|By Lucas Roh||
|June 19, 2011 03:00 PM EDT||
A recent survey from the International Association of Outsourcing Professionals (IAOP) found two-thirds of outsourcing customers currently do utilize or have plans to implement cloud computing solutions. Eighty percent of those surveyed indicated their organization intended to deploy more outsourcing services in the next year.
In a recent Forrester report titled "Sizing the Cloud," it estimates a move from $40.7 billion spent on the global market for cloud computing in 2011 to more than $241 billion in 2020. The public cloud, which is under considerable scrutiny for security risks, will account for more than 66 percent of the total in 2020.
For many enterprises, moving data and applications is really a question of "when" instead of "if." The cloud is a sea change in business, and is moving well beyond a fad stage. Security breaches and large-scale outages might prove to be hiccups in cloud adoption rates, but the cost savings and increased flexibility will win out long term. Addressing the concerns about the cloud will allow you to see the benefits more clearly, and promote an informed decision in selecting a provider.
Time and Money
When IT managers are asked by senior executives why they should move their mission-critical data or applications to the cloud, the answer shouldn't be "because everyone is doing it." If IT comes back with a compelling list of reasons that increase efficiency and revenue while also costing less, then they have a compelling case.
As with most things in business and life, it all comes down to time and money. Spending less money and also freeing up time to earn more money efficiently. The simplest benefit for the cloud is the lower total cost of ownership. Moving to the cloud means less physical hardware purchases or upgrades. An enterprise with an on-premise server setup simply cannot compete with a multi-tenant cloud provider. You can't defeat economies of scale. Electricity bills are lowered as there are no longer server rooms that require optimal temperatures to function, and you don't need to operate all of the related equipment. Servers don't need to be frequently upgraded or repaired. In the cloud, the provider fixes the problems and ensures the platform is built with modern components and is working properly.
"Scalability" is another benefit tossed around so much that it almost loses its true meaning. It really means adaptability, where the cloud solution adjusts to user demand, which translates directly into cost efficiency and avoids overcapacity. If your company's product goes viral and daily demand increases ten-fold, cloud-based solutions can be quickly ramped up to handle the demand without the risk of not fulfilling orders.
For some enterprises that move large amounts of their data and application requirements to the cloud, some reductions in IT staffing may naturally follow. If staff reductions are not forthcoming, it's important to frame a move to the cloud not as simply the removal of an obstacle that will allow the staff to work more efficiently. For enterprises where the IT staff are already overworked and only a fraction of requests are handled, moving to the cloud can free up time for more mission-critical tasks. Perhaps now that new back office functionality can be completed or a sales team can be better trained on using the latest business intelligence suite.
For many enterprises, using the cloud initially for replication and disaster recovery efforts is a way to dip their technology toes into the water. Companies that want to hold on to the control of on-premises data centers can still benefit from the cloud's safeguards by trusting it with data backups. As competition rises and costs continue to fall for cloud-related services, disaster recovery efforts will become more and more cost effective.
With the recent Amazon Web Services and PlayStation Network security breaches, many enterprises are understandably worried about the security measures of various cloud providers. Change will consistently be met with hesitation, and when it comes to moving critical data to the cloud, some concern is warranted.
IT management has considerable concerns about giving up governance of corporate data. However, the management and security of this data is still the responsibility of the enterprise, creating a scenario where doing nothing can be perceived as the proper course. In order to move forward with progress, IT will need the right cloud provider that can allay the governance concerns and provide assurances to data safety.
Data breaches of private information or sensitive intellectual property can have a ruinous effect. Regulatory compliance adds another wrinkle, especially for global firms, where strict rules about the "location" of data conflict with many cloud providers lack of transparency. If your company is based in the U.S., but the data is technically residing in the United Kingdom, which privacy laws do you need to follow?
