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Welcome
EDITORIAL
Editor Maxwell Cooter
Managing Editor Marc Beishon
Design & Layout Heather Reeves
Contributors Adrian Bridgwater,
Welcome
Dave Cartwright, Graham Jarvis, Billy
MacInnes, Lesley Meall
LICENSING & SYNDICATION
Licensing Hannah Heagney,
hannah_heagney@dennis.co.uk,
+44 20 7907 6134 Welcome to the Ultimate Guide to
Syndication Anj Dosaj-Halai,
Anj_Dosaj-Halai@dennis.co.uk, Cloud Computing your indispensable
+44 20 7907 6132 reference point to all things cloud
ADVERTISING & MARKETING
Advertising Manager
Ben Topp +44 20 7907 6625 YOUVE PROBABLY PICKED UP this book because
MagBook Account Manager
Katie Wood +44 20 7907 6689 youve come across the term cloud computing and
Digital Production Manager heard that its going to be the dominant platform
Nicky Baker +44 20 7907 6056 for delivering computing resources in the future.
Marketing & Editorial Executive
Emily Hodges +44 20 7907 6270 Research company IDC estimates that worldwide
MANAGEMENT +44 20 7907 6000 cloud market expenditure will be more than $70bn
MagBook Publisher Dharmesh Mistry by 2015 thats a 25% annual growth rate.
Publishing Director Jon Westnedge Over the following pages, you will read about what
Managing Director John Garewal
Deputy Managing Director Tim Danton cloud computing is, what applications can run in the
MD of Advertising Julian Lloyd-Evans cloud (and what cant), how it can streamline your
Newstrade Director David Barker costs and how it will change your organisation be
Chief Operating Ofcer Brett Reynolds
Group Finance Director Ian Leggett that a major enterprise or a small business. Youll
Chief Executive James Tye see how cloud will have an impact on all aspects of
Chairman Felix Dennis business life, from sales and marketing to managing
a supply chain. And youll read about the downsides
too: from handling security to managing contracts,
The MagBook brand is a trademark of licensing and breakdowns in service.
Dennis Publishing Ltd, 30 Cleveland St, Were set for a huge change in the way companies
London W1T 4JD. Company registered in
England. All material Dennis Publishing operate. The parallel that is often drawn is with the
Ltd, licensed by Felden 2011, and may not electricity supply and how we moved from a position
be reproduced in whole or part without the
consent of the publishers. where companies operated their own local power
Liability
stations to using a national grid. Its an apt parallel
While every care was taken during the but it doesnt go far enough changing the source of
preparation of this MagBook, the publishers the electricity supply didnt fundamentally change
cannot be held responsible for the accuracy
of the information or any consequence the way that businesses were run cloud will.
arising. All judgements are based on products The notion of ofces in various locations
available to us at the time. Dennis Publishing
takes no responsibility for the content of supported by a dedicated IT team is going to slowly
any external websites mentioned or for any disappear. What the ofce of the future will look like
advertising within the guide.
is anyones guess, but there is one guarantee it will
Printed by Stones be served by some form of cloud computing.
The Ultimate Guide To Cloud Computing The future starts here.
ISBN 9781907779831 Maxwell Cooter, Editor
TheUltimateGuidetoCloudComputing 03
Contents
CLOUD
COMPUTING
INSIDE
WHATISCLOUDCOMPUTING?
Andwhyitsgoingtochange
thefaceofbusiness
HOWTOGET HOWTOSAVE
Cloud Computing
Ultimate Guide to
STARTED MONEYUSING
7.99 The
Gettingtogrips CLOUD
withthebasics Keepingcostslow
06 Whatiscloud?
A cloud denition, history and
the way the market is moving
14 Cloudconcerns
Any new technology throws up
worries about its impact so
what do you need to know?
22 Businesschange
Heres a strong case for cloud
as a business change enabler 12
26 Publicvsprivate
The differences between the
two main cloud models
30 Enterprisecloud
A brieng for board level
executives on cloud issues
38 JustforSMEs
Why cloud is a great match
for smaller organisations
43 Cloudcontracts
Businesses must be aware of
43 the small print in cloud services
04 TheUltimateGuidetoCloudComputing
Contents
54
50 Cloudstorage
Storage is the number one app
in the cloud with good reason
54 Financeandlicensing
Financial factors for the cloud;
cautions on software licences
63 Greencloud
Is cloud computing greener,
and can we prove it?
30
68 HRandcloud
How cloud applications could 76 Marketinginthecloud
transform the people factor A laggard normally in IT,
marketing now has power
72 Supplychain
Another key area for the cloud is 80 Whatnottodo
collaborating on moving goods Not everything is suitable for
the cloud, and heres why
84 Securityinmind
Data security is a top concern
and a degree of trust is needed
88 Leadingplayers/glossary
A whos who of major cloud
76 players plus a glossary of terms
TheUltimateGuidetoCloudComputing 05
Introduction
Whatiscloud?
Maxwell Cooter introduces the hot topic of cloud
computing: what is it and where did it come from?
ITS THE BUZZWORD on everybodys vagaries, the US National Institute of
lips but what does cloud computing Standards and Technology put forward a
actually mean? Its not been an easy denition that has now become widely
term to dene and there have been many accepted as the closest that the industry
different attempts to explain what the has to a denitive answer. The NIST
term means. Cloud companies have denition is as follows.
been prone, like Alices White Knight, to Cloud computing is a model for
dene the term in a way that they want it enabling, convenient, on-demand
to mean. network access to a shared pool of
In some ways its strange that the term congurable computing resources
has been so slippery. Millions of us are (eg. networks, servers, storage,
happy to use such cloud-based services applications, and services) that can be
as Facebook, Gmail and Twitter, thinking rapidly provisioned and released with
nothing of it, yet pinning down an exact minimal management effort or service
denition has been as elusive as provider interaction. This cloud model
grabbing a cloud itself. promotes availability and is composed
In an attempt to put a stop to these of ve essential characteristics, three
06 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Introduction
cloudpro.co.uk TheUltimateGuidetoCloudComputing 07
Introduction
08 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Introduction
Abriefhistoryofcloudcomputing
Anyone hanging around cloud vendors for any Da Vincis notebooks are the blueprints for the
amount of time will hear one often repeated rst helicopter. Its one thing coming forward
mantra Cloud computing is not new you with the theory, its quite another delivering in
know, cloud has been around for some time practice. There have been plenty of false
generally from a veteran of the technology dawns before cloud computing became the
industry. Theres an element of truth in this beast it has become. Weve seen it described
but, at the same time, its spectacularly as grid computing, computing on-demand and
missing the point. utility
uti computing before the phrase cloud
Its possible to point to computing
com took hold. Its only been widely
a 1966 book by Douglas used
use since late 2007, although the term was
Parkhill, The Challenge off rst
r used in a lecture by computer scientist
the Computer Utility, for Ramnath
Ram Chellappa.
the origins of cloud For cloud computing to become a reality,
computing. In that book, there
the were other changes needed rst. Most
Parkhill detailed many of important
imp of these was the availability of fast
the elements of cloud and cheap broadband the early attempts at
computing elastic cloud
clo computing all foundered because of the
provision, online dearth
dea of such a service. Then virtualisation
delivery, perception of innite supply needed
nee to become more widespread, as this
its just taken a while for the theory to technology is the bedrock of cloud computing.
become reality. Other factors are the declining cost in
Saying that the theories espoused in storage, the availability of cheaper devices to
Parkhills book are the rst elements of cloud access cloud services and the development of
computing is a bit like saying that Leonardo automatic provisioning software.
Like cloud computing, its an old product but has since been adopted by
concept, originating from the mainframe countless other companies. SaaS
world and only becoming widely used delivery helps solve various problems
after VMware, a virtualisation specialist, within an enterprise: over-provisioning,
started applying it to servers. The security updates and licensing among
technology has now been adopted nearly them, and is widely seen now as the
universally within enterprises and the dominant method for providing software.
technique of re-allocating resources As a concept, cloud computing has
has made it vital for the development of grown quickly and is set to penetrate
the cloud. deeper into the market. According to an
Weve spoken a lot about cloud service oft-cited Gartner report, 20% of
providers but another important part enterprises will have no IT departments
of the cloud is the delivery of software by the end of 2012. While that looks to
the so-called software-as-a-service be a bit optimistic (or pessimistic
(SaaS) delivery mechanism. This is a depending on your view), the impetus is
technique that was really pioneered by clearly with cloud. Its a technology thats
Salesforce.com with its hosted CRM here to stay.
cloudpro.co.uk TheUltimateGuidetoCloudComputing 09
Introduction
Whichwayis
cloudmoving?
Marc Beishon looks in detail at cloud models and where
the action is in the consumer and business sectors
IT IS CERTAINLY TRUE that many The NIST model has the benet of
people, particularly in business, would simplicity, but inevitably there are many
like a clear denition of cloud computing. more detailed attributes of cloud
As a report and survey from industry services that are confusing people, which
body CompTIA, Cloud computing: is not surprising at this early stage of the
pulling back the curtain, says, both the evolution of cloud computing. But users
industry and end user communities in organisations are starting to form a
crave a more authoritative, uniform consensus on what they strongly
denition of cloud computing to help associate the cloud with, says CompTIA,
them determine how best to exploit namely offsite, Internet centric,
it from a business and technology shared, scalable, software-as-a-
perspective. service and virtualised resource.
It too points to the denition from the What is not confusing is the sheer
National Institute of Standards and scale of the projections for the size of the
Technology (NIST), as discussed on cloud computing market, as the analysts
page 7, and it is worth adding the full list are all agreed that, denitions aside,
of characteristics and models in the users will be voting with their feet and
denition (see also the glossary, page 96 fuelling a global market worth more than
for explanations of most of these terms): 100bn by 2013 with a major component
Essential characteristics being the use of cloud software
On-demand self-service applications such as those from Google
Broad network access and Salesforce.com, the customer
Resource pooling relationship management specialist.
