The Cloud Advantage: How Cloud Platforms Outperform Traditional VM Solutions

In today’s rapidly evolving digital landscape, businesses face critical decisions about their IT infrastructure that can make or break their operational efficiency and competitive edge. As organisations grapple with increasing data demands, remote work requirements, and the need for scalable solutions, the choice between traditional virtual machine (VM) environments and modern cloud platforms has become more significant than ever. This article explores the journey from traditional VM solutions to cloud computing, examining how cloud platforms are revolutionising business operations and offering compelling advantages over conventional virtualisation approaches.

In this article:

• The development of virtual machines
• The growth of cloud computing
• The case for cloud computing
• Limitations of virtual machines
• Summary

The development of virtual machines

Although virtual machines (VMs) have been around since the late 1960s or early 1970s, they really gained traction in business circles in the 1990s when VMware and similar companies developed software that made virtualisation technologies more accessible. Today, VMs are integral to IT infrastructure, enabling efficient resource management and flexibility across a variety of industries.

Virtualisation is achieved by creating several VMs on a single physical server. They are essentially software-based emulations of physical computers that allow multiple operating systems to run on a single hardware platform. Traditionally, VMs were hosted on on-premise servers, but recently there has been a move to host them in the cloud as well as on-premise.

Cloud computing is based on virtualisation technologies but provides IT resources and services over the internet. The benefits that come with cloud-based architecture and the broader infrastructure, platform and software services offered by cloud computing means that more businesses are going down this route for handling their servers, storage and networks.

The growth of cloud computing

The concept of cloud computing is nothing new. Since American computer scientist JCR Licklider came up with the idea of an intergalactic computer network, many organisation have developed their own versions of a virtual computer network. In 1999, Salesforce launched one of the first successful Software-as-a-Service (SaaS) platforms. In 2002, Amazon Web Services (AWS) launched its first internal cloud services, with public versions (S3 for storage and EC2 for compute) rolled out in 2006. Google’s App Engine, Microsoft Azure and IBM Cloud (originally Bluemix) followed in 2008, 2010 and 2011 respectively.

The growth of the cloud industry has been equally rapid, with the cloud computing market valued at approximately $6bn in 2008, growing to more than $300bn by 2020 and expected to exceed $1tn by 2028.

This growth has been driven by a number of factors. Many businesses are modernising their operations to remove paper-based and manual processes and transfer to digital solutions with cloud computing providing the flexible, scalable infrastructure needed to support everything from customer relationship management to supply chain optimisation.

How cloud storage and traffic has changes between 2010 and 2025

The volumes of data traffic and storage have grown rapidly due to digital transformation initiatives in business and the proliferation of digital interactions in everyday life (social media, eCommerce, IoT), means that many businesses struggle to handle these requirements with their on-premise hardware. It has therefore been necessary for organisation to turn to cloud solutions for their virtually unlimited storage capacity and powerful processing capabilities.

Although we’d be happy to place the Covid-19 pandemic into the history books, the impact on the tech world shouldn’t be downplayed. The global pandemic forced organisations to rapidly adapt to remote work models, causing a surge in cloud adoption as businesses needed secure, accessible platforms for collaboration, file sharing, and business continuity that could be accessed from anywhere.

A multitude of global events have led to long-term financial uncertainties in many sectors, and so businesses are looking where savings might be made. IT is one of the areas where making cost savings doesn’t have to impact quality or efficiency. If fact, it could lead to improvements. Cloud computing eliminates the need for massive upfront capital investments (CapEx) in hardware and data centres, instead offering a pay-as-you-go (OpEx) model that allows businesses to scale their IT resources up or down based on actual needs, resulting in significant cost savings and better budget management. Of course, this scenario relates to businesses investing in new infrastructure, but the efficiencies of cloud computing are also available for those that are looking to scale their operations.

