The difference between cloud and hosting for businesses

The difference between cloud and hosting for businesses

Cloud computing has been proven to help businesses achieve greater efficiency and save costs, but enterprises with heavy regulatory compliance requirements might be better off deploying their financial systems in a dedicated hosting server rather than a public cloud platform.

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While public cloud offerings like Microsoft Azure offer a flexible cloud platform to deploy and manage enterprise systems, the user maintains the system themselves or it is maintained through a managed service provider.

Hosting providers on the other hand deliver a cloud environment for business systems which they manage and maintain for the user, so internal IT has more time to focus on other LOB applications such as POS.

Public cloud and private hosting each has its benefits depending on your business’s needs, but in most cases hosting is the stronger choice for mission critical enterprise applications as hosters can offer higher levels of security, documentation and support.

About 40-percent of cloud business users say that public cloud offerings don’t offer enough support to make customers feel wanted and many say the public cloud vendor does little to ease the user’s fears around compliance, according to a recent survey results published at InforWorld.com.

Here are some of the stats from the survey:

  • 39% of U.K. respondents say their cloud providers do not develop personal relationships with their businesses.
  • 1/3 overall say their cloud providers charge them for every little question or incident.
  • 45% overall believe their provider would care more about their success if their companies were bigger.

Many providers fail to provide data around audit trails, performance, operations, billing data, and workload profiles.  This can put the user company at risk for non-compliance and other financial hits because they didn’t have complete data.

“As more workloads are migrated to the cloud, the more these issues with the lack of metadata will bother enterprise IT,” said the articles author, David Linthicum. The best approach is to plan right now how to solve this problem. Be proactive rather than reactive.”

While a cloud platform like Azure offers high levels of flexibility and low-upfront costs, hosting providers can provide a higher level of service to business users than a public cloud offering.  On the surface public cloud may seem less expensive than a hosting provider’s services.  However, the long-term benefits of personalized service, software maintenance and compliance support and compliance validated data centers will prove out to be less complicated and more complex.

When you combine the improved uptime and performance of hosting provider with the fact that internal administrators do not have to focus on maintaining financial applications, enterprise resource planning systems that are deployed through a hosting service actually deliver a greater return on investment than a they would on massive public cloud platform.

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