Cloud Transition: A Journey from Colocation to Cloud Computing

The Challenge

Our client built a robust SaaS business around their homegrown membership management platform. Having moved from an on-premise solution to hosting services utilizing a colocation data center.

The initial setup process when moving to colocation proved complex and time-consuming, involving coordinating IT resources and ensuring all networking and power requirements were met. Despite the promised reliability, occasional downtime due to hardware failures, power outages, and network disruptions was still a concern. Additionally, entrusting their critical hardware to an off-site location raised security apprehensions despite the colocation facility’s robust measures.

Moreover, the ongoing costs, including monthly rental fees, bandwidth charges, and additional service fees, necessitated careful budgeting to avoid unexpected financial strain. The client’s platform was built exclusively on the Oracle database, adding additional licensing costs and stress.

With the transition to cloud computing, the monthly cost of the services was significantly reduced, alleviating the financial strain and ensuring the long-term sustainability of the business.

The Solution

Working with the client, Performance One Data Solutions embarked on identifying a cloud-based solution. Cloud computing offers numerous benefits, including scalability, cost-effectiveness, flexibility, and improved security. By leveraging cloud services, businesses can quickly scale their infrastructure up or down based on their needs, which is particularly beneficial for rapidly growing or fluctuating workloads. Additionally, cloud computing eliminates the need for significant upfront investments in hardware and allows for a pay-as-you-go pricing model, reducing overall costs. The flexibility of cloud computing enables remote access to data and applications from any location with an internet connection, fostering collaboration and productivity. Furthermore, reputable cloud service providers implement robust security measures to protect data, often surpassing the security capabilities of on-premises solutions.

After a review, the client selected Oracle Cloud Infrastructure (OCI). Performance One Data Solutions worked to develop and execute a migration plan that resulted in all data center operations to support their SaaS applications being moved to the cloud.

The Results

Several benefits resulted from moving to the Oracle Cloud Infrastructure. These include:

1. Cost-effectiveness: Cloud computing significantly reduced monthly costs compared to traditional colocation and on-premise solutions. The pay-as-you-go pricing model and elimination of upfront hardware investments contribute to cost savings.
2. Scalability: Cloud services allow quick and flexible infrastructure scaling based on business needs. This is particularly advantageous for businesses with fluctuating workloads or rapid growth.
3. Flexibility: Cloud computing enables remote access to data and applications from any location with an internet connection, fostering collaboration and productivity.
4. Improved security: Oracle Cloud Infrastructure implements robust security measures, often surpassing the security capabilities of on-premises solutions.
5. Long-term sustainability: Reduced monthly costs and improved scalability contribute to the long-term sustainability of the business, alleviating financial strain. In summary, transitioning to OCI resulted in cost savings, improved scalability, enhanced flexibility, better security, and long-term sustainability for businesses.

The bottom line is the monthly cost of hosting services went from $44,079.26 to $16,566.75, which was a massive benefit to the client and positioned them for more competitive pricing and future growth.