Private cloud hosting is the solution for larger enterprises with resource requirements that outstrip what the shared cloud can offer; more often than not a private cloud configuration can offer better value for money and can deliver a more tailored hosting experience. The platform that lies at the heart of the private cloud is responsible for running everything across the servers that form the cloud as resource management is key to ensuring that a cloud system remains stable; eNlight Cloud Hosting is a recommended platform that will provide you with one interface through which you can manage all of the servers in your cluster and their related resources, enabling you to keep measure of the percentage of spare capacity that is available. The reliability of the cloud will also rely on the hardware that has been used to form the platform; blade servers are the best for such an environment because they have a large hardware capacity and a relatively small rack footprint so that you are able to maximize the level of power received for the space that is used. Security in the cloud can also be reliant on the hardware used, but the focus here is going to be on using hardware firewalls to provide a satisfactory level of protection against DDoS attacks and other such issues; furthermore, the communications between servers in the cloud should be carried internally for security reasons.

Reliability of the Private Cloud

The private cloud is yours to use only and no one else’s so that you have full control of your web hosting environment; you will be able to monitor resource usage throughout the entire cloud as well as the status of individual virtual machines. As there will be no other users to impact on the performance of the cloud you can be assured that you will be provided with a high performance hosting experience; however, it is up to you to keep a good level of capacity spare so that your virtual machines have room for scaling when they are placed under high loads – this will reduce the chances of these servers crashing because of a lack of resources.

Security of the Private Cloud

Understanding the level of security that comes from the private cloud lies in the word ‘private’ because this guarantees that you won’t have anyone else using any portion of the environment that you are hosted in because your cloud will be based around dedicated servers that are there solely for you. Each virtual machine hosted in the private cloud is its own secure dedicated hosting environment that can’t be accessed directly through in the cloud, rather it will need to be accessed in the same way that you could access a regular server – i.e. SSH for Linux and Remote Desktop for Windows; this will help to prevent damage to other virtual machines if one happens to become compromised. Every server in the cloud should be communicating via an internal LAN that is local to the cloud only so that these connections can’t be intercepted or eavesdropped; this is fairly simple to setup and will guarantee that all communications are secure and not routed through an internet-facing network.

Costs of a Private Cloud

The cost of a private cloud solution is going to be based on the number of servers that are necessary to provide you with the resources and power that you require. Such a pricing structure means that you have control over how much you pay as you will only need to order the resources that you need to begin with because a cloud can be expanded at a later date without any downtime by simply adding extra servers to the cluster; any good cloud hosting platform will allow a new server into the cluster with just a few clicks once the machine has been bought online and configured appropriately. If you are migrating existing servers into the private cloud then it will be easier for you to predict the resources that you are going to need because you can base it on your existing requirements, but if you are upgrading to the private cloud from the shared cloud then it will benefit you to consult an expert as to what resource figures would suit you best.

When choosing a platform for the hosting of your website, you will want to be assured that your website will be able to access sufficient resources to ensure that it is able to run stable so that no downtime is caused because of a lack of system resources. ESDS Cloud Hosting has been designed to be scalable by providing you with access on-tap to the resources that your virtual machines require; with traditional web hosting plan designs you have had to upgrade to the next available web hosting package if you were running low on one particular resource, whereas with a cloud virtual server you can elect to upgrade the individual resources of your virtual machines as they begin to run low so that you are only ever paying for what you need. It is the ability to upgrade individual resources as your needs dictate that makes cloud web hosting scalable because it means that your web hosting environment can grow with your website and there will never really be any limitations as to the level to which you can scale your cloud virtual machines because resources are so easy to come by in the cloud. When seeking a scalable cloud hosting service you should look for services that use this pay-per-use hosting model because these are often built around a self-scaling cloud model that will provide you with a cost effective solution.

How does scalability aid the growth of a website?

As a website grows, it is going to be receiving more and more visitors every month and with this will come an increased load on the server hosting the website because there will be more people doing more things on the website at the same time and as a result of this there will be an increased number of requests for the server to deal with. With a scalable web hosting environment you will be able to grow the resources of your server to match the pace of growth of your website so that you are never having to worry about downtime being caused by a lack of resources; this removes the limitation of other web hosting environments with which you would have to upgrade to a different type of web hosting when you had exhausted all available resources opportunities.