Rapid elasticity One analyst, Gartner, has predicted that
Measured service 20% of all businesses will own no IT
Service models infrastructure by 2012, and will be
Software-as-a-service (SaaS) virtually total cloud users.
Platform-as-a-service (PaaS) Thats particularly true for smaller
Infrastructure-as-a-service (IaaS) companies and start-ups, as the kind of
Deployment models cloud services they can use to run
Public cloud operations are similar to those that have
Private cloud gained rapid ground in consumer
Hybrid cloud markets. Sole traders, small companies
Community cloud and also hobbyists and casual users are
10 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Introduction
all making great use of cloud platforms Mobility handset business by Google,
such as eBay, Amazon and PayPal to which points in one direction only that
conduct day-to-day business with of a near future where huge public cloud
nothing more than a laptop, Internet applications such as those of Google
connection and a bank account. will be seamlessly available on your
smartphone wherever you go.
Cloudforconsumers It is no surprise that Apple, meanwhile,
And even a smartphone or tablet will do planned to launch in autumn 2011 its
the cloud services that will dominate iCloud cloud service done right, as
in the consumer market are mobile the giant rm says. iCloud is a
applications, driven by the huge success replacement for Apples previous cloud
of products such as Apples iPhone and efforts, but clearly the company now
iPad, and the Android standard adopted feels condent to pitch its offering
by other handset players. News that badged as a cloud service (MobileMe
created much interest in August 2011 was the main earlier version for
was the proposed buy-up of Motorolas productivity applications). It has now
cloudpro.co.uk TheUltimateGuidetoCloudComputing 11
Introduction
brought together all its online services always-on and ubiquitous access to
productivity such as mail and contacts, data, entertainment and services, it
the iTunes media store, online backup says. Next, and as some may not be
and storage, and access to new surprised to hear, is online gaming,
applications in one cloud that services followed by voice over IP (ie Internet
users automatically as they move around telephony services such as Skype), and
(in a so-called push way). paid music content. In terms of revenues,
Its also free to Apple customers, in the services such as email and online
same way that people can already make storage barely gure, as they look set to
use of free mail and considerable remain free or very low cost.
amounts of storage with services such as
Hotmail, Yahoo and Google. Apple Cloudforbusiness
which briey became the worlds largest Patterns of use for companies and
company in August 2011 is great at organisations in the public and third
engineering an almost fanatical user sectors are also becoming apparent, with
experience, and it rarely gets its CompTIA, for example, noting that a
marketing wrong these days, so the sweet spot for cloud adoption is in the
ubiquity of a personal computing and medium sized company sector (say
media cloud is likely to be taken for between 10m and 100m in turnover).
granted by many in the next few years. This is because they have similar IT
What the company will have to rely on needs to large enterprises, but less cash
though is a large network of partners to for on-premise systems, and so can
deliver its experience, especially the deploy cloud computing instead as an
mobile phone operators and their many operational expense with a more
suppliers of base station equipment, predictable cost model.
transmission technology Reducing capital expenditure and
and customer provisioning other costs is often the number one
Mobile data and billing systems. reason for moving to cloud computing,
applications and Experience of the mobile but coming in second is the desire to add
services are set to cloud, in particular, can be new capabilities that just arent available
drive the growth easily scuppered if you otherwise, and this key factor must
cant get a signal at a vital surely rise to the top as more
of consumer
moment, or you get a organisations discover just how
cloud services massive unexpected bill, transformational the cloud can be for
and its no surprise that business processes. Indeed, in another
poor customer service is now to the fore survey of SMEs alone, the benet of
as people migrate into increasing use of expanding capabilities does come out
mobile data and cloud services. ahead of cost savings.
That mobility is the key consumer Other factors for deploying cloud are
cloud area is borne out by research rm the speed with which it can be rolled out,
Business Insights, which predicts that simplicity, subscription pricing, an end to
mobile applications will make up almost conventional software licensing, and
half of the market for revenues by 2018. lower energy use. Pertinently, cutting
Mobile applications and services are set internal IT staff, while a factor for some,
to drive the growth of consumer cloud is not a major reason for cloud,
services, as consumers demand suggesting that these workers may be
12 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Introduction
cloudpro.co.uk TheUltimateGuidetoCloudComputing 13
CloudConcerns
14 TheUltimateGuidetoCloudComputing
CloudConcerns
Areyouafraidof
cloudcomputing?
Cloud computing offers clear benets to many
organisations, but like any new technology concept there
are reservations about being an early adopter.
Simon Brew nds out if these fears are real
CLOUD COMPUTING ISNT REALLY a organisations of all sizes so whats
new idea thats just sprung up over holding them back?
the past few months. Rather, its the Plenty, as it happens. Here, we
summation of a series of technologies take a look at ten of the main reasons
that have been converging for some people might be holding back on
time. Now, cloud computing has deploying cloud-based working, and
become a solid option for how valid they are.
TheUltimateGuidetoCloudComputing 15
CloudConcerns
1
Infrastructure
A clear requirement for effective cloud
working is fast, reliable Internet access,
especially for smaller organisations that
are using public cloud providers. You
need enough bandwidth so that those
who need to collaborate and work across
cloud technologies are able to do so.
Thats something thats quite easy to
manage when the bulk of workers are
in an ofce provided the Internet
2
connection is up but it gets trickier with
remote workers and those who travel.
Regular travellers will be aware of the
difculty of nding a workable, secure
web connection. And given that one of
the main benets of cloud working is to
have access to les and applications
wherever you happen to be, variable web Losingcontrolofdata
access quality has to be a concern. Its not just an emotional attachment to a
This of course applies equally to computer room that keeps companies
people accessing in-house computers from outsourcing data. Its the fact that
over the Internet. But when everyone in theres an inherent feeling of security
an organisation is dependent on a cloud in having data under close control
platform, there is an understandable (assuming theres some kind of remote
concern that there is no fall-back position backup for disaster recovery, of course).
for a vital part of a companys Removing the need for local storage
infrastructure and one that underpins clearly has some cost benets, but for a
most other operations now. generation of system administrators and
support staff brought up on a different
way of working, its a change that rings
some alarm bells.
One in particular is trusting an external
source for working data what happens
if access drops or if someone loses the
data? Even appreciating the security that
cloud computing offers, theres a leap of
faith and an element of uncertainty
(along with a loss of transparency), that
creeps in when data management is
moved out of the immediate control of an
IT department.
16 TheUltimateGuidetoCloudComputing
CloudConcerns
3
Fearofchange
People do fear any sort of change, even
in a fast moving industry such as IT. They
4
dont tend to fear upgrades too much
although a jump say to the latest Security
Microsoft Ofce can mean some When data is being looked after by
reghting but a wholesale alteration in another party, its right and proper that
the way systems are supposed to work is security issues are raised. Every
a challenge. business has condential information
Its hard not to have some sympathy that it likes to keep behind closed
with this. In many organisations, IT is a doors, and the fear that cloud
tool, a means to do a job, and nothing computing could make such material
more than that. Theres a strong more vulnerable isnt one that can
argument that the software industry, in simply be ignored.
particular, has become adept at selling Yet recent times have seen that the
upgrades and alterations that we dont biggest source of condential
actually need, or that dont make a document leaks is more likely to have
difference to daily life. So when a change been a misplaced USB stick, using
comes along that does, reticence is unsecured Internet connections and
hardly surprising. less than honest employees.
Persuading people to alter the way Reputable cloud service providers
that theyve done things for years, view security as pivotal to what they
whether attempted via carrot or stick, offer and, with the added help of a bit of
is rarely a straightforward battle. common sense, theres a strong
So persuading key decision makers argument that most businesses would
and their staff to embrace cloud benet from more robust security if
computing can be a heck of a job in and they do migrate to a cloud service.
of itself. Even the best-deployed cloud
solution might therefore still be a bit of a
bumpy ride (see also number 10 the
human factor).
TheUltimateGuidetoCloudComputing 17
CloudConcerns
5
Cloudoutage
Clearly, this is a very real and sensible
concern. Theres no computer network
in the world that doesnt have the risk
6
of downtime at some point in its life.
However, theres still the comfort Payingthebill
blanket of being able to yell at an IT There are some obvious economic
department and get up-to-the-minute benets to adopting cloud services, from
information when its a self-hosted a reduction in dependency on in-house
computer network thats at the heart of IT, to the outsourcing of data
the problem. management and security, and the
What happens, though, when thats saving, potentially, on expensive
taken out into a cloud environment? software licences, and battling to keeping
Who gets the ear-bashing then? And, hardware performance up to date.
more to the point, what happens when Yet the future is uncertain. Technology
a cloud service a business is relying on is littered with examples of new
goes down, even for a short period? innovations and developments that were
With localised working, even without a initially designed to reduce costs, and yet
network, having some machines with many business are still investing heavily
working productivity software installed in their IT budgets.
at least means things can get done. Some valid questions arise about
Whats often forgotten in this cloud computing, then. Is it offering value
argument, though, is that a cloud for money? What guarantees are in place
service stands a good chance of having that pricing wont slide upwards as
a working, operational backup called businesses become more and more
into action quickly. Furthermore, one dependant on cloud services? Is this just
by-product of cloud adoption is that the software companies trying to get us to
maintenance and repair of problems is switch to a subscription system for
also outsourced, so it may well be that licences, and so the longer term cost
any problems are resolved faster than may actually be higher?
an in-house team can act. These are appropriate questions, often
Service providers should and do with no immediate answer. Theres an
also have incentives to ensure element of leap of faith, and a need to
maximum uptime. down a good service contract. But cast
iron guarantees? Theyre lacking at
present, and for rms with razor-tight
balance sheets that has to be an issue.
