What Is Cloud Computing? – 12 Facts Every Small to Medium Sized Business Owner Should Know
Background
In the last 3 years dramatic changes have been taking place in how business computing happens, especially in larger companies. Traditionally companies build their own IT infrastructure, buy expensive equipment and servers and install everything locally. They need to keep hardware running, software compliant while making sure that the information input and output actually meets company needs.
Things have changed. With the advent of Cloud Computing a company can have reliable and safe business computing delivered like a utility service. Today we no longer dig wells for water, or run our own generator for electricity. These services are available as a utility service. So too with IT, you can “buy” IT infrastructure as a service, pay for what you need, and focus on the business not the technology.
1.What is Cloud Computing?
Computing delivered over the internet like a utility service that can be accessed by any device that has internet connection. Computing horsepower is located and happens outside the company on external servers, so no computing hardware needs to be owned and operated by the company. In fact, a well-known market research company, Gartner, has estimated that by the end of 2012, 20% of all companies will own no IT assets! The move to the cloud is underway.
2.What would full Cloud Computing look like in my office?
Imagine your server room or server area gone, no more major capital expenditures on equipment and facilities. Imagine desktops that don’t crash and hard drives that don’t fail, but with the same user experience. Imagine a secure safe environment for your systems and data taken care of by experts not on your direct payroll for a flat monthly fee that covers everything at a lower cost than you currently pay. This is what Cloud Computing can look like NOW.
3.Why isn’t everybody doing it?
Big companies have commonly been using Cloud Computing technology for a while now. Now smaller companies are increasingly changing to this way of running IT. Specialized managed IT companies are helping these smaller companies move their IT to the cloud and then run their IT efficiently – and this is accelerating the trend.
4.With Cloud Computing do you have to buy servers?
No. There is no cost burden of server ownership and therefore no expensive capital expenditure. You buy “server use” from a virtual server created for you in an external data center and pay for it by means of a simple monthly fee.
5.Company specific software
In a Cloud Computing setup, a company’s current servers, with their existing enterprise software, is transitioned over to newly created virtual servers which are theirs only. The company accesses everything as before as normal, with the exception that it is now communicated over the internet not the company’s local area network.
6.How Cloud Computing can get rid of PCs
With a full Cloud Computing implementation there are no servers or PCs at the business locations. Data is securely protected and continuously monitored on servers in a safe local physical environment and backed up behind a firewall. All PCs are changed to “Virtualized Desktops”. Employees will have a Thin Client, mouse, keyboard and screen but nothing will change in their computing experience. They will be looking at their screens with all their familiar programs such as Office, Outlook, etc.. They will be able to save to “My Docs” and other drives as normal.
The cloud management company will take care of equipment, Microsoft software licensing, antivirus, Spam Filtering, Security, secure backup, server and virtual desktop monitoring, and all the other IT headaches that you would rather not worry about. It’s easy to add desktops as you grow, or take them away just as easily if you need to downsize, paying for what you need.
7.Cloud Computing and the IT person /department
The typical IT person working in or for a company is spending up to 80% of their time keeping stuff up-and-running – PCs, hard drives, updates to office software, virus spam protection issues. It’s “busy work” which does nothing to improve the company’s performance. With a Cloud Computing solution a company does not have to spend time on these activities. More time can be spent on activities that support the business; or, if appropriate, staff can be cut or redeployed.
8.Can Cloud Computing save money?
It is easy to forget how much Information Technology is costing. As well as the “Hard Costs” like cost of hardware, infrastructure, software licenses, there are the more intangible “Soft Costs” such as IT staffing, troubleshooting, energy costs to run the servers and desktops and cool the server room and building. Typically you should be looking for fully costed savings in the area of 30-50% a year. With these levels of savings a business owner should, at the very least, be looking at Cloud Computing in their organization.
9.IT people often say Cloud Computing is less secure than in-house infrastructure. Is this true?
Typically because of the physical security and data security used, cloud security protection is almost always much better than most local company networks. Security over the internet is extremely high with firewalls that form barriers and which are monitored continually. Advanced backup and data recovery mean even a catastrophe can be quickly recovered from. And because all the company data is held on the company’s remote servers and is not being held all over the place (such as on local hard drives, thumb drives etc.) the likelihood of software and data contamination and theft is reduced.
10. What happens if a cloud server goes down or there is a catastrophic loss of data?
This is a very important topic. Companies frequently think that their own server rooms are somehow immune from catastrophe and they are also very often woefully under-prepared for a disaster. Simply doing tape backups, putting tapes in fireproof boxes and other methods can give a false sense of security. The reality is if disaster strikes, you need the very latest backup data recovery technology so that you can be up and running in minutes or hours not days or weeks or never! Cloud computing solutions typically take incremental snapshots backed up to multiple locations physically elsewhere to ensure you will be up and running again very quickly.
11.Moving Offices if you are using Cloud Computing
Moving offices or facilities is trivial when a company has a Cloud Computing setup. Because the infrastructure is in place (separate from the old and new company facilities) data can be accessed from anywhere. In theory once the internet connection to the new location is up and running the whole company can be up and running and back to normal as fast as thin clients can be hooked up to the internet!
12.Mobile Computing
With Cloud Computing, your Virtual Desktop can be accessed anywhere and anytime. Other solutions require your office PC to be turned on, and your office Internet connection to be live. Most Internet connected devices, such as laptops, tablets, smart-phones, can be used to connect to your desktop. Imagine being able to run Excel, PowerPoint or any of your business specific software from an iPad or a smart-phone! And security remains at a high level for remote access since only keystroke and screen refresh is sent between the data center and your smart device, but no actual data.
In summary, the benefits of moving to the cloud are great. Cloud computing already is increasingly the way IT is being handled, and owners would therefore be wise to take a look at and embrace the technology now.
Nick Graham is VP at Consilien LLC, a company that has been delivering Information Technology Services since 2001, in the LA, Riverside and Orange County area.
Having run a number of small and medium businesses his mission now is to expose as many business owners as possible to the huge benefits of installing 21st century cloud computing into their companies.
