When statistics reveal that companies engaged in digital transformation efforts are 23 times more likely to acquire new customers, 6 times more likely to retain existing customers and 19 times more likely to be profitable, it’s hardly surprising that organisations are looking to accelerate their digital transformation journey (Source: McKinsey & Company).
As organisations navigate the complexities of digital transformation, Infrastructure as a Service (IaaS) emerges as a crucial technology that not only supports but accelerates this journey. With a constant focus on innovation, streamlining operations and enhancing efficiency, technology leaders are increasingly leveraging cloud services to drive these initiatives.
In July 2023 Gartner reported that worldwide IaaS Cloud Services revenue grew 30% in 2022, exceeding $100 Billion for the first time. They are expecting an acceleration for 2024 with Sid Nag, VP Analyst at Gartner quoting “Cloud has elevated from a technology disruptor to a business disruptor. IaaS is driving Software-as-a-Service (SaaS) and platform-as-service (PaaS) growth as buyers continue to add more applications to the cloud and modernise existing ones.
Despite that in a 2023 State of Cloud report, 69% of leaders still don’t have a clearly-defined cloud strategy, but more than 70% of organisations report more than half of their infrastructure is in the cloud, indicating there are plenty of opportunities to make a significant impact in optimising IaaS adoption.
Understanding IaaS
Infrastructure as a Service (IaaS) is a cloud computing model that provides on-demand resources over the internet. It offers a range of services including virtual machines, storage, networks and operating systems on a pay-as-you-go basis, eliminating the need for expensive on-premises hardware. This model offers scalable infrastructure allowing you flexibility to scale up or down to react to changing business demands.
It’s an attractive option for businesses of all sizes, offering flexibility, scalability, and cost-effectiveness. This allows companies to concentrate on their core business functions while leaving the management of their IT systems to experts, eliminating the concerns of purchasing, deploying, and maintaining physical servers and storage devices.
IaaS vs. PaaS vs. SaaS – Understanding the differences.
In the world of cloud computing, there are three primary service modules: Infrastructure as a Services (Iaas), Platform as a Service (PaaS) and Software as a Services (SaaS). Each of these models offers unique features and benefits for different business needs. As you map your journey to the cloud, the important decisions you need to make is how much you want to manage yourself and how much you want your service provider to manage.
Infrastructure as a Service (Iaas) – provides virtualised computing resources over the internet, offering fundamental building blocks including virtual machines, storage and networks. It’s easy to scale up or down based on demand and you only pay for what you use. This can be used for cloud storage, backup solutions, compute, archive, networking, workstations and big data analysis.
Platform as a Service (PaaS) – provides a platform for organisations to develop, run and manage applications without dealing with underlying infrastructure. It offers a framework that includes development tools, database management and middleware. This can be used for application development, database management, API development and management and streamlining DevOps processes.
Software as a Services (SaaS) – delivers software applications over the internet on a subscription basis. Users can access applications via a web browser, with the service provider managing the infrastructure, middleware, application software and data. These includes applications such as CRM and ERP solutions, collaboration and productivity tools and email and comms services.
Accelerating Innovation
Digital transformation can occur in quick bursts or slower more deliberate steps, but the goals remain the same: moving workloads, applications and data to more flexible environments that facilitate seamless innovation.
One of the most significant impacts of IaaS on digital transformation is its ability to accelerate this innovation. By leveraging IaaS, businesses can quickly provision and de-provision resources as needed, allowing them to experiment with new ideas without significant upfront investment. This agility enables businesses to quickly adapt to changing market demands, bringing new products and services to market faster, fostering a culture of innovation and continuous improvement. In these demanding markets, agility is crucial for businesses to effectively seize opportunities and address challenges.
Traditional on-premises infrastructure does not provide the flexibility to handle the dynamics of modern organisations including spikes in demand and the need for rapid deployment of new services or products. By turning to IaaS providers, the ability to scale infrastructure up or down based on demand is crucial for handling varying workloads and launching new applications quickly.
In the Media and Entertainment industry, we find IaaS services enable organisations to swiftly ramp up for demanding and complex projects. As needs evolve, infrastructure can be quickly and easily deployed to accommodate the expanding demands of a global workforce. When projects conclude, requirements can be seamlessly scaled down.