How can cloud hosting aid the growth of a website?

The cloud can aid the growth of a website by providing a dynamic dedicated environment in which you can install the applications and services that you see as necessary for the development of your website that wouldn’t necessarily be available on other web hosting platforms. Cloud virtual machines can take the form of Windows servers and Linux servers so that there is always a platform suitable for all needs; on here you can install whatever you want, such as support for ASP.NET websites or MySQL databases. With the dedicated environment of a virtual server mimicking that of a dedicated server, you can create a secure environment with the use of third-party tools and SSL certificates to prove to your visitors that any information that they enter into your website is going to be kept safe. Finally, the reliability that a cloud server can offer is near 100% guaranteed with most web hosting companies so that your website will always be accessible and to reduce the chances of revenue being lost because your website can’t be accessed.

Auto-Scaling Cloud

One solution for websites that are unable to predict their future traffic loads is auto-scaling because this will assign additional resources to virtual machines for the short term whilst being placed under a load spike or similar situations. You will never be certain of the resources being used on your cloud virtual machines at any point in time unless you are using specialist monitoring software and so it will be helpful for many businesses to have a solution in place that will take care of increasing resources for them; these additional resources will then be returned to the central pool once the load on your cloud VMs resides, but you will still have the option to reassign these resources permanently if you feel that the increased load on your virtual machines is going to be sustained for a long period of time.

The provisioning of virtual machines and resources for these has been increased dramatically with the introduction of the eNlight cloud, therefore reducing the time that they a business will have to wait to add additional capacity to its IT infrastructure. eNlight users are provided with a web-based control panel through which they can control their entire cloud hosting experience; it is quite normal for a website to require extra resources as it grows and by choosing an eNlight virtual machine, a webmaster can order additional resources when they need them – these resources will be provisioned to the virtual machine immediately upon completion of the order, with no downtime to talk of.

The eNlight platform from ESDS works automatically to provide clients with the best level of service achievable. ESDS has a 24×7 support team that is available to assist you with your cloud hosting service at any time of the day, but all virtual machine and additional resource orders are taken care of by our automated billing and platform system so that you are allocated your order once you have completed the checkout process. ESDS also offers a range of private

eNlight is a form of shared (or public) cloud hosting, a term which means that you are sharing the cloud as a whole with other users. This provides benefits as it means that ESDS will provide you with full support, whilst you can choose between Windows and Linux OS templates for your virtual machines. Shared cloud hosting is an affordable solution and is a good point at which anyone seeking cloud hosting can begin. ESDS also provides a range of private cloud hosting products for businesses with complex requirements – dedicated servers can also be purchased if you are in need of a dedicated hardware solution.

Idle Resources

The issue with existing cloud server platforms is that users are often left with idle resources that they have had to pay before because they could only choose from a set of pre-defined cloud hosting plans, but they have absolutely no need for these resources. Idle resources are a waste of money for cloud clients and for web hosting companies they represent a lack of ability to meet customer’s needs in all respects.

With eNlight cloud hosting you can choose the specific resource allocations that you would like to begin with; as you are charged per unit, you will only be charged for the precise amount of resources that you have purchased and this will put you in a position where you are only paying for what you need. You can then increase the resources allocated to your virtual machines as the demand on your website increases and your virtual machines are put under a greater load so that you have full control over how your servers before and your expenditure at every stage. eNlight also has an auto-scaling feature built-in that you can use to automatically scale the resources of your virtual machines when they are suffering load spikes, doing so guarantees that your virtual machines will never crash due to lack of resources and you can put a cap on how much you are billed by using this method.

Cloud Server Management

The clustered nature of the cloud makes managing a cloud an easy task for server administrators because all aspects of a single cloud can be managed from a single interface. With the virtual machines in an eNlight cloud being distributed across multiple servers in the cloud in order to provide the highest level of performance obtainable, it is important for server administrators to be able to manage every server in the cloud from a single location to ensure that everything continues to be synchronized and work in harmony. eNlight cloud hosting represents an opportunity to reduce maintenance costs and this is recognized in the prices that we charge for resources with our cloud hosting services; ESDS believes in offering affordable web hosting to all users and eNlight allows us to achieve this in the cloud hosting sector.

