A quick note about the cloud
When you hear “We are moving to the cloud”, do you know what that means? Do you know that the cloud isn’t just about software? Let’s take a moment and look a little deeper into what is meant when someone mentions “The Cloud”.
Why are organizations moving to the cloud? According to Jiang and Wang (2022), the high cost of owning and maintaining a data center is a high-risk investment, especially for those that are not in the information technology (IT) industry. Using a third-party IT structure, such as moving to “the cloud”, allows the cost of owning a data center to be transferred to another department within the organization. The reduced cost of moving to a cloud environment as well as the additional security and optimization that is available is a very attractive motivation for organizations to uptake this type of technology.
The National Institute of Standards and Technology define the cloud as follows:
“Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics, three service models, and four deployment models (Grance & Mell, 2011a).”
The essential characteristics of the cloud defined by Grance and Mell (2011b) are:
On Demand Self-Service – This is the provisioning of computer capabilities without human interaction with each service provider.
Broad Network Access – Technology is available over the internet through multiple devices (laptops, mobile phones, etc.).
Resource Pooling – The hardware providers resources are pooled together serving multiple customers on one server or tenant (multi-tenant model).
Rapid Elasticity – capabilities can be scaled both inward and outward on demand.
Measured Service – Usage is monitored and controlled with transparency to the customer and provider.
Now with the understanding of the cloud in hand, let’s talk about the three service models of cloud computing. These are Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Let’s look at how IBM (2023) defines each.
Infrastructure as a Service (IaaS) – A third party will provide the basic hardware, network, storage, and operating system where a client can create, deploy, and manage applications. With IaaS, your team is given access as needed to virtual machines, operating systems, middle ware, applications, and data. The difference is the data center is not housed on site with your organization. It’s not hosted, but very similar. The service provider owns the equipment, and the client is renting its use.
Platform as a Service (PaaS) – Platform as a Service is the next service model with everything listed in IaaS, but the provider only manages all the hardware and software needed for the application. An organization can write their own code and manage the applications and the data, but the organization does not have the ability to manage the software development platform.
Software as a Service (SaaS)– Software as a Service is when a third party manages the full application. This includes the hardware infrastructure through to the application. All updates are handled by the provider of SaaS. An organization pays to use a ‘tenanted copy’ of the application, and except for a limited number of configuration settings, does not control any aspect of the infrastructure or application.
Why should one understand these definitions? Often an organization will purchase a SaaS offering without understanding what this entails. Many mistake moving to a cloud system as resembling a hosted system, IaaS, or PaaS offering that would allow for modification. With SaaS, an organization is making a statement that business will be transformed to use the solution purchased.
It is important when you chose a third party entity to support your team, whether it is for pre-implementation activities, implementation, or sustainment, that you select one that understands the type of system and/or implementation style you purchased, understands the business that you are transforming to use the solution, and understands the challenges that may be presented when trying to move an organization to a SaaS product. While it may seem like a challenge, your organization can be successful when moving to SaaS with the right team, tools, partners, and change management plan in place.
References
Grance, T., & Mell, P. (2011a, September 28). The NIST definition of cloud computing. Csrc.nist.gov. https://csrc.nist.gov/pubs/sp/800/145/final
Grance, T., & Mell, P. (2011b). The NIST definition of cloud computing recommendations of the National Institute of Standards and Technology. NIST. https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-145.pdf
IBM. (2023). IaaS vs. PaaS vs. SaaS. IBM. https://www.ibm.com/topics/iaas-paas-saas
Jiang, P. H. W., & Wang, W. Y. C. (2022). Comparison of SaaS and IaaS in cloud ERP implementation: The lessons from the practitioners. VINE Journal of Information and Knowledge Management Systems, 54(3). https://doi.org/10.1108/vjikms-10-2021-0238