18 TheUltimateGuidetoCloudComputing
CloudConcerns
7 8
Wearenotlemmings
Much of the discussion surrounding
cloud computing has implicit
assumptions built into it. That its the
right thing to do. That its the logical
next step in business technology. That
Itstooearly its a question of when, rather than if, a
Even accepting the comparable maturity company should take advantage of
of some elements of cloud-based what cloud computing offers. In much
working (many, for instance, trust their the same way that it was once assumed
email to a webmail service with little that everybody would upgrade their
worry), there remains a feeling, rightly or copy of Windows within a couple of
wrongly, that this is still an area of years of Microsoft releasing a new
computing thats in its infancy. Lets not version, theres an impression
forget, too, that lots of next big things sometimes put across that cloud
have gone on to be anything but. As computing will become compulsory.
such, many businesses are holding back But, of course, it isnt. There is doubt
from adopting cloud services as they that the argument that cloud is the
wait to see how the assorted offerings future has been convincingly made.
develop, and as they let others do the Because, while there are potentially
pathnding for them. huge benets to whats being offered,
Theres always some sense to not theres no one-size-ts-all mentality
moving business-critical operations to here. Is cloud computing really the
areas where youd be an early adopter right option for a small business of
(although cloud adoption can, and two or three people? Is it the right
should, be done piecemeal), and theres way forward for a large organisation,
a feeling that the wrinkles need to be with hundreds of employees in many
resolved in cloud services before more different locations?
rms embrace the potential on offer. There are strong cases to be made in
Yet, theres a degree of obvious myth both instances that the answer is yes
to the argument that the services are (again, down to the fact that you can
immature after all, Saleforce.com has choose what works for you, with public,
been around since 1999, an eternity in private and hybrid cloud approaches
IT terms. Rather, we are more likely on offer). But that doesnt mean that
reacting to changes in the way services the case doesnt have to be made.
are packaged and sold, although there The benets of the cloud have to be
are clear reasons to be cautious if, say, dened, be tangible, and be presented
the local Internet infrastructure is rather properly. Its the users who tumble over
poor and you want to invest in a public the cliff to follow the crowd who will,
cloud system. inevitably, hit problems, and fail to reap
the intended benets of what the cloud
can offer.
TheUltimateGuidetoCloudComputing 19
CloudConcerns
9 10
What,actually,isit?
Arguably one of the biggest challenges
facing cloud computing is this: how,
exactly, do you dene it? Because
already, different service providers
describe cloud products in very different
ways. There doesnt appear to be one Thehumanfactor
widely accepted denition of what At the heart of every signicant
cloud computing is, and without that, problem to do with technology lies the
packaging and selling the benets same factor: people. We have seen
to organisations is made that bit time and time again that you can have
more difcult. an IT infrastructure thats seemingly
Furthermore, part and parcel of the tight and secure, but its a simple
uncertainties surrounding cloud human slip thats opened up an
computing is the argument over element of risk. Furthermore, someone
standards. Theres no solid, common who doesnt fully understand, or
and obvious foundation for cloud doesnt want to understand, what it is
services to build on. Like it or lump it, that theyre being presented with, will
people know where they are with a always cause some degree of problem.
Windows operating system, a copy of It may be straightforward to get the
Lotus Notes and some variant of an MD and nance director to sign off on
ofce suite. But what such common, the nancial benets, but just look at
unifying tools exist in the cloud? There how hard it is to get buy-in for end
are not, at this stage, obvious, dominant users to use systems such as CRM
players in the market although (customer relationship management).
Amazon, Google and Salesforce.com New web-based systems in the cloud
would stake claims and for companies may pose similar problems.
looking for a big brand name to trust, that Realistically, of course, every issue
does have to come into their thinking. weve discussed here has a person at
Until cloud computing can be dened the heart of it, or a fear of what
in a manner thats as understandable as someone can and inevitably will do
an operating system or an ofce suite when given the keys to something new
(and arguably, it can be dened as both), and different (and thats just one
its going to create some uncertainty individual: the potential dangers
within rms as to what exactly theyre multiply exponentially when people
being sold, and how it allows them to hunt in packs).
work with others. Its a big problem, and why many
businesses are keen to retain the
technological status quo, in that it
keeps the humantechnology balance
in a position that its migrated to over a
period of time.
Its important never to forget the
people factor when bringing in any
new technology
20 TheUltimateGuidetoCloudComputing
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BusinessChange
Howthecloud
canmakeyour
businessagile
This talk of technology is all very
well, but the clouds true potential
is in transforming your business
with speed and collaboration, as
Marc Beishon nds out
22 TheUltimateGuidetoCloudComputing cloudpro.co.uk
BusinessChange
cloudpro.co.uk TheUltimateGuidetoCloudComputing 23
BusinessChange
hardest functions to crack, the of reps is more than useful and its hard
salesforce, which has long put up to underestimate what this can do for a
resistance to clunky CRM (customer company Larry Ellison, the colourful
relationship management) systems boss of software giant Oracle and now a
foisted on them. Just because cloud convert, famously cracked the
Salesforce.coms CRM system is whip a few years ago when he realised he
cloud-based does not mean it does not had no dashboard to see what his
have the adoption problems that CRM business units were doing in a timely
has suffered from incentives and good fashion round the world and got it
management tend to x that. But a cloud done, of course.
system can greatly help with business
change in hard to reach parts of a rm. In-housenotanoption
In many companies there is a black Trying to build an in-house systems to do
hole of forecasting and pipeline data on this is obviously counter-productive in
sales, and it doesnt help that most major time and money for most companies that
enterprises certainly in the FTSE 100 are not of the likes of Oracle. And where
are led by CEOs with no sales Salesforce.com also scores is in its
experience. Its an area tailor-made for brilliant decision to create the
the cloud since so much knowledge is in AppExchange platform where users can
silos around departments and in the integrate and use many more functions,
heads of salespeople and best practice from an 800 long list, and thats apart
is not shared. from Salesforces own extras.
Another function thats beneting
Fastforwardforsales from cloud agility is logistics, where
Phil Codd, chief markets ofcer for provider Deltion is gaining a good deal of
northern Europe at software testing rm success for its CarrierNet platform.
SQS, chose Salesforce.com to solve a Managing director Denis OSullivan,
major sales reporting problem in the himself a logistics expert brought in to
past, reporting was on an individual run this UK rm a year ago, says
country basis with a complex mix of logisticians have been crying out for a
spreadsheets, emails and word of mouth long time for real-time visibility across
which placed a lot of pressure on the supply chain to iron out customer
accurate and timely sales forecasting. service problems, which he says
Codd took advantage of Salesforce. Cadbury (now part of Kraft) is doing with
coms 30 day free trial of its Sales Cloud CarrierNet, a cloud system.
2, and then worked with consultancy Keith Newton, customer logistics
SaasPoint to implement it in just 40 director at Cadbury says: The
working days and the company now implementation has enabled us to move
has a central repository of sales pipeline from a series of unlinked systems to a
throughout the region in real-time, and web based interfaced solution that has
all sorts of new opportunities for sharing totally eliminated a number of areas of
sales best practice and leads by using failure. It links all internal logistics and
tools such as Salesforce.coms Chatter, planning teams at Cadbury, all tier one
an internal social media system. third party logistics service providers, all
Anything that produces more than the second tier hauliers subcontracted to
sum of a notoriously self-sufcient group them, and customers via alerts, SMS
24 TheUltimateGuidetoCloudComputing cloudpro.co.uk
BusinessChange
Morebusinessapplicationsinthecloud
Human resources (HR) systems are not systems. Finally we have a central system
obvious targets for the cloud but vendors for storing les, working on them and
such as SuccessFactors are proving that retrieving them, always in real-time. Any
properly managing the entire workforce in project member can access it, and most
terms of skills, knowledge and structure can importantly, the latest version is always
have a big impact on business performance. available, says Alexander Gottschlich,
European users such as construction global programme manager at Vodafone.
supplier Hilti are big fans.
The Green House, a small Northampton-
The public sector has much to gain from the based business specialising in environmental
cloud in the NHS, County Durham and services, manages around 500,000
Darlington Foundation Trust, a consortium of scheduled collections a year through its
ten organisations, is using Wax Digitals recycling division alone. In the past, all of
web3 procurement system to make it easier these transactions would have been carried
for staff across the consortium to select out manually. Issues were typically sorted
goods and services for purchase and place out over the telephone with multiple calls
orders quickly and simply, enable routinely taking place between the company,
streamlined nancial control and its suppliers and clients. This was a
authorisation, and accelerate the supply time-consuming, resource-intensive and
process to nearly always next day. expensive process. Today, the company
manages all of these collections through
Project management is a shoo-in for the Salesforce.coms Service Cloud, into which it
cloud, as Vodafone is discovering with the has integrated a large number of workows
Projectplace web-based communication and approval procedures.
cloudpro.co.uk TheUltimateGuidetoCloudComputing 25
CloudTypes
Shouldyougo
privateorpublic?
MUCH OF THE DEBATE about cloud
computing has focused on two distinct
types of operation: the public and
private clouds. But although they are
bundled under the convenient term of
cloud computing, they are very different
operational models.
PublicstartedwithAmazon
Public cloud, which is simply using the
Internet to access computer services
of one sort or another, has its roots
in the decision by Amazon in 2002
to use its vast infrastructure to offer
computer facilities to customers. The
company launched a range of services
to developers, including storage and a
development platform.
Amazons initiative, which preceded
the phrase cloud computing itself, has
been followed by the likes of Google
and a selection of hosting companies
as they seek to capture the interest in
this approach.
As if to demonstrate that theres
nothing new under the sun, this is
a throwback to the concept of the
computer bureau, where companies
paid a monthly fee to buy time on a
mainframe. Its a business that had
seemed to die a death when PCs and the
client-server model came into play.
Like the computer bureaux, public
cloud providers charge their customers
on a monthly basis generally according
to gigabytes transmitted and bandwidth.
The crucial aspect is that the cloud
26 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudTypes
cloudpro.co.uk TheUltimateGuidetoCloudComputing 27
CloudTypes
In the private
cloud, you have
responsibility
for buying
the hardware
and software,
maintaining it and
managing storage
28 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudTypes
PUBLICVSPRIVATECLOUD:prosandcons
PUBLIC PROS PRIVATE PROS
Less expensive than private clouds Can be secured to meet compliance
More accessible than private clouds at almost every level
Short-term or temporary Single tenant environments eliminate
commitments the possibility of other companies
Faster to deploy a single user than affecting performance
private clouds Private data centres usually
accessible to IT auditors
Customisable to meet an individual
organisations needs, rather than the
mass approach of public clouds
cloudpro.co.uk TheUltimateGuidetoCloudComputing 29
EnterpriseCloud
Board-level
prioritiesforcloud
30 TheUltimateGuidetoCloudComputing cloudpro.co.uk
EnterpriseCloud
Forthefinancedirector
Perhaps the biggest driver for the move
to cloud is the need to save costs, but
that move works on many levels.