As a client using eNlight from ESDS you will have full control over your virtual machines from the comfort of our billing system. Features of your VMs that you will be able to control include:

• If your virtual machines are stuck in a frozen state, you can start, stop and restart them so that access can then be gained once the SSH service is running again
• You can order additional resources for your virtual machines so that you can give them a performance boost if necessary.

New features are constantly being added to the eNlight cloud – we will soon be introducing the ability to setup a vLAN between multiple virtual machines so that we can introduce cloud-based load balancing.

IaaS-based cloud web hosting platforms provide customers with complete control over their web hosting experience, with emphasis put on the operating system used and the resources of virtual machines. eNlight from ESDS is a prime example of an IaaS implementation because our cloud hosting clients are able to develop their virtual machines with the resource that they wish to see, as opposed to choosing a pre-defined web hosting plan as outlined by other forms of web hosting. IaaS implementations can provide businesses of all sizes with a variation of benefits such as:

• The pay per use configuration of this cloud platform basis ensures that customers are only billed for the resources that they are using, along with any additional features purchased to support their VMs
• Scalability is offered through the option to order additional capacity for your virtual machines as demand increases; with eNlight you will also find that auto-scaling is supported
• Reliability and security are two features that IaaS can offer as additional control can be offered to clients, putting them in a position similar to what a dedicated server provides.

Additional control of particular networking components is also a possibility because to some degree it is important for businesses to have control over factors external to their cloud virtual machines. Popular options chosen by larger users of cloud web hosting can include:

• Setting up a virtual LAN between multiple virtual machines in the cloud can create a secure communications channel between these servers
• Access to routers can be provided to offer load balancing in the cloud for websites that experience high volumes of traffic
• APIs can be built into the software layer to offer advanced control of virtual machines from third-party interfaces, whether these are desktop applications or web applications.

ESDS utilizes the concept of IaaS with our eNlight cloud hosting services, one of the most advanced cloud hosting platforms available today. We also offer private cloud solutions for situations where a shared cloud doesn’t provide the desired level of control.

Platform as a Service (PaaS)

PaaS services related to applications or services that are hosted in a central location where the user doesn’t have control over the operating system layer or any of the hardware involved. The best example of PaaS is where Microsoft Exchange Server email hosting is offered within the context of a shared platform where multiple users share the same Exchange server environment; here the consumer will have no control over the hardware, OS or application layers, but can create additional email accounts that can access and use the Exchange environment. Benefits of PaaS services include:

• Similarly to IaaS services, a majority of PaaS services work on a pay per use basis; so if we use Exchange Server as our example again, you will only be paying for individual email accounts here and any additional storage purchased for your existing email accounts
• Instant scalability can be achieved with ease as in such environments capacity can be increased with the addition of hardware; as a consumer, you can create extra accounts for use with the centralized application as necessary.

The only downside to choosing the PaaS hosting model is that you as the web hosting company are responsible for the management of the platform as a whole, but if you have a 24×7 support team such as the one that ESDS has at its disposal then it is easy to appreciate the benefits that PaaS can bring to businesses. PaaS should be seen as an alternative to situations where otherwise a dedicated server would be considered for application where it isn’t really necessary.

Software as a Service (SaaS)

You may not realize it, but a majority of the time you are probably using a SaaS-based service. SaaS based services serve the software directly through a web browser in a fashion meaning that the consumers has no control over any of the underlying layers, including the application layer. SaaS is often used to deliver applications that are designed through a specific service through a web browser; these applications could otherwise manifest themselves as desktop-based applications, but this introduces system compatibility issues, as individual versions will need to be developed for different operating systems.

Examples of SaaS applications include HR and Finance applications for businesses that require access from a multitude of locations and because of this a desktop application would be inconvenient; a centralized operation provides a central point from which applications can be managed and updates can be applied without the need for any intervention from consumers. Web hosting companies, including ESDS, use SaaS billing applications for the management of their finances because web hosting billing applications tie into a business’s infrastructure to control further aspects such as servers and web hosting accounts.

