[6M] Blog

Opportunities and risks of the cloud | zeit ag

Written by Reto Reber | Nov 15, 2025 11:15:00 PM

Ubiquitous: the cloud

Cloud computing has established itself as an IT infrastructure in recent years and is a ubiquitous topic. To ensure that the cloud also brings success to your company, it is worth taking a closer look. As with almost everything, there are risks as well as opportunities, but the journey to the cloud starts with something that has nothing to do with it: A plan for how to deliver value to your stakeholders. Every organization needs a strategy, which also serves as a guideline for IT.

"You need a plan for how you can offer your stakeholders added value"

What do I get from the cloud?

While in a colloquial context, the cloud often refers to a storage service such as Dropbox, One-Drive or similar from a public cloud, there are various service and delivery models in the business world. Here are the most important ones.

Infrastructure as a Service (IaaS)
IaaS is the lowest layer of cloud computing. Installation, operation and maintenance of the components are the responsibility of the user, whereby the hardware is no longer purchased and operated by the user, but is used in virtualized form. Resources such as storage space, computing power and networks are purchased. The form of use offers corresponding freedom.

Platform as a Service (PaaS)
PaaS is one level above IaaS. In this form, the system is no longer administered by the user and there is no longer any access to the computing instances themselves. It uses the flexible scaling of resources and the automatic allocation of processing units. PaaS is often used when the user wants to develop and run software applications on the corresponding platform.

Software as a Service (SaaS)
SaaS is another level higher and is also referred to as software on demand. The software is provided directly to the end user on the corresponding infrastructure. Access is usually via a web browser from the Internet. SaaS solutions are often linked to typical digital business models, where the solution is provided on the basis of a monthly fee. One of the most common models is freemium, in which a basic version of the solution can be used free of charge, while additional modules and functions are subject to a charge.

Figure 1: Overview of service models(source).
Legend: Blue = managed by customer, pink = managed by cloud provider.

Public vs private clouds

These service models are offered via public or private clouds. The public cloud is considered the standard model and is accessible to the general public. All apps that can be used on the web fall into this category. The location of operation cannot be defined, but is tied to the provider's location.

With the private cloud, the solutions are set up and provided specifically for individual companies. They can be operated by the company itself or by a third party. Third parties usually operate private clouds for several customers, whereby the clouds are separated by virtual networks.

Advantages and disadvantages of the cloud

The main advantage of a cloud is the availability and scalability of resources. For example, if companies need additional computing power on a seasonal basis, the models mentioned above provide the required resources for this period. Which service model is the right one also depends on the expertise available internally. It can make sense to move to the cloud step by step.

If you want to be able to access data anytime and anywhere, there is no way around a cloud solution

In addition to the advantages, it is important to bear in mind that the use of external services creates dependencies. It is essential to ask yourself what happens to the data and who has control over it. No matter how grotesque it may sound, it is important to know how to get your data back. Sensitivity is also required when using it. If you disclose login information or it is deliberately stolen, you are exposed to risks. This is another reason why backup scenarios are needed in the cloud.

Driving factors

Megatrends

  • urbanization
  • Speed of technological change

In general

  • Cost savings, variabilization, transparency
  • Increasing flexibility
  • Improving quality and efficiency
  • Lack of qualified personnel, know-how
  • Concentration on core business

Digitalization

  • Digital business models
  • Agility of IT systems
  • Global value chains
  • Competitive dynamics
  • IT security

Inhibiting factors

In general

  • Downsizing
  • Loss of control
  • Trust in the partnership
  • Lack of openness to new concepts
  • Lack of experience with complex contracts
  • Regulatory requirements

Cloud-specific

  • Security risks
  • Portability risks
  • "Lock in" supplier loyalty
  • Cloud application governance, e.g. unclear licensing models
  • Integration of cloud services in the value chain
  • IT security
  • Regulator/compliance

The right cloud strategy

In order to find the ideal solution for your own company, you should deal with it at a strategic level, ideally with a sourcing and cloud strategy that answers the question "why do we want to source what, how, when and where".

Base-Net IT Services AG accompanies companies on their way to the cloud. Whether at a strategic/conceptual level or during implementation: the customer's needs are placed at the center. The cloud provides ideal support when collaboration between employees, suppliers and customers is to be taken to the next level with suitable solutions.