According to a study, international provider of ERP and enterprise software companies are increasing investment in technology, Cloud for back-office applications, but growth will remain stable this year.
The study was based on responses from 700 medium and large dynamic organizations from 12 countries.
Almost half of respondents (334) mentioned that at this time that they does not use any Cloud application for back-office, and almost one third (222) said that between 1% and 25% of their back-office functions on Cloud. 32% of respondents believe that Cloud Computing will invest more this year and another 32% said it will invest at the same pace as in 2010.
The growth potential in the enterprise space is very important. Six respondents from companies of different sizes, geographical locations and sectors stated that their back-office functions are 100% based on Cloud.
An important point to note in this study is that there is no real knowledge of the functioning of cloud services, as the three main disadvantages perceived with Cloud Computing model are:
This clearly exposed the need to present a clear and unified concept, after presenting the different alternatives that allows for potential customers in this model can be identified easily.
Although 123 organizations of public sector mentioned that they currently use low cloud model, and although relatively few have been planned investment for 2011, 25% believe that this model represents between 25% and 50 % of its back-office applications in ten years, along with the 17% estimated to be between 50% and 75%. The main perceived advantage of Cloud technology, according to respondents in the public sector is its ease of maintenance.
According to the study, 24% of respondents are already using an application on Cloud for accounting , ahead of any other process, while little has been invested in other back-office applications, including managing the supply chain and production. Surprisingly, only 8% of respondents have invested in technology-based CRM Cloud.
Only 9% expected to remain at 100% applications in its facilities, while 8% expected to be completely based on Cloud. It seems that in the next 10 years, a hybrid approach will become the most popular model, and that 83% of respondents said they expected to have a technology mix that will combine applications and popular Cloud services.
Call it whatever you want: Cloud Computing , SaaS, PaaS or IaaS, but the software distributed via the Internet is easily scalable and marketed under subscription to which we refer in this article as “Cloud Computing” is today the fundamental reality, the world of enterprise software (and the software world in general).
The approach passes through the question:
” What kind of ecosystem of manufacturers, service providers and customers is emerging as the winning presence Cloud Computing? “
On the one hand, from the viewpoint of customers and cloud providers, the benefits of Software as a Service and Cloud Computing are clear. Moreover, for providers of services (consulting firms, integrators, etc …) are trying to adapt to the changing needs of a market that has changed and competitive differentiation. Now that there is still a perfect opportunity to position.
For the customer, the determining factor is that you hire a service, and don’t purchase a software. The manufacturer should be happy if the client wants it to continue paying your monthly fee. This implies a change in my view, to a commercial and social relationship between the two.
For the manufacturer , the processes are simplified, with corresponding economic benefits that this entails. But, especially at this early stage, will have to overcome significant challenges such as security, standards …
For the service provider, that is, the consulting company that created customized solutions, the Cloud Computing represents both a threat (in the event that the product does not require too much can be deployed as a SaaS CRM such as Salesforce ) and an opportunity.
In conclusion: In my opinion, the Cloud Computing will not radically change the type of players that exist in the enterprise software sector, we will continue with the customers interested in obtaining the best solutions tailored to their needs at a reasonable price, with manufacturers compete to offer the most competitive, and integrators who seek to offer its customers the most appropriate software and be used.
I think the question is, while developing this change to the ubiquity of Cloud Computing, who will use it and thus be better positioned for the new ecosystem is emerging, and who will miss the train.
It seems that this year’s buzzword in the IT sector is the cloud computing or cloud services. We at ESDS Software Solution Pvt. Ltd., are working on adding the various cloud services available in India and worldwide, when we get ready, we will announce it here. Until then I will left some things that can help everyone to better understand the state of development of this technology, several articles are written recently on his blog.
Platform as a Service (PAAS) on the Cloud Services: The main idea of a platform as a service is the number of “layers” that gives the developer when building an application on a third party application: not only solves the problem of hardware infrastructure – machines, bandwidth, scalability, availability – but also several layers of software infrastructure.
Infrastructure as a Service (IAAS) in the Cloud Services: the basic idea is that of outsourcing of servers to disk space, database and / or computing time, instead of having complete control of them in the data center, the company or opt for a data center and only manage it.
eCloud, middleware in Cloud Services : eCloud is not just a product to make a “new middleware in cloud, the idea is to provide opportunities for “private clouds” (who provides the resources that are within the corporate firewall, optimizing depends on demand) .
