then disappear.  Frequently, hype overshadows reality.  Perhaps there is something in the bottom of the coffee cup that will reveal more.     

The basic premise of cloud computing is that I rent my software and hardware infrastructure from a hosted source as a service (and no, not room service) rather than buying it and maintaining it in-house. I like this idea because it allows me to focus my company on its core business objectives, while leaving the clouds to other space travelers. But there are questions about this arrangement that are occupying my mind.  Before jumping headlong into cloud computing, there are four questions that any business person needs to ask.

How will I jump into the cloud (especially when jumping into the pool is so much more inviting)? Moving to the cloud is an ethereal and wonderful idea that allows us to dream about saving money. That's because we're focused on the cloud and not on the process of moving. The migration process to the cloud can be disruptive to business and entails expenses comparable to any other IT project. If a cloud vendor only offers basic infrastructure, what expenses will I face trying to add the application platforms and integration measures needed to have a working solution? If moving to the cloud requires me to abandon my legacy data that can disrupt business processes and affect business relationships.

How will I handle billing, administration and other issues? If my approach to cloud computing is to use software-as-a-service applications, how will I manage all of the recurring monthly expenses in my organization and be certain that I am getting value and not just paying fees for services my employees don't use? When I receive the bill from my SaaS vendor or infrastructure provider, can I compare that to actual software use and data storage inside my organization? Who will I assign to monitor and approve signups and renewals? You should also remember that most enterprise SaaS applications require administration and setup in order to fully meet the needs of your organization. This is where your IT organization will likely play an important and ongoing role.

What sort of hosting and infrastructure should I use? One approach is to opt for a cloud-hosting provider that offers infrastructure similar to what I already have installed on-premise. In theory, this should make the migration process easier because the infrastructure is similar. On the other hand, I may miss out on efficiencies that I could not afford in the past. Perhaps my older infrastructure needs to be retired and the move to the cloud needs to become an opportunity to move data, but not old, poor practices or inefficient technology. As a business person, I find it difficult to sort out these issues without expert advice. I can either stare my employees in the eyes and try to decide whether I should trust their recommendations, or I can hire an outside consultant who, in the end, I will have to trust, as well. Cloud providers will try to compete on bells and whistles; but at the end of the day, I believe it is the level of service that really makes the difference.

How can I ensure the continuity, sustainability and future of the application? Reading the service level agreements (SLAs) of cloud providers is a bit like reading the fine print on an automobile service contract. There are lots of words and numbers, but not a lot of clarity. Continuous monitoring on the quality of service is needed in cloud computing. Obviously, there are technologies available to do this. Cloud vendors can provide certification related to their security, as well. But in the end, there is an element of trust related to the reliability and sustainability of the partner. If I am using a SaaS application, I want to be sure the vendor has a track record and the kind of financial backing to continuously improve its application so that I don't fall behind my competition.

That's a lot to think about early in the morning on vacation. Perhaps it's time for a second cup and a quick jump into the pool to clear the clouds from my mind, at least until I get back to the office.

Regev Yativ is President and CEO of Magic Software Enterprises Americas