The cloud is designed to offer a centralized platform on which applications and services can be delivered to any internet-connected devices, compared to standard web hosting plans that are often designed for the hosting of websites and web applications only. eNlight from ESDS is a scalable platform that businesses of all sizes can take advantage of for their corporate hosting needs as you can host as many virtual machines as you require with us and the availability of resources guarantees that you will be able to match your VMs with the resource assignments that you deem as necessary for the stable running of your cloud servers. Scalability isn’t available with other forms of web hosting and with the eNlight cloud it is instant because you can purchase additional CPU power and other resources for your virtual machines and these will be instantly provisioned to your VMs upon completion of your order; if your servers are facing high loads then this puts you in a position where you can remedy the situation immediately by ordering the resources that your server requires in order to keep up with demand.

One of your main intentions for choosing cloud hosting is likely to be the room that you will have for expansion; this is necessary to ensure that you can grow your website to keep visitor numbers growing and to improve the percentage of returning visitors that you receive. The eNlight cloud can assist with this in the following manners:

• The cloud provides a large centralized pool of resources that can be used to allocate additional capacity to virtual machines when necessary; you can either purchase resources when you need them, or enable auto-scaling so that this is done for you when the load on your virtual machines increases

• A dedicated environment is present that will allow you to install the applications and services necessary to improve the functionality of your website; every so often businesses wish to take advantage of additional modules and services that can be used in addition to the scripting language that has been used during the development of their website and this additional functionality can often yield highly satisfactory results

• Web-based management is provided for your eNlight virtual machines so that you can control the state of and the resources allocated to them through an intuitive interface that is accessible from any operating system.

Compared to web hosting, the eNlight cloud from ESDS can provide you with a greater level of uptime, which we rate at 99.95% each month. Full support is available 24×7 so that you can have assistance with the setup and configuration of your virtual machines where necessary.

Data Center in India

eNlight from ESDS is hosted out of our data center located in Nashik, India. This state of the art facility is a Tier 3 location and makes use of the latest technologies to provide one of the most secure and modern hosting environments available in India. The eNlight SLA details that all hardware is covered by a 99.95% uptime guarantee and we aim to meet this using a number of methods, including a network that is based entirely around Cisco networking equipment because of its notable reliability and using high-specification HP and Dell servers to form our eNlight hosting cluster. The ESDS facility utilizes the following features to provide a secure and reliable environment for our customers:

• All data floors require biometric access so that only authorized employees of ESDS are able to get anywhere near the hardware that powers our network and data center; furthermore, all server and hardware racks are locked and require a key for access
• Our entire network is monitored around the clock by our 24×7 support from the on-site NOC because this allows engineers to reach equipment quickly if there is an issue that requires hands-on work as opposed to a solution that can be worked on remotely
• Redundant power feeds and backup supplies in the form of diesel generators and UPS batteries so that if the primary DC power supply does fail, hardware in the data center will still function as normal until the primary power feed is restored.

ESDS offers a range of shared cloud, private cloud and dedicated hosting solutions from our data center in India. For businesses with more complex requirements then we are also able to offer co-location services that are also supported by on-site staff around the clock.

Objectives of any business can be achieved through excellent customer service and different types of services are provided by following Cloud Service Models:

1. SaaS (Software as a Service):

A software release model, SAAS is hosted centrally in the cloud along with its allied data and can be accessible through users by means of web a browser. SaaS is also referred as “on-demand software”. For many business applications such as, accounting, collaboration, customer relationship management, business enterprise resource planning, human resource management, content management and service desk management etc, SaaS becomes a general delivery model.

Usually the term SaaS can be precisely used where most of the initial application service providers focus on managing and hosting third-party independent software vendors who are capable enough to build up and run individual software. Also by means of currently used software architecture, cloud computing service providers make a separate instance of an application mandatory for each business, so, to design an application in view of providing multiple businesses and users with corresponding partitioning of data, a multi-tenant architecture as a service solution has been utilized by existing web-based software.