Nick invites you to take a closer look at how to do this easily by going to:- http://www.consilien.com
7 Cloud Computing Stocks You Should Own
You have seen those commercials on television, in which families are graphically improving family photos and using cloud computing to extract saved photos and photo software to do the task. You have been wondering what cloud computing is. It is as simple as electricity flowing through the lines to your home, and in fact can be viewed as a utility in a sense. Large internet companies are increasing their cyber capacities to allow individuals and businesses to tap into their resources for computer tasks that would ordinarily take up the limited space on computer hard drives and memory banks. Essentially, when you “go to the cloud” you are invisibly accessing these cyberspace storage, software and files to use for your daily computing tasks. These cloud resources are not housed in your own computer, but are out there, “in the clouds”. You are charged only for the use you make of this cloud, just as you are charged for the electricity you use. It is a cost effective way to have access to software and programs that if purchased and installed on your computer would be a very high cost.
The seven major companies that are now expanding their cloud computing include F5 Network, SalesForce.com, VMware, Google, Amazon, Oracle and Microsoft. These seven companies are targeting growth in the cloud computing arena now. They are making deals with one another, and with smaller companies, that will boost cloud capacity and availability to all levels of society. Such a drive for growth means that the share prices of these companies will grow tremendously. In short, these companies are assuming the nature of utility companies, selling cloud computing resources.
F5 Networks has released its ARX Cloud Extender, along with the ARX Virtual Edition and Open Storage Management which is called API iControl. These features will make it possible for cloud users to have extended and accelerated automatic file storage with anytime access to program resources. F5 Networks is but one of many cloud computing stocks to invest in for rapidly rising gains.
A second company in the cloud computing stocks world is Salesforce. Salesforce CEO Marc Benioff had a light bulb moment some time ago when he realized that buying pricey software to install on family and business computers was not the best way to provide for computing needs. Instead, he envisioned giving access to the software resources of large internet companies so that the costs of software would no longer be necessary. Instead, the programs would be available in the “cloud”, or cyberspace of the large companies such as Salesforce, and could be tapped into with no interruptions and invisible connectivity that would be on a pay for use basis. Salesforce got the jump on Microsoft and Google in this cloud concept and is now realizing share price gains that are greater than that seen even by Google. In the world of cloud computing stocks, Salesforce is indeed a powerful force.
Yet another contender for gains in the realm of cloud computing stocks is VMware. VMware presented its Virtual Data Center Operating System, “VDC-OS” in early 2009, via increased computer banks linked in a network that lets computer users hook into their software and storage resources instead of paying for hard drive installed programs. Tod Nielsen, VMware’s CEO, has created what he calls an ecosystem of storage and software functionality for users to access. The company’s 2009 performance outshone the broader market.
Google, Amazon, Oracle, and Microsoft are not about to let F5 Network, Salesforce, and VMware keep an edge in the cloud computing world. As share prices of these upstarts have soared, Google and Microsoft just finalized cloud computing deals with the General Services Administration and the Department of Agriculture, respectively. These two agreements will allow all the employees of these two governmental agencies to use the clouds created by Google and Microsoft. With such new contracts, investors can expect to see the shares of these companies climb in the coming years. Amazon and Oracle are cloud players not to be left behind: Amazon has launched its Amazon Web Services (AWS), and Oracle has teamed with Amazon to infuse its software resources into Amazon’s cloud. With continued associations like this, these seven companies filling the sky with clouds will rain down profits for investors in cloud computing stocks.
Andre Bradley is a contributing writer to the website http://Cloud-Stocks.com. Looking to invest in cloud computing stocks? Look no further, visit are site and discover for free the top cloud computing stocks.
Security Challenges for Cloud Computing – How Prepared Are You?
Cloud computing is here, and has been embraced by many an organization. Cloud computing as defined by the US National Institute of Standards and Technology (NIST) is “a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” [1]. Cloud computing is basically about outsourcing IT resources just like you would outsource utilities like Electricity or water off a shared public grid. The cloud services options include:
Software as a Service (SaaS): Whereby the consumer uses the cloud provider’s applications running on a cloud infrastructure and the applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email).
Platform as a Service (PaaS):Here the consumer deploys their own applications on the provider’s infrastructure. This option allows the customer to build business applications and bring them online quickly they include services like, Email Campaign management, Sales Force Automation, Employee management, Vendor management etc…
Infrastructure as a Service (IaaS): The consumer has access to processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems; storage, deployed applications, and possibly limited control of selected networking components (e.g., host firewalls).
Cloud computing has become popular because, Enterprises are constantly looking to cut costs by outsourcing storage, software (as a service) from third parties, allowing them to concentrate on their core business activities. With cloud computing, enterprises save on setting up their own IT infrastructure which would otherwise be costly in terms of initial investment on hardware and software, as well as continued maintenance and human resource costs.
According to the Gartner report on cloud security [2], Enterprises require new skill set and to handle the challenges of cloud security. Enterprises need to see to it that their cloud service provider has most of “the boxes ticked” and that they have their security concerns addressed. Cloud computing being a somewhat a new field of IT with no specific standards for security or data privacy, cloud security continues to present managers with several challenges. There is need for your provider to be able to address some of the issues that come up including the following:
Access control / user authentication: How is the access control managed by your cloud service provider? To be more specific, Do you have options for role based access to resources in the cloud,? How is the process of password management handled? How does that compare to your organization’s Information security policy on access control?
Regulatory compliance: How do you reconcile the regulatory compliance issues regarding data in a totally different country or location? How about data logs, events and monitoring options for your data; does the provider allow for audit trails which could be a regulatory requirement for your organization?
Legal issues: Who is liable in case of a data breach? How is the legal framework in the country where your cloud provider is based, visa vi your own country? What contracts have you signed and what issues have you covered/discussed with the provider in case of legal disputes. How about local laws and jurisdiction where data is held? Do you know exactly where you data is stored? Are you aware of the conflicting regulations on data and privacy? Have you asked your provider all the right questions?
Data safety: Is your data safe in the cloud? How about the problems of Man-in-the-middle attacks and Trojans, for data moving to and from the cloud. What are the encryption options offered by the provider? Another important question to ask is; who is responsible for the encryption /decryption keys? [3]. Also you will find that cloud providers work with several other third parties, who might have access to your data. Have you had all these concerns addressed by your provider?