The change that has garnered most
publicity is the move from counting IT as
a capital expenditure to an operational
Maxwell Cooter takes a tour one. Although often cited as a reason to
through the top board jobs move from on-premise hosting to cloud,
this is somewhat misleading. Whats
affected by what for many really at stake is cash ow; by going
will be a major business down the cloud route, customers no
change in the years ahead longer have to commit to large costs
upfront. It isnt necessarily true to say
cloudpro.co.uk TheUltimateGuidetoCloudComputing 31
EnterpriseCloud
32 TheUltimateGuidetoCloudComputing cloudpro.co.uk
EnterpriseCloud
cloudpro.co.uk TheUltimateGuidetoCloudComputing 33
EnterpriseCloud
FortheITdirector
IT directors have a different path to
cloud. They have been aware of the
debate and some of the buzzwords:
public cloud; private cloud;
software-as-a-service; outsourcing;
cloud-sourcing; crowd-sourcing.
But, unusually, these terms are just as
likely to have come from the board as
from the IT side.
For once, the majority of hardcore
techies and their sources have
underplayed the signicance of cloud.
This is partly because its perceived as a
threat outsource services and youll
surely lose part of your team, is the
thinking but also because for them
its an emergent set of trends in
virtualisation and hosting: a confection,
made out of pre-existing components
with the key innovations happening
several years ago. talking about private clouds, which is the
This makes the balance of emails data centre, virtualised and shrunk, and
hitting inboxes of IT directors all the made mobile (in the sense that it can
stranger; a vast number of people, with move from one compute host to another,
salespeople in the vanguard, are and nothing at all to do with the iPhone).
attaching the word cloud to their sales IT directors who get drawn into an
pitches as if its their road to personal early-adopter, single-purpose
salvation. In this new world the cloud is cloud-badged project, could nd
the outsourcing industrys wholehearted themselves in great difculty if they dont
attack on the massive budgets and check details carefully. This is because
imposing empires of corporate IT. Thats the momentum of the optimistic,
why less tech-savvy board colleagues ignorant and misguided can be an
love it so much. It isnt easy for an IT astonishing thing, and because the
director to reject all these overtures. hosting business has very little in the way
Among the ambitious Powerpoint of verication, standards, agreed
presentations therell be a quiet voice procedures, or compensation packages
from a clever guy who promises to chop for the day when something goes rather
your re-investment costs by 75%, amiss. Hosting underpins cloud, and also
without moving a corporate dataset wage packets if the IT director bets the
outside your building. That last guy is companys operations on it.
34 TheUltimateGuidetoCloudComputing cloudpro.co.uk
EnterpriseCloud
cloudpro.co.uk TheUltimateGuidetoCloudComputing 35
EnterpriseCloud
Enterprisecloudmeansbusinessagility
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36 TheUltimateGuidetoCloudComputing cloudpro.co.uk
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CloudandSMEs
Cloudandsmallfirms
agreatmatch
Small organisations are obvious candidates for cloud
computing but theres still an awareness issue and
SMEs should tread carefully, says Maxwell Cooter
CLOUD COMPUTING IS an unusual cloud and SMEs. There have been some
phenomenon in the IT world as it is being very enterprising small businesses who
used equally by small businesses and have been happy to adopt cloud as the
enterprises. Indeed, its the smaller backbone of their IT set-up but theres
businesses that should benet most as also a good deal of scepticism.
they are the companies that tend not to A survey in 2011 revealed some of this
have large IT departments. Some small hesitancy. According to VMware, a
companies have no IT departments at all provider of virtualisation software, only
and are serviced by someone doing the 48% of British SMEs had begun using
job in his spare time, or by a local cloud technology. While this looks
services company. encouraging, the same survey found that
This is not the norm when it comes to 60% of small businesses across Europe
technology. The natural order of things were going down this path. Other surveys
is for IT advances to start off in large have found even larger gaps in adoption
businesses and work their way and one reported that 43% of SME
downwards: mobile phones started as an respondents didnt even know what the
executive toy, now everyone has one; term meant.
routers were part of the arcane global There are two problems with this: for a
telecoms world, now people are start, there are millions of people who
connected at home. are happily using consumer cloud
Cloud computing has been different services, such as Facebook and Google
there are many instances of SMEs Mail, not to mention commercial cloud
adopting cloud-based delivery applications such as Google Apps and
wholeheartedly, while larger enterprises various smartphone apps. Second,
have hesitated. Indeed, Andy Burton gures from analyst IDC have shown
of the UKs Cloud Industry Forum that small businesses do not appear to
believes that cloud computing is the be miserly when it comes to cloud
rst case of a technology that started in 9.8 billion was spent on cloud
small businesses and has moved to technologies in 2009 and half the gure
larger ones. came from SME budgets, it reports.
The seeming gap between the
IstheUKlaggingbehind? perception of cloud and expenditure can
But thats not the complete picture. In almost certainly be explained by a lack of
reality things are not entirely rosy for the understanding of what cloud is. Theres a
38 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudandSMEs
Cloud computing
is thought to be
the rst case of a
technology that
started in small
businesses and
has moved to
larger ones
Software:thechoiceisyours
The other issue is that small companies
tend not to be burdened with large legacy
systems or have equipment that need to
integrated in a cloud service. Thats not
to say that some do not have bespoke
applications and specialist computer kit
that may take time to phase out.
But if youre operating a start-up, there
is little need to run any sort of IT facilities
at all. By opting for Google Apps or
Microsofts new Ofce 365 cloud suite, a
business could have all its productivity
software (word processing, calendar,
email and so on) working in the cloud.
The business could also use accountancy
software such as KashFlow to run its
nancials, Salesforce.com to handle its
customer relationships and any number
of software packages to look after its HR,
marketing and procurement.
Higher up the scale, NetSuite offers
cloud ERP (enterprise resource
planning) software the type of package
thats normally the preserve of large
businesses. In fact, just about every
aspect of a modern day business could
be run on cloud-based software.
And its not just new cloud vendors
that are providing options for these
cloudpro.co.uk TheUltimateGuidetoCloudComputing 39
CloudandSMEs
Countingoncostsavings
But its not just the availability of heaps
of software thats attractive to small
business. There are also nancial
benets. One of the biggest problems
facing start-ups is cashow, and the
onset of cloud has reduced the cost of
getting off the ground signicantly in the
last decade. The arrival of cloud has also
made it easier to plan nancial
forecasting becomes easier and
paying for services is now more simple.
There are no more visits to the bank
manager trying to argue about credit
arrangements: a whole IT infrastructure
can be arranged by the judicious use
40 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudandSMEs
cloudpro.co.uk TheUltimateGuidetoCloudComputing 41
CloudContracts
Whattolookoutforin
CLOUD CONTRACTS
If you rely on a public cloud service you could be in for a shock if the
service goes down, as Lesley Meall describes
ITS ALL VERY WELL being charged only attention many had paid to the small
for the computing power you use as print before they signed up. As Martyn
long as it is there when you want it. So Hart, chairman of the National
the outage of Amazons Elastic Cloud Outsourcing Association (NOA), says:
Compute (EC2) service in April 2011 Cloud computing is not like normal
when some users were ofine for several outsourcing, meaning that contracts
days, an eternity in todays trading world can be far less rigorous than when
made a lot of people understandably signing up with say a payroll supplier.
very unhappy. It brought a wry smile to That said, private cloud contracts, at
the faces of observers who said it was least, can look a lot like traditional
only a matter of time before something managed services, which in turn can be
like this happened, although not because much like outsourcing as we know it.
cloud computing is inherently risky. But public cloud services, which many
The incredulous cries of unhappy smaller organisations are now using for
Amazon users showed just how little vital parts of their business such as email
cloudpro.co.uk TheUltimateGuidetoCloudComputing 43
CloudContracts
44 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudContracts
Contractssummary
Heres a quick checklist when it
comes to contracts:
cloudpro.co.uk TheUltimateGuidetoCloudComputing 45
CloudContracts
ONCE YOUVE MADE the decision to On the other hand, cloud companies
move away from computer systems that may point out that having an IT
are physically located within your infrastructure in-house does not
organisation, theres another problem to necessarily mean that your servers or
solve, and thats the contract you need network are more reliable. They will say
to have with a provider. that managing data centres is their core
The type of contract that you have business and will claim that theyre
with the cloud provider (or a reseller of much better at managing this
the cloud providers service) is crucial. infrastructure than user organisations.
Get this part wrong and your business However, while its true that cloud
could be looking at some serious providers will tend to have more robust
nancial consequences. and better managed infrastructures, you
There are three main areas to need more reassurance than that. Its
concentrate on: reliability, security and vital that all the ne details are built into
liability, and you should be paying keen the service. And the type of cloud
attention to a cloud providers policy on provider is important here one factor
all of them. to bear in mind is that buying a standard
package from a larger operator will
Is it reliable? leave very little room to manoeuvre,
Reliability is about the technical while customising an offering from a
performance of the cloud providers smaller reseller could offer a more
service. Do their servers go down? What exible experience.
mirroring options do they have in place?
What monitoring systems do they have
in place? You should be prepared to
carry out due diligence on the cloud
companies and assess their
performance. Look at the companys
past performance does it have a
good reputation?
CONTRACTS
whattofocuson
Frank Jennings, a senior partner at
DMH Stallard, gives an overview
of the main areas to look at when
entering into a cloud computing deal
46 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudContracts
Who is liable?
The third factor to look at is liability
what happens when things go wrong
with the day to day service? Again, levels
of compensation need to be placed in
the contract but money will be of little
satisfaction to a customer that has
gone bust.
