| Cloud Computing continues to mystify and | | | | who in the past had to choose whether they |
| challenge even the greatest of technically savvy | | | | offered managed services or just rack space and |
| people. Often times when I discuss Cloud | | | | power. Now the hosting provider can "spin up" |
| Computing with my clients they say "What is a | | | | standard configurations much faster and more |
| cloud and why would I want to connect to one?" | | | | cost effectively. The good ones have already |
| If you read Wikipedia, I thoroughly enjoyed its | | | | created well scripted methodology and procedures |
| attempt to explain "Cloud Computing": "The Cloud | | | | to creating virtualized modular servers, which now |
| Computing Manifesto is a manifesto containing a | | | | can be hosted in "The Cloud". This has created |
| "public declaration of principles and intentions" for | | | | more vendors to offer this as a service. |
| cloud computing providers and vendors." | | | | "The Cloud" therefore simplifies the access to the |
| Although vendors love the term "Cloud | | | | hosting centers. This represents the connectivity |
| Computing" the term itself actually gives us a | | | | that connects back to employees and potential |
| way to easily explain to smaller and medium size | | | | customers. This can be the Internet, private line |
| companies that you no longer have to do | | | | (something called MPLS) or site to site Virtual |
| everything yourself. Some larger companies still | | | | Private Networks (also known as VPN). This was |
| believe they can do it better internally than | | | | born from the traditional private networks used |
| outsourcing to "The Cloud." However, bigger | | | | internally by private organizations and now |
| corporations will be forced to look at this as an | | | | extends this connectivity to a company's |
| option to reduce costs. | | | | preferred hosted environment. This is now |
| There are three main events that have occurred | | | | represented as a cloud or the "virtual cloud" |
| over the last two years that have created a | | | | because it no longer matters where your user is |
| type of "Perfect Storm" to causing the explosion | | | | connected. This connection however needs to be |
| of "Cloud Computing": | | | | highly available depending on your business needs. |
| 1) The Economy - which of course has affected | | | | Moving an application to the cloud can be a |
| almost all Information Technology departments. | | | | complex decision which may have significant |
| Some of the larger Fortune 500 companies have | | | | positive (or negative) impact on your organization. |
| already downsized and lost some of their | | | | Many providers will list the pros and cons and |
| employees with higher salaries and tenure, as a | | | | work with your IT resources to help make sure |
| result they also lost Subject Matter Expertise | | | | that your internal infrastructure can either |
| (SMEs) on their core revenue generating | | | | consider or even support the change. While this is |
| applications and systems. This has forced IT | | | | a technology implementation, it is more of a |
| Managers responsible for availability of those | | | | business decision about what best fits your |
| systems, to survive by leveraging current | | | | organization today and will in the future. |
| employees, making them work longer and harder | | | | Benefits (Pro's) |
| hours to keep the proverbial "lights on". To add to | | | | There can be many benefits to using "The Cloud" |
| this problem of retaining SMEs, many businesses | | | | based upon your organizational needs: |
| are very cautious about re-hiring and therefore | | | | - If you are Sharing Large Amounts of Data - |
| have opted to take advantage of the mass of | | | | between several offices, having the data on a |
| people currently looking for work. Many of these | | | | virtual server might be beneficial. |
| businesses are reaping the benefits of lower costs | | | | - Web-based applications that can be used |
| by accepting lower IT contractor rates. | | | | seamlessly by people traveling without having to |
| Contractor rates have dropped anywhere from | | | | connect back to the office over a virtual private |
| 20% to 30% over the last three years, as the | | | | network (VPN) can save a lot of time and |
| unemployed accept lower salaries and rates. This | | | | frustration. |
| situation has worsened because the unemployed | | | | - Reduced costs - often "The Cloud" can save |
| are promised work on three to six months | | | | you a lot of money, but in order to compare |
| contracts with the promise to be hired. Many | | | | costs you have to be able to understand your |
| companies are using this to their advantage by | | | | own cost per user. The hosting provider will be |
| promising to hire with no intention of doing so. | | | | able to provide you with a cost per user and you |
| This is called "Try and Buy" in many staffing | | | | will need to understand your staffing costs in the |
| organizations. This creates greater turnover in | | | | same "units of measure" in order to compare |
| many departments and thus less "Subject Matter | | | | "apples to apples" costs. This means you will need |
| Expertise." | | | | to understand what your costs per user are to |
| 2) Server Virtualization - The second and probably | | | | say provide an email mailbox. Once this analysis is |
