At NewVoiceMedia, we strongly believe there is a real fundamental difference between cloud and hosted solutions. Hosted solutions can have their place, however to pretend that they are somehow cloud is just marketing spin.
So what is the real difference between cloud and hosted solutions? If you look at the Wikipedia definition of cloud computing you’ll see several key characteristics:
- Multi-tenancy enables sharing of resources and costs across a large pool of users thus allowing for:
- Centralisation of infrastructure in locations with lower costs (such as real estate, electricity, etc.)
- Peak-load capacity increases (users need not engineer for highest possible load-levels)
- Utilisation and efficiency improvements for systems that are often only 10–20% utilised
- Reliability is improved if multiple redundant sites are used, which makes well-designed cloud computing suitable for business continuity and disaster recovery.
- Scalability and Elasticity via dynamic (“on-demand”) provisioning of resources on a fine-grained, self-service basis near real-time, without users having to engineer for peak loads.
The main difference between hosted and cloud is multi-tenancy. Without multi-tenancy you can’t get the cost efficiencies of true cloud computing, and truly cost effective elasticity and reliability. (You could provide elasticity and reliability in a hosted environment, but in practice this is often not truly provided as the costs are too great without multi-tenancy).
What makes multi-tenancy so key to efficiency? There are the obvious benefits of better utilisation of physical resources but these are amplified by the greater efficiencies for the Cloud / SaaS provider of only having to support a single version of software, a uniform hardware environment and the ability to be a lot more agile. Flickr deploys new software ten times a day, try doing that in a hosted environment. The simple rule is that if a solution isn’t multi-tenant it isn’t cloud and you don’t get all the benefits that flow from being true cloud.
NewVoiceMedia powers customer connections that transform businesses globally. The leading vendor’s award-winning cloud customer contact platform connects organisations with their customers worldwide, enabling them to deliver a personalised and unique customer experience and drive a more effective sales and marketing team. With a true cloud environment and proven 99.999% platform availability, NewVoiceMedia ensures complete flexibility, scalability and reliability.
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