The Microsoft Cloud for SMB

Okay I have taken a bit of license as there is no cloud for SMB cloud is for every business and organisation regardless of size but before going into the various cloud services, I think it’s important to understand what cloud computing actually is.

"In broad context cloud services are infrastructure, platforms, or software that are hosted by third-party providers and made available to users via an internet connection."

Yes, I have "borrowed" this from Microsoft but its the best description for what cloud actually is. Cloud services facilitate the flow of user data from front-end clients e.g. a user's device, whether a desktop, laptop, tablet, mobile device or Server - Basically, anything on the users’ ends through the internet, to the provider’s systems, and back. Cloud services promote the building of cloud-native applications and the flexibility, agility and scalability of working in the cloud.

This means that a user can access truly powerful cloud services with nothing more than a computer, operating system, and the internet. This means that a person with a user device and a reliable internet service can now create an entire IT ecosystem without the need for any physical hardware.

Microsoft offer their cloud portfolio via a series of massive datacentres (200+) that now covers the globe in over 55 regions and over 140 countries (growing annually). In the UK there are two datacentres and although Microsoft won’t provide exact locations (for security reasons) but I can say you may spot one as you drive near Heathrow and the other is on the road in and out of Cardiff! - Alternatively there are back up datacentres available in Dublin (Ireland) and Amsterdam (Netherlands) and both act fully in adherence to UK and EU data and compliance regulations. Microsoft are not resting on their laurels and soon we will start to see datacentres in deserts, oceans and in space (one datacentre is on international space station - see header picture). The reality of a Microsoft datacentre (see picture below) is that they are actually just big clean rooms with air conditioning and row upon row of high capacity servers - However they are capable of offering highly scalable cloud services to all types of businesses and other organisations (regardless of size) the power of the cloud is infinite unlike an on premise environment that is all about the managing expectations of its limitations.

In terms of services Microsoft offer over 250+ (still growing monthly) + hundred of other 3rd party services and applications are co-hosted however for SMB we will focus on the most popular ones Office 365, Microsoft 365, Power Platform, Dynamics 365 and Azure services these fall under three specific types - One exception in a later post will be back up where Microsoft recommend a 3rd party (because Microsoft like other cloud services back up data for their benefit/service level not the customers, you knew this right?)

So what services are available on the Microsoft cloud?

Below are the four main service types of services available in the cloud ecosystem...

Software as a Service - Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools (such as Microsoft 365, Office 365 and Dynamics 365).

Infrastructure as a Service - Infrastructure as a service (IaaS) is a type of cloud computing service that offers essential compute, storage, and networking resources on demand, usually on a consumption basis.

Platform as a Service - Platform as a service (PaaS) is a complete development and deployment environment in the cloud, with resources that enable you to deliver everything from simple cloud-based apps to sophisticated, cloud-enabled enterprise applications.

Serverless Computing - Serverless computing enables developers to build applications faster by eliminating the need for them to manage infrastructure. With serverless applications, the cloud service provider automatically provisions, scales, and manages the infrastructure required to run the code.

What are the benefits of cloud?

Scalability - The cloud is fully scalable, and it can be scaled up or down depending on your specific requirements. This provides SMB with a significant business benefit and is completely different to an on-premise solution where you have to provide an IT service based on your highest possible workload scenario so here you may paying upfront on CAPEX for infrastructure that never fully exploits its full potential plus adding a on premise service can take multiple days or weeks to install. Whereas in the cloud a service can be spun up in a matter of minutes (and scaled down just as quickly) and this principle is similar with seat-based monthly options with O365 and M365 (but here there are caveats which I will explain.)

Reducing IT Costs – This is often highlighted by other resellers however please be careful as the cloud can difficult to fully appreciate especially within SMB. For instance, how do you factor in power cost savings plus the savings around network equipment, staffing, support and software which are often overlooked when comparing on-premise hardware to the cloud monthly running costs. ?In all honesty and because I believe in full transparency I always advise customers that it is comparable in cost to an on-premise solution. However, you can certainly reduce costs by remembering that you are dealing with a cloud service and being smart with usage. For instance, if you have a service running 24/7 on a cloud VM you could look at 1- or 3-year reserved instance (this could save 30%-60% annually) or if you have a VM that is utilised for 10 hours of a day you can power this down rather than run it 24/7 remember with the Azure infrastructure you pay for what you use on a monthly consumption basis. Finally, for seat-based services (M365, O365 ect) consider the user, if they are temporary or seasonal, it might be more advantageous to have them on monthly subscription that can be changed, reduced, or removed after a 30-day term period if they are permanent staff you might be better looking at an annual term that locks you to a longer period but reduces the overall cost of the plan. So pre-planning with the cloud is key as most overspends happen when proper planning has not been carried out.

Business agility – This too is often highlighted and yes this is a key area where the cloud massively excels over on premise depending on you requirements the cloud can be configured to move with a business and its every changing needs and change can happen rapidly in SMB. The cloud is very adaptable to change there is no bigger example to this than the recent global pandemic when overnight workplaces were shut forcing millions to work from home – without the cloud this would have been a literal catastrophe for most businesses SMB, large enterprise or global.

Adoption at Pace - Cloud adoption can also be paced with the customer and at a size and scope that is right for them. This is important as no one customer is the same and there are no limits you can have a cloud account with 1 user or 5000 users – Plus this can be done quickly and easily especially when utilising a CSP service (more on this in the next section). It’s worth pointing out here that Cloud adoption is often lumped in Digital Transformation (DX), that in my opinion is a mistake they are complete separate entities however, there can be crossovers, the reason for this is that a business process or change process (which is Digital transformation) is usually more efficient when a process is automated, and this is generally done utilising a cloud service.

How do customers access cloud services?

Previously customers of the cloud consumed cloud via a variety of Microsoft agreements or direct with Microsoft with a credit card (so not ideal) with many of the higher (advanced) cloud plans and features only available to large enterprise customers however this changed in 2016 when CSP (Cloud Solution Provider) service was launched. So lets look at the option for cloud...

?So now I have given a summary on cloud services hopefully this explains the concept and in my next post we will look at what’s available starting with the most popular seat-based options Office 365 and Microsoft 365.?