And let’s not forget the new kid on the block: AI. As AI and machine learning gets a foothold in more areas of our lives, greater quantities of storage and compute capacity will be needed to power AI and ML applications. With companies discovering more opportunities to deploy AI in their operations, such as advanced analytics, predictive modelling and automation, cloud options give them these capabilities without the need to invest in expensive specialist hardware.

The Case for Cloud Computing

A wise man once said, ‘if it ain’t broke, don’t fix it’. This is certainly the case for IT systems, but the trick is spotting the point of failure before it arrives. That’s probably the subject for another article, but here we’ll help you make the case for your business to migrate to the cloud. As an aside, I’d direct you to another popular blog post, Embark on your Cloud Journey.

So, you’ve noticed that your existing IT infrastructure is getting a bit long in the tooth and want to explore a migration to the cloud. Let’s dig a bit deeper into the benefits of adopting cloud computing.

1. Scalability and flexibility
   Businesses are often faced with the need to flex, change direction and scale (both up and down) in response to market demands and cloud computing makes this flexibility and scalability possible. Unlike traditional on-premises infrastructure, which requires significant time and investment to scale, cloud platforms allow businesses to quickly adjust their resources. This elasticity ensures that companies can handle sudden spikes in traffic or workload without compromising performance. For example, services like AWS Auto Scaling and Azure’s Virtual Machine Scale Sets enable automatic adjustments to compute capacity, ensuring optimal performance and cost-efficiency.
2. Cost savings
   We mentioned earlier the financial uncertainties that exist in the world today, so one of the most compelling reasons to migrate to cloud computing is the potential for significant cost savings. Traditional IT infrastructure requires substantial capital expenditure on hardware, software, and maintenance. In contrast, cloud computing operates on a pay-as-you-go model, where businesses only pay for the resources they use. This shift from capital expenditure (CapEx) to operational expenditure (OpeEx) can free up financial resources for other strategic initiatives. Additionally, by outsourcing infrastructure management to cloud providers, companies can reduce the burden on their IT staff and focus on innovation and growth.
3. Reliability and uptime
   Reliance on on-premise infrastructure can be like putting all your eggs in one basket. One small slip can lead to unwanted downtime, and a big headache for your IT team. With cloud computing you benefit from robust solutions to ensure stable infrastructure. Cloud providers design their infrastructure with redundancy and high availability in mind, often exceeding the capabilities of traditional on-premises setups. Moreover, cloud services come with built-in failover and disaster recovery capabilities which replicates workloads to secondary locations.
4. Management and maintenance
   As IT systems become more complex, more is expected from in-house teams to solve problems, maintain systems and keep things operational. The adoption of cloud computing moves the onus away from the in-house teams allowing them to concentrate on more strategic and high-value work, while management and maintenance of the core infrastructure is offloaded to the cloud provider. They also take care of automatic software updates, security patches, and routine maintenance, which are handled seamlessly in the background. The aim is not to cause redundancy in your IT roles, but to get more value out of their time, while making their job more interesting. For example, Google Cloud’s managed services ensure that your systems are always up to date without manual intervention. This not only reduces the workload on your IT staff but also minimises the risk of security vulnerabilities and system downtime.
5. Global accessibility
   The need for a remote workforce was, in some ways, forced on us by the Covid-19 pandemic, although some businesses were already moving towards hybrid working arrangements. As mentioned above, the pandemic led to a significant increase in the demand for cloud capabilities, and while this enabled people to work remotely when it was a legal requirement, it has also made global accessibility the norm. Tapping into distributed networks of data centres around the world, businesses can connect their resources from any location with an internet connection, facilitating remote work and collaboration across different geographies. For forward-thinking companies, they are even able to employ talent from anywhere in the world. Additionally, cloud providers like AWS and Azure offer global regions and edge locations, allowing businesses to distribute workloads closer to their users, reducing latency and improving performance.

Limitations of virtual machines

Virtual machines continue to play a vital role in business and will continue to do so for many years to come. I repeat, if it ain’t broke, don’t fix it. But there are some limitations that businesses should be aware of.

