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Is SaaS, IaaS, PaaS and other cloud services extensions to or replacements for on-premise?

Or, despite what Gartner and Ovum report, is it too early to tell? http://www.businesscloud9.com/content/saas-paas-and-iaas-booming-say-gartner-and-ovum/6618

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To get the fullest benefits and savings of cloud computing, the systems reside off premises and are delivered to your browser. You eliminate the cost and headache of deploying, managing, and upgrading hardware and software. Some companies cannot or will not allow their data to reside off premises, so they deploy "private clouds." While there can be savings here, you still must deploy and mange systems internally.

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Andrew Baker
Director, Service Operations, SWN Communications Inc.
Posted on Oct. 13, 2011
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They can be extensions to, or replacement from on-premise services depending on what and organization's specific needs are, what skills they have access to, what their technology state is, etc.

An organization that has recently completed the deployment of a major on-premise server virtualization effort is not likely to be benefited financially (or otherwise) by an immediate move of all those services into the cloud.

The business model might not support it, the applications and services that are needed might not be available in the cloud, etc.

There are some businesses that can move entirely -- even today.
There are some businesses that should move more slowly with a mix of cloud and on-premise.

It really just depends. A proper assessment of the business needs will answer this question for each business.

-ASB: http://XeeMe.com/AndrewBaker

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