| more important is Server Virtualization. Defined as | | | | understood, comparisons can be easily made. |
| multiple server environments or "virtual servers" | | | | - Lowered risk to service interruptions with 24/7 |
| housed on a single piece of physical hardware. | | | | monitored systems - since many operations with |
| Companies like VMwarehave revolutionized the | | | | small staffs cannot watch all applications and |
| industry and spent the last four to five years | | | | devices on a 7 x 24 x 365 basis, cloud hosting |
| explaining ways they can use this technology to | | | | centers can provide better monitoring and |
| reduce start up costs in new application | | | | escalate back to the company for critical events. |
| development by virtualizing many of the common | | | | - Faster access to technology solutionswith |
| server activities, such as email, file and print. Many | | | | reduced business risk - the hosting company will |
| companies have already completed this cost | | | | be dealing with many different business and can |
| saving initiative by migrating many of their | | | | therefore offer great advise on technology |
| common platforms to virtualized environments. | | | | solutions that can enhance your business. |
| There are many advantages to server | | | | - Access to skilled technical experts across |
| virtualization, but most important, as good as | | | | multiple technologies. |
| private companies have become at virtualizing, | | | | - Single point of accountabilityfor technology |
| hosting providers have become even better. | | | | infrastructure management & support. |
| Cloud computing services now include virtualization, | | | | Disadvantages (Con's) |
| dedicated VMware expertise and the option for | | | | - Managing the "Beast" of an Application - in some |
| "Fully Managed, "Partially Managed" or "Dedicated | | | | organizations managing an application with a |
| Virtual" environments for servers and network | | | | tremendous amount of data or high input in to |
| devices. This allows businesses the flexibility of | | | | the cloud requiring a large amount of output back |
| speed without having to grow the size of their | | | | out to the client or desktop needs to be |
| own data center foot prints and IT staff. | | | | examined very closely. Remember you still have |
| 3) Lower Total Cost of Ownership (TCO) - In this | | | | to pay the price for bandwidth going in and out of |
| new economy, there is the need for many | | | | the hosting provider to make it cost effective to |
| businesses with fewer resources to understand | | | | use. |
| how to transact at a lower Total Cost of | | | | - Agility- Some businesses need to take a careful |
| Ownership (TCO), with ongoing savings. These | | | | look at the speed of which the chosen hosting |
| organizations need to be able to respond fast | | | | provider can turn around an application. For retail |
| enough to their customers by still being flexible | | | | companies seasonal peaks always need to be |
| enough to provide vital and necessary "On | | | | looked at very closely, so that technical staff can |
| Demand" solutions. This has led to greater effort | | | | be available quickly. An example is "Black Friday" |
| being spent on application development and less | | | | the day after Thanksgiving. |
| on commodity based Infrastructure needs. Areas | | | | - The Bigger You are The Harder You Fall - |
| of Information Technology such as desktop | | | | hosting providers offer that unique opportunity to |
| support, help desk, installation of software on | | | | "blame the other guy." As a result, smaller IT |
| computers and network can be automated and | | | | staffs and their IT Managers need to work |
| outsourced and these are usually the first areas a | | | | closely with the hosting provider on Service Level |
| CIO looks to cut costs. | | | | Agreements (SLAs). If an IT manager is leaning |
| Cloud computing therefore represents a paradigm | | | | to heavily on a hosting provider to provide all of |
| shift for business and IT management with two | | | | their services and in-house talent than they have |
| primary attractions:a) Moving IT off the capital | | | | to negotiate very tight SLAs and be ready to |
| expenditures budget and reclassifying it as a | | | | take responsible when the hosting provider cannot |
| reoccurring monthly operating expense, like a | | | | turn around service as quickly as possible. |
| utility. Many offerings come with the ability to | | | | - In House Technical Talent - Obvious, but needs |
| price by user and this is often cost justified by | | | | to said. In-house talent is the corner stone to any |
| reduced IT Infrastructure salaries.b) Providing | | | | great IT organization. Cloud solutions are still very |
| small and mid-sized companies with access to the | | | | complicated and you need to have at least one |
| sophisticated, state-of-the-art technology. Small | | | | person in your organization who knows more |
| and medium size companies, who are just hearing | | | | about your application than the hosting provider |
| about virtualization and arriving somewhat late to | | | | does. Often times this is forgotten, and when you |
| the game, can now benefit from the lower costs | | | | get comfortable with the hosting provider than it |
| and best practices that have been developed by | | | | is easy to rely on them too much for your core |
| many providers. | | | | business. |
| This has opened the door for hosting providers | | | | |