Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

Hybrid cloud – a combination of CapEx and OpEx

Posted on: 13 June '14

One of the advantages of the cloud is that it replaces CapEx with an OpEx model and allows companies to get their applications up and running faster. The term, “moving to the cloud” refers to an organization moving away from a traditional CapEx model (buy the hardware and depreciate it over time) to the OpEx model (use a shared cloud infrastructure and pay as you use it). However, many companies are realizing that the most optimum cloud model combines the best of both CapEx and OpEx through shared resources.

There are three primary types of cloud models that are popular – private, public and hybrid.

1. A public cloud is where services such as applications and storage are available for general use over the internet. With the public cloud, the service provider is the one who is making the CapEx, so the users can buy in an OpEx or pay as you go model.

2. A private cloud is a virtualized data center that operates behind a firewall. In the private cloud, the company is making the CapEx, so development teams or business units within a company can consume the resources in an OpEx model.

3. A hybrid cloud is a mix of both public and private clouds. If a company is using resources from both private and public clouds, then this combination becomes a combination of both CapEx and OpEx models. This is similar to what companies do on their product development teams: they create a combination of full time employees and contractors to have better control over their expenditures.

Hybrid clouds give IT teams the flexibility to control costs in a way that wasn’t available before and coordinate the delivery of these shared resources to development teams in a more efficient manner. However, development teams sometimes buy capacity directly from public cloud providers rather than going through the IT team. If done this way, the IT team loses the coordination between the two cloud models and the development teams pay more for the cloud services. This is because the IT team can usually negotiate discounts due to combined volume in the organization.

The most effective hybrid model is one that focuses on maximizing the effectiveness of the shared resources. Let me know if you have any hybrid examples you’d like to share. We’re always interested in different deployment models for implementing cloud technology.Read how we implemented cloud based solutions for an enterprise search provider and a global insurance firm.

Giridhar LV

Giridhar has been in the IT industry for more than 17 years. He is currently the head of VMUnify - a solution that Enables Unified Clouds. Prior to Mindtree he has worked in Novell India. In his career he has led teams that have developed Backup and Recovery Solutions for Windows / Linux and NetWare; NFS Gateway development for NetWare and bed side ECG monitor development. His areas of interest included Virtualization, File Systems, Operating Systems and Entrepreneurship. He is also an author of 2 patent pending applications.