Data separation / segregation: Your provider could be hosting your data along with several other clients’ (multi-tenancy).. Have you been given verifiable assurance that this data is segregated and separated from the data of the provider’s other clients? According to the Gartner report, its a good practice to find out “what is done to segregate data at rest,” [2]
Business continuity: What is the acceptable cloud service down time that you have agreed with your provider? Do these down times compare well with your organization acceptable down time policy? Are there are any penalties/ compensations for downtime, which could lead to business loss? What measures are in place by your provider to ensure business continuity and availability of your data / services that are hosted on their cloud infrastructure in case of disaster? Does your provider have options for data replication across multiple sites? How easy is restoring data in case a need arises?
Cloud services providers have increased their efforts in addressing some of the most pressing issues with cloud security. In response to cloud security challenges, an umbrella non-profit organization called the Cloud Security Alliance was formed, some of its members include: Microsoft, Google, Verizon, Intel, McAfee, Amazon, Dell, HP, among others, its mission is “To promote the use of best practices for providing security assurance within Cloud Computing, and provide education on the uses of Cloud Computing to help secure all other forms of computing” [4]
As more and more organizations move to the cloud for web-based applications, storage, and communications services for mission-critical processes, there is need to ensure that cloud security issues are addressed.
References
1. National Institute of Standards and Technology, N., Cloud Computing definition, I.T. Laboratory, Editor. 2009.
2. Gartner (2008) Assessing the Security Risks of Cloud Computing
3. Rittinghouse, J.W. and J.F. Ransome, Cloud Computing: Implementation, Management, and Security. 2009., New York: Auerbach Publications.
4. Alliance, C.S. Cloud Security Alliance. 2011; Available from: https://cloudsecurityalliance.org/.
About the Author
Mr. Thomas Bbosa, CISSP, is an Information Systems security Consultant and Managing Partner with BitWork Consult Ltd – ( http://www.bitworkconsult.com ) a leading East African IT security consulting firm, based in Kampala, Uganda. He is a certified Information Systems Security Professional (CISSP), with over 12 years Experience in the IT industry. He has been involved in various roles of IT infrastructure management and support, Information systems Security management & solutions deployment.
What Cloud Computing Really Means to Today’s Webmaster
Cloud computing is a buzz phrase in the Information Technology industry and is quickly catching on in the general population. Experts say that cloud computing will change the way we obtain and interact with software, as well as the way we will develop applications in the future. Are they right?
What is Cloud Computing?
Cloud computing, though recently gaining in popularity, is not a new concept and has been in existence for about a decade. Cloud computing is a system where a pool of high powered computer resources serve data and applications from a central location over the Internet. No special software is required to utilize these applications. For example, a few popular cloud-based apps that are widely used today are the free email offerings such as Gmail, Yahoo! Mail and Hotmail. Facebook is also a cloud-based app.
Applications “in the cloud” may be access using a standard Internet browser, from any location, and without requiring special software. Although some cloud-based apps may require a certain browser plug-in, cloud apps generally allow users to access them without installing additional software on their computers or devices.
Cloud-based apps may also be accessed by mobile devices, and from any Internet-connected location. Applications in the cloud utilize share resources to provide on-demand computing services to a variety of users. One major change for webmasters is that they now need to embrace skills that will enable them to maintain mobile sites and cloud-based apps. If the webmaster also develops applications, they mush also embrace the new tools of the trade that lend themselves to cloud computing..
Cloud Computing and the Webmaster
Cloud computing has various and far-reaching implications for the webmaster. Because those who develop for the web are in the “eye of the storm” where cloud computing is concerned, it becomes important for webmasters to understand and master web delivery systems that will continue to affect and change how they do their jobs. Cloud-based on demand web services are now offered by major Internet brands such as Google, Salesforce.com and Amazon.
Amazon Web Services
Amazon offers webmasters and developers several tools for developing and managing web applications in the cloud. Amazon’s cloud-based web services include their content delivery system, CloudFront. Amazon also offers an ecommerce cloud service which will provide order fulfillment via Amazon product warehouses known as Amazon Fulfillment Services. Amazon S3, an acronym for Simple Storage Services, offer cloud-based data and file storage, and the Virtual Private Cloud (VPS) offers secure, private networking from the cloud.
Google’s App Engine
One of Google’s recent innovations is the Google App Engine, which enables web developers to create and maintain cloud-based applications that are that “live” on Google servers, and offer on-demand access to users. The Google App Engine accommodates scalable delivery. For example, if a webmaster launches an app and expects to have 1000 users interact with the app, but instead gets a million hits on the first day, the Google App Engine can accommodate the traffic. Google offers free and fee-based app hosting, based on the need of the app owner.
Codeita
Codeita is a development platform that lives in the cloud. Codeita offers developers online web editing tools accessed via a web browser, as well as web-based project management tools.
Force.com
Services such as Force.com, an effort launched by the successful Salesforce.com company, provides several cloud-based platforms such as Siteforce.com, an on-demand web creation and hosting app, and Database.com, a cloud-based database application. Force.com applications are supported by the VirtualForce development platform, which offers developers many tools and utilizes proprietary Apex code for developing custom controls.
Cloud computing is changing the way webmasters, as well as users, interact with software. In order to stay relevant, webmasters must embrace these changes and alter their thinking about web-based delivery systems.
Discover How Cloud Computing Works. Cloud Computing is changing the internet.
Cloud Computing Benefits For Businesses and Individual Users
Cloud Computing is not a new computing technology rather it was present in a diminutive form right since the evolution of the internet. But cloud computing has really broken new ground in terms of potentialities in the last two to three years when companies like Amazon and Google built out large horizontal networks consisting of multiple services, platforms, applications and storage tools that allowed users to access various services from the internet directly without having to store or run the applications on their machines.
Cloud basically refers to the internet where different companies or service providers host or run their programs that the end user, be it the individual or corporate, can easily access without the need to run or store the application or program on ones own computer. A good example of a cloud application is the email or online editing software that allow the users to quickly access and modify the data from any machine at any time.
Cloud computing is beneficial to everyone. Start-ups can keep costs down by storing most of their resources like applications and data in the cloud. Research projects can be sped up by accessing online libraries and collecting and editing reports in the cloud itself. Companies can eliminate capital investments like purchasing state-of-the-art servers for storing their client data and service applications. Rather cloud servers can handle these tasks thus freeing the companies to concentrate on providing best quality services to their clientele.