The problems of Cloud Computing : With several large software companies with products or software-based projects in the cloud, it’s time for taking a look at the uncertainties, risks and shadows that accompany this “new paradigm” for lockin the provider, control, return on investment and centralization among others.
On May 31st, we arranged a Working Breakfast within subject line technology, and more specifically, on Cloud Services and SaaS (Software as a Service).
The report has been generated from the conclusions reached in the debate which arose between the leading professionals of the sector, reveals the rapid evolution of what until recently was a trend but now becomes a must-have in most companies and agents in the ICT world.
Technology Status
Many see the ASP model as the precursor of what is now known as Cloud or cloud applications. Two key factors that have contributed to a better and more accepted implantation is the evolution in networking and connectivity, as well as a more effective development of software management layer.
One of the strengths of Cloud Computing is the scalability, and this is an important ally in the NoSQL databases. In most current projects, the case is not a limitation in its databases MySQL by size, but rather by poor design.
Experts say, the technology is more than ripe for the development of cloud and SaaS in India, and that the main barriers are in the legal inequities as when competing with foreign companies who seek and have customers in India.
Software companies that are focusing on creation of online applications and products based on cloud, are adapting new model of development that is more efficient and flexible, as is to have teams that are capable to work with the agility and efficiency that puts a halt to large development companies or consultants.
Software as a Service
The new generation of smartphones have greatly contributed to the development of online applications, focusing on simplicity and usability. Likewise, the emergence of Stores for apps, have helped to bring the available supply of apps to the SMEs , to achieve some momentum to this emerging sector in India.
Improved interface for the developer, and the creation of environments such as Amazon or Google Apps have made it more accessible entry into the online application market, and barriers have been removed so that even a young developer can successfully launch an app.
One of the unfinished business of SaaS is integration with other management tools the company has. SAP has great advantages when integrated with all the tools, and the move to SaaS often means losing this advantage, resulting in a reluctance by companies that already have a management platform in place.
IT departments of medium and large companies are lagging behind because there are very agile external solutions. Where an internal department can complete a job offer in months, an external one can do so in weeks.
The market is growing both nationally and internationally.
Platforms
It is beginning to extend a very interesting IaaS standardization, but in terms of PaaS, it is still long way to go. In fact, building applications on Azure or Google Apps can be a trap when you want to move to another platform. Open Stack is the basis IaaS to create a more open PaaS.
Microsoft is also deploying its own public cloud and Yahoo is also seeking its place in the cloud. But the factor that will help an explosion of demand will undoubtedly be interoperability between clouds.
The investment needed to upgrade or set up a good cloud infrastructure is high, but in the first quarter of 2011 there has been a major general movement of hosting providers and service companies are already offering this option to their customers, most sometimes demanded by them.
In general, it is anticipated that all operators end up supplying their Cloud platform, but will live on only those who get a significant critical mass of customers due to high maintenance costs.
But the revolution in the Cloud is not a path that can be walked alone, and ESDS Software Solution Pvt. Ltd. India, after cannibalizing some of its new solutions, is arousing with a new technology for better future in Cloud Services.
Some days ago, a get-together was arranged in our company and on that occasion, touched the theme of hosting, ISPs and Cloud Computing. From the discussion, we present the conclusions of this event in which representatives of the hosting market, data centers and cloud computing were talking.
Cloud Services
This concept came to power in 2008 in the Anglo world. Its implementation is greater in the U.S. and the largest investments are occurring in Asia. You could be implementing these solutions directly in the process of incorporating the Internet. In Europe there is a delay and investment is more discreet. In part, this may be due to a distrust of the existence of a real demand against expectation, somewhat inflated, which has been created.
Some sectors are still wary, and on the other hand, there is really an opportunity for real Cloud in India, because companies are making the necessary investment for standardization.
Hosting And Data Center Trends In India
While some see the Green Hosting as a fad, some voices say it is a necessity dictated by the efficiency associated with new technologies and increasing storage demand in business. Today, the most popular way to reflect this efficiency is through the Power usage effectiveness (PUE). And while the equipment manufacturers are increasingly earning more demanding and therefore more consumption, it is also true that these devices allow concentration and cooling solutions that affect efficiency.
