Cloud Delivery and Hosting Models - Deploying and Managing a Cloud Infrastructure - page 162

The cycle is now back to utility computing in the guise of cloud computing. But this time
around, cloud computing looks to be a better option than just utility computing. It creates
opportunities for business and allows smaller organizations to wield the same technological
prowess as that of their larger counterparts. Small businesses with no capital to set up their
own on-premises data centers can either rent an infrastructure where they can set up their own
platforms or leverage already available ones and pay only for what they use. The barrier for
entry is really low, which allows small businesses to play in the same field as the big boys.
But this is not exactly the same as when utility computing was apparently the only choice
and then after a time on-premises became the only choice. Now both are legitimate choices,
with their own pros and cons. One might argue that one of these is better than the other, but
the truth is really more neutral: it's situational. We will shed light on the nuances of each one
so you may determine for yourself which fits your own situation.
On-Premises Hosting
On-premises hosting of virtual environments essentially points to a private cloud solution. It
is any cloud implementation that is set up within an organization's premises, literally within
the same building or at least one owned or operated by the organization. This means that all
hardware infrastructures as well as the software and configuration maintenance are operated
entirely by the organization's own staff within company-owned premises.
This gives an organization total control over every aspect of the cloud environment, from
physical and logical security to resource allocation and management. This is especially impor-
tant for organizations hosting classified information or sensitive information such as financial
records. You would never see the CIA, KGB, or any intelligence organization in the world
outsource their database needs to a third-party provider. This is an extreme example, but you
get the picture. On-premises hosting simply provides the best security options possible, that
is, considering that the staff running the show is able to offer a high level of competence.
This option is really best suited for organizations with an existing data center that requires
a high level of security, which they can provide themselves. However, for SMBs and startups,
on-premises hosting would require a major capital expense. So unless your organization falls
under the category mentioned at the beginning of this paragraph, your best bet would be a
pure cloud environment. The only real advantages to an on-premises solution are security and
total control over all aspects of the system.
Off-Premises Hosting
Only off-premises hosting can really offer the core principles of cloud computing. This
is where you can reap the benefits of scalability, flexibility, and affordability as opposed
to on-premises hosting. Off-premises hosting relies on third-party providers to serve the
hardware infrastructure and resources the customer needs for its very own virtualized
cloud infrastructure. This model liberates users from the need to maintain their own in-
house infrastructure and the manpower necessary to keep it all together.