This not only results in savings as one need not buy costly software, but it also saves time and provides flexibility in terms of access and availability. Also the user need not have knowledge of complex cloud computing technologies rather the implementation details are best handled by the cloud providers while the corporate can focus on providing best quality services to their clients and individual users can use the cloud services at their convenience on pay-per use basis.
Many a time we wouldn’t like to purchase costly software that will be used sparingly or on a test basis. In such a scenario cloud computing presents a cost-effective solution whereby we can test the application in the cloud itself before deciding to buy it or we can use it on a per-use basis like playing online games or using a thumb nailing software.
Companies like Sun Microsystems, Microsoft, Amazon, Google and others have already put in place their cloud computing offerings for individual, small, medium and big players. Companies that are security conscious can also build their own private clouds while others may utilize the public clouds consisting of multiple servers without the knowledge about which server is/are running their services.
Cloud computing also facilitates instant scalability whereby companies can demand higher or lower cloud resource allocation in an instant depending on the current demand. This saves unnecessary overheads like training additional personnel, maintaining extra infrastructure like servers and purchasing costly licensed software.
In future cloud computing will enable users to run operating systems from the cloud on the go rather than from their desktops. Companies will no longer need to maintain huge data-centers rather they can adopt a lean and mean approach to their businesses. Developers will be able to accelerate development cycles from days to just a few hours as clouds will host most of the development tools required and will enable easy collaboration and sharing among multiple development teams. No wonder every one is jumping on the cloud computing bandwagon, are you?
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Every Supply Chain Should Have a Cloud Computing Silver Lining
When it comes to the latest developments in software technology, logistics and transport managers are usually at the end of the queue. There are many reasons for this – and a common one is that manufacturing and ERP applications take precedent – and when those wishes were fulfilled, there was relatively little budget left over for the logisticians who were looking to make operations more efficient
However, this is now changing. The current hot technology is Internet ‘Cloud Computing’. Not only is this set to change the way we all use computer technology, at work and at home, but supply chain operations are amongst the earliest beneficiaries.
What is Cloud Computing and how is it revolutionising our business operations? And how new is it really? The concept of the Cloud has its roots in the early days of the Internet as a business tool – and we sometimes forget that those days are not so long ago.
It was in the late 90s that IBM introduced the concept of e.business – bringing the Internet to businesses and not just as a gaming and surfing tool for young people. There was a time when presentations, articles and learned papers on the subject of the Internet were not complete without a diagram of a Cloud – representing the ether where information exchange took place. During my time with IBM EMEA’s Global Services Management Consulting Group – dating back a decade – all of my presentations had at least one ‘Cloud’ appearance.
Over the last decade the Internet cloud concept has seen several developments – and finally come full circle and returned as ‘Cloud Computing’. In the interim it has seen life as web enabled technology; web enabled applications; on-Demand computing; web services; and utility computing.
The concept has developed and with the introduction of Web 2.0 technology – and recently Web 3.0 – the improvements have been rapid, leading to Software as a Service (SaaS) and finally Cloud Computing.
What is in a name? In the case of Cloud Computing, quite a lot. All the other services found difficulty gaining traction. Non-IT managers simply did not understand and IT managers were reluctant to promote a technology which might undermine their role as custodians of technology.
In fact there is no significant difference between Cloud Computing and its predecessor (in name) Software as a Service. The Cloud terminology appears to have been created by Microsoft – as a marketing term which makes the concept easier to understand (and helps people like me to recycle my old slides and diagrams!). The term has been accepted by other industry giants including Oracle and IBM and all of the major IT consultancies.
So what is different about the concept? Cloud Computing moves computing from the desk top to remote computers. Different computing devices such as personal computers, personal digital assistants, handheld devices and cell phones connect to remote computers through wired or wireless connections. Investment in licences, infrastructure maintenance and upgrades lies with the application service provider, not the user. The service is usually paid for from the operations budget – because there is no capital expenditure. This makes approval quicker and simpler.
This simple explanation shows why the Cloud is so important for supply chain management; and also why it is seeing more development and acceptance in the supply chain than in manufacturing. It also explains why budgets are not the overwhelming constraint that they used to be – the service is often paid for from an operating budget, making approval quicker and simpler.
For supply chains to operate effectively and efficiently, a real time exchange of knowledge and the ability to collaborate with external and internal partners – suppliers, customers, logistics operators – to manage events in real time is essential. However, this has never been achievable until now. The Cloud brings this capability – without capital expenditure and with costs directly related to the level of business you are conducting.
Manufacturing processes do not benefit to the same extent as supply chain processes. The ability to share real time event information with partners, while being critical in supply chains, is not usually essential in manufacturing. Also, manufacturing processes are often unique to product ranges, and frequently to individual companies.
Supply chain, and in particular logistics, processes are shared across many sectors and most product ranges. They follow the same basic principles and goals and use similar resources. While there are differences, they are not as radical as in manufacturing.
So where has Cloud Computing or Software as a Service (SaaS), been finding willing users? The first break through was with SalesForce, and the success was rapid when this sales and lead management application was moved from the desktop to the Internet. Since then CRM, Human Resource Management and email services have rapidly emigrated from the desktop to the Cloud.
What about supply chain applications? These are being developed rapidly and it is good to see that British companies are amongst world leaders. A leading example of this is Feltham UK based Deltion, http://www.deltion.co.uk – providers of CarrierNetOnline (CNO) Software as a Service.
CNO is a logistics and transport management system – available only over the Internet. Users pay on a transaction basis and only for the features they need. Transaction costs grow as the business grows; users who find that current market conditions mean less freight carried pay less until the business turns round.
CNO users include industry giants such as UPS and TDG and a recent signings include a household name food producer and one of the country’s biggest suppliers to the building trade. Operators of smaller fleets are also users – benefitting from low transaction related charges.
Logixcentral is an Internet based solution from long established Birmingham UK company, DPS International. This is a Cloud Computing version of DPS’s long established LogiX routing and scheduling solution. It has proved successful not only with logistics companies and in-house freight operators, but also with companies in the service sector running car and van based services.