Although the CTOs of companies are uneasy about the outsourcing for fear of losing certain amount of control or power over their area, the crisis and the need to save in HR is leading the change. The enterprise solution based on Plesk panel is simple and works very well for the end customer. For more complex solutions, hosting providers have to provide a higher level of administration.
Hosting Market Situation in India
Hosting providers recognize that much of hosting you hire in India is provided by local businesses or professionals who are not able to give good service. A criterion for recognizing a good deal of hosting is a Customer Service quality, although it is difficult to agree to the setting of minimum requirements in order to consider a hosting provider as such.
The Hosting Market in India is growing, albeit at a rather low (between 5% and 10% annually), but the new expansion coming and associated internet e-commerce is already a major source of important business for the hosting.
A key growth driver for a new hosting provider is the post-sale service and support. Along with the Business Breakfast, we discussed several cases and examples that reflect the value of the customer that gives the over moderate service and differences in price.
This year is predicted to continue the process of concentration on hosting companies in India with new acquisitions. This will gradually reduce the number of “players” in the market while they grow stronger.
Security & Trust
The hot topic right now in India in the concept of security in the hosting is the conjunction between Cloud Computing and Data Protection Act. The possibility that foreign servers creates anxiety and mistrust.
In terms of technical security, almost all hosting providers agree that there is less of DDoS that is involved, and that over 90% of intrusions are due to irresponsible use by the customer.
They are also unanimous in stating that attacks against net neutrality by the big telcos or governments, the network will respond with new resources as encrypted connections or changes in provider access.
IT Staff
The CTOs show some misgivings about the so-called “digital natives”, since most stays in the outer layer of the technology they use. The advantage is that they have a high degree of adaptability and learn quickly. Therefore, if the IT department has always documented everything, it will avoid a long and troublesome process of learning.
The forecasts in relation to the salaries of IT professionals are to rise .
Entrepreneurs
It is relatively common for startups to request servers for free in exchange for benefit of the impact, this might happen when the company reaches a success stage. But this happens very rarely. In general, startups need to over tighten the margins, and do not typically demand a higher volume of servers like the other customers.
Finally, we discussed the upcoming trends: Virtual Desktop Infrastructure (VDI), audiovisual content and products for applications in the cloud type DropBox , some of the applications that are carried to the cloud, to consolidate applications that had no competition until now.
Vmware, which is into virtualization in the cloud has just released still in beta, the new platform as a service ( PaaS ), Cloud Foundry.
The current leaders of the market in PaaS solutions are Microsoft Azure and Google App Engine. The novelty of Cloud Foundry is presented as open source and can support multiple frameworks, Cloud providers and application services.
Its utility is that it shortens the time needed to design an application, build the code, and finally transfer it to the cloud, using a PaaS solution open.
There are three types of services offered in the Cloud Computing
Infrastructure as a Service (IAAS), which offers storage resources CPU, memory and network so we can install the operating system of our choice, and develop the Framework you want.
Platform as a Service (PaaS) , which provides an operating system directory and an environment in which it develop a service like Microsoft Azure and Coud Foundry.
Software as a Service (SaaS) , which provides software directly without having to worry about the platform it is developed on, or infrastructure where you use Google docs.
The tools are used on Spring Source platform ( acquired by VMware in 2009) Developer Java , Rails and Sinatra Developer Ruby, and Node.js and other JVM frameworks including Grails.
Cloud Foundry has a good degree of portability, allowing developers to migrate applications across environments on cloud providers and enterprise data center without disrupting or modifying the application.
The platform is not tied to any particular environment, supports private or public clouds, including those deployed in VMware vSphere the vCloud developed by VMware, VMware and public clouds.
Cloud Foundry be available in three formats:
The traditional business applications are always very complicated and expensive, to the point that needs of hardware and software necessary for their implementation are such that it cannot be met. Moreover, the complexity of some software platforms requires specially trained personnel for installation, configuration, testing, implementation and upgrade. The costs to support this complexity can be unaffordable for small and medium enterprises.
