Hosting Your Firm’s Cloud Applications In-house: Is It a Sensible Approach?

IaaS for Your Business

With 60% percent of corporate data being stored in the cloud1 as of 2022, there is no doubt the cloud has reached full maturity. Companies are now exploring a wide array of cloud opportunities, from major cloud services such as Dropbox (storage) and Microsoft 365 (productivity applications) to more targeted offerings such as Salesforce (customer relationship management).

Those with a higher level of “cloud confidence” may even be hosting custom or in-house developed applications in the cloud. Options range from a public, multi-tenant cloud (less expensive; potentially less secure), a private (company-only) cloud, or a combination of both (hybrid). Note: a hybrid cloud may sound like an odd choice for hosting cloud apps, but these apps consist of numerous elements — databases, redundant hard drives, servers and more. They are Internet connected so they do not all need to reside in the same cloud.

Despite this increased confidence, we speak frequently with business leaders who are hesitant about hosting “non-cloud” applications in the cloud. They believe their custom and/or line-of-business applications will be safer and run more efficiently if all the elements are hosted on their corporate servers. Nothing could be further from the truth.

Questions we often hear illustrate their concerns.

  • Are cloud-hosted applications more likely to be exploited by hackers or other malicious individuals?
  • Are they more likely to experience service outages that diminish work efficiency and productivity?

In our opinion, the cloud has matured to a point where business leaders can feel confident that all their applications — not only cloud apps but also those that were initially designed to run in-house — will be secure. They will also offer users productivity that is superior to on-premise applications. First and foremost is anytime-anywhere accessibility, since any user with a persistent Internet connection can access them.

Q&A on Cloud Application Hosting in the Cloud

Following are a few questions we often hear, paired with answers based on our corporate experience helping our clients.

  1. Is the total cost of ownership (TCO) higher or lower when cloud applications are hosted in the cloud?

While every organization is different, the vast majority of companies reduce their application spend when both cloud applications and their infrastructure are cloud hosted. While TCO on cloud applications varies, any difference is generally due to other factors such as application complexity.

  1. Are cloud-hosted cloud applications also as compliant as those hosted on-premise?

Compliance is achieved through specialized approaches, such as data encryption in transit and at rest. These techniques work just as well with cloud-hosted cloud applications as they do with those hosted on-premise.

Furthermore, companies that have easy access to both cloud and security experts, such as those available with Carmichael Consulting Solutions, can ensure all cloud applications and connections are maintained using best practices. Firms in some of the most highly regulated industries — from healthcare and finance to manufacturing and legal — have embraced cloud hosting for their cloud environments.


The experts at Carmichael Consulting would be honored to discuss the possibilities of cloud application hosting with you. To schedule a time that works best, please call us at 678-719-9671 (choose Option 2) or email [email protected].



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