There’s a lot of talk about moving to the cloud, and it sounds fun and even easy. After all, aren’t you just shifting all of your data to another storage location? You can think of the process this way and even start sending information to a third-party service provider.
However, there’s more to consider especially if you want operations to continue running smoothly. There are also compliance issues to consider, especially if you’re dealing with personal and/or protected information. Defining a cloud operating model starts with understanding what it is and then creating one to meet your unique business needs.
What is an Operating Model
Operating models in business aren’t new, and this means you already have a general idea of what a cloud operating model entails. Before the cloud entered the picture, businesses created IT operating models.
These models define how technology will play a role in supporting the business and include several factors. These factors work to align people with goals and can adapt to various changes. For example, changes in management, compliance strategies, and to meet security needs.
Don’t forget about these original practices. Some will transfer over to the cloud. However, others may change or even become obsolete. Instead of focusing on physical aspects in brick-and-mortar locations, the cloud operating model tends to concentrate more on virtual aspects.
However, both operating models work to accomplish the same goals. These are to ensure stability while maintaining and optimizing workloads.
Defining Your Operating Model
This brings us to defining your operating model. This means how you want to operate in the cloud. For example, are you moving your entire IT infrastructure to the cloud, or will a hybrid model better suit your business? What’s a hybrid cloud model? Okay, don’t get too confused.
There is a hybrid cloud platform that combines a public and private cloud. However, this isn’t what we’re referring to. We’re talking about sending part of your infrastructure to the cloud and keeping the rest at a physical location.
Whether your model is entirely cloud-based or only partial will depend on how you define your operating model. So, what goes into defining your cloud model? Think about your staff, the direction you want your business to go, potential risks, and compliance standards. All of these will help you define your cloud operating model.
Cloud Operating Model vs Standard Operating Model
Now that you have a general idea of what an operating model is, remember it’s how your business is run and delivers value to stakeholders, including customers. Now it’s time to look at the differences between a cloud and a standard operating model.
The easiest way to separate the two operating models is to think in physical terms. A standard operating model is based entirely on physical infrastructure. You know, things like servers and other types of hardware that always seem to need upgrading or repairs.
Now, look at your IT budget. Chances are, a large portion is designated for these purposes. If you ignore maintenance on these components, everything from security and employee performance is going to suffer.
The last thing you want is to risk being out of compliance when it comes to cybersecurity. The penalties and fines are steep, and some businesses never fully recover from a non-compliance issue. For example, if security protocols on servers aren’t constantly updated, a breach can and probably will occur. Now, you’re notifying consumers about potential stolen data and facing industry fines. The damage to your brand reputation can be fierce and it’s difficult to ever recover fully.
Okay, so now you have an idea of the potential downsides of a standard operating model, along with the work it takes to ensure optimization. Now, let’s see how a cloud operating model is different.
Shifting to the cloud means you’re no longer relying solely on physical hardware and software. Instead, everything is virtual and this can be a little confusing. Instead of your IT team spending the majority of their time installing updates and fixing bugs, it’s now a third party’s responsibility.
Can’t you just imagine the decrease in your IT budget? You’ll still need the same people managing your cloud operating model. This doesn’t change. Your cloud operating model is also easily scalable and this is something you’re not going to get with a standard operating model.
Instead of having to purchase and install new equipment to meet your business’s growing demands, you simply turn to the cloud. The cloud will grow with your business without increasing expenses.
Understanding the Purpose of a Cloud Operating Model
We’ve touched a little on the purpose of a cloud operating model. You’re even aware of some of the benefits you get with cloud technology. For example, reduced IT operating costs, improved security, and easy scalability. This shift to virtual hardware and software also means a change in the purpose of your operating model.
Think of your standard operating model as one designed to keep your lights on. In other words, its purpose is to keep your business running, and that’s about it. However, with a cloud operating model, you can go further. Instead of keeping the lights on you’re looking more to ensuring consistent operations across the board. This can have benefits you may not have considered.
Smoother operations can include anything from allowing for easier communication between employees, vendors, and customers. Your operating model will also make it easier for staff to access information as needed.
You can easily create user accounts for staff to ensure they have access while also keeping unwanted visitors out. This, in turn, boosts your cybersecurity protocols, helping to ensure you’re meeting industry compliance requirements.
The Future of Business Operating Models is the Cloud
As businesses evolve, so does the technological landscape, with cloud computing emerging as a pivotal element shaping the future of business operations. The shift towards cloud computing represents a strategic move to harness more flexible, scalable, and efficient computing resources. However, transitioning to the cloud requires careful planning and a strategic framework to navigate this change effectively.
Creating a cloud operating model is an essential step in this process. This model serves as a blueprint that outlines how cloud services will be utilized within your business, ensuring that the transition supports your operational needs and strategic objectives.