On the other hand, companies need to use their own resources, and safety, and also the need to use an experimental platform hardware or software, or proprietary, and thus cannot be shared with other companies, can make all the infrastructure necessary to take network under control and did not entrust the management of external services, not always easy to monitor. Thus the need to understand the distinction between Cloud Services and data center colocation was born, and where to start and finish each others advantages and disadvantages, in order to make the choice to be the best compromise between cost, quality of service, and real needs of end users.
The term Cloud Services came with bullying in recent years in most discussion related to the computer world, becoming the main actor, without that most of the experts know what it is.
We have a lot of articles on our blog that explains a lot of things related to Cloud Services and all types attached to it.
The term Cloud Services is a set of technologies that allow the use of hardware resources such as CPUs and disks, or software distributed in remote, in other words: the ability to access services and data via internet without any information infrastructure that keeps them and makes them work.
Cloud Services allows you to do all the traditional activities that concern the use of a PC, except that the software is no longer performed locally, for example, to open a text document, instead of clicking the icon editor and making the modifications we will click on browser and enter a web address from which a text editor application can be used. The same operating system, desktop, folders and files will be displayed and used as if they were on local pc, but this is only an abstraction of reality, as it will be installed in a physically secure location, remote, within a set of infrastructure, data center, equipped with high-performance servers that store the data.
Typically, the graphical representations of the Internet, represent the network as a cloud they are attached to individual host or service provider. Cloud Services is what is in the cloud, without the end user, who needs to know how it is actually structured.
Cloud computing, in technical terms, is then offered as a series of virtual machines that allow you to spread the load and balance the resources between them, being able to add resources only when these are necessary. The cloud of ESDS for example, allows the creation of virtual instances on demand, only when these are really necessary, and this approach has led to a number of uses that favor cloud services for online high-traffic area, with sudden bursts of Use .
Pros And Cons Of Cloud Computing
Access to the cloud is online and you need a reliable and fast connection, and one that also includes a subscription, and then the choice of provider must be made with caution, as the provider will be responsible indirectly for the productivity of their employment and security of their data. A situation of failure of network access, or inaccessibility of the provider, can lead to loss of use of services, and lack of access to their data remotely, resulting in suspension of work activities, having moved all in remote, we have no control over what happens, I can actually know how data will be processed, or whether they will be used without consent and notice. A secure solution would be the replication of some services, and all the data locally, with the consequent need for periodic synchronization and increased costs.
Cloud infrastructure solutions are also always shared , in terms of resources, which means that the user may incur risks of sharing data with other users or to share the same problems that plague the entire platform.
Usually the Cloud Services provide for contracts with very few fixed costs, most of the billing service is on-demand, when the customer starts using the service and creates the first instances in the cloud: the same storage happens, in optical cloud, this is billed according to consumption, and the customer should not purchase a cut of space, as it is the case for a normal server.
Colocation And Dedicated Server Rental
The colocation service allows you to locate one or more servers, network devices, or storage of customer property in a single data center, their dense structures and spaces of the same way as a hotel room for people, these devices are also hosted a variety of related service provider (network and telecommunications), with a reduced cost and complexity for end users. A colocation center is a special type of data center and systems are placed inside a standard rack cabinet in the structures used by the provider.
The co-location provides an effective and safe way to host services with related equipment. The server is owned by the customer, but it is also possible to rent a server from the colocation service provider. The installation, setup and maintenance are charged to the customer, who has a difference of architecture cloud control hardware and software, and can be accessed in a manner similar to how you access a website.
In the final analysis, particular attention in selecting the data center should be given, since it must represent the structure and the ideal environment to host the server , observing certain requirements in order to provide suitable infrastructure for companies that need a customized solution for the implementation of web-based services, and that in particular need to use proprietary hardware.
The colocation and dedicated server rental solutions are still preferred by customers who want to maintain complete control over their data, preventing external access or problems to the whole cloud, could endanger their services. This is especially true in business environments where process information is critical, especially in the context of Public Administration, where it is unthinkable to entrust their data to an external manager.
Cloud Services And Your Server Colocation
What can be the Cloud Services management with respect to a colocation data center, and vice versa, what are advantages and disadvantages.
Much depends on the kind of vision we have for the business, and also how you will organize it. Many companies are wary of Cloud Services, because of its “without control” structure, and therefore it is strictly linked to the impossibility of having specific well-defined and clear architecture of cloud. But this happens particularly for large companies, which in principle have the economic resources to cope with the investment in a complex IT infrastructure, efficient and scalable.
