Cloud Hosting Solutions

Larry Xu

Despite the reluctance and hesitation, more and more companies are adopting or thinking of adopting cloud hosting as a solution to their businesses for the apparent benefits:

  • Significant cost savings;
  • Higher application performance; and
  • Scalability.

It is, of course, always necessary to perform a risk and return analysis before a company makes a hefty decision to migrate to cloud computing.

The variety of cloud service models (Infrastructure as a service, Iaas; Platform as a service, Paas; and Software as a service, Saas) and a list of deployment options (Private cloud, public cloud, and hybrid) make it possible for a company to develop a migration strategy that will maximize reward and minimize risk of adopting cloud hosting as a solution.

It is highly recommended that companies do not take on an “All or None” mentality with regard to cloud hosting. Instead, they should consider two important factors:

  • Differentiation
  • Standardization

A company’s unique manufacturing process, for example, should be kept in an on-premise environment for it to produce unique and differentiated products to offer to consumers. On the other hand, the standardized applications, such as SAP S/4 HANA Simple Finance, SAP SuccessFactors, or SAP hybris Marketing, should be deployed in cloud to reap the benefits of reduced Total Cost of Ownership (TCO), reduced Time to Value, regular innovation updates, extensibility, etc.

Other potential hybrid scenarios are possible as well:

  • Run a particular region on-premise and others in the cloud;
  • Run some lines of business in the cloud and others on-premise;
  • Run a particular business process, such as HCM, in the cloud.


Cloud hosting/computing has undeniably become a trend over the years and it is gaining momentum. Understanding a wide range of service models and deployment options will allow companies to implement a migration strategy that will maximize return and minimize risk of a cloud hosting project.

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