Some cloud providers try to exclude
liability, rather in the same way that
insurance companies will look not to pay
out on their policies although you
could get around this by taking out your
own insurance.
Another option is that cloud providers
will offer some sort of protection but this
will involve paying a higher fee for a gold
or platinum service. This could mean
that the cloud company is offering a
more robust service, say at a high
quality data centre with better
monitoring facilities. Or it could be
cloudpro.co.uk TheUltimateGuidetoCloudComputing 47
CloudContracts
INDEPTH:topninecontractareastowatch
Analyst rm Gartner suggests the following contract issues to consider when signing up with a
cloud computing provider:
1 Uptime guarantees Gartner says it has customer data. You should ensure there is
seen many contracts that have no uptime access to your own back-up measures
or performance service-level guarantees where necessary
2 Service-level agreement (SLA) penalties 6 Data privacy conditions no personal data
these should be nancial and ideally sharing should take place but contracts
money-back and not credits can be complex where there are multiple
3 SLA penalty exclusion look carefully at suppliers (eg. both a software and platform
exclusions to penalties, such as ensuring a provider is used)
downtime calculation starts exactly when 7 Suspension of service best to have an
the downtime starts agreement that payments in any current
4 Security Gartner says the providers legitimate dispute should not lead to a
security practices should be at the same suspension of service, says Gartner
level as, or exceed, your own practices, 8 Termination provider contracts often
especially for national privacy-related have 30 day termination clauses look to
regulations. It recommends negotiating extend this where possible
SLAs for security breaches 9 Liability Gartner recommends aiming for
5 Business continuity and disaster recovery better liability protection than just a return
contracts rarely contain any provisions of yearly fees.
for disaster recovery, says Gartner, and SOURCE: IT PROCUREMENT BEST PRACTICE: NINE CONTRACTUAL
some providers take no action to back-up TERMS TO REDUCE RISK IN CLOUD CONTRACTS GARTNER
48 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudStorage
DATASTORAGE
IN THE CLOUD
nowanyfirmcanbenefit
Offsite data backup has long been multiple, geographically distributed
servers. Not only does this signicantly
a staple of enterprise disaster cut the chances of all your data being
recovery strategy but has been too lost, it also brings the same disaster
recovery strategies used by large
expensive or complex for smaller enterprises within reach of much
organisations. Thats all changed smaller companies.
now, as Davey Winder explains Complexity costs money, both in
terms of infrastructure (such as tape
drives, virtual machines, offsite storage
Thebenefitsaresignificant and technical staff to maintain it all) and
It doesnt take a genius to work out also business downtime (if you have
that multiple copies of your data, stored data on tape drives at offsite storage and
across disparate servers, is much safer need to restore servers, the time to
than having all your data eggs in one recovery becomes stretched). Keeping
basket. But that can cost a lot of money it simple in the cloud allows smaller
if its your own hardware, so look to the organisations to budget for business
cloud where a service provider will be continuity, with the added value of
able to duplicate your data across virtually instant data recovery.
50 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudStorage
butwatchoutforpitfalls
The biggest pitfall of a cloud-based cloud storage provider. No matter how
disaster recovery strategy is that you contractually watertight your SLA is, if
may be at risk with a single supplier. things go wrong all it actually provides is
While the ability of the cloud to provide legal leverage. Ensure, therefore, that
data redundancy across multiple and your SLA explicitly details an agreed
disparate servers gives a huge amount of remediation process in event of failure so
condence, you also have to allow for the that your business does not suffer unduly
worse case scenario: your cloud provider while waiting for compensation to arrive.
going out of business and taking timely
access to your data with it. So to Gettheprioritiesright
guarantee business continuity, retaining Asking the right questions of a cloud
a full backup on your own servers or storage provider is essential if both the
contracting a secondary cloud service transition to a cloud-based disaster
might be wise. recovery process and its effectiveness
Service level agreements (SLAs) are a once in place are to be trouble free.
vital part of any cloud contract, but they Proper investigation is vital when it
are not a magic bullet that can save your comes to determining if a provider can
business if things go pear shaped at your meet the needs of your business in terms
cloudpro.co.uk TheUltimateGuidetoCloudComputing 51
CloudStorage
If a cloud
provider falls at
any of the other
due diligence
hurdles then it is
unsuitable to be
trusted with
your data
52 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudStorage
CLOUDSTORAGE
benefitssummary
Cloud storage can address many
challenges that physical storage
doesnt:
cloudpro.co.uk TheUltimateGuidetoCloudComputing 53
CloudFinances
Crunching
thenumbers
Would you weigh up the nancial benets of the cloud?
Or is it a no brainer? Lesley Meall asks the right questions
WE ARE ALL AWARE of the need to
factor nancial considerations into any
technology-related decision-making
process but this doesnt make it easy to
do. So although accounting concepts
such as net present value (NPV), return
on investment (ROI) and total cost of
ownership (TCO) are routinely used to
estimate and compare IT costs, as Chas
Roy-Chowdhury, head of taxation at the
Association of Chartered Certied
Accountants points out, there is plenty of
room for interpretation, and you could
have a situation where two accountants
end up with different gures.
Its not hard to understand why.
Whether you are considering using
software-as-a-service (SaaS), or
comparing alternatives such as public
clouds and private clouds, or totting up
the bill for maintaining the status quo, Its difcult to work out the cost
there are many cost-related factors to associated with any technology
consider. These range from set-up, purchasing decision, but cloud
service and training, to overheads such computing is more challenging, says
as oor space and electricity, to less Roy-Chowdhury, citing barriers such as
tangible costs such as those associated not being able to compare like with like.
with security breaches and their impact You pay forever to use cloud services,
on reputation. he observes, which adds up to some
Then there are the implications of pretty big TCO numbers. But as he adds:
cloud computing for tax and nancial Being able to access information and
reporting, and the great CAPEX vs infrastructure any time and from
OPEX debate. anywhere is very advantageous, and the
54 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudFinances
cloudpro.co.uk TheUltimateGuidetoCloudComputing 55
CloudFinances
Cross-companyvisibility
White Springs is a fast-growing UK
company with operations in Europe and
the US, so it was obvious to White that may draw a line around public clouds
putting in his own infrastructure would (such as Amazon Web Services) and
require huge resources, and impede the decry private clouds and hybrid clouds
development of the business. I wanted as oxymorons, but once these terms
my staff to focus on growing the rm, not entered the marketing-speak of vendors
on running the infrastructure, he says, such as Cisco and IBM, cloud computing
White Springs did start with a PC was further redened, so businesses
accounts system, but as soon as may as well acknowledge this and
FinancialForce.com (accounting that consider the relative costs of all the
runs on Salesforce.com) was available, it available options.
switched. Gaining greater functionality The decision-making process is not
and visibility of customer and nancial necessarily a private data centre and an
information across the company was on-demand data centre (ie. IaaS). Its a
more important than the long-term cost more complex choice that also includes
of doing it, he adds. all sorts of hosted and managed services
While the benets of SaaS may be so (many of which you will nd described as
great that the long-term nancial costs types of cloud). Its not an all or nothing
seem like an irrelevance, things are less choice either, because there is the
straightforward in the world of virtual possibility of combining on-demand
data centres and infrastructure-as-a- public resources with those provided by
service (IaaS), from the point of view of your own data centre (whether thats
technology and nance. Cloud purists software applications, computing power,
56 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudFinances
cloudpro.co.uk TheUltimateGuidetoCloudComputing 57
CloudFinances
Financialbenefitsofcloudcomputingandservices
Factor On-premise Cloud computing
58 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudFinances
SOFTWARE LICENCES
astateofflux
FREEDOM OF CHOICE can sometimes lose the will to live trying to work out how
feel like a mixed blessing. Take the to license all of this or estimate how
recently released Microsoft Ofce 365, much it is eventually going to cost you.
the software giants new cloud service In the time-honoured tradition of the
that combines its productivity offerings software industry, licensing for Microsoft
such as Word and Powerpoint. On the Ofce can be rather opaque, particularly
one hand, you can now choose from for enterprise users. You may be able to
numerous variants of Microsoft-hosted gure out which variant you would need
Ofces (P1, K1, K2, E1, E2, E3, E4, and so if you were radical enough to want to
on), and you can use them instead of, or access Ofce 365 from somewhere such
mixed with, other approaches to as an airport kiosk or an Internet caf
providing remote and local access to MS (not all subscriptions allow this). But if
Ofce tools; on the other hand, you could you already have a traditional Ofce
cloudpro.co.uk TheUltimateGuidetoCloudComputing 59
CloudFinances
deployment, and you want to understand cases, the vendor wont have given their
the differences between licensing Ofce position this much thought. Konarys
as a software product and as a research indicates that many are
subscription service you face a currently deciding their policies on the
challenge of a different order. y, and that very few have yet to come
According to Microsoft, the volume up with cloud-friendly licensing.
licensing of software makes it easier and Software vendor CCH, an accounting
more affordable to run software on specialist, is not untypical in being in a
multiple computers within a single state of ux. In the US we are moving
purchasing organisation. Yes, well. very strongly towards on-demand
The enterprise volume licensing cloud-based offerings, says Simon
arrangements for MS Ofce Professional Crompton, executive director of CCH UK.
But in the UK, some of its software
products are available only via traditional
Working through software on-premise installations, despite being
licensing issues requires a available as both on-premise and
lot of upfront planning and on-demand offerings in the US. We are
moving to the cloud doesnt very open minded and pragmatic about
the cloud, he adds. If clients ask for
necessarily make this easier
something we look at it and consider the
commercial implications.
