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Tapping into the Cloud

20th June, 2009 - Posted by Editor - No Comments

The value of web-based remote servers

To stay competitive in a slowing global economy, enterprises all over the world are adopting Cloud computing – a cost-effective, power-saving web-based solution.

The technology behind Cloud computing isn’t new; it was developed almost two decades ago. However, companies trying to cut costs in a global economic recession are only harnessing its true value now.

The Cloud computing platform offers an internet-based service for data applications, like documents, videos, presentations and databases. The ultimate goal is to base computer applications on remote servers, allowing computers to run with very little or even no installed software. Companies like Google and Amazon now offer services, like:

• E-mail
• Office productivity applications
• Web application hosting
• Data storage
• Virtual servers.

The advent of Cloud computing makes the provision of dynamically scalable and virtualised resources widely, and cheaply, available says Johannesburg-based Jumping Bean’s open source solutions architect, Mark Clarke.

Companies, large and small, are taking advantage of the Cloud computing utility model. What used to cost companies more than US$20 million, Amazon Web Services can do for US$500 000, says the Cloud business intelligence pioneer, Roman Stanek.

Clarke says the major IT companies, like IBM, Cisco, Google and Microsoft, already have a number of Cloud platform computing solutions on the market. So, it won’t be a difficult for companies to move their data and applications from one service provider to another.

However, before making the move to Cloud-based services, he warns organisations to first take stock of their software assets, like on-premise applications, customers/user impact, security, data privacy, data portability, application migration and operation efficacy.

Demystifying the cloud

According to Information Week, Cloud computing offers on-demand access to virtualised IT resources, which are:

• Housed outside an organisation’s in-house data centres
• Shared by others
• Simple to use
• Paid for via subscription
• Accessed over the web.

“Simply put, it is a web-based solution,” says the CEO of DUO Marketing + Communications, Judith Middleton, adding that Google’s Gmail service perfectly illustrates how Cloud computing works. Gmail is an application that one can access from the web without having to purchase any software. It is available on demand and shared by millions of users worldwide.  Google houses it in a centralised location.

In an office environment, Cloud computing pools the resources of hundreds, even thousands of computers into one centralised super computer, giving the average daily user access to advanced infrastructure and software without the attached costs. “With Cloud computing you only use what you need. You only pay for the bandwidth you use.  The user, not the provider, controls the offering,” notes Middleton.

Cloud computing is also effective from a storage perspective. If your computer has a 20 gig hard drive and you need to store a further 20 gigs temporarily, instead of buying a new hard drive, you could pay R10 a month to house 20 gigs externally.  When you no longer need the space, you simply cancel your subscription and delete the data.

Middleton says the software sector is also expected to experience wholesale changes as a result of Cloud computing. “When a business wishes to test out an accounting software package, instead of paying for a license as well as various other charges, the user will only be required to pay a monthly subscription. This allows for on-demand access at a far more affordable rate.”

There are, however, potential shortfalls that could influence the Cloud’s success.  The major issues are data security, reliability and maintainability, which companies need to check thoroughly before entering into agreements with suppliers.

Middleton says despite these issues, Cloud computing is on a rapid upward curve. “According to the Industrial Development Corporation (IDC) it is estimated that US$42 billion will be spent on Cloud computing services by 2012. This substantial investment further underlines its importance in the IT industry.”

Although it’s too early to talk about elaborate technical standards for Cloud computing, Microsoft says establishing the channels for discussions as well as outlining a collaborative approach, is critical.

Projects like the Distributed Management Task Force (DMTF) incubator will develop requirements and use case scenarios to allow all users to better understand where standards for communication with Cloud services can create the most value.

“We want to be open, collaborative and transparent about our efforts in the Cloud standards space,” says Microsoft.

Cloud computing helps with business continuity planning

Clarke says business continuity planning and disaster recovery is an essential business risk management technique, which looks great on paper, but often doesn’t deliver when it needs to.

In the past, business continuity planning was also very expensive. So, it was something only large corporations, with large budgets, could afford.

“Now, with Cloud computing, even small businesses can put a plan in place to ensure they are able to continue their business in the face of radical environment changes,” he says.

Remote access to systems is now affordable for even the smallest companies. You don’t need expensive leased lines to provide access to systems anymore; in fact you don’t even need lines, because – thanks to the plethora of broadband options now available – you can access your corporate network wirelessly.

The cloud is really about balanced computing

Cheaper South African broadband services will make Cloud computing more attractive locally, Intel’s South African business development manager, Danie Steyn said in a recent interview posted on MyBroadband.co.za.

He said a lot of hype surrounded Cloud computing in 2008, but it is just a term that re-labels a number of existing market applications.

Since Intel does not see Cloud computing as a full end-to-end solution, Steyn advised businesses to focus on “balanced computing” in the future instead.

Balanced computing, is a way of thinking about how to achieve a measure of Cloud computing that suits a specific situation; and then equipping the business with the correct hardware and resources to achieve this.

Steyn said many businesses still don’t understand the total costs of implementing a full streaming solution within their data centres.  Small businesses would benefit from application streaming, but would find full operating system streaming far too expensive. It is imperative for businesses to find an appropriate mix of applications sourced internally and those sourced via the Cloud.

Commenting on whether current broadband speeds would affect the adoption of Cloud computing in South Africa, Steyn said: “There is a direct correlation between broadband and PC household penetration and GDP growth.” The submarine cables coming in will allow for the development of more cost effective solutions.

When it comes to reliable streaming, Steyn said services like 3G cannot deliver the same quality. The more the telecommunications companies that offer solutions with guaranteed speed, the higher the adoption of Cloud computing or what Intel calls “balanced computing” will be.

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