Monday, April 06, 2020
CX Tech

Can On Premise Cloud Improve CX?

Liz Alton
April 25, 2019

3 minute read

According to McKinsey, 75% of online customers expect service within 5 minutes – and successfully delivering that requires an effective technology foundation. The right CX platform is a critical part of that foundation. On premise, off premise, in the cloud – there are so many different options companies face when building a CX stack. Let’s take a closer look at what on premise cloud is, how it can support your CX technologies, and the steps you can take to maximize its effectiveness.

What is on premise cloud?

In the sea of choices for how you manage your data, it’s important to understand the options. Often, these discussions focus on cloud vs. on premise. Should your data and software instances be stored somewhere else in the cloud, or should they be hosted internally? There’s another option to consider: on premise cloud, which is also referred to as internal cloud or private cloud.

According to TechTarget: “Private cloud is an in-house cloud computing option that offers hosted services to a limited number of people from behind an organization’s firewall. Enterprises are showing greater and greater interest in private clouds, as concerns about cloud computing security have led many organizations to value the dependability of an on premise cloud option.” Ultimately, this gives companies the benefits of the cloud combined with the advantages of an onsite solution.

What are the benefits of onsite cloud?

Today, brands are looking for ways to improve the CX. In real terms, that translates into many things – from better customer data management solutions that provide real-time personalization to strategies that focus on automation and faster response times. While the platforms themselves matter, companies have to make important decisions about how they build the infrastructure.

Internal cloud means balancing the following factors:

Pros: Your brand has complete control over the software, servers, and equipment used. There’s flexibility to scale and customize. Governance, security, and other critical aspects of keeping information safe and compliant are also on your own terms.

Cons: At the same time, your organization pays in exchange for that flexibility and control. First, you’re making upfront investments in hardware, software, and other expenses. On an ongoing basis, you’re responsible for the upkeep, management, and security costs.

How does internal cloud support the CX?

When does an on premise solution make sense? Let’s look first at why cloud-based choices often make sense. SaaS providers eliminate many of the investments, manage updates and upgrades, and reduce the workload on your team. However, when a cloud provider fails or your data becomes at risk, there’s little you can do.

To help determine if internal cloud is right for you, consider if the following applies to your organization:

  • Security is essential and you have the expertise to provide it in-house.
  • A data breach could lead to regulatory concerns or brand damage and your IT team is prepared.
  • Upfront investments and ongoing IT support budgets aren’t a major concern.
  • Control and customization are top objectives for your CX solutions.
  • Your IT team has omnichannel support expertise.
  • In-house solutions and the ability to respond with agility to market opportunities is a priority.

Building the right infrastructure for your CX technology stack is essential. Take a closer look at whether an internal cloud solution provide the control, flexibility, and customization to meet your CX technology needs.

Liz Alton
Liz Alton
Liz Alton is a writer and content strategist specializing in B2B technology, digital marketing, and the customer experience. Her clients include creative agencies, Fortune 500 brands, and venture-backed startups.
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