2. PaaS (Platform as a Service):

Using a Cloud service model called as PAAS, applications can be used effortlessly, exclusive of any complication regarding the cost and management of the required hardware and software. As PaaS supports the complete life cycle of building and delivering web applications and services by facilitating design, development, testing, deployment and hosting itself.
Services like team collaboration, web service integration and marshalling, database integration, security, scalability, storage, persistence, state management, facilitation of developer community, application versioning and instrumentation, etc. might be provisioned as an integrated solution over the web.

All these facilities permit customization of the existing SaaS applications which is comparable to the facility of packaged software applications such as Microsoft Word. But, every time developers and users of PaaS need to subscribe SaaS applications, in view of developing a comprehensive environment, stand-alone PaaS environment has been proposed which is free from any type of technical, licensing or financial dependencies based on specific SaaS applications or web services. Still, some PaaS  applications require improvement in the development, debugging and testing capabilities to provide hosting-level services such as security and on-demand scalability etc.

In PaaS, under the concept of Open platform as a service, developers can use any programming language, database, operating system and server too.

3. IaaS (Infrastructure as a Service):

To release infrastructure as a fully outsourced service, IaaS is a capital investment-sourced model. As by means of IaaS, all the resources like servers, software licenses, data center space and network equipment etc can be purchased by clients as fully outsourced service only. Hence concerning the customer’s significant project, IaaS through a dedicated hosting environment is the most stout, safe and sound policy.

Advantages of IaaS:

1. Dynamic scaling: capability of scaling up and down the various resource aspects in close to real time, according to varying business requirements.

2. Usage-based pricing: This strategy of IAAS helps customers in purchasing the precise infrastructure which may be required at any particular time by ensuring “just pay for what you use”.

3. Reduced capital and personnel costs: Reduced in-house infrastructure considerably eliminates capital expenditures and enduring cost for workforce and enables any organization to concentrate on core competencies in view of developing and filtering market product offerings more willingly than purchasing hardware accessories.

4. Access to superior IT resources: Unaffordable Enterprise-grade IT infrastructure and engineering resources become accessible to IaaS users.

Cloud services are very serious alternative to traditional models of access to IT, and their popularity among companies is growing rapidly. The advantages of such services may be to reduce overall costs, increase scalability, quick to provide solutions and simplifying management. On the other hand, to entrust the key components of technology to another company, then loosen control over them and create a risk that must be managed. The experience of outsourcing has led to a recognized approach to contracting to mitigate risks and maximize the benefits of using external services. However, the provision of services via multiple access cloud platform includes some of the nuances in the negotiation and conclusion of agreements. Therefore, CIOs should consider the following points.

1. Make sure that the terms of the agreement are under negotiation

Although the agreement in terms of the agreement during the negotiations may seem self-evident, many cloud providers do not usually allow you to make changes in its version of the agreement, arguing that the special conditions for various clients undermine model for community access and positioning service providers in the market. This does not mean that companies should not use the services on standard terms. But it is necessary to realize the risks involved.

With flexible terms of service you need to make sure that they are more beneficial than any standard agreement or such that you can only express my agreement by clicking the mouse. And also the fact that an agreement cannot be changed unilaterally. If these conditions are not met, your company must retain the right to terminate the agreement with a significant deterioration in its terms, without bearing any responsibility.

2. Make sure that the price structure does not preclude advantages of cloud solutions

Cloud services offer the possibility of rapid scaling-making, better asset utilization and overall cost savings. But the agreement may impose restrictions on these benefits. For example, providers of SaaS limit the number of available jobs, providers of IaaS – the minimum duration of use of infrastructure. You should ensure that the agreement do not restrict the company’s ability to control costs under proposed models of the clouds. Negotiations on the use of software needs to be carried out in accordance with established practice, and you assume discounts depending on the amount or term of the contract, the differentiation of licenses in accordance with user roles and limitation of price changes in the future.

3. Develop a service level agreement with the light of experience

Service level agreement (SLA), as is the case with any IT service should reflect the full range of services. For example, because the cloud provider will be responsible for Internet connectivity and infrastructure, availability of services should not be determined by monitoring the server in data center. The agreement may specify a particular user interface and query performance, timeliness of the major package of tasks and response time / removal in case of failure.

