Identify true cloud versus pseudo-cloud

India's data centre (DC) industry is on the brink of explosive growth, with capacity expected to skyrocket by 77% and touch an astounding 1.8 GW by 2027, as per the JLL report. This unprecedented expansion reflects the nation’s accelerating digital ambitions — but it also raises a critical question: Are all infrastructure providers calling themselves 'cloud' truly offering cloud capabilities?

Amid this surge, several data centre facility providers are rebranding themselves as cloud providers by simply shifting their IT infrastructure to an operational expenditure (OpEx) model. But let’s be clear — OpEx billing alone does not make a cloud. These so-called 'clouds' lack the foundational elements of a true cloud platform: elastic scalability, deep automation, cloud-native services, and integrated security frameworks.

This blog aims to expose the blurred lines between data centre hosting and real cloud computing — and to make a strong case for why recognizing these pseudo clouds is critical, especially for enterprises and financial institutions running mission-critical workloads. What’s being marketed as cloud may in reality be a repackaged infrastructure offering — a mere subset of what true cloud platforms are designed to deliver.

Cloud computing surpasses conventional data centre hosting by delivering an extensive suite of integrated IT services, dynamic scalability, and sophisticated automation capabilities. Authentic cloud platforms offer on-demand resources, maintain high availability across multiple geographic regions, and feature an array of built-in services such as managed databases and artificial intelligence/machine learning (AI/ML).

These attributes make true cloud solutions vastly superior to rudimentary data centre hosting facilities masquerading as cloud offerings.

It is easy to mistake rebranded infrastructure as cloud at first glance. However, a thorough analysis quickly reveals the discrepancy, as data centre infrastructures predominantly consist of fundamental building blocks devoid of the integrated IT framework characteristic of cloud environments. For organizations, particularly financial institutions, it is imperative to comprehend that Cloud is NOT DC hosting facility (+OpEx Infra) due to the profound differences in capabilities and advantages. Cloud computing provides advanced features essential for managing sensitive financial data, which are absent in data centre hosting facilities.

Acknowledging these distinctions ensures that financial institutions can fully exploit the benefits of cloud computing, including cost efficiency, regulatory compliance, and enhanced performance, thereby steering clear of the limitations associated with merely outsourcing to basic data centre facilities.

Choosing an authentic cloud provider, such as IBM Cloud and capability such as IBM Power Virtual Server, ensures access to these sophisticated capabilities, safeguarding investments and mitigating the risks associated with the limited offerings of traditional DC hosting providers misrepresented as cloud solutions. This discernment is vital for optimizing the benefits and return on investment (ROI) of their cloud migration.

IBM Cloud and IBM Power Virtual Server distinctly stand out as premier options for enterprises, including financial institutions, seeking to transition their cloud workloads.

IBM Power Virtual Server delivers unparalleled advantages over DC hosting facility providers for Power processor-based systems hosted workloads.

Adhering to regulatory standards ensures that financial institutions operate within established legal frameworks, maintaining stability and structural integrity. This fosters trust with clients and stakeholders, minimizes the risk of fraudulent activities and financial crimes, and avoids substantial penalties and reputational harm. Compliance promotes sustainable operations and cultivates a transparent financial ecosystem, essential for economic progression.

Enhanced security is essential for financial institutions to shield sensitive customer information from cyber threats and data breaches. It ensures the authenticity of financial transactions, fosters client trust, and maintains regulatory adherence. By averting fraud and financial crimes, advanced security preserves the institution's reputation and economic stability. IBM Cloud integrates sophisticated security mechanisms, such as encryption of data at rest and in transit, extensive identity and access management, and continuous monitoring and logging to defend against cyber threats.

Certifications for Independent Software Vendors (ISVs) and workloads are critical for financial institutions, as they confirm that third-party software and applications comply with rigorous security and regulatory standards. This validation ensures that integrated solutions are secure, dependable, and compliant, thereby mitigating risk and enhancing operational integrity.

Financial prudence, driven by intrinsic cloud capabilities like on-demand elasticity and usage-based billing, is a pivotal criterion for organizations evaluating cloud hosting for their Power processor-based workloads. These cloud attributes enable dynamic resource scaling based on real-time demands, preventing over-provisioning and lowering total costs. This financial flexibility allows businesses to allocate resources strategically and react promptly to market shifts, making IBM Power Virtual Server an optimal and pragmatic choice for hosting essential workloads.

In the evaluation of cloud hosting solutions for Power processor-based workloads, performance and reliability stands as a pivotal criterion for organizations. Ensuring consistent, optimal performance is vital for sustaining the efficiency and responsiveness of critical applications, which directly influence business operations. High reliability mitigates downtime, ensuring continuous service availability and fostering trust and user satisfaction. IBM Cloud and Power Virtual Server excel in delivering both robust performance and reliability, positioning them as the premier choice for hosting mission-critical workloads and guaranteeing business continuity and operational excellence.

It is crucial to avoid pseudo-cloud providers that only masquerade as true cloud solutions but lack the comprehensive capabilities required for critical financial applications. These providers fall short in delivering the integrated services, reliability, and security necessary for high-stakes environments.

IBM Cloud and Power Virtual Server deliver an unmatched resilient infrastructure essential for digital transformation. Utilizing Power Virtual Server enables an organization to achieve operational excellence and secure their critical workloads, thereby establishing a foundation for sustained business growth. Embrace IBM Power Virtual Server to propel your digital transformation and reinforce your position in the financial sector, steering clear of the pitfalls associated with pseudo-cloud providers.

About the author Lokesh Bhatt has nearly 2 decades of IT experience with proven track record of using deep technology and industry insights to address clients’ business needs, including industry standards, architectures, and regulatory requirements. Lokesh works in a client-facing technical leadership position and have ability to successfully articulate a client journey map for disruptive innovation based on first-hand experiences, best practices, and market trends. You can reach lokesh at lokeshbhatt@ibm.com.