Plus for Ofce 365 are so complex that So what happens if a UK client wants
explaining them requires a seven page to build their own private cloud and
document, which is not an easy read. virtualise some CCH applications? Well,
This level of complexity is not unique the software licensing is based on the
to Microsoft. Working through software traditional concurrent users model and
licensing issues requires a lot of upfront the minimum contract term remains one
planning, warns Amy Konary, an analyst year, which isnt very exible. We have
at IDC, and moving to the cloud doesnt used temporary licences to support
necessarily make this easier. Licences clients during peak processing periods in
for subscription-based public cloud the past, recalls Crompton, but hes
services are relatively uncomplicated, talking about years ago, when a change
but when organisations are trying to in legislation created some one-time
migrate some or all of their applications seasonal spikes that affected lots of
or infrastructure into hybrid or private CCH users. At the moment, he says:
clouds (hosted by the enterprise or by There isnt a demand for this.
third parties), licensing is more complex.
Negotiating with software vendors Hybridlicensing
that have varying degrees of interest Meanwhile Unit4, a business software
in cooperating with you can be player, has gone further, as Ton Dobbe,
excruciating, says Konary, and not just vice president of product management
because you may have to go through explains. We have put in place
the negotiation process on multiple integration between Agresso Business
occasions. Attitudes may depend on World and FinancialForce.com, he says,
your companys monetary and strategic adding that these are both owned by
value, she suggests, though in some Unit4, and provide customers with mixed
60 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudFinances
cloudpro.co.uk TheUltimateGuidetoCloudComputing 61
Environment
Isthe
cloudgreen?
Is cloud computing a greener way to go with IT? Yes, says
Maxwell Cooter, but its a complex calculation to prove it in detail
TheUltimateGuidetoCloudComputing 63
Environment
CAPGEMINI
opponents, however, who say that there
are some big questions to be answered
rst and that the blanket statement that
cloud computing is greener is a
misleading one. Its getting to be a
heated debate with both sides
brandishing the gures to support
their case.
The latest entrant in this form of
climate war is research company,
Verdantix, which released
a report in 2011 claiming A move to the
that American companies
could drastically cut CO2
cloud in the US
emissions by turning would deliver
to cloud computing. CO2 reductions
According to the report, a of 85.7m tonnes
wholesale move to cloud each year, the
delivery would deliver CO2
emission reductions of
equivalent of
85.7m tonnes each year, nearly 200m
the equivalent of nearly barrels of oil
200m barrels of oil.
That translates into energy savings for organisation with a vested interest in
US businesses of $12.3bn in the next ten promoting green measures. And it wasnt
years if they adopt cloud services. The long before dissenters were rounding on
Verdantix research predicts that the the research ndings and nding aws in
nancial benets from energy reduction the argument.
and increased IT efciency in 2011 alone
would reach $824m by the end of the Whatstheenergysource?
year in the US. One of the main critics of the survey,
Meanwhile market research rm GreenMonk analyst Tom Raftery, pointed
Pike Research has predicted that cloud that there had been some rather dubious
computing will lead to a 38% reduction assumptions. The mistake here is
in worldwide data centre energy presuming a direct relationship between
expenditures by 2020. Microsoft too has energy and carbon emissions. While this
said that the cloud can cut energy might seem like a logical assumption, it
consumption and carbon emissions by is not necessarily valid, he wrote.
30% or more, as the scale and use of If I have a company whose energy
virtualisation in the cloud just makes retailer is selling me power generated
computing more efcient, while primarily by nuclear or renewable
computer makers are busy making sources for example, and I move my
components such as memory and applications to a cloud provider whose
processes more efcient too. power comes mostly from coal, then the
The Verdantix survey was sponsored move to cloud computing will increase,
by the Carbon Disclosure Project an not decrease, my carbon emissions.
64 TheUltimateGuidetoCloudComputing
Environment
Location,location...
A good case in point has been an
argument made by Greenpeace about a
data centre run by Facebook in Oregon,
This is the key to many of the which takes much of its power from
arguments: what is the source of the coal-red sources. But in fact it is said to
power that is driving those data centres? be one of the worlds more efcient
It was a question raised by Greenpeace facilities, because the cool climate in the
in 2010 when it published a report, How state allows it to run without mechanical
dirty is your data?, pointing out that chillers, one the biggest energy hogs in a
there were serious concerns about some data centre.
of the big players in cloud computing. One organisation that is trying to
Gary Cook, the lead author of that improve the way in which sustainable
report, said that the problem was the lack computing is reported is the Green Grid,
of transparency from some of the cloud a non-prot consortium of end-users,
companies the secretive nature of policy makers, technology providers,
rms such as Google and Microsoft has facility architects and utility companies
made it difcult to assess the claims they looking to improve the efciency of
make. He agreed, however, that data data centres.
centre and server design innovation can Ali Moinuddin at data centre player,
greatly improve efciency and reduce Interxion, is also the European
overheads in energy demand and that communications committee co-chair of
more in the sector were comfortable with the Green Grid and is aware that there
sharing best-practice data, but that needs to be a better standard of
without more transparency, such efforts assessment. The green data centre is
were not worth much. at the heart of the whole movement
Cook has a point and some cloud towards sustainable computing. We need
TheUltimateGuidetoCloudComputing 65
Environment
Whosthegreenestofthemall?
The ultimate in green data centres could be reducing carbon dioxide emissions. We need
Icelandic cloud provider, GreenQloud, which to change the energy sources to renewables;
uses geothermal energy to power its data its that simple.
centre, with a lot of hydroelectric power And in a lesson to other providers, the
thrown in for good measure. company records all energy use and carbon
Of course, there arent many cloud emissions made by each customer and makes
providers that are sitting in a geographic the data freely available to them.
region with millions of litres of naturally There are certainly other providers that
heated water on tap. The company uses would claim equal credentials with
100% renewable energy drawn from the GreenQloud. In the UK, Capgeminis Merlin
Icelandic grid, which is 30% geothermal data centre, in Swindon, is said to be setting a
and 70% hydro. global standard for energy efciency, with a
CEO Eirikur Hrafnsson says that data power usage effectiveness (PUE) rating of just
centres that claim to be green base the claim 1.08 (1 would be perfect). Next Generation
on spurious reasoning. When big players talk Data (NGD) Europe, based in Newport, Wales,
about their greenness all they are saying is is claiming to be the rst in Europe to run on
that their data centres are now more efcient 100% renewable energy. And Telehouse takes
in cooling IT equipment. Energy efciency of waste heat from a centre in Londons East End
data centres and servers cannot keep up with to pipe hot water to 1,000 local homes, free
future energy needs and be effective in of charge.
66 TheUltimateGuidetoCloudComputing
CloudandHR
Unlockingyour
organisationaltalent
Human resources could be one of the most important cloud
applications, thanks to its key organisational role, says Billy MacInnes
68 TheUltimateGuidetoCloudComputing cloudpro.co.uk
CloudandHR
ADOPTING CLOUD SYSTEMS holds the between what they wanted to do for the
promise of giving HR executives access business and what they could do with the
to systems that enable them to improve systems. A more recent survey returned
their roles by applying a more analytical to the same issues and found, if anything,
and strategic approach to their work. It that the gap is getting worse in some
also gives them a new way meet changes areas, such as acquiring and retaining
in the business. The increasing adoption key talent, developing key talent and
of mobile technology and mobile working building leadership capabilities.
practices in many companies, for All of which suggests HR professionals
example, is putting an emphasis on would like systems that do a better job of
employee self-service and accessibility supporting them in fullling their
that is often easier to deliver from a objectives for the business. Cloud
cloud-based system than an onsite one. software could help to bridge the gap.
Businesses are evolving and adopting If the cloud means they are no longer
new working practices and styles, putting hamstrung by the performance
pressure on HR to meet and support constraints that affect their in-house IT
those changes. With budgetary resources, HR professionals should be
limitations on IT expenditure, cloud better placed to concentrate on strategic
software can be an attractive way of issues such as talent management,
keeping pace with such changes without building leadership capabilities and
being constrained by in-house IT. supporting organisational innovation
Theres no doubt this is a welcome and change.
development. A global survey of more
than 200 HR executives by Saugatuck Thesecurityobjection
Technology, a cloud consultancy, But one big objection is of course
identied signicant limitations in the security. A specialist provider of
effectiveness of their existing systems to cloud-based human resources (HR)
meet their priorities for the organisation. software, HR Locker, recently noted how
The survey identied a number of areas the issue of hosting HR data was raised
HR executives were most concerned as a security concern during a customer
about their ability to full: meeting. So the customer was asked
where the companys existing HR
Acquiring and retaining key talent software was installed and was shown
Developing key talent a server in the corner of the ofce: It
Aligning employee performance with was accessible to everybody and there
business results and compensation were four USB ports staring invitingly
Building leadership capabilities out at us.
Supporting organisational innovation The HR Locker team asked whether
and change. the customer felt this was secure and
the reply came back that he wasnt sure
When they were asked to rank the because the IT guy looked after it.
ability of their HR systems to deliver It then emerged that the company had
these priorities, it became clear the employed three of these IT guys in as
systems did not measure up as well as many years.
they would like. In most cases, there was While this anecdote concerns one
a difference of 30 points or more company, its probably indicative of HR
cloudpro.co.uk TheUltimateGuidetoCloudComputing 69
CloudandHR
Debunkingtheobjection
This highlights what could be an
intriguing contradiction in the shift to
cloud computing, namely that one of the Centre. Why? Initially, we tried to host
most prominent causes of anxiety in any Cintra iQ ourselves, says CEO Carsten
potential adoption of cloud-based Staehr, but our on-premise solution
software may also be one of the demanded huge upfront costs to
strongest benets it can deliver. HR purchase the required equipment, build
Locker, for example, uses Microsofts the infrastructure, add the necessary
$500m data centre outside Dublin to disaster recovery capabilities and
host its service, which provides much maintain the necessary high levels of
greater resilience and data security than data security to store our clients
anything its customers might have sitting sensitive HR and payroll data.
in a corner. All of the reasons cited by Staehr for
But if suppliers are condent enough opting to use the Cloud Computing
to use hosted providers to deliver their Centre as a host apply equally to HR and
products and services, shouldnt IT departments. Removing or assuaging
customers feel the same? HR and payroll concerns about security is one of the
services provider, Cintra, recently ways in which the cloud can help HR
announced that its Cintra iQ offering professionals to concentrate more on the
would be hosted by the Cloud Computing core functions of their job. And as we
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CloudandHR
cloudpro.co.uk TheUltimateGuidetoCloudComputing 71
SupplyChain
SUPPLY CHAIN
ahotspotforthecloud
72 TheUltimateGuidetoCloudComputing cloudpro.co.uk
SupplyChain
cloudpro.co.uk TheUltimateGuidetoCloudComputing 73
SupplyChain
Cloud computing
systems could
lead to a
revolution in the
way supply chain
services are
provided
74 TheUltimateGuidetoCloudComputing cloudpro.co.uk
SupplyChain
cloudpro.co.uk TheUltimateGuidetoCloudComputing 75
Marketinginthecloud
Agreatlead
formarketing
Cloud-based systems for marketing protability, with particular attention to
company priorities, which are likely to
functions are booming but marketers include customer retention in current
have much to do still in integrating tough trading conditions.
data, nds Graham Jarvis Analyst rm Gartner has a good
picture of the most popular cloud-based
and on-premise marketing solutions. It
ALTHOUGH MARKETING (and its regularly produces magic quadrants to
counterpart, sales) have traditionally analyse where certain vendors and their
been among the last functions to receive
the full attention of the IT department,
the rise of the multichannel world, in
which customers are much more in the
driving seat, has elevated marketers in
the pecking order. Not only do they have
more budget to spend, but its an area
where they often have a good deal of
autonomy on buying decisions,
especially now the cloud is opening up
applications to non-technical audiences.
