App Modernization Category

Keep the Data Center or Move to the Cloud?

Data centers have long been crucial for storing data and running applications. But as cloud computing gains popularity, businesses must decide whether to stick with data centers or migrate to the cloud. This choice is especially vital for tech execs balancing cost, security, and scalability. So, what are the key factors to consider when deciding between data centers and the cloud?

Firstly, let’s define these two options. Data centers are physical facilities that hold servers and networking equipment for storing and processing data. They can be owned by a company or leased from a third party. On the other hand, the cloud refers to remote servers accessed over the internet for storing and managing data, running applications, and delivering services.

So, let’s explore data centers vs. cloud computing pros and cons to guide your company’s choice.

Cost – When it comes to cost, data centers and cloud computing can vary widely. Data centers require a significant upfront investment in hardware, software, and maintenance, while cloud providers offer a pay-as-you-go model that can be more cost-effective for smaller businesses. However, as your company grows and your cloud usage increases, you may find that the costs of cloud computing can quickly escalate. Additionally, many cloud providers charge additional fees for add-on services, storage, and data transfer, which can make it difficult to predict your long-term costs. Before making a decision, do a cost analysis of both options, and factor in your company’s growth plans.
Security – Security is a major concern for any company that stores sensitive data. Data center security can be more easily controlled with in-house staff and equipment, while cloud providers have a team of dedicated security professionals monitoring their infrastructure. However, cloud providers are also a more attractive target for cybercriminals and can be vulnerable to data breaches. When choosing a cloud provider, be sure to research their security measures, certifications and compliance standards. It’s also important to note that cloud providers may not be able to guarantee the same level of security as an in-house data center.
Scalability – One of the key benefits of cloud computing is its scalability. It allows companies to easily scale up or down their infrastructure as their needs change. This flexibility can be particularly beneficial for small businesses that are rapidly growing or seasonal. Data centers, on the other hand, are more limited in their scalability, and require significant upfront planning and investment to allow for growth. That being said, if your company is experiencing steady growth or has a fixed workload, a data center may be a more cost-effective solution.
Reliability – Data centers have a reputation for being reliable and consistent. Companies have complete control over the hardware and software, which allows them to maintain uptime and stability. Cloud computing, on the other hand, is dependent on the provider’s infrastructure and internet connectivity. This can lead to downtime, service interruptions, and fluctuations in performance. However, many cloud providers have invested heavily in improving their reliability with advanced technology like load balancing and redundant servers.
Maintenance and Support – Data centers require regular maintenance and upkeep, which can be costly and time-consuming for companies. Cloud providers handle the maintenance, upgrades, and support for their infrastructure, which can save companies time and money. However, it’s important to choose a provider with a reliable support team and solid track record of timely issue resolution.

Deciding between keeping your data center or moving to the cloud boils down to your company’s needs.

Data centers offer reliability, control, and security, but can be costly and inflexible. Cloud computing provides scalability, cost savings, and easy maintenance, but carries security risks and extra fees. Consider the pros and cons, align with your goals, budget, and growth plans, and consult with a technology expert if needed.

Click here for a post on the environmental impact of moving to cloud vendors.

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TCO and the Hybrid Cloud Environment

Many tech execs manage a hybrid cloud environment, with multiple cloud providers and possibly an existing mainframe. Some companies ended up with a hybrid environment because they were early cloud adopters and didn’t get the desired outcomes, prompting them to try another provider. Alternatively, multiple organizations chose different cloud providers without proper decision controls. Many companies selected multiple cloud providers to avoid relying on a single one.

Regardless of a company’s journey, the tech executive strives to optimize performance in this intricate environment. Total cost of ownership can be really out of whack if there are multiple cloud implementations, and the legacy, say mainframe, environment exists as well.

Tech execs are worried as overall tech infrastructure costs rise due to cloud migration.

Their messaging has always been that moving to cloud will reduce costs because the cloud provider will own the equipment, vs. having to maintain hardware in the datacenter. So, this sales job by a tech executive to their leadership can appear to have been inaccurate.

The reality is, moving applications from legacy systems to the cloud can lead to higher costs.

While transition may require some overlap in production, it’s crucial to decommission as much as possible during migration. A detailed plan should demonstrate the cost reduction during the move. Clearing up tech debt in the mainframe environment beforehand is wise to avoid carrying debt to the cloud, which adds to expenses.

Why are organizations stuck with a hybrid environment?

Initially, in the cloud hype, many jumped onboard hoping for immediate savings. However, merely moving a messy app to a new platform means shifting problems to a different environment. In other words, rehosting doesn’t actually solve anything. It’s just a datacenter change without leveraging the cloud provider’s benefits.

Many organizations opted for a different cloud provider due to misunderstandings about deriving value from their initial choice. The act of rehosting merely shifted chaos from one place to another. Failing to leverage the cloud provider’s PaaS offerings resulted in increased costs for the new platform.

A tech exec needs a thorough plan to migrate the legacy environment to the cloud. If going hybrid, understand the total cost of ownership and consider consolidating platforms for cost-effectiveness. Manage legacy decommissioning alongside migration. Simplify and optimize platform management. Use TCO to assess value in a broad environment.

See this post on Total Cost of Ownership and how to calculate.

Deploying a Multi-cloud Strategy

Keep the Data Center or Move to the Cloud?

Legacy Mainframe Environment

Legacy Mainframe Environment

Today, tech execs are concerned about the mainframe computer application code. Many companies have had mainframe computers since the 70s and 80s. Large companies, particularly in insurance and finance, built applications during that time that still run on mainframes now. These applications consist of mostly COBOL code, with millions of lines.

SIDE NOTE: COBOL is the oldest still used programming language, developed in 1959. The only other language even close in age is C, which was developed in the early 70’s.

Today’s mainframe computers have powerful processors and seamlessly run COBOL applications alongside Docker containers. Tech executives face challenges with complex COBOL, PL/1, and Assembler code, as well as managing decades of data in diverse environments like DB2, MySQL, and Oracle. We’ll discuss data in a future post.

Mainframe applications have long been vital for enterprise business processing. They were game-changers, and still handle key workloads effectively. However, the drive to convert or move these applications has been slow. Today, tech execs face fierce competition in aggressive markets. Outdated systems hinder companies from keeping up with innovative rivals. Cloud computing enables competitors to invest in new systems without hardware burdens. Consequently, older companies face disadvantages and must modernize their legacy application environment. The three reasons for this transformation are:

Agility: Companies need IT systems that can be updated for functional processing requirements in a timelier manner. Shorter development cycles are a must for organizations to keep pace.
Cost: The mainframe is the costliest computer available. In many organizations, it’s also difficult and time consuming to maintain. The complexity of the code and data environments makes keeping the systems up and running difficult. Modern cloud technologies offer a significant reduction in cost of ownership.
Risk: Knowledge of legacy environments is fading away as programmers who developed this code many years ago retire. Skills in COBOL, PL/1, CICS, etc. are becoming scarce, making managing the applications and responding to major incidences more challenging.

To remain competitive, organizations must tackle legacy mainframe systems. The transformation should uncover the current state and map out an ideal future state. Develop a value proposition with a total cost of ownership analysis for transitioning to the cloud. When it comes to maintaining the mainframe and harnessing the power of the cloud, it’s worth considering strategies from industry leaders like IBM. Take into account the costs of migration and retooling, but also weigh them against the benefits of ownership. Furthermore, take the time to explore the numerous advantages that cloud computing has to offer.

Click here for a post on deciding whether to move from AS400’s or not.

TCO and the Hybrid Cloud Environment