Here on the Inmetrics blog, we frequently point out that modern applications have two standout capabilities: the ability to quickly process large volumes of data with virtually no errors; and the ability to provide seamless user experiences regardless of the device used to access them. Both of these capabilities have become much more easily achievable following the widespread adoption of cloud computing, an application deployment model that enables rapid scaling.

Nowadays, using a deployment model other than cloud computing is the exception rather than the rule. Because it can support software that uses different types of application architectures—both centralized and, primarily, distributed—the cloud has become the standard for creating new digital products or modernizing legacy systems.

In this scenario, a significant portion of companies’ IT budgets is being allocated to application modernization projects that migrate systems to the cloud. A 2023 Gartner study of more than 2,400 IT leaders showed that 73% expected to increase their budgets for cloud infrastructure in the short term.

Understanding the characteristics and potential of cloud computing can be crucial to ensuring that your systems scale securely, optimizing costs and increasing your return on investment. Join us in this article to gain a detailed understanding of how the cloud works, its benefits, and what precautions to take in application modernization projects that involve migrating to the cloud!

Definition and Characteristics

Broadly speaking, we can define cloud computing as a model that provides, via the Internet, convenient, on-demand access to a set of configurable and shared computing resources that can be quickly and easily provisioned, thereby facilitating the management of the services offered by applications. According to the U.S. government’s National Institute of Standards and Technology, the cloud computing model has five essential characteristics:

1. On-demand self-service → consumers can provision computing capacity as needed and automatically—that is, without requiring human intervention for each service offered
2. Wide network access → The features are available over the network and are accessed through standardized mechanisms that facilitate use by a variety of client devices, whether mobile (tablets, phones) or not
3. Resource Pooling → To serve multiple consumer devices, computational resources are pooled using a multi-tenant model, thereby enabling dynamic allocation and reallocation based on consumer demand.
4. Rapid scalability → Resources can be provisioned and released elastically and automatically, enabling rapid expansion or reduction of capacity in line with demand, and allowing customers to use the computing capacity they need at any time.
5. Metered service → The automatic control, monitoring, reporting, and measurement of resources must be permitted, using measurement methods appropriate to the type of service required. This feature provides transparency for both the consumer and the provider.

Although cloud computing, as a concept, was first envisioned in the 1960s, the first systems to successfully use this delivery model date back to the late 1990s. However, it was only about 20 years ago that today’s major cloud services—such as Amazon’s AWS, Microsoft’s Azure, and Google’s GCP—began to be widely offered.

Cloud Computing: Benefits and Risks of This Delivery Model

Because it adapts easily—and often immediately—to the needs of applications, cloud computing has become an extremely convenient model for supporting systems. And since many systems are in the cloud, connectivity between them is greatly enhanced.

It is only thanks to this widespread access to networks—one of the main benefits of cloud computing—that it has become possible to develop applications with a microservices-oriented architecture. Through APIs, data and services can be connected to a variety of different tools, thereby increasing their value delivery.

In addition to connectivity, the ability to pay for resources on an as-needed basis has made a huge number of projects economically viable. Without the need for significant investment in infrastructure, prototypes have been able to progress beyond their initial phase at an affordable cost.

Finally, the ease of scaling has reduced growth bottlenecks, accelerating value creation for users and ROI for application developers.

All of these advantages demonstrate how cloud computing solves the business problems the market faces on a daily basis. With each passing day, people and organizations interact more and more through systems, creating the need to process an avalanche of data across different devices. In a scenario where consumers demand ever-higher quality, it is essential to choose a support model that does not have a direct negative impact on the client’s bottom line.

Despite all the benefits, there are a few points to consider when evaluating cloud computing for application support and maintenance, especially when those applications are mission-critical.

Although the major cloud services offer robust security, if there is a risk of significant losses in the event of even a minor data breach, it is essential to conduct a cost-benefit analysis of a hypothetical system migration.

Another important factor to consider is resource availability. Although cloud service level agreements promise high availability—between 99.5% and 99.9%—there are server and mainframe infrastructures that offer 99.999% availability, such as those that support a large part of the U.S. financial system.

In addition, haphazard use and an inadequate strategy for services and applications can lead to unexpected costs and even poor application performance.

These three challenges also explain why some cloud migration scenarios for companies in the financial or banking sector are among the most challenging.

However, although they are complex, many of these challenges can be resolved—especially if you have a partner who specializes in this sector. Here at Inmetrics, we have worked with many leading institutions in the financial sector, focusing on security and compliance.

Our Digital Platforms unit has extensive expertise in planning, implementing, operating, and optimizing cloud applications. Treating quality as an ongoing service, we continuously monitor your systems and perform periodic tests to ensure availability of over 99.9%.

If you want to migrate your legacy systems to the cloud computing model with a company that is recognized for delivering quality in this type of project, click here to get in touch! Our experts are ready to take on any challenge! Let’s talk?