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Cloud and IoT Security Concerns

You have been asked for a cloud-based/IoT solution to replace a traditional client-server configuration. You may download the opensource version of MS Visio called Dia to create the network diagram or use the drawing features available in any Office Suite. Just make sure to label your components. The current technologies are as follows:

A database server (Microsoft SQL)
SplendidCRM running on a server (See http://www.splendidcrm.com/ )
A Microsoft Exchange Server (For email)
A Windows Server 2012 R2 running Web Server (IIS)
Your deliverables are:

An assessment of the current configurations (Pros and Cons)
Potential replacement technologies
Proposed Network Diagram incorporating Cloud and IoT technologies (Do not neglect security measures such as firewalls, IDT, IDS, honeypots, DMZ, or encryption)
A narration explaining your network diagram