Another Cloud hosted Supply Chain success story is Oxford, Uk based OmPrompt – http://www.omprompt.com. OmPrompt was founded to create 100% truly-connected trading communities, whatever the trading partners’ technical capability, providing more efficient EDI solutions and automating the manual processes or message flows. OmPrompt distinguishes itself with its ability to rapidly on board trading partners to trading communities.
So is the technology Cloud here to stay? Industry analysts Gartner believe so. In a survey published in December 2008 they reported that nearly 90% of organisations surveyed expect to maintain or grow their usage of SaaS. The firms cited cost-effectiveness along with ease and speed of deployment as primary reasons for SaaS adoption.
More than one-third of respondents indicated that they had plans to move from on-premises to SaaS. The key drivers included total cost of ownership, and unmet performance expectations with on-premises solutions, in addition to changes in sourcing strategy.
What does the Cloud hold for supply chain applications? I believe that Cloud Computing offers managers throughout the supply chain an opportunity to catch up with the advances in technology which other parts of business have enjoyed for many years: at lower cost; without capital expenditure; avoiding business disruption; and without significant consulting and implementation fees. We are entering a new age of supply chain and logistics technology – and this Cloud has a silver lining.
About the Author.
Denis O’Sullivan is a director of specialist management consulting company, NetworkedWorld and specialises in IT technology within the supply chain, in particular Cloud Computing or Software as a Service.
A fellow of the Chartered Institute of Logistics and Transport in the UK (http://www.ciltuk.org.uk/), Denis chairs the Institute’s Supply Chain Technology Integration Forum.
He is a former CEO of Swiss based shipping industry company Transcontainer Services, and European Director of ITEL Container Corporation. Before founding NetworkedWorld, Denis was Supply Chain Industry Executive EMEA for IBM Global Solutions.
He has also worked in a strategic role for many years with DPS International – http://www.dpslogix.co.uk/
Cloud Computing – The Advantages & Disadvantages
Cloud Computing is the use of common software, functionality add-ins, or business applications from a remote server that is accessed via the Internet. Basically, the Internet is the “cloud” of applications and services that are available for access by subscribers utilising a modem from their computer. With Cloud Computing, one simply logs into desired computer applications – such as sales force or office automation programs, web services, data storage services, spam filtering, or even blog sites. Generally, access to such programs is by monthly or annual paid subscription. Through Cloud Computing, businesses may prevent financial waste, better track employee activities, and avert technological headaches such as computer viruses, system crashes, and loss of data.
Without Cloud Computing, a business must generally house one or more computer servers, from which all employees access the company’s licensed programs. Through Cloud Computing, the servers which house the software are entirely off-site, with program usage licensed on an as-needed basis through subscription. This may bring down the cost per employee, in that access through a Cloud will generally be more cost effective than purchase of in-house licenses and hardware, and subscriptions are scalable per actual need. Thus, with software pay-per-use, savings are realised from the avoidance of extraneous software licenses and more immediate access to additional programs is possible almost at a whim, without having to go through the upload process on the IT side, as required for in-house servers.
Cloud Computing programs offer great manageability and oversight, from the employee supervision standpoint. Particularly in sales force automation, wherein tracking the activities of a sales team and resulting data can be critical to the success and continuance of a company, being able to obtain a quick view of an employee’s work is both time saving (in reporting) and financially beneficial. Whilst also enabling the sharing of information company-wide, allowing the entire organisation awareness of company objectives and individual and team progress.
As is apparent in any company of one or more employees, modern organisations are at the mercy of their information servers. What once occupied tens to thousands of square feet of company real estate in file cabinets and storage boxes – all of the intellectual property of a company or brand – is now held within the confines of our most critical piece of the company: our servers. These servers are prone to technological failure, crashes, and viral vulnerabilities. Not only can we suffer damages at the mercy of a virus, but we may also spread that damage to organisations with whom we do business.
Through Cloud Computing, programs are contained, troubleshooted, and maintained entirely off-site from the company subscriber. Thus, businesses lose less time from system outages, maintenance, and data loss. Much less frequently does a business need to concern itself with viruses, Trojans, or other threats.
Noted disadvantages to Cloud Computing are: reliance upon network connectivity, peripheral communication (or lack thereof), legal issues (ownership of data), and absence of a hard drive. The most obvious of the negative concerns is the network connectivity. If the network goes down for any reason, the company loses access to Cloud Computing applications, data and services. Of course, there can be temporary use of off-site or wireless connections, but for a company focused on forward momentum, a technical issue such as this can be a daunting risk. Generally such issues are very short-lived and can be immediately addressed through the company’s network provider.
The second concern today is communication of peripheral and connected devices. Before plunging into Cloud Computing full force, one must ensure that the organisation’s devices will all communicate and work well with Cloud applications. This is primarily just an issue with lesser known or older technologies, printers, and devices. Most mainstream devices communicate with Cloud Computing programs and applications, as ensuring wide usability is the number one goal for those offering Cloud Computing.
When initiating sign-up or agreement for services with a Cloud Computing provider, ensuring fine print is thoroughly understood is key. A company must know its data loss variables, prior to utilising the service at full force. One major question to ask is, “Will our data be regularly backed up, and how often?” Also query whether immediate denial of service may be enacted at any time, for how long, and if so, what causes such denial. It is highly important to know what sort of “offenses” may bar you from potentially accessing your own data, as well as whether your data is truly protected in the event of system failure.
Absence of a hard drive – while very attractive at face value – can lead to some issues and concerns with Cloud Computing. Some applications (particularly in design and a more technological realm) require hardware attached to the hard drive for use. Ensure the company’s necessary applications and uses for Cloud Computing do not require hardware attached to a hard drive, prior to forgoing the individual workstation hardware, altogether.
There is no denying the present and future of Cloud Computing. One of the most beneficial realms of use is telecommuting. Cloud Computing has averted the need for constant updating of work performed outside of the office, and enabled workers to log onto their everyday applications wherever they are: in the office, in the airport, at home, or even in the back seat of a car. No longer are days “out of the office” days of lost progress.