The goal is to develop a limited set of metrics, which ensures that customer satisfaction is in complete constitute and not  a violation of SLA. For each metric should be removed with no clear exclusion criteria (eg, service interruptions caused by the need for urgent repairs, and the concept of “urgency” is not defined). Your company should pay attention not only to compensation for breach of SLA, but also a thorough analysis and eliminate its causes. Ultimately, your company must guard against downtime and have the right to break the agreement in the presence of chronic problems.

4. Consider the impact of collective platform for the company’s work

Your company must assess the impact of providing services through multiple access platform and proactively address potential problems in current operations. For example, the agreement with the provider should provide that your organization will receive a choice acceptable to its break in service for the technical work in advance and will be notified for all actions affecting the service.

Release Management procedures must comply with the company, which will be entitled to use the penultimate version of the software. It should be possible loss of functionality of the release (or a change of software packages as an optional feature) and to mitigate this by determining the minimum period of notice, the right to work indefinitely with the previous version and break the agreement without indemnity provider. Try to pre-assess the needs in the management of releases that may occur as a result of social integration, when agreeing prices for access to test environments. Otherwise, you risk on getting a big bill for reference.

5. Note the shift in the cloud computing and out of it

Deployment in the cloud and the expiration or termination of lease also requires careful attention. As for the transition to the cloud, then you must make sure that the actions of the provider are clearly defined, and agree SLA with installing and configuring applications, as well as the downloading of data. If you receive additional professional services to deploy, should ensure that by default, they were tied to key cloud services. When not to use the cloud provider should help in the organization of migration, including export data and schema in a consistent format. It should also consider the requirement to periodically archive data to mitigate the current or connected with the peculiarities of contract difficulties in the way of an orderly transfer. The best protection is a proven ability to easily switch to another provider at a different decision. CIOs should be aware that a lack of confidence in safe transition to another provider weakens the position of the company in negotiations and narrows the range of options available.

Public clouds become revolutionary innovation in IT which is not just for small and medium-sized businesses. At the moment, most companies are experimenting with public clouds as a resource for development and testing or for production applications with low requirements for security, protection of personal data and service levels. It is believed that large companies of public clouds may be of interest only in a specific niche, given their large investments in legacy systems and the critical role of such systems for their business. Nevertheless, a number of these companies see great potential in public clouds. They feel an urgent need to make a choice between pro-active work with the public and the clouds behind the competition.

We talked with many of the companies to begin with development of public cloud services providers. Naturally, the applications that these companies would like to move to public clouds being studied to determine their cost-effectiveness in this model. We propose a generalization read reviews over the ten kinds of hidden costs in the public cloud. We have split these costs into four broad categories:

• one-time cost of migration
• limitations of the model of billing
• residual costs of management
• risk premium

Single migration costs

Its costs are associated with moving existing applications to the traditional, physical infrastructure in the public cloud, including costs to modify the application and transfer of server systems, and associated with writing off the cost of equipment depreciation.

In this category there are two types of potential costs, for which you need to watch.

Rewriting applications. In a typical company, the most used applications are not yet ready for transfer to the cloud. Certain applications that already run on virtual machines or developed in accordance with the standards of the cloud platform, are well-tolerated. But most require significant processing or rewriting code to ensure compatibility. This is especially true for legacy applications. Organizations need to assess the economic feasibility of the transfer of such applications. It may be cheaper to keep them in original form or to completely abandon them in favor of new ones.

Promoting standards of cloud platform and justification of the need to update technology invariably are difficult for application developers. This should be taken into account when considering the use of public clouds.

Write-offs for depreciation. Companies that choose to update the application or infrastructure to accelerate the transition to the use of public cloud, could face the impossibility of further depreciation of existing equipment for depreciation. This explains why many companies intend to begin the study of clouds, when the time comes to change equipment.

Limitations of the billing model

The current model of billing in relation to a public cloud computing has three features that may not correspond to the nature of your enterprise applications.

Award for flexibility. One of the most lauded features of public cloud is the payment of actual consumption, which allows companies to handle peak loads. Because prices are set properly, it could mean an additional fee for applications that are constantly in the public cloud and are subject to bouts of activity. What is important is the right choice with regard to each application. Applications that use smooth or predictable demand, would be economically efficient in the use of models for providing computing power on demand.

