Cloud without the rain: Why a self-hosted solution provides a clear compromise for reluctant SMBs

The common dilemma faced by small businesses contemplating a move to the cloud is the often unwelcome requirement to move all their data and systems to one or more hosted solution providers.

Despite embracing the cloud in their everyday lives by using sites such as Twitter and Facebook, it’s often a different story when it comes to critical documents and applications – which is precisely why many owners and managers continue to delay.

A survey by the analytics firm ComScore stated that one of the main reasons many UK SMBs are yet to move their business applications to the cloud is the potential problems it could create around data security. Others are also concerned about reliability, according to the poll, with downtime almost certainly coming at a cost.

To cloud or not to cloud?
The major advantage of fully cloud-based or hosted solutions – and a big driver for those already using them – is that data can be accessed by anyone and at any time. However, the process of moving to a cloud solution will invariably involve major upheaval. Once the transition has been made, it is also incredibly time-consuming and expensive to go back.

In many cases, fear of taking the plunge stems from a lack of awareness and understanding. As with any big decisions that impact day-to-day business processes, there is also likely to be an underlying fear of change. This is why, rather than considering the flexibility and potential productivity gains cloud computing offers, reluctant SMBs often perceive the cloud as being too complicated, insecure and costly.

Worries around data security typically focus on loss of control and uncertainty about who can access their data if held outside the business. This is understandable – if a small firm is entirely reliant on cloud solutions, it needs to trust both the third party hosting the application and the network provider to maintain its internet connection.

For this reason, cloud-enabling’ existing IT systems offers a simpler and more productive alternative, especially for firms that are simply not ready to plunge fully into standardised cloud computing applications that require new ways of working and staff training. Moreover, it offers the major advantages of the cloud – such as remote access to shared documents and applications – without the big commitment.

In addition to being far less risky than entrusting essential data to a third-party provider, there are also important cost considerations. All of which adds to the case for a best-of-both-worlds self-hosted cloud solution that enables small firms without massive IT resource or budget to enjoy all the benefits of cloud computing without the need to commit to a fully-hosted IT solution – or spend thousands on external IT support. This is on top of not having to spare the time and budget needed to train staff to use a new software package.

Self-hosted model
Even very small businesses with a small number of employees can extend the reach of existing systems by adding the capability to access them remotely. In security terms, the data stays in the office and access rules remain unchanged, making the IT infrastructure no more complicated or risky than it was before.

For businesses that rely on collaboration between employees, customers or partners, the difference between this approach and traditional remote access tools is important. Rather than allowing just one user to view their PC remotely, virtualising existing applications and user desktops means adopting the best of cloud technologies, especially in enabling multiple users to access business applications and desktops simultaneously. In turn, this benefits the business and the user, especially when it comes to collaboration and productivity.

There are multiple examples of where small businesses could use this self-hosted cloud model to their advantage. For instance, whereas previously, users working from home or at a client’s office would be unable to access centrally-managed accounting, CRM or stock management applications, a self-hosted cloud provides rapid remote access. Likewise this also supports more flexible work styles for individual employees.

Unlike a virtual private network (VPN), cloud-enabling the business in this way doesn’t rely on in-depth IT knowledge and will allow the business to publish applications to any computer, instead, providing simultaneous access to the same data by multiple remote users. Equally, there is no training required for staff, as they simply log on to access familiar applications.

In this respect, the solution offers an advantage over a scenario where all the business apps are hosted in the cloud and the data can only be accessed via the internet. Rather than all office users being affected if the internet connection fails, with this ‘self-hosted’ approach, the applications stay running on computers and servers that are in the office and the data remains on site. If the internet goes down, only remote workers will be affected and everyone else carries on as usual.

Hassle-free working
Along with meeting the needs of a flexible workforce, from a user perspective, a big advantage of publishing existing desktops and applications using cloud technology lies in enabling team members to remotely work on applications they rely on daily from most web-enabled devices. This might include, for instance, essential finance applications such as Sage or QuickBooks, which many smaller firms need to make important business decisions.

Flexibility is also important, especially in terms of enabling a small business to open new premises and giving shared access to files and applications, without the usual delays, costs and IT expertise that are traditionally involved in expanding existing infrastructure. Rather than being held back by technology, it is also much easier to collaborate with freelancers or external consultants such as accountants, who can share information over the internet and have authorised remote access to key systems. Crucially, this avoids delays and wasting time on sharing files manually or by email.

From a security point of view – a critical factor for most small firms – connections are secured end-to-end using the highest levels of encryption and existing data access permissions are maintained. This ensures remote users must authenticate and can only access authorised data.

Here too, there is a major difference between a self-hosted ‘company cloud’ and traditional remote access tools in which external users connect to the office network (i.e. inbound connections). This is because office computers and servers stay behind the existing security infrastructure – commonly a wireless firewall/router – using only outbound fully-encrypted connections.

Ultimately, this is all about striking a balance. With little upfront commitment or change to the existing infrastructure, a self-hosted cloud offers a scalable compromise for growing businesses that understand the value and flexibility the cloud offers but don’t want the hassle or risk that making the leap to a fully-hosted IT solution would inevitably require.