Applications that are on the agenda
include marketing automation solutions
to track marketing campaigns, webinar
and web conferencing services such as
WebEx, as well as the various array of
social media and direct mail and email
management tools. A key driver is that
todays online world allows marketers to
track almost everything a customer
does, because so much is now done on
the Internet.
But it is not so easy to nd out what
applications are likely to be the best t
for an organisation. Its important to
think about which cloud and on-premise
solutions will improve a marketers
ability to increase an organisations
sales, customer loyalty, revenue and
76 TheUltimateGuidetoCloudComputing
Marketinginthecloud
best of breed products are positioned solutions are best of breed for
in the market, including quadrants multi-channel campaign management,
for CRM multichannel campaign and so you would look at systems from
management and social CRM companies such as Unica, SAS and
(CRM being customer relationship Teradata, says Laurence Buchanan,
management, of course). head of CRM at Cap Gemini. These top
There is a huge choice of CRM systems are though mainly aimed at
software and the term can mean many enterprise customers, and there is now a
things to different marketers, but great choice of cloud systems that cater
marketing does need a wide range of for many niche marketing functions and
tools to full many activities, such as also integrated solutions but
email marketing, social CRM, search integration does remain a big challenge.
engine marketing, mobile marketing,
social media, e-commerce, customer Whythecloudisvital
services and lead generation. According to Arthur Sweetzer, chief
If you look at Gartners Magic marketing ofcer at 89 Degrees, a US
Quadrants, you will see that on-premise marketing agency, many marketing
executives are struggling to gather and
leverage marketing intelligence across
disparate addressable marketing
channels, and only a third of marketers
have integrated their CRM systems into
operational marketing systems such as
prole- and behaviour-driven email.
He gives four reasons why cloud
systems can accelerate time to market,
promote relevance to prospects, and
improve marketing revenue by as much
as a third over a year. First, as few have
integrated the marketing data
warehouse with email marketing
applications, he suggests using a cloud
marketing intelligence database instead,
and second, the sheer speed of getting
such a cloud system running means that
disparate data silos can quickly be
brought together.
Then Sweetzer notes that marketers
can pick and choose the functions they
need much more easily from cloud
providers than from traditional managed
services companies, and nally that a
key goal is to look at the insight that
centralising multichannel marketing data
can give.
Cloud based marketing can help you
TheUltimateGuidetoCloudComputing 77
Marketinginthecloud
78 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Marketinginthecloud
WhatorganisationsuseCRMforandwhattheyaddon
What do people use CRM for? Add-ons that companies are using (in order):
Overwhelmingly, of course, its for contact Customer record lists/data cleaning service
management (94% in a recent survey). Customer reference system
The top applications/areas are (in order): Customer satisfaction surveys/monitoring
Contact management Extra reporting/analytics
Opportunity management Business intelligence services/
Sales analytics/forecasting market research
Telesales/inside sales Call centre systems
Customer service Relationship mapping tools
Lead generation Web analytics.
Mobile working SOURCE: INSTITUTE OF SALES AND MARKETING MANAGEMENT/
Territory management. ONESOURCE CRM SURVEY 2011
cloudpro.co.uk TheUltimateGuidetoCloudComputing 79
CloudExceptions
Whatnotto
doinpublic
There is a lot of industry hype on what we should do
with the new powers offered by public cloud computing.
Adrian Bridgwater provides a reality check
1 OUTPUTAPPLICATIONS
HEAVYWEIGHTINPUT/
2 COMPLEX,SENSITIVE
MISSION-CRITICALDATA
A software application that is built
on-premise hardware to t the bill.
Using the cloud in this instance is not
necessarily a problem, but it is really not
around the need to collate and manage prudent or efcient. For example, if you
sensitive data is not best suited to shared know you need a car seven days a week,
multi-tenancy cloud computing. Yes the you dont go out and hire one every
public cloud is very safe and there are morning now do you?
security controls and rewalls that will It is the same concept. The cloud is
provide customers with adequate levels there to help cope with unpredictability
of protection, but you will be introducing and changeability, not computing
additional risk that could be mitigated scenarios characterised by stability.
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CloudExceptions
4 COMPLIANCE
STRINGENTAUDITand
cloudpro.co.uk TheUltimateGuidetoCloudComputing 81
CloudExceptions
6 CLOUDGROWTHIS
HORIZONTAL,NOT
VERTICAL
Evangelists of open source IT argue that
the core issue of escalating expenses
associated with any vendor is inherently
Applications that can only scale from caused by lock-in to that provider. If we
increasing the performance of the server accept this as true, then there are
they are running on are not really able to ramications for the cloud, says Aram
exploit the fundamental benet of cloud, Kananov, a product marketing manager
which is horizontal scale we need the at open source specialist, Red Hat.
right vehicle for the job in hand. Dont We see such tactics adopted by a
use a helicopter when you need a majority of vendors that base their
Hercules, says Stephen Eveleigh, technology on closed proprietary
product marketing manager at Star, software and proprietary standards, he
an on-demand computing and says. This is why all major players in the
communications company. emerging cloud space often base their
Multi-tenanted/public cloud has its stacks on open source software and
place, but will not meet all business open standards to prevent any particular
requirements, he says. Some vendor dictating their future technology
applications need to be integrated and decisions. This is also the reason why the
tailored to company needs with a vast majority of public cloud service
dedicated, private cloud you can achieve providers run their infrastructures on the
this. The new breed of cloud-savvy IT Linux operating system. Indeed, the new
directors understand business emerging cloud applications are
requirements and make business- extensively using open source software.
focused decisions on whether public,
private or hybrid are the right choice for
each application.
Michael Newberry, Windows Azure
8 CRITICALSEPARATION
SITUATION
Just as application performance needs to
lead at Microsoft UK, points out that exploit the inherent cloud feature of
since multicore computer processor scale through replication, so does
became mainstream, performance application resiliency. A single instance
growth has generally come from the on any public cloud can be vulnerable to
adoption of concurrency. Applications all the aspects of a shared public service,
that cannot scale concurrently, those as Stars Steve Eveleigh comments. A
that are single-threaded for example, cloud-savvy IT director will work with
will not run faster with more cores cloud services providers who get this
regardless of whether those cores are and will work to mitigate this risk.
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CloudExceptions
9 CUSTOMBUILDBAD
STANDARDBUILDGOOD,
10 CRUMBLING
FOUNDATIONS,
PALTRYPORTABILITY
fast standards. From portability of
cloud-to-cloud applications, to bringing
cloud-based workloads back into the
The cloud may be up there and the new enterprise data centre if circumstances
computing resources it offers may be change, portability is paramount.
cloudpro.co.uk TheUltimateGuidetoCloudComputing 83
Security
Theweakestlink:
howsecureisthecloud?
Cloud security is the number one concern for most users, and as
Adrian Bridgwater discusses, we may have to wait for trust to build
84 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Security
ty
cloudpro.co.uk TheUltimateGuidetoCloudComputing 85
Security
access the rows or table values in (for application layer to provide real-time
instance) a cloud application database visibility of clients most important
that they are authorised to have access websites and applications.
to. For example, a sales rep using a What this means is that customers
cloud-based application and its will get performance management tools
corresponding data store may only be and a web-scale engineering team on
able to view their own sales and not the a ve-minute notication of events
gures of their colleagues or their service level agreement (SLA) to
department or company as a whole. address sensitivities. When cloud users
want security analysis reviews for
Thevendorsviewpoint applications, infrastructure and
Cloud providers themselves are of architecture, with this service they can
course best placed to handle customers have it. As the cloud computing evolves,
security concerns because they this kind of SLA is likely to become
themselves sit closest to the data. In an increasingly prevalent.
effort to share some of Echoing this proximity message is
this proximity, cloud Michael Newberry, product manager
People have infrastructure provider for Windows Azure at Microsoft UK.
trusted their Rackspace recently Cloud providers uniquely understand
money to banks launched its so-called their platform and are best placed to
for years, but may extreme mission critical describe the controls customers can
only have had cloud offering, known as use to achieve their required level of
Critical Sites. This service security, so customers can then
cloud for months is said to drill into the determine if the capabilities and controls
86 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Security
cloudpro.co.uk TheUltimateGuidetoCloudComputing 87
AtoZofProviders
Whoswho
incloud
computing
There are hundreds of companies
active in the cloud computing
space we pick the top movers
and shakers in the industry
88 TheUltimateGuidetoCloudComputing cloudpro.co.uk
AtoZofProviders
cloudpro.co.uk TheUltimateGuidetoCloudComputing 89
AtoZofProviders
Cisco
Cisco is a multinational systems
company providing communications
and networking technology. Its cloud
offerings include:
Secure MultiTenancy owned
collectively by Cisco, VMware and
NetApp, this cloud-hosting
infrastructure-as-a-service offering
uses pre-tested and validated CloudShare concept and IT training and certication.
computer stacks and fault-tolerant enables you CloudShare Enterprise is the main
to create
architecture virtual data infrastructure-as-a-service offering, and
WebEx Ciscos collaborative suite centres other products include CloudShare Pro,
that combines real-time desktop using a a free, individual version of the platform
self-service
sharing and phone conferencing, and platform that enables individuals and small
allows the sharing of documents, teams to manage complex virtual IT
presentations and applications across environments in the cloud.
