"We're definitely in the experimental phase at this point," said
JetBlue Digital Commerce Head Maryssa Miller of the company's foray
into the cloud, which included putting its email marketing
there.
Cloud-based software presents marketers with some advantages:
It's widely considered more powerful, accessible and
better-connected than on-premises software. But when it comes to
putting everything in the cloud -- email, content marketing, data
management and analytics -- most marketers are like JetBlue,
carefully choosing what can be kept off-site and what functions
needs to stay at home.
There's no simple answer about the right mix, but there are a
number of factors to consider.
Why on-premises live on
There are reasons on-premises marketing software still exists,
beginning with the fact that migrating to the cloud is a serious
commitment. "If [marketers] are doing just fine and getting what
they need out of an on-premises solution, then there's no incentive
to change," Forrester analyst Cory Munchbach said. In some cases,
the effort can require moving tens of millions of customer records,
she said. The cost and time will be dependent upon the complexity
of the records.
Some simply feel safer keeping their customer data on their own
servers. "The perceived reputation is that on-premises is more
secure," said Ms. Munchbach. Marketers may have access to
customers' email, credit-card information and even more-intimate
data from wearable devices, she said. It takes trust to leave
security in the hands of others.
Cloud companies have been battling that fear for years and
insist they've got things under control. "Data security is core to
the existence of cloud-software companies, which is not the case
for most marketing organizations," said Bryan Wiener, chairman of
enterprise content-marketing software company Expion. He declined
to comment on Expion's security practices.
Andy Markowitz, GE's director-global digital strategy, said his
company is careful about what information it puts in the cloud,
"but we are so not far from a point where everything will be in the
cloud."
The case for the cloud
Pushing activities to the cloud can pay serious dividends for
marketers. Many interact with customers on the web, through email,
on social media and mobile devices. And there's often a software
app to manage each type of interaction.
Adobe, for instance, offers different
products for web management, social marketing and analytics.
Syncing these programs can give marketers a "unified customer
profile," allowing them to coordinate messaging. Cloud-marketing
software can quickly integrate and pass data back and forth. "All
your information can be accessed in one place," said Ms. Miller.
Before it migrated to the cloud, she said, "JetBlue sometimes had
little visibility."
Cloud software also has practical advantages: Updates can be
deployed automatically; software can be purchased a la carte; and
the cost is often cheaper.
"Marketing toolsets -- especially those that are interacting
with digital channels anyway -- make great sense to be
cloud-based," said Mark Yolton, Cisco VP-digital strategy and
enablement.
If a company's workforce spends a lot of time on the road, cloud
software can be accessed anywhere. "I can't even imagine how I
would monitor my campaigns if I had to query on-premises
databases," said Salesforce Marketing Cloud CMO Michael Lazerow.
"Who wants to be fidgeting with a VPN and a WAN and a LAN and a SAN
just to get access to some reporting that's going to drive a
decision?"
Not either/or
Kevin Akeroyd, general manager of Oracle Marketing Cloud, said
using cloud vs. on-premises software is not an either/or
proposition. "It's an augmentation and extension strategy where it
makes sense," he said.
There's no "obvious use case for cloud that full-stop it's going to
undermine on-premises, by any stretch of the imagination," said Ms.
Munchbach.
However, once marketers make their way to the cloud, returning
to on-premises isn't likely, said JetBlue's Ms. Miller. "That ship
has probably sailed at this point."
Seth Fineberg contributed to this article.