A great example of a well-known brand who has demonstrated agility and quickly adapted to market demands is Netflix. Their evolution from DVD rental back in 1997 to streaming in 2007 to differentiating themselves with original content, demonstrated their ability to adapt to attract and retain subscribers.
Their ability to swiftly pivot its business model, invest in new technologies and respond to customer trends has made them a leading player in the entertainment industry. Its agility in adapting to market demands has not only helped them survive but thrive in a highly competitive landscape.
Migrating to the Cloud
Organisations aiming to modernise their IT infrastructure to stay competitive, enhance customer experience and improve operational efficiency are undertaking comprehensive digital transformation journeys by migrating their data centres to the cloud. By investing in enterprise cloud solutions such as Amazon Web Services (AWS), Microsoft Azure or Google Cloud Platform (GCP), as well as hybrid or more cost-effective cloud solutions (private cloud), they can distribute workloads across various environments for optimal performance and cost effectiveness.
Public Vs Private Cloud
Public cloud and private cloud are two distinct cloud computing models that offer different benefits and use cases for organisations. The public cloud is a shared, multi-tenant environment provided by third-party service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).
A private cloud is a cloud service that is not shared with any other organisation. The private cloud user has sole access to the cloud infrastructure. In contrast, a public cloud is a cloud service where computing resources are shared among multiple customers, however each customer’s data and applications remain isolated and secure from others within the cloud environment.
The cloud has undoubtedly provided a practical solution to many common challenges. However, it is crucial to note that renting extra computing power from public cloud providers can quickly become another unpredictable expense if not managed correctly.
IaaS Benefits
Let’s delve into the benefits of why Infrastructure as a Service is transforming the way businesses operate:
Cost Effective – Reduces operational and capital expenditure. By transitioning to a pay-as-you-go model, businesses only pay for what they use making it easier to prepare budgets while also reducing the costs associated with purchasing, maintaining and upgrading physical servers and data centres.
Shift your Focus – With infrastructure managed by a service provider, businesses can redirect their focus towards more strategic activities and innovation opening up a realm of possibilities. IaaS frees up valuable resources and time, which can be invested into developing new products, services, markets and improving customer experiences. This shift in focus is crucial for companies looking to stay competitive in today’s fast-paced digital economy.
Global Expansion – Global expansion with IaaS offers rapid deployment, global reach and advanced security allowing businesses to quickly set up operations in new markets and efficiently manage resources. IaaS ensures high availability and compliance with regional regulations, supporting cloud-based innovation and business continuity.
Scalability and Flexibility – IaaS allows businesses to scale their IT resources up or down based on demand which is crucial for global expansion and to accommodate growth in new markets without the need for substantial upfront investment.
Rapid Deployment – IaaS allows for rapid provisioning of IT infrastructure, enabling businesses to quickly set up operations. The speed to market is essential for gaining a competitive edge and responding quickly to market demands.
Enhanced Security and Compliance – With security and compliance being a major concern for businesses undergoing digital transformation, transitioning to an IaaS model can help alleviate many of the complexities involved with managing security and compliance requirements with infrastructure-related security controls. IaaS providers invest heavily in IaaS security measures, including physical security, encryption and network firewalls to protect data centres and infrastructure helping businesses meet regulatory requirements and protect their sensitive data.
Hassle-free Management and Maintenance – With the Service Provider taking care of infrastructure components such as updates, maintenance and patch management, the burden associated with managing physical infrastructure is eliminated.
Disaster Recovery – IaaS offers proactive built-in disaster recovery strategies reducing the probability of unnecessary downtime to ensure business continuity.
The Future of IaaS
The future of Infrastructure as a Services (IaaS) is promising, driven by technological advancements and evolving business needs. Businesses will increasingly adopt IaaS for its scalability, flexibility and cost efficiency with a particular rise in hybrid and multi-cloud strategies to optimise performance and avoid vendor lock-in.
Key trends are shaping the future of IaaS such as AI and Machine Learning to offer advanced data analytics, automation and intelligent monitoring services along with the adoption of edge computing and serverless architecture to enhance overall capabilities.
Sustainability initiatives and industry-specific solutions will also become more prominent, making IaaS a key enabler of digital transformation and innovation across many industries. Embracing IaaS is not just about keeping up with technology trends; is about seizing opportunities to redefine the future of your business.