The fee for crossing the cloud. The fee for incoming and outgoing data – an important factor that we must always remember, especially in case of heavily used applications. Anxiety also causes an additional delay that occurs in the cloud of server hosting when requests for the transfer of large amounts of data.

Storage costs. Virtual multiplayer server architecture complexity and costly storage, causing the need for optimization through storage virtualization, storage, fast devices only frequently used data and deduplication. Most companies are just beginning to familiarize themselves with the appropriate tools.
Residual management costs

It is important to remember that you will not be able to abandon old service, which will have to continue to provide within the company, even after the transfer of applications in a public cloud.

Attention is drawn to four areas of management

Security, in particular update the OS and antivirus management. Of course, there are the usual and enhanced security measures to be taken when working with the public cloud. There are basic costs associated with software licenses, upgrades and maintenance when installing patches and antivirus software. These costs are present regardless of whether the company chooses a public or private cloud or traditional uses its own physical infrastructure.

Back up

Most public clouds do not provide backup. This is one of the many reasons why businesses often do not even consider the possibility of using public clouds. A significant part of the companies need to continue to maintain all the internal infrastructure for backup and data recovery. This is another cost item that increases the cost of public services, the clouds over the face value.

The redistribution of the load and automatic scaling. These capabilities are required to handle requests to the system, the optimal use of resources and prevent overloads. They require specialized equipment and costly new software. These costs are often passed on to corporate customers, but not to the providers of cloud services.

Services for integration. They are necessary to ensure full compatibility with the client installed and deployed in the cloud systems. Organizations that tolerate application in public clouds must be purchased for this expensive software.

Reward for risk

Use of the public cloud enterprises primarily should always be prepared for worst-case scenario. You need to prepare for the costs of transfer services at its own site in case your provider of public cloud collapses, or you just do not want more use of its services. It is important to determine the extent of the costs of such migration.

Here we should pay attention to the plan out the clouds. Requires thought-out plan migration from public clouds back to their own equipment (which is highly unlikely) or in another cloud (more realistically). Drawing up such a plan requires additional time and effort, as well as extraordinary financing. The companies that have already endured the application of a private cloud in the public or had a case to learn the standards of tolerance, migration costs will be small. But most companies do not have such experience. Therefore, for the transition to a public cloud, they should provide funds for the organization of deliberate withdrawal.

According to the analysis for the market of “Software As a Service, SaaS“, it is grown by 20.7% in 2011 as if compared with 2010 and reach $ 12.1 billion, and it will continue until 2015 – first and then the sales will amount to 21.3 billion dollars, i.e. more than twice as many as in 2010.

Under the SaaS, it includes software, which are owned, managed and delivered remotely by one or more service providers. Consumers use the software by subscription or on contract and pay for services as consumption.

Analysts say that the popularity of this model to applications is growing. They explain this by saying that budget cuts forced businesses to look for cheaper ways to use the software, services, SaaS becomes more mature, and cloud computing technologies are attracting more interest. In connection with the development of SaaS services and the prevalence reduced initial concerns about security, response time and service availability. Vendors expanding network of partners to provide these services, increased industry specialization of services, strengthening community partners and consumers.

In the last couple of years some buzz around SaaS subsided and shifted towards cloud computing – a broader concept that also covers technology and SaaS, which is a layer of applications in the general stack architecture of clouds. However, the key indicator of the success of SaaS cloud computing concept is now about 75% of services and SaaS can be considered as cloud services, and by 2015 this figure will reach 90%, since the SaaS model will become more mature and fuse with the cloud solutions model.

The biggest market segment of SaaS is customer relationship management (CRM). According to forecasts, in 2011, its volume will reach $ 3.8 billion (in 2010 – $ 3.2 billion) and will be 32% of the market SaaS. According to analysts, with the development of services “CRM-on-demand” is expanding its distribution.

Revenue from the delivery of ERP SaaS model will reach $ 1.7 billion (in 2010 – $ 1.5 billion). In fact, the ERP market share in the SaaS model accounted for only 7%. With the SaaS model most commonly used means of human resource management and enterprise resource management and production approach, SaaS almost does not apply.