1. Hardware dependency
   Virtual machines rely heavily on on-premise hardware, and this dependency can represent a significant drawback when it comes to upkeep. It is beholden on a business’s IT team to keep this hardware maintained and up-to date. The hardware itself will need to be repaired and replaced and expanded if the business chooses to upscale. VMs are limited but their capacity and this lack of flexibility can hinder a company’s ability to respond quickly to changing demands or unexpected spikes in workload. Conversely, cloud computing offers elastic resources which can be scaled up or down as needed.
2. Capital investment
   While virtualisation does allow businesses to run several VMs on a single server, it does require substantial upfront capital investment. There is the need to purchase and maintain VMware licenses and let’s face it Boadcomms acquisition of VMWare isn’t making licenses any cheaper. You then have servers, storage solutions, and a need to also upskill technical staff to implement and maintain the hardware. These expenses are often a barrier for smaller companies or startups that may not have the financial resources to invest heavily in IT infrastructure. Additionally, the ongoing costs of maintaining and upgrading this hardware can add up over time, making it a less cost-effective solution compared to the pay-as-you-go model of cloud computing.
3. Complexity of administration
   Implementing and managing a VM environment can be complex and require specialist skills, so unless you already have the skills in-house, substantial training or specialist recruitment may be needed. For example, the VMware stack requires expertise in virtualisation technologies, networking and storage management. And once the technology is in place, maintenance and the process of applying software updates and patches is often time-consuming and can lead to downtime, impacting business operations.
4. Disaster recovery
   When any new systems are implemented, businesses need to have a plan for effective disaster recovery solutions, ensuring adequate redundancy and failover capabilities. This planning can be complicated and resource-intensive and could require significant investment in additional hardware and software. Even having put all these things in place, the risk of data loss or downtime remains higher compared to cloud-based solutions, which often come with built-in disaster recovery and failover mechanisms. This increased risk can be a critical concern for businesses that rely on continuous availability and data integrity.

Summing up

The transition from traditional virtual machines to cloud computing represents a fundamental shift in how businesses approach their IT infrastructure. While VMs have served as a cornerstone of IT virtualisation since the 1990s, the emergence of cloud computing has introduced unprecedented levels of flexibility, scalability, and cost-effectiveness that traditional VM solutions struggle to match.

Key considerations for businesses evaluating their infrastructure options include:

Infrastructure Management:

• Cloud platforms eliminate the burden of hardware maintenance and updates, allowing IT teams to focus on strategic initiatives rather than routine maintenance
• Traditional VM environments require significant in-house expertise and ongoing hardware management
• Cloud solutions offer built-in redundancy and disaster recovery capabilities that would be costly to replicate in VM environments

Financial Implications:

• The shift from capital expenditure (CapEx) in VM environments to operational expenditure (OpEx) in cloud computing provides greater financial flexibility
• Cloud’s pay-as-you-go model enables better cost control and resource optimisation
• Organisations can avoid the substantial upfront investments associated with traditional VM infrastructure

Operational Benefits:

• Cloud platforms offer superior scalability, allowing businesses to adjust resources in real-time
• Global accessibility enables seamless remote work and international collaboration
• Advanced features such as AI and machine learning capabilities are readily available without additional hardware investment

Future Considerations:

• While VMs continue to serve specific use cases effectively, cloud computing provides a more future-proof solution for businesses looking to modernise
• The growing demands of digital transformation and data processing make cloud platforms increasingly attractive
• Organisations should carefully evaluate their current infrastructure needs and growth projections when deciding between VM and cloud solutions

For businesses still operating with traditional VM infrastructure, the decision to migrate to the cloud should be based on a thorough assessment of their current systems’ effectiveness, future growth plans, and specific operational requirements. While not every organisation needs to make an immediate switch, the compelling advantages of cloud computing make it an increasingly attractive option for those looking to modernise their IT infrastructure and position themselves for future success.

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