True, it is certainly in safe and competent hands. However, within the cloud solution there are two rather different models that differ on important points. So today we want to look at that more closely.
First to the basics: as already mentioned in the introductory article, with the private cloud solution the software architecture is set up so that each user has their own server in the data centre for their software. So in the end the software structure does not differ greatly from that of the on-prem variant.
With the public cloud, by contrast, the data of several users is stored on one server, so that the software architecture is set up differently in such a way that user data can be stored separately within the server. To achieve this structure, the software has to be programmed differently from the outset.
So much for the differences - but what are the advantages?
Before we can look at the benefits of this model for the end user, it is first helpful to understand the general added value: besides the advantages in terms of data security that a data centre offers with its security standards, one point to mention is the considerably more efficient server utilisation with the public cloud model. Because the data of several customers is processed within one server, utilisation can be planned better - the result is higher efficiency.
In contrast to this is the data processed on individual servers with the private cloud and on-prem variants: because of the uneven utilisation, the distribution of load is considerably less favourable here. The public cloud is therefore a fundamentally more economical model that uses available resources better and brings utilisation into optimal balance.
That already sounds good - but it is not everything…
The fact that the software of different customers is kept on one server has (at least) one further advantage: updates can be carried out, bugs fixed, new versions installed and adjustments made uniformly, quickly and easily - after all, all services can be accessed simultaneously via this one server. This uniform access simplifies upkeep and maintenance considerably.
Buy or rent? - The different business models and the cost comparison
The changed technical possibilities of the public cloud also give rise to a different business model from the one we know from on-prem and private cloud. So this is where it gets interesting above all for the end user! The business model of the older on-prem and private cloud solution is based on the classic licence sale, that is, essentially selling the right to use the software to the customer. Having paid the one-off price, the customer is entitled to use the acquired software for an unlimited time. With the purchase of the software, however, the user is entirely responsible themselves for its maintenance and upkeep. Newer versions have to be purchased separately afterwards, possible bugs fixed by the user and updates installed independently.
With the public cloud, by contrast, a subscription model is usual, that is, renting the software for a monthly or annual amount. Here «all inclusive» applies; all services are therefore taken care of by the software provider - from installing the latest software version to fixing technical problems.
And what does that mean for my costs now? I would like it good and cheap…
Unfortunately, comparing the costs over the entire life cycle of the software systems is not entirely simple. After all, the business models are completely different, so that for a comparison all the costs incurred have to be added up. With the licence sale of the on-prem and private cloud solution, the software is purchased and its development costs are included in the one-off price. However, all the costs that go along with its upkeep are added to this amount - and that can become quite expensive.
On top of these hidden subsequent costs for updating, maintenance and support come internal staff costs - after all, specialists have to take care of the implementation. The advantage of being able to adapt the software more flexibly to the specific, individual requirements of an individual company also goes hand in hand with high additional development costs and staff effort. Ultimately, then, with the licence sale model, a whole series of initially hidden costs is added to the one-off amount that at first appears low - quite apart from the necessary IT staff, who should be specialised in maintaining the software.
By contrast, the subscription costs of the public cloud solution include all costs for development, updating, maintenance, support and data security. Hidden additional costs therefore disappear completely and the upkeep of the software is entirely taken over by the software provider. The customer thus benefits from the newest functions, the most current updates and security standards without any further costs - and without their own staff and organisational effort. Besides the considerably higher efficiency, this gives the company greater planning certainty about annual IT costs in its budgeting.
A résumé
For some it may still be an attractive option to buy software for a one-off amount and to hold access rights for an unlimited time - perhaps not least because, compared with the newer subscription model, this is the tried and tested procedure. Starting from the present and today's technical conditions, however, one has to conclude that simply buying software is no longer really up to date and corresponds little to the reality of software use today. Besides the one-off development of the software, its ongoing upkeep, maintenance and updating are fundamental to using it sensibly. Software that is not maintained becomes effectively unusable.
For this reason a subscription model, in which software support is carried out without additional costs and staff effort by the software developer as the specialist for their own software, corresponds far more closely to today's circumstances. That is why the subscription model of the public cloud solution is the format of the future - and ever broader demand supports technical progress and new, innovative possible applications.