Cloud Computing will not only remain a staple in modern business, but will likely streamline organisational operations in many new ways, as well as expanding upon its current uses. Cloud Computing offers a solid answer to the ongoing question all computer users have had since the onset of the computer age, “Will our data communicate with yours?” Most major technology organisations see the bright future of this technology, and are thus throwing hundreds of millions of pounds into development and implementation of new pathways into the Cloud.
The http://www.daywatcher.com blog by Imran Zaman aims to make available free unique articles covering Business, Technology, Innovation and Digital Media.
Cloud Computing – Umm, Err, What’s That?
“Cloud Computing” is the new great thing that will save our souls. Of course, the consultants can tell you what it is, as the dollar signs whiz round in their eye sockets, but most of them talk in the language of the land of fluff. So what is “Cloud computing” to the rest of us?
Apparently, cloud computing is the next evolution of how we will work over (or, within) the internet. “It’s become ‘the phrase of the day’ and we are all talking about it,” says a senior analyst of one of the biggest analyst firms. He is echoing many of his peers. However, as we see every time a new concept arrives, everyone seems to have a different definition – and when you ask them you get theirs.
The words ‘cloud’ and ‘computing’ already have meanings to us. When we hear ‘cloud’, we probably conjure up images of PowerPoint slides, or architecture diagrams, which have a picture of a cloud where the internet should be. ‘Computing could conjure up anything from a vast data center to an abacus, and anything in between. When we add the two together we form our own, very personal, impression of what ‘cloud computing’ might be.
Naturally, there are many analysts and vendors defining cloud computing for us – out of their mouths it seems to means exactly what they happen to be selling. Some go narrow, ‘it’s the virtulisation of servers’. Some go broad, ‘it’s anything outside your firewall’.
To some, cloud computing is about IT and what IT needs – an ability to turn on and off data and processing capacity at will and on demand. From the IT perspective, cloud computing probably encompasses any hardware or software, subscription-based or pay-per-use service that, in real time over the Internet, extends the IT Department’s existing capabilities.
This implies that, as with food when ‘green’ became the ‘next big thing’ in the supermarkets and suddenly, abracadabra, with a change of packaging, new ‘green’ food appears everywhere, so with our IT services, server virtulisation, ‘software as a service’, data storage etc., become ‘cloud computing services’.
Clearly what ‘cloud computing’ is will evolve as our collective understanding and agreement evolves (by which time it will qualify for inclusion is the dictionary). Let’s take a quick look at some of the common services that, today, are normally included in what we understand as ‘cloud computing’:
Software as a service (SaaS)
Software applications that are delivered through a browser to thousands of users with the capability to up-scale, add users etc., on the fly.
Utility Computing
This is normally understood to be the capability to access storage and virtual servers on demand, normally buying capacity rather than specific machines.
Web services in the cloud
An extension as Software as a service where the functionality to build, or add features to, useful applications/systems is delivered on demand over the internet. Google Maps, graphics engines etc., are examples.
Platform as a service
A variation of Software as a Service. The whole development environment is delivered over the internet rather than just the application.
MSP (managed service providers)
New badge for an old favourite – outsourcing (see sourcing, below) anything from virus scanning to every scrap of hardware and software to a third party service provider to manage.
Service commerce platforms
A service offering a ‘portal’ that users access and use from within their own environments – travel companies offer such portals as do companies who aggregate buying and offer central procurement. Sourcing
Much of the above also falls under the heading of ‘outsourcing’, or ‘sourcing strategy’. In other words, it gets into the cloud because it was outsourced. Perhaps we’ll see a new breed of service providers rebranding as ‘Cloud Service Providers’
This, though, is just the tip of the iceberg. If you find a dark corner and have a quite word with some of the service providers who are positioning themselves neatly at the forefront of the cloud computing wave you get a very different picture. The most common analogy that is being used to describe the new world of cloud computing is of utility companies – delivering IT as a utility, like, say, electricity. The vision of these boys have is one where you have on your company premises only the IT you actually need to touch (keyboards, monitors, mouse, telephones etc). NO IT department (that’s right guys and gals – no IT department!) As with the other utilities, the facilities manager (sorry, director) will pay the bills and chase the vendor when service is cut off. Of course, the promise is that this will not happen – multiple redundancy, mirrored, earthquake and hurricane proof data centers the size of Mount Everest, but underground, will ensure our service continuity. Phew!
Seriously though, the folks who are creating the new cloud computing services have worked their business models through quite thoroughly and the potential payoff from moving all our IT services out into the cloud environment certainly seems real – in terms of: Flexibility – like electricity, use only what you need – service on tap and service levels too (60w bulb or 100w bulb) – only pay for what you use.
No capex – just as you see no line item on your electricity bill for the power cables and pylons, in a pure cloud computing environment you will see nothing on your bill but the ‘services’ you have used – capacity is just there and you just use it – and then pay for what you used.
Security – The level of security that cloud computing firms are likely to provide as standard (for many reasons, not least because they will need to overcome the inevitable and inherent distrust that arises when firms release from their own sweaty mitts their business critical systems) will be far higher than all but the most secure environments currently provide.
Service levels – likely to be higher and more consistent than internal the IT departments of many firms are financed to provide. Value for money – we are told the cost models seem to be offering savings in the region of 20% to 60% over in-house costs, though, due to the immaturity of the market, we have been unable to verify these estimates with facts.
Obviously there are concerns: data security, data confidentiality, lack of control over business critical infrastructure, consequences of aggregation with other company’s systems and infrastructure etc.,- these are just some of the issues that seem to worry potential ‘cloudies’.
At the end of the day the chances are quite high that if the business model works, the price is right and the psychological obstacles overcome, the CFO will ultimately get his way.
In summary, cloud computing is looks set to be the next big thing. IT bods had better get ready for a ride – their cheese just moved!
About the Author – Andy Henry is a consultant working alongside sourcing advisory Elix-IRR http://www.elix-irr.com
Cloud Computing – Is it the Way of the Future?
Cloud computing could mean multiple different things to different people but for the purposes of this research I am going to define the technology as the following: Cloud Computing is running software or rich graphic applications in the “Cloud” or a networked super computer. To make that more understandable look at a modern use of computing in the cloud such as running an email client in a Web Browser (Run Microsoft Outlook inside a browser). Sometimes this is called “Software as a Service”.
