The cloud is a concept that’s been around for some time. It’s name is quite fitting because what it is and how it applies to agencies can be quite cloudy. As with many technology trends and fads the cloud promises to revolutionize our interactions, automate our processes, create efficiencies and lower our costs. It promises to do this through magic and wizardry that agency leaders likely won’t understand. As with most nebulous ideas some of this is true, some of it is optimistic at best and you’d better get a solid grasp before you sign on the dotted line.
What is the Cloud, Really?
In a nutshell the cloud is synonymous to outsourcing. In this case you aren’t necessarily outsourcing people, you are outsourcing infrastructure. By doing so you may eliminate the need for certain human resources but the emphasis is on networks, servers, services and software. What you outsource and how is a combination of choice, expertise and tolerance. While cloud computing is an evolving industry there are a handful of accepted categories. The most relevant types to agencies include Software as a Service and Infrastructure as a Service.
Software as a Service (SaaS)
SaaS has been around longer than its acronym. In a nutshell this is hosted software. An agency running AMS360 online, EPIC Online or NexSure is utilizing SaaS. By subscribing to hosted software an agency does not have to worry about maintaining the servers and networks or the hassle of updates and system maintenance. Agencies with a wide geographic footprint will find that they need less complex Wide Area Networks. Non-agency specific examples of a SaaS system are Facebook and Gmail. When we use these systems where the servers and data physically exist is irrelevant. All of the technology associated with the software is delivered as a service.
Infrastructure as a Service (IaaS)
In even the most progressive agency that fully adopts SaaS software there will always be a need for general servers. The definition of a server for most agency leaders is “An expensive box with blinking lights that sits in an expensive locked room that I’m told I have to have”. For the purposes of this article there’s no need to change this definition. Infrastructure as a Service outsources the blinky box. Rather than purchasing a physical server an agency can lease a virtual server that physically lives in a secure bunker run by the cloud service provider. From the perspective of your technology team the IaaS server is identical to a physical server. When implemented correctly your service teams and customers won’t notice the difference.
What Can I Reasonably Put In The Cloud?
As mentioned before the discipline of Cloud Computing is evolving rapidly. Even so there are areas of proven value and low risk for most agencies. As mentioned earlier hosted versions of all major agency management systems are available. In fact some of the available systems are only available via subscription models. In addition to the shifted responsibility of system management to the vendor the subscription model brings a different financial structure to the table. Most in-house systems require a large up-front investment with a standard monthly or annual maintenance fee. Subscription models will typically involve a lower up-front investment and a higher monthly fee but come with greater flexibility.
In addition to agency systems any commoditized components of your technology infrastructure should be considered for the cloud. First in line should be your email systems. Traditionally email systems are complex and require regular attention and maintenance. Moving the email system to the cloud moves the maintenance and complexity out as well, freeing your technology people to focus on agency-specific automation. Most agencies run Microsoft Exchange as their back-end email systems. There are a multitude of cloud providers offering Exchange in the cloud including Microsoft. It stands to reason that Microsoft can manage Exchange servers more effectively and efficiently than our agencies.
What’s In It For Me?
The return on a cloud strategy is recognized in a number of ways. In many cases a cloud strategy is less expensive than staffing and scaling an IT department. People, real estate, equipment, power and redundancy are all components of the equation. An effective strategy often improves service, speed and reliability. A cloud strategy can give an agency access to equipment, services and specialized expertise that are hard to find and expensive to maintain internally. In addition a well executed cloud strategy frees your IT personnel from the bounds of infrastructure, allowing them to interact and address automation from the agency and industry perspective.
What’s The Catch?
As with all technology solutions your cloud strategy needs to be well-planned and well-executed. Cloud services deal with your infrastructure. Your infrastructure is the foundational of all of your automation. As such avoid being tempted by quick fixes and ‘shoot from the hip’ mentality. Attracted to the idea of hosted email? Explore options while also thinking through a hosted model for your agency systems. Develop a thoughtful, carefully designed strategy. The return will be well worth the effort.
What About The Data?
This is an important topic that tends to be glazed over in our personal lives. For example Facebook and Google retain rights to all data moving through their systems. They use this data to create targeted ads and other sources of revenue. The trade-off is usually made because these services are free. In an agency environment this type of data use by the software or cloud vendor is not something that should be considered and should be explicitly addressed. In most cases the data our agencies are pushing through our software systems isn’t ours to release, it belongs to our customers.