This year, according to more than one industry watcher, around 20% of all infrastructure-related services, on a global scale, will be cloud-related. It begs the question: is cloud computing an appropriate technology for all business?
Integrating data residing in the cloud with a company's back-end systems is no easy task.
Martin May is regional director of Enterasys Networks.
Today, with the variety and diversity of cloud computing offerings available, there is sure to be a solution for an organisation's immediate and future needs. There is certain to be a cloud architecture to meet data integration, security, regulatory compliance, ease of management, availability and many other key business criteria.
Without allowing the growing sophistication of the cloud environment to negatively influence a company's decisions, remember that in its simplest form, cloud computing is about shared IT infrastructures, or the outsourcing of a company's technologies and IT assets to a third-party provider in return for business gain.
The cloud case
With this in mind, it makes sense to build a business case for the technology with an organisation's basic concerns, most significant demands and its loftiest business ideals, clearly identified.
At this point, a company might want to introduce modelling software to achieve two goals. Visualise how the organisation's business processes will react to cloud influences and identify the data, systems, and applications best suited to the cloud.
Because there is no standard or single model for cloud computing, it's best to view potential cloud architectures as prototype designs, capable of developing their capabilities to realise unique business objectives.
A good starting point is to list a number of areas where cloud computing could be evaluated from both qualitative and quantitative perspectives.
It's probably best to begin with the number one concern for all executives contemplating a cloud computing strategy - security.
I've quoted the information technology research and advisory company firm Gartner before. It encourages 'smart customers' to ask tough questions about security before committing to a cloud vendor. It's a valid point because in the cloud scenario, key corporate data will be held in an off-site repository under the control of a third party.
A company will have to accept this reality - as well as the fact that outsourced or hosted cloud services often bypass the physical, logical and personnel security controls of traditional in-house systems and services.
The next hurdle to face when presenting a business case for the cloud is coming to terms with data integration. Integrating data residing in the cloud with a company's back-end systems is no easy task. It will require the company's data sets to be used across multiple platforms in order to take full advantages of the efficiency benefits of cloud services.
In this regard, to help convert data from one format to another and to make it more portable and searchable, I would advise the use of ETL (extract, transform, load) tools. Choose a common format like XML (extensible markup language) to simplify matters.
Cloudy returns
Next - the bottom line: the return on investment (ROI) is probably the most important and persuasive element of the process. The numbers will have to look good for board approval. How will the company present its findings? Remember, the cloud represents a fundamental shift from traditional processes and the presentation should reflect this, spotlighting potential pitfalls yet highlighting key long-term efficiency advantages.
If the company's research has been thorough, the business case for the cloud will reveal a gradual and relentless shift in expenses from upfront capital expenditure (Capex) to operational expenditure (Opex).
Corporate accountants should relish the idea of reducing investments in on-premises computing systems. The HR department might be happy to reassign systems support personnel to other departments.
Of course, computing in the cloud will require the payment of fixed fees for usage - usually subscription-based, which should, once again, please the accountants. On the other side of the ledger, there will be costs in the form of resource charges based on the movement of data.
If the calculations are correct, the savings should be significant, particularly over time as the cost of new hardware, additional memory and regular updates to software systems and other complex, labour-intensive deployment projects that often extend from months into years are taken into account.
Finally, the feel-good factor must be addressed. No matter what cost savings are revealed in the company's plan, it will undoubtedly highlight the speed, flexibility and convenience benefits associated with the rapid provisioning of computing power, data storage and software as a service associated with the cloud.
Perhaps surprisingly, cloud computing will also be a great supporter of an organisation's efforts to reduce its carbon footprint. Without the need to upgrade and extend data centre hardware, power consumption is reduced in many ways (less reliance on air conditioning, for example). Power savings will thus translate into a positive impact on the environment.
Management is sure to be impressed by a business case that introduces 'green' technology capable of doubling as a catalyst for Capex reductions.
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