Another common example of a future use of Cloud Computing is running software such as Adobe Photoshop, Adobe Fireworks, or even a Graphics Intensive Video Game application straight from your browser. The implications of this might not be immediately apparent but essentially what it could mean is you could have a $150 computer running things at the performance and speed that only a $3000 computer could do. Another exciting prospect is you could potentially run high end applications directly in a web enabled cell phone (iPhone/Android for example). Meaning your Phone could be just as powerful as your computer, in fact if Cloud computing takes off I could see that the traditional desktop computer could be replaced by web enabled phones which connect to a monitor/keyboard and mouse and the phone acts as your “Desktop” and essentially only serves the browser which streams the Software through your browser window.
Another extreme advantage of Cloud Computing is having all of your data centralized, for example you take a picture on your Cell Phone it’s stored in “The Cloud” in which it is instantly on your PC on your Fridges internal CPU (if you have one) or any other Internet enabled device you can think of. This future is being held back by slow Internet Connection speeds and the fact that it will take people a while to adopt the idea. Google is one company that is not new to this type of Technology in fact they are the undisputed leader of Cloud Computing. Google’s influence in Cloud Computing is shown in a difficulty they are having in training programmers to think “In the Cloud” or in other words training programmers to think of programming for thousands of computer processing power at once instead of just one.
Cloud Computing is only recently catching on, Amazon for example is selling S3 Services where you can essentially buy Hard Drive Space online, similar to purchasing access to a server but supposedly faster and more robust (but I’ve tried it and it’s not ). Essentially the difference now between buying a server and buying Cloud Computing from say Amazon or Google is that you are actually accessing Computers used by said companies in the super sleek and efficient architecture they have setup (supposedly).
Another interesting thing to note about Cloud Computing is centralized computing as a simple example currently today if you wanted an iPhone application you would have to have an Iphone and similarly if you wanted a Blackberry Application you would need a Blackberry, Mobile Web Applications however are not limited by this but are only limited by access to the web (and in previous generation phones, lack of a good browser) Another example of this is similar, if you want to play a Wii game you must own a Wii if you want to play an Xbox game you have to own an Xbox, with Cloud Computing it would be very possible to play Xbox or Wii through a browser on your PC or even your SmartPhone (iPhone, Blackberry, Android) acting as a PC only the various consoles or devices would be controlled by their various Input Devices and your monitor/display.
All of these things may sound too good to be true but ABI calculates that Cloud Computing will really take off (even more than it’s done so already) by 2010. So if you’re looking forward to data stored simultaneously in the cloud between your PC, Phone, Game System, DVD Player, and Internet Enabled Fridge. Plus running most applications in a super computer far away the future might be closer than you think. Of course the future of Cloud computing is “Cloudy” at the moment, marred by poor connection speeds as well as intermittent spotty connections (for example you cannot get an internet connection in the Sahara). However when Internet Connection technology catches up Cloud Computing does look to be the way of the future.)
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Fog – Bringing Cloud Computing Down to Earth
Many business executives are probably wondering why their IT staff has such a sudden interest in the weather. On a sunny afternoon, they’re equally perplexed by all the references to clouds. In this perspective, we’ll help you decipher what they’re talking about, why you should care, and how you should proceed.
What is the Cloud?
First the “Cloud” is not a thing; it’s a method of delivering IT computing services. There is no new device called the “Cloud”. But, a cloud delivered solution does have a physical presence; it sits on hardware and runs software just like the servers sitting in your data center today. The difference is how it’s done as much as where it’s done.
Cloud computing relies on the virtualization of servers (taking a physical server and subdividing it into a number of virtual servers which each operate independently on the same physical device), storage virtualization through SAN’s (storage area networks), and networking (internet, VPN, LAN, WAN). These technologies are combined and engineered to then provide a solution that provides the experience of independent, physical infrastructure.
Second, while there are a variety of experts and providers talking about Cloud Computing, you’re not going to find a single definition. One man’s cloud is another’s hosted server farm. We’re not going to claim our definitions are the final answer, but they are consistent with what you will find in the marketplace today and where it is likely to be moving toward.
In our view, Cloud computing comes in a few flavors; Public Clouds, Private Clouds, and Multi-tenant Clouds.
Public Clouds have been with us for a while. If you use Gmail, Google Applications, Hotmail, or host your website with Microsoft (as UPi does), you’re using Cloud computing. The hardware and applications are residing someplace else and you’re sharing those resources with a lot of other people. You connect (typically over the internet) and make use of these services at dramatically lower cost than you could ever hope to duplicate them yourself. Think if we all had to run our own Exchange servers for email or keep technicians on staff to support a small business website, not practical.
Private Clouds are the other end of the spectrum. A business has a group of servers and business applications that its various departments, operating units and sites all connect to. These connections can be over the internet, VPN, local area networks, or wide area networks, it doesn’t matter. The computing resources are centralized and everybody in that business is using them. It also doesn’t matter where these servers are, they can be in a company’s data center, at a co-location data center owned by somebody else, or even running on hardware provided by a 3rd party in that company’s data center. What makes the Cloud the Cloud in this case, versus just a central data center, is the nuances of how the servers, storage and networks are configured and interconnected to achieve the benefits of Cloud computing.
Multi-tenant Clouds are the hybrid answer and where we will truly start so see something radically different from how we’ve traditionally thought of IT. In this Multi-tenant environment, you’re sharing resources, but think of it more as a car pool than a public bus. The Multi-tenant Cloud provider subdivides the Cloud resources amongst its customers. This subdivision method varies by provider and is a key consideration when a business goes looking for these services. All the customers on the Cloud are sharing the big pool of resources but with “fences” and “swim lanes” and other methods of security and control, customer data and processing is separated and protected.
Lastly, you may also hear talk of Infrastructure as a Service (IaaS). Cloud computing is one type of IaaS. A hosted server model in which the provider owns the equipment, hosts it at their data center, and provides the services to manage the infrastructure would also fall under the IaaS umbrella. The pricing model, availability, and flexibility would be different than a Cloud, but its still infrastructure provided as a service vs. physically delivered and owned or leased by you.
Why do I care?
