Diversify Your Cloud Portfolio

Diversifying your investments is highly recommended. Why? Because numbers provide safety. You won’t find many who don’t believe in diversifying the business. However, we don’t think about our cloud storage like that.

Enterprises have moved their necessary applications to the cloud, like CRM and email for reducing the cost. And now, they are moving to the next step of cloud adoption.

Enterprises are going for the containers and such cloud-native technologies. This move will add agility to their functioning and spur the innovation. And yet, surprisingly, they are still fixated on the use of the single public cloud.

cloud service

A survey by Microsoft revealed that almost one-third of the companies are using the single cloud environment. In January this year, RightScale created a separate report that showed only 21% of the companies use multiple cloud storage.

This 21 % of the companies could be using the SaaS applications from various providers. But, when it comes to Google, Amazon, and Microsoft, they still place the bet with a single company.

It is evident that you can’t be benefitted from a single supplier in your business. Then what makes you think it doesn’t apply to the cloud storage as well? There is no technological reason to stick to the single public cloud.

You can use containers and Kubernetes to move your data from one cloud to another. These technologies are simple to build but are highly portable applications. Limiting yourself to one cloud means you are keeping yourself away from what cloud services can offer.

Here, I am listing down three reasons why you must, and I mean must diversify your cloud portfolio. Maybe after reading through the ideas, using the multiple providers will make sense to you and your business.

Availability Of Service

Why should you behold your business to a single service provider for a critical component? After all, a smart enterprise seeks multiple providers. This step will not hamper your work even if a service provider is unavailable. Doesn’t the same apply to the cloud?

You will not experience any significant outages from a primary service provider. But when it happens, it can produce devastating effects. You can take the example of Amazon Web Service outage from last year. It disrupted many big brands for a few hours, and that has cost them hundreds of millions of dollars.

A similar incident took place this year as well. It affected some Atlassian’s developer tools along with services of Amazon’s own Alexa. And, Azure isn’t immune to these disruptions as well.

And that’s why you must diversify your cloud storage. It mitigates these kinds of risks. If not much, companies should consider taking the backup of the crucial data on different clouds. This will prove to be the cost-effective solution for disaster data recovery.

On the other hand, when the downtime of even a few minutes is too much for a company, the diversified cloud provides an active architecture. This keeps your application running without any disruption. The best example of active architecture is Waze from Google. The only thing is this architecture is a little complex to implement.

The Best Tool For The Job

If you are a money manager, you would know about different classes of assets suitable for different objectives. Like for example bonds yield a low but steady rate of return as compared to tech blogs that generate higher returns but are riskier.

Similarly, there are different areas of specialization for different public clouds. So, business should pick the services depending on what matches their needs and goals the best.

cloud storage services

There is some commoditization among the critical services like storage and computing. But all the primary providers pose strength in varied fields. Let me explain this with examples.

If your data is primarily centered on a Windows shop, Azure would be your best pick. However, if you are using the speech-to-text translation with AI services, Watson from IBM would be your best choice.  

You must pick the cloud services like you choose the financial ones, depending on the objectives you are trying to achieve.

Leverage Of Price

Are you an investor or do you know one? Have you ever wondered why they build a diverse portfolio and not stick to just one share? It is because diversification in investments makes them take advantage of the price variation and hedge against the losses.

Diversify your cloud portfolio, it gives you similar benefits. A business must build a diverse cloud portfolio to leverage multiple providers and ensure the best pricing.

Cloud works on the pay-as-you-go model. But, you can lock in better long-term deals by negotiating the provider. If you can move to other service provider offering a better deal, you are in a stronger position to negotiate the best deal. So, if your service provider for the cloud raises its price, you can quickly shift to another one offering a better deal, only if you already have an account there.

In A Nutshell

Cloud is like an Accordion with some parts expanding and some contracting. It gives you many choices, and you must select and experiment with them. Using multiple cloud portfolios gives you the freedom to shift from one service provider to another according to your need.

Also, the downtime at one provider wouldn’t hamper your work. In fact, it minimizes the expenses you can incur in data security and recovery. And you can take advantage of the specialty and unique service offerings of various cloud service providers.

As mentioned above, it is more like building an investment portfolio. You won’t entrust all your hard earned money to one stock, will you? So why assign one single public cloud with all your essential and sensitive data? That’s purely insane. Thus, there’s no need to limit yourself to one cloud service provider when you can have the best of many.

The essence of the entire article is just one thing ‘you must diversify your cloud portfolio, for the benefit of your business and data both.

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