The lack of transparency in regards to outage or breach notification is another often voiced concern. IT managers want to learn about breaches immediately from the provider, not hours later from the blogosphere. IT wants the service provider to go on auto-pilot in the face of disaster, and to follow documented call-out and escalation procedures. Concern about breaches and outages is certainly justified, and in-house IT should have a direct hand in reviewing the cloud provider's processes and track record in handling problems.
Diving into the Cloud
For larger enterprises with multiple applications and massive data sets, it pays to start small in the cloud. There is no rule saying it's an all or nothing choice. Instead of moving applications that need to be fast down to the millisecond, consider setting up some back-office applications to test out the cloud provider's performance and security. While a piecemeal approach might result in higher initial costs, it does provide you with a testing environment where you can perhaps introduce failures to check the provider's systems. If the solution provider can't handle routine non-critical tasks, they can't be trusted with personally identifiable customer data.
Look ahead to your growth rate as well and consider your likely data and application needs. If you have confidence in a growing business, your related systems will need to handle that movement without interruption. Few things derail a growing firm's chances faster than outages due to unexpected data or application demand. With a cloud solution in place, spikes in demand can be transformed from an issue to be feared to a welcome sight that heralds new milestones for the business.
Finding That Trusted Partner
The barriers to entry for the cloud are quite low, with new companies entering the space or established companies launching cloud divisions by the minute. Many vendors dive into this arena without sufficiently trained staff or the right technology expertise. They might not understand the regulations surrounding PII or have the right controls in place to protect from breaches.
To properly screen your solution providers, you need to ask them to be upfront with their protocols for data security and also pricing. Demand visibility. As the industry matures, customers who only accept transparency and don't tolerate confusing service agreements or evasive answers will help weed out the poorly run cloud outfits.
While moving to the cloud often takes some responsibility away from internal IT staff, you still need them involved in the process from the beginning. Ask your IT security staff to carefully review the cloud providers security and network procedures and to raise any red flags. Use their knowledge to poke holes in the provider's system and call out any outlandish claims about security or uptime.
Another key consideration is to look at any other SaaS providers that are interrelated with your chosen vendor. Every organization that has access to your data needs to follow set standards to be sure you don't have security holes for your data management. This chain of outsourcers can reach three or four levels removed from your company, so you need assurances from the cloud provider that these company's data standards are sufficient.
Outsourcers should be able to provide you with clear password creation and management standards that will help prevent password hijacking. Especially for multi-tenant cloud environments, the vendor needs to have controls in place to keep your data separate from other tenants.
For localized outages where there are hardware failures, how does the vendor handle such problems? Will they fix it within the hour, or within 24 hours? The best vendors will have extra hardware equipment on hand to proactively handle failures.
Finding the right vendor will allow the enterprise to experience lowered costs and operational flexibility so they can reach greater heights that would not be attainable with on-premise solutions.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Aug. 29, 2016 01:01 PM EDT Reads: 124
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 29, 2016 12:45 PM EDT Reads: 2,008
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 29, 2016 12:15 PM EDT Reads: 800
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 29, 2016 12:00 PM EDT Reads: 3,180
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 29, 2016 08:00 AM EDT Reads: 933
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 29, 2016 07:30 AM EDT Reads: 815
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 29, 2016 02:15 AM EDT Reads: 1,835
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 29, 2016 01:45 AM EDT Reads: 2,200
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 29, 2016 01:15 AM EDT Reads: 3,028
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 29, 2016 12:00 AM EDT Reads: 1,912
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 28, 2016 10:30 PM EDT Reads: 4,072
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 28, 2016 06:30 PM EDT Reads: 1,648
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 28, 2016 06:00 PM EDT Reads: 1,966
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 28, 2016 01:45 PM EDT Reads: 3,712
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 28, 2016 01:00 PM EDT Reads: 2,469
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 27, 2016 08:45 PM EDT Reads: 2,426
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 27, 2016 12:45 PM EDT Reads: 2,401
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 27, 2016 02:30 AM EDT Reads: 2,081
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Aug. 25, 2016 05:15 PM EDT Reads: 919
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 25, 2016 01:00 PM EDT Reads: 2,729