Now that we’ve confused you and you’re reaching for the aspirin bottle, let’s take a second to say why a business should care about this. The answer is three fold: Availability, Flexibility and Cost.
A properly engineered Cloud solution is highly available. Individual servers share the load with other servers and if one fails the other one picks up the slack. In theory, you would never experience any down time due to server failure so long as the Cloud itself still exists (remember the Cloud does reside on physical devices and can be destroyed or incapacitated just like any physical thing). Similarly, data storage is configured using RAID (not the bug spray) technologies that allow for redundancy of the data so that a single hardware failure on the storage device won’t bring your business to a halt. This is really cool, but really complicated stuff that requires very experienced technical engineers to design, configure, build and maintain. In other words, don’t try this at home unless you have a very talented staff.
Now, we just said the Cloud is highly available unless something happens to the Cloud. This is not meant to be an oxymoron. The Cloud lives on servers and sits in a data center some place. That data center could become unusable; fire, weather destruction, extended power loss, loss of connectivity. If that occurs, your highly available Cloud isn’t so available. In this case, you either need a traditional disaster recovery solution, or a provider who offers a more robust solution such as data replication to a second Cloud in a second (distant) data center. With a replicated solution, you could quickly (think an hour or less not days) bring your systems back up on the second Cloud with limited data loss from the point the first Cloud went puff.
Along with Availability, Cloud computing can provide a high degree of Flexibility. Since the Cloud is a pool of resources, a business could spin up new servers in minutes not days. No need to go acquire a new piece of server hardware, wait for delivery, install it in a rack, connect it to your network, and load your system. In a Cloud environment, you should be able to just create the new server environment on the already existing physical infrastructure in a matter of minutes. Similarly, if you only need the environment for a short period of time, say a test environment for some project, when you’re done you can just turn it off and go back to using what you need without having an expensive asset sitting there unused. For businesses with wide swings in processing demands due to seasonality, new product launch or other business drivers, this flexibility can be very effective. Turn on the new servers for the peak holiday season, then turn them off in January and quit carrying that cost.
This then leads us to the third benefit, Cost. We already talked about the cost saving from not having to have infrastructure sitting around for peak seasonal demand, but even without a seasonal demand driver, studies have shown that as much as 80% of available server capacity sits idol at any point in time. That means that on average your business has a huge amount of capacity (and investment) doing nothing most of the day/week/month/year.
With virtualization technologies, you can squeeze some of this excess capacity out by simply sharing the servers among your own applications. A Private Cloud would achieve the same result except that you would have a 3rd party providing the platform to your business with possibly greater efficiency and effectiveness than you might be able to achieve with a limited in-house IT organization. Multi-tenant Cloud computing takes it one step further by allowing that sharing to be among multiple enterprises.
Ultimately, the true nirvana state will be when you pay for only what you use, a “Utility” model. The industry isn’t quite there yet so any Cloud you get today will have some excess built into it, but the direction is clear.
The end result is lower capital cost, lower software and maintenance costs, and lower operating costs. Add these direct cost savings to the intangible savings associated with high availability and less business disruption from unplanned outages, and the business case for moving to a Cloud environment can be compelling.
How do I get there?
At the beginning of this Perspective, we said that there wasn’t a single definition of the Cloud. One man’s Cloud is another’s hosted solution. Therefore the trick in moving to the Cloud is really determining if that’s what you’re getting or is it just a more sophisticated hosted services solution. Not to say the latter is bad, just that the key thing to understand is what you’re buying.
Therefore, ask these key questions:
1. What is/are the unit(s) of measure that I would be billed for?
2. How do you determine how many I need to start with?
3. How do you/I determine if the amount is sufficient for my needs now and as time goes on and my business changes?
4. In what increments can I obtain additional capacity as my business grows?
5. How often can I add/subtract capacity and what is the lead time?
6. What redundancy for the Cloud is offered and how do I assess what’s right for my business?
The answers to these questions will help you quickly identify if you’re looking at a Cloud.
In addition to determining the real service being offered, you’ll need to do the same due diligence as any traditional hosting services contract; review the providers processes for managing the service, visit the data centers and ensure they are adequately configured/secured, review the providers service level agreements, and check references closely. Because of the shared nature of the Cloud, you’ll also need to delve a little deeper into a few areas; security and data protection, roles and responsibilities for management of the various layers of technology, and technology refresh and advancement approach and commitment. Finally, since you’ll be moving from where you are to a new environment, you’ll need a good explanation and understanding of the migration process; approach, checks and balances, time frames, your labor commitment, and costs. To move an enterprise of any size is going to be a complex undertaking, make sure you and your provider have a firm understanding of what’s entailed.
Summary:
To recap, in this Perspective we provided a definition for the Cloud and outlined three types (Public, Private and Multi-tenant). We talked about the advantages of moving to a Cloud environment and the key things to consider in moving in that direction.
As we said, the concept of the Cloud is really quite simple but the underlying technologies and their integration is quite complex. To create a truly Multi-tenant environment with all of the protections and security found on independent servers and the assurances of performance, availability, and redundancy required is a very complex undertaking. Selecting the right provider with the expertise to do this is ultimately the key to achieving the promised benefits of the Cloud.
Mr. Urban is the Founder and Managing Partner of UPi> Urban Partners, Inc. UPi is dedicated to maximizing the success of all involved parties by creating and utilizing a collaborative environment between our team members and clients and within our communities. Leveraging the experience of our team in the service of our clients, we bring to mid-size businesses and organizations the deep business and IT knowledge and experience typically only available to much larger enterprises. We provide the level of experience that can be found in the large consulting firms to the small and midsized organization. UPi’s mission is to provide senior executive level experience on, and only on, an as needed basis to its clients and make its charges proportional to the value delivered. With over 25 years of business management experience, Gary has delivered high value to his broad range of companies across multiple industries. He has held executive positions with global consulting organizations (Accenture and Capgemini) and multi-national corporations, including the position of VP IT for Ryder Transportation Services. In addition, he has established UPi and been a partner in another startup business that was later sold to a global company. During his career he has worked with companies in a variety of industries. His experience includes work on strategic business planning, IT management, outsource services management and delivery, business process design, operations strategy, and general project management. Gary holds a Bachelor of Science in Business and a Masters of Business Administration from the University of Florida.