The Cloud Advantage

The Cloud Advantage

New paradigm for real-time data

It is clear that analysis of real-time machine data is essential for today’s enterprise. However, in a world generating as much data in 10 minutes today as in an entire year a decade ago, existing on-premise solutions do not effectively scale, and furthermore require tremendous operational effort to keep from falling down.

This new paradigm mandates that solutions rapidly ingest real-time data, conduct instant computational analysis on up to multi-terabyte data sets, and apply structure to unstructured data on-the-fly. In order to do so, solutions must leverage highly scalable and distributed, parallel processing. They must seamlessly increase compute power as capacity needs require. They must leverage a new type of high-performance, high-transaction database. They must be based on technologies developed and proven by the most demanding, large scale, modern technology environments.

In short, efficient, cost-effective analysis of real-time Big Data requires the scalability, flexibility, and power that only a cloud computing environment can offer.

Shift towards differentiation

Today’s global economy presents unprecedented challenges for the modern enterprise. The pace of technology-led innovation has never been higher, and the level of competition has never been as intense. To thrive and grow, enterprises need to focus resources on business advancing activities.

Cloud computing presents a competitive advantage to organizations looking to gain insight from their real-time machine data. Through leveraging a cloud-based service, organizations are freed from the operational burden of procuring, provisioning, and managing hardware and storage required for an on-premise deployment. In addition, staff is freed from need to manage the on-premise solution, enabling critical resources to be focused on core product innovation.

Too often, an on-premise deployment contributes to the problem it was meant to solve. A shift to the cloud enables the modern enterprise to increase focus on product differentiation and outpace competitors in delivering innovation to market.

No over-provisioning

As any retailer can attest to regarding the holiday season, or any flower seller can attest to regarding Valentine's Day, business is not linear. For these and every other enterprise, each day, month, and season is different. Consequently, when enterprises manage on-premise deployments, the mindset is often to provision for the maximum. After all, no one wants to be unprepared to handle customer demand.

However, provisioning to the maximum has significant consequences. When business is not at its peak, resources sit idle. Every dollar spent towards these excess resources is a dollar that could have been spent advancing the business. As a result, provisioning to the maximum can have a meaningful negative impact on innovation and business growth.

Cloud computing solves this problem, enabling enterprises looking to gain insight from real-time machine data to auto-provision resources based on actual rather than predicted data velocity. In doing so, enterprises truly pay for what they use, enabling an unprecedented level of infrastructure and cost agility. As a result, resources can be allocated to the maximum level of productivity, enabling a new source of business advantage.

Flexibility for data bursts

One of the pillars of success for today’s modern enterprise is to be prepared for the unexpected. Every business and IT leader knows there is only a certain degree to which an organization can predict external events and customer behavior. Information flows at lightning speed in today’s always connected world, so enterprises need to be able to handle a promotion gone unexpectedly viral, a sudden influx of positive or negative sentiment on social media or a natural disaster resulting or a short-term influx of customer activity.

Only cloud computing, through demand aware auto-scaling, offers enterprises reassurance that no matter what the external event, their infrastructure will adjust accordingly and maintain a positive customer experience. As a result, through deploying a cloud-based service, organizations looking to gain insight from real-time machine data can be confident that a sudden spike in data velocity will be handled seamlessly and effort-free, and cause zero customer or end user impact.

Significantly reduced TCO

For enterprises competing in today’s global economy, efficiently managing costs is a competitive advantage. The cloud-computing enables organizations to better manage costs in two distinct ways: converting capital expenditures into operating expenditures and lowering overall TCO by eliminating operational costs.

Converting capital outlays into operating expenses enables enterprises to more effectively plan and budget financial resources. Avoiding large up-front payments also enables enterprises to optimize cash flow and re-direct cash to business advancing functions. For organizations looking to gather insight from real-time machine data, moving to an operating expense model enabled by a cloud-based service is a distinct financial and business advantage.

In addition to switching towards shifting spend towards an operating expense model, a cloud-based service also significantly lowers total cost of ownership. On-premise solutions require software license fees, support & maintenance fees, hardware costs, storage costs, dedicated staff, and professional services. A cloud-based service can offer a single cost that includes all software & upgrades and eliminates these operational costs. Compared to current on-premise solutions, cloud-based services enabling enterprises to gather insight from real-time data offer a clear financial advantage, reducing TCO often by over 50%.