Companies that move to the cloud have a whole host of decisions, one of the first being whether to develop their own software on top of a cloud infrastructure or to attempt to customize an existing cloud service.
Aquent, a global staffing firm specializing in design and marketing professionals, decided to port its own back-office system in 2010, after successfully moving other information systems to the cloud. The company had already made the most obvious cloud choices, moving its e-mail system to Google (GOOG) and it phone system to a voice-over-IP service in early 2010, saving hundreds of thousands of dollars a year in the process.
In September, 2010, the company made its most serious commitment to the cloud, completing the transition of its enterprise resource planning (ERP) system, a custom application ported over to a Postgres database. While there have been challenges, the move paid off: The company has slashed its annual information technology expenditures by nearly half, from 4 percent of the company's expenses to 2 percent, Aquent CIO Larry Bolick says.
"There has been a major impact on the cost line for IT here," says Aquent CIO Larry Bolick. "It is not just the pure monthly bill from your telco... There have been a lot of process changes and a lot of organizational shifting of responsibilities."
The process changes, such a moving some IT support functions back into the business units, allowed the company to reduce its support staff. In addition, the outsourcing of its most support-intensive application, e-mail, helped reduce needed staff as well, he says.
Bolick and his team shared some lessons learned:
1. Sometimes custom is the only way
The choice to create its own custom software on top of a cloud infrastructure — in this case Amazon's Elastic Computing Cloud (EC2) —rather than customize an existing cloud service was a fairly simple decision.
As Aquent discussed its requirements with cloud providers, such as Salesforce, it became evident that Aquent could not provide the same services to its customers that it could with its homegrown ERP solution. On the ERP side, many vendors had no cloud solutions when the company was studying the issues in 2009.
"We asked cloud vendors if they knew anyone running custom ERP packages in a cloud environment and they could find no one," says Zach Hunter, vice president of software development for Aquent. "A lot of vendors could not even spell cloud when we were doing this."
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