Small businesses that may require large computational resources are faced with the problem of costs, and therefore are more likely to accept a cloud solution.
If your company has financial resources to invest in the IT department, which is always less likely in view of the crisis still exists, Cloud Services may be a test solution, but nothing more, in case you should have the resources to invest in IT Infrastructure, using the co-location, to overcome problems of space and maintenance of the physical server environments.
Cloud Services, and its continued evolution is certainly a desirable solution for companies that have few resources to invest in the architecture of the network and are willing to greater flexibility , especially in the context of a service due to connection problems, the provider network may degrade.
The colocation is suitable for companies who need to expand their hardware without losing the current level of security, and this is an effective way for companies to manage the company’s software securely from anywhere in the world.
To be more specific, the world of online services, from web hosting to the online applications, can greatly benefit from Cloud Services, especially if you do not want to initially invest in the purchase of their hardware resources: however, this has a negative return in terms of customization, often Cloud Services environments, totally virtual and dispersed data centers abroad, do not allow for action at all levels of its infrastructure, so they cannot meet the demands of some customers.
The choice of a Cloud Services service, in this context, it is preferable when you are faced with resource consumption variables from month to month, with the need to make available its online service to thousands of people, in a few days, and with a zero investment in terms of hardware.
The co-location, as well as direct hire dedicated servers, is now the leading solution for those who must maintain tight control over their data: this also means the ability to create own private cloud, in order to enjoy the benefits of maintaining cloud however, control over infrastructure.
With the growth of the value of clouds for some IT solutions providers are beginning to take an interest in what exactly it meant. In the end, many of you have long offered clients to use host-applications, which, in essence, cloud services are under another name.
So you already know what are the benefits that are provided by cloud computing services to your customers: a small initial capital costs, or complete absence, pay only the actual services received, scalability and flexibility. For you, the main advantages of cloud services are a constant revenue stream, deep penetration in the business of clients and flexibility to tailor services to customer needs.
So if you have some time provide Hosted Exchange services with or related to backup and restore data, you are completely forgivable to ignore the talk about clouds as the next hype in the IT industry. Or unforgivable?
Enough to have in its arsenal, one or two services such as SaaS, although they could well help you prepare for the era of cloud services. Looking to the future, customers will increasingly move their infrastructure into the cloud. And if all that you can offer, is the e-mail host system, you face the loss of customers.
Since virtualization, private clouds and services based on public clouds every day are becoming more popular. IT has a long history of adaptations and innovations, and cloud is a important chapter in this story. If you skip this chapter, it can have fatal consequences for your business.
Large corporations such as Verizon and Google, end users are bombarded with advertisements on its cloud products. As this onslaught of more and more customers will be prepared to cloud computing and would like to have more services.
Fortunately for solution providers, you have plenty of options to create a full set of cloud services. Let’s say you have to offer Hosted services through Exchange. What can you supplement them? It makes sense to explore other products Hosted on Microsoft, such as server, database and maintenance of desktop systems, to create a cloud menu.
Of course, you are not limited to products of Microsoft, Cisco and Dell. You and all the solutions provider should also not be overly suspicious of large corporations. In particular, although Microsoft has achieved record sales through the channel, the manufacturer has caused some confusion among its partners on their role in providing cloud services, such as Azure and BPOS. However, Microsoft’s strategy in connection with the clouds deserves a separate article.
Solutions providers should also pay attention to host the infrastructure and services such as “platform as a service” (PaaS), as well as to private cloud using virtualization technology and reminding the public clouds, which allow you to take advantage of the cloud environment inside the network perimeter.
Many manufacturers also offer in addition to its virtual cloud product technical support. This means that you can give it to function manufacturer partners and focus on growing your business.
So when it comes to clouds, then, yes, there is no shortage of publicity. But this does not mean that solutions providers cannot simply ignore it and do its routine. Clouds are a source of change, and therefore require that providers of solutions once again adjusted to the ongoing large-scale shifts in the industry.