PCs, Macs and mobile devices. Up to
six webcams can be streamed at once. Commensus
A UK provider of a cloud platform known
Citrix as C-VIP, which operates across ve data
Citrix provides cloud services such as centres, three in London, and one each in
server and desktop virtualisation, Paris and Frankfurt. It backs its service
software-as-a-service, conferencing, with a 99.999% uptime service-level
open source products and networking. agreement.
The company has data centres around
the world including the UK, India and Dell
Australia. It acquired XenSource in Dell is known mainly as a PC maker,
October 2007. Citrix OpenCloud is the but it also provides cloud computing,
main cloud computing platform. consulting and data storage services.
Offerings include infrastructure
CloudShare management, virtual integration and
Previously known as IT Structures, mobile management services.
CloudShare is a California-based cloud
provider founded in Israel. It offers a ElasticHosts
self-service platform that enables ElasticHosts is a London-based cloud
organisations to create virtual data provider. The company stands out
centres for a range of business functions mainly because it charges by the
including application development and resources required, such as memory,
testing, demonstrations, proofs of disk, processor and network, as separate
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AtoZofProviders
cloudpro.co.uk TheUltimateGuidetoCloudComputing 91
AtoZofProviders
92 TheUltimateGuidetoCloudComputing cloudpro.co.uk
AtoZofProviders
Oracle
NetSuite Software giant Oracle delivers both
NetSuite is a provider of cloud private and public cloud computing
computing business management solutions. Clients pay for what they use
software. Key offerings include: and have a choice of deployment models
NetSuites business software using Oracles scalable cloud
incorporates everything from infrastructure. Offerings include:
accounting and nancial resource Oracle Exalogic Elastic Cloud a
planning (ERP) to customer platform for enterprise-wide data
relationship management (CRM) centre consolidation on any scale, from
NetSuite OneWorld, a cloud-based small departmental applications to
on-demand system to deliver real-time large and demanding mainframe
global business management and applications
nancial consolidation to mid-sized Oracle On Demand a exible
companies with multinational and deployment model for applications.
cloudpro.co.uk TheUltimateGuidetoCloudComputing 93
AtoZofProviders
Parallels
Parallels provides virtualisation and
automation software across all of the
main operating systems. The company
is working with a group of independent
software vendors and service providers
to expand their cloud products for
customers of all sizes, including helping
large companies to develop in-house
clouds.
PlanB
Plan B is a specialist IT disaster recovery
business based in the UK. It says it
provides near instant recovery of
working systems on its Rescue Cloud of Red Hats variety of vendors. Its philosophy is that
remote virtual servers. Enterprise you should be allowed to use and
Virtualisation
platform manage those assets as one cloud rather
Rackspace is ideal than being locked into one vendor and it
Rackspace has been hosting website, for heavy delivers a number of cloud solutions
demand
applications, email servers, security and including its Enterprise Virtualisation
storage since 2001. It makes a big deal of platform for businesses with heavy cloud
what it calls the fanatical support it demands.
offers to customers and has several
levels of hosting services in both the RightScale
public and private clouds. Offerings RightScale is a cloud computing
include: management company that offers an
Cloud Files, which provides unlimited automated platform for on-demand
online storage with easy upload and cloud services. Products include the
speedy le transfer Cloud Management Platform for
Cloud Servers, which allow you to reducing administration and the
choose your own operating system, complexity of managing cloud
choose a server size and only pay for deployments, while still giving exibility,
what you use control and portability.
Cloud Sites, which spreads your trafc
across a cluster of servers Salesforce.com
Jungle Disk and Cloud Drive, which Salesforce.com specialises in CRM
allow small business and personal (customer relationship management)
users to securely store, back-up and applications. It started as a CRM
share les in the cloud at low cost. software-as-a-service provider, and has
now expanded into the wider cloud and
RedHat social enterprise arena. Services include:
Red Hat is an open source and cloud Sales Cloud 2, the main CRM cloud
provider which recognises that each application
clients IT infrastructure is likely to Service Cloud 2, a customer service
comprise hardware and software from a platform
94 TheUltimateGuidetoCloudComputing cloudpro.co.uk
AtoZofProviders
Star Unisys
UK-based Star was founded in 1995 and The company has focused on what it
pioneered a cloud-based spam and virus considers to be the three challenges
scanning system for business email that that need to be addressed for cloud
eventually evolved into MessageLabs, a computing to be viable, namely security,
messaging and web security specialist. compliance and application rewrites,
An IT and communications services and migration. It offers solutions across
provider, Star offers email, telephony, many business areas including nance,
hosting and networking, and now budget planning, HR, payroll, email,
delivers a range of cloud computing collaboration, analytics and data
solutions, including WorkLife, which storage. Offerings include Virtual
brings together email, telephony, instant Ofce-as-a-Service, which provides
messaging, document management, hosted desktops using Unisyss secure
conferencing and collaboration cloud infrastructure on a subscription
technology. basis. It is designed to simplify desktop
maintenance, reduce support costs and
SunGardAvailabilityServices improve security compared with
The company provides IT operations traditional desktop PCs.
support including integrated disaster
recovery, managed services, IT VMware
consulting and business continuity VMware offers virtualisation systems
management software. It offers an and cloud infrastructure from the
enterprise-class private cloud service, a desktop to the data centre. The company
back-up service called Replication-as-a- provides private cloud and public/hybrid
Service, Electronic Vaulting, for cloud solutions with safeguards and
encrypted and secure storage of data governance compliance, and clients can
that links directly to a recovery system, build applications that are portable
and a cloud-based continuity between the clouds within a common
management solution. management framework.
cloudpro.co.uk TheUltimateGuidetoCloudComputing 95
Glossary
Glossarytocloud
computingterms
Agility Cloud bursting
Can refer to faster, simpler steps for Cloud bursting is a common practice
provisioning IT and also wider business within hybrid clouds to provide additional
processes. resources to private clouds as and when
theyre needed
CAPEX
Capital expenditure the traditional way Cloud infrastructure
to purchase IT equipment. Large Consists of servers, storage area
investments are made in one nancial networks (SANs), networking
year to benet the business over the components and virtualisation software
lifetime of the hardware which would that combine to provide a fault tolerant,
typically be three to ve years. This is in exible and scalable system. Cloud
contrast to OPEX. infrastructures are housed in data
centres.
Cloud
Simply the global internet, the network Cloud pyramid
beyond your own building. A picture of cloud computing layers by
functionality, such as infrastructure,
Cloud backup platform and application.
Backing up data to internet-based
storage systems. As well as being a Cloud service provider
simple way to backup data it has the A company that provides cloud services
added benet of keeping a copy of data over the Internet. Large data centres are
offsite. Disadvantages can potentially used to run applications and store data in
include the amount of time to backup fault tolerant congurations. The long list
and restore les, particularly where data of providers includes Amazon, Google,
changes frequently and internet Microsoft and Salesforce.com.
bandwidth is limited. Zmanda, Carbonite
and Mozy provide services in this area. Cloud storage
Storage of les on Internet based
Cloud broker systems. Cloud storage can be used as
An organisation that acts as a liaison part of a SaaS solution where the
between multiple cloud service providers application and storage are both located
and customers, by selecting the best on the cloud. Another option is to use it
provider for particular services. as a store for data that can be transferred
96 TheUltimateGuidetoCloudComputing cloudpro.co.uk
Glossary
to or from the local network via a web Amazon and Rackspace both offer
browser or locally installed application. services in this area.
Companies offering cloud storage
solutions include Amazon, Rackspace Mash-up
and Microsoft. Combining input from multiple sources
in a web application.
Cloud washing
A tactic by vendors, especially software Multi-tenancy
companies, to rebrand their offerings as A single instance of an application used
cloud computing but without true cloud for many customers, with each customer
functionality. only able to access their own data.
Customers may be able to customise
Community cloud aspects of the software for their data, but
A cloud that is shared by a number of only within the limitations imposed by
organisations with some common the developers.
interests and aims.
OPEX
Data centre Operational expenditure costs incurred
Buildings that house cloud for services within a nancial year.
infrastructures including servers, storage As cloud computing is charged on a
systems and networking equipment. subscription basis, it marks a shift from
Also known as cloud centres. CAPEX to OPEX, making budgeting for IT
a simpler process.
Elasticity
Cloud computing can scale up and down Platform-as-a-service (PaaS)
depending on demand. Service that provides a framework for
developers to run their own code and so
Hybrid cloud can be used for in-house applications.
A system that uses a combination of This service is particularly useful when
private and public clouds. SaaS solutions dont meet the particular
business needs. Publishing applications
Internal cloud can be greatly speeded up by using this
See Private cloud. type of service as the hardware and
required components are set up by the
Infrastructure-as-a-service (IaaS) provider. Services such as Force.com
A service that provides access to and Microsofts Windows Azure t into
virtual servers. In the case of a public this category.
cloud, this service would be hosted
by a third party and accessed over the Public cloud
internet. Its important to be aware of Cloud services provided across the
licensing implications when using this internet by third-party providers.
type of service. Services are normally Virtualisation technology is used to
billed on the consumption of resources provide fault tolerant, exible and
such as processor and memory. expandable systems that can be divided
cloudpro.co.uk TheUltimateGuidetoCloudComputing 97
Glossary
98 TheUltimateGuidetoCloudComputing cloudpro.co.uk
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WEB HOST a a w ar d s.