Small business uses mostly cloud storage (67%), and hosting web sites (56%), according to a recent study that was carried out by people who are working in leading IT and dedicated hosting companies. Organized in recent months in two steps, a survey of more than 300 small business managers showed that the above mentioned two areas are most popular among SMBs, and they are followed by business continuity and customer relationship management (39%).
As the results of the study, most small businesses, which created cloud infrastructure, carried out in a cloud of 10-30% of the time (44%). If 11% of respondents said they did not spend time on the clouds, the other 11% claim to dedicate the use of cloud technology more than 50% of the time.
The study also showed the lack of consensus about the benefits of cloud services. Costs have been identified and as a chief virtue, and as the main obstacle to the development of this technology. Surveys conducted earlier this month during an exhibition and as well as through the Internet, demonstrate that the defects promote the benefits of clouds to contain the spread of cloud technology.
Of the more than 300 specialists participated in the survey, 93% believe that they are able to explain the nature of cloud providers. However, almost 43% of respondents said their organizations still do not use the cloud. Those who use the point to cost savings, mobile access and ease of management of infrastructure as a major advantage (42%). At the same time, 54% refer to the related costs as the main obstacle to the development of clouds.
Research shows that there are barriers for organizations to use solutions based on cloud technologies and uncertainty regarding the deployment of clouds and their benefits. It is clear that companies need a more active learning and familiarity with examples of real-world deployment. This is evidenced by most of the answers.
I believe that the industry requires sharing of best practices that companies can evaluate scenarios using real clouds. They have a need to see the benefits that companies derive similar size, belonging to the same industry and with similar infrastructure, with whom they could relate and compare myself.
We came across research on adoption of Cloud, where most of them concentrated on the opinion of executives or industry representatives.
IBM recently held a different search, coordinated by the IBM Academy of Technology, focusing on who was or is involved with projects in different cloud clients: architects and software engineers. The project generated a very interesting report called Cloud insights from 110 Implementation Projects .
The report describes how the architects have implemented projects for real clouds and how customers are seeing their adoption, in terms of who is directly involved with the implementation projects.
Analyzing the insights
Let’s summarize some of these conclusions.
As the clouds are implemented
The survey showed that only half of the implementations followed the strategy of a cloud, while the other half consists of isolated initiatives without clear objectives and well defined goals. It also became clear that most current projects are still pilot projects which are well located. Few initiatives of enterprise scope. But in fact, as cloud is still a novelty, most customers begin their journey with experimental projects, to gain experience and draw more appropriately broader actions. A good starting point for a trial is to create a private cloud to the development environment and testing. Thus, minimizing the risks of security environment somewhat isolated yields significant gains and tangible results to move forward with new projects.
Adopting the model cloud will force revisions in IT e-Governance processes. This was the general feeling of the companies that have implemented pilot projects.
In research, we identified that 70% of private initiatives were clouds and only 30% of public clouds. Sure there is the caveat that the projects were large customers – who often begin their trial by private clouds. If the search was conducted on smaller clients, it is likely that the relationship was reversed. The survey also revealed some interesting information: in private clouds the dominance of the projects was IaaS, followed by PaaS. Already in the public cloud, SaaS has dominated the scene, backed by IaaS projects.
It was also noted that customers feel that cloud is an irreversible trend and that in two to three years, many critical systems are running on clouds. Among the applications most frequently cited as the next cloud to come were: business analytics, collaboration and web.
Once the suspicion of security is unsuccessful, the next challenges identified by the report are the issues of integration and interoperability between different clouds and between applications that will run on-premise cloud.
An important and decisive for the successful adoption of cloud services is the standardization of images. This opens space for new demands on management resources based on ITIL, and Image Management.
Solution inhibitors cloud computing
We see that there are still inhibitors to greater adoption of cloud. Safety comes first. In the projects assessed by the survey, as the cloud model used was private cloud, security issues are minimized. In this case, the cloud is operating inside the firewall and security policies of the company.
Moreover, the projects demonstrated clear benefits. Although the cost has been one of the initial calls, the flexibility offers to the cloud users today are their main attraction.
The speed with which the demands for features and ease of IT, which were measured in weeks, they will be done in minutes. This opens new opportunities to create innovative applications in much shorter time and also facilitate trials of new products and systems.
Trends to be observed
The report also points out some trends such as:
Looking at the report we can arrive at some conclusions that I would like to share with you: