For the Cloud Security Alliance, a nonprofit organization that advises on best practices for providing security services in the cloud, cloud computing is not necessarily more or less secure than the current IT environment.

Like any new technology, it creates risks and opportunities. In some cases, you may need to restructure legacy applications and infrastructure to match or exceed modern safety requirements.

Recent research performed with 50 Chief Information Officers (CIOs) found that 70% of these executives were thinking that, security is the biggest inhibitor to the adoption of cloud architectures. Other barriers mentioned were lack of information about the concept (58%) and corporate culture of IT reported by 44% of respondents.

In cloud, the concern must be the same as used at home. Points to note include control, visibility, ensuring adequate access, protect data, applications and infrastructure. The organization fails to adopt the model for fear. But typically, these companies have less protection practices compared with the cloud providers.

The executive points out that there is the idea that the cloud hosting business is out of control and what is controlled is safer. But this is not true. The same care must be applied in the company transferred to the third, and require to define SLAs, which vary according to the strategy.

Planning is a key, but the truth is that many do not know where to start.

IT professionals need to intensify the battle against internal threats and leverage the technologies of identity management and access to that security is seen as the enabler of the adoption of cloud computing.

Although the company does not rely on a specific policy for the cloud, new implementations are recommended to join the sport.

Avoid Surprises When Hiring Public Cloud Computing Solutions

Survey done in December 2011 indicates that 80% of those CIOs plan to adopt some kind of cloud, with 45% to 15% private and public. Even if the public is not yet the focus of investment, those who opt for this mode should be aware when hiring and managing third-party services. To help companies in this task, the Security Guide for Critical Areas Focused on Cloud Computing and has got some recommendations.

The document was prepared by Cloud Security Alliance to advise on the best practices of service delivery in the area of security in the cloud.

1-You need to examine and evaluate the supply chain from the supplier (relationships among service providers etc). This also means checking the management of outsourced services by the provider.

2-Evaluation of outsourced service providers should concentrate on disaster recovery policy and business continuity, and processes. It should also include a review of the assessments for the supplier to fulfill requirements of policies and procedures, and evaluation of the metrics used by the supplier to provide information about the performance and effectiveness of controls.

3-The plan of disaster recovery and business continuity should include scenarios of loss of services provided by the supplier and the loss by the provider of outsourced services and capabilities dependent on others.

4-The regulation of information security governance, risk management and the structures and processes of the supplier should be widely evaluated.

5-You must request documentation about the facilities and services of the supplier that are assessed for risks and controls in audited for vulnerabilities. Also, look for a definition of the request that the vendor considers to be the success factors of information security and critical services, key performance indicators, and how these points are measured.

Posted on 12-03-2012

Filed Under (Cloud Computing) by Pravin Ganore
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Although it is a very broad concept and too broad to be answered in a few lines, the question of preparation of national firms to the paradigm of cloud computing begins at the outset to be dependent on the type of cloud that is spoken – private or public – and the level of security that the customer wants.

The concept of cloud computing solutions is directly related to the provision of services outside the corporate network from a client (hence the cloud) services which may be translated into software, infrastructure or platform (Software as a Service – SaaS, Infrastructure as a Service – IaaS, Platform as a Service – PaaS).

A private cloud, by definition, provides a higher level of safety, since the very corporate network (private) serves as the infrastructure, where the above services will be hosted  in their own data center. In the case of non-existence of data center network business customer, a supplier may offer its infrastructure backbone (as well as all SLAs agreed with the client) as an “extension” of the corporate network from the client. We are here to speak about technologies / protocols such as MPLS VPNs, and the Data Center of external provider (or a Data Center “rented” to another company for this purpose) will host the services so that the end client intends as being in the cloud – not on the corporate network itself.

The public cloud, on the other hand, it all depends on the customer’s perspective and security that he wishes – an additional level of security, particularly at the level of encryption of data for confidentiality, since the Internet is the infrastructure used for the provision of services in the cloud. We all know examples of this. Even social networks, GoogleMail, SalesForce. In practical terms, the services in the public cloud need only an Internet connection, while in the case of private clouds, it may not be (and usually is not) enough so dedicated lines, operator services, including MPLS VPNs are required.

On the other hand, a time as we are experiencing today in the budgetary restraints are compelling, there may be doubts about the ability of enterprises to bear the initial costs of cloud computing.

But in my opinion, companies are always ready to adopt solutions which have advantages for operating business. When adopting a particular technology or solution, so important is its cost, such as maintenance, but we should also know the return on this investment and how long it will take place. That is, we must make a “business case“!

On the other hand, am not convinced that the initial costs have to be higher than those companies contract cyclically to renew or refresh their IT infrastructure. It is the time that companies should ask about new ways. Only then, we can protect and maximize investments.

Posted on 02-03-2012

Filed Under (Cloud Computing) by Pravin Ganore
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Japan is the country that is better prepared in terms of technological infrastructure and regulations to support the growth of cloud computing. The finding comes from a global study by the Business Software Alliance (BSA) with 24 nations.

According to the BSA, the survey aimed to assess the economic potential of the cloud in these markets and suggest that what local governments need to do. According to the association, it is necessary to improve policies and regulations to meet the cloud computing model to data processing that crosses borders.

The countries were scored, taking into account their laws and regulations for provision of cloud watching seven areas: data privacy, cyber security, cyber crime control, preservation of intellectual property, technology interoperability and legal harmonization, free trade, and infrastructure IT.

The top ten that have more robust policies for business in the cloud are Japan, Australia, United States, France, Italy, UK, Korea, Spain, and Singapore.

The true benefits of cloud computing come with scale and service providers should have the ability to deliver service anywhere in the world.

However, this model requires laws and regulations to allow the flow of data easily across borders. Each country has its rules for trade in digital services, but governments need to harmonize them to follow this trend.

Difference Between Nations

The study found that the environment for cloud shows different characteristics among advanced economies and developing countries. In Japan, the United States and United Kingdom, for example, there are solid legal foundations and regulations to support the growth of cloud computing. In emerging countries like China, India and Brazil, there is still much to be done to integrate with the global cloud.

Japan is ranked first because of its comprehensive privacy protections that do not inhibit digital commerce. It also offers a range of criminal protection and robust IT infrastructure. The Asian country is still a leader in developing international standards of technology.

One surprising finding of the study is that some of the countries that are doing well also have laws and regulations that conflict with other nations. One example is the regulation of the European Union Data Protection that can generate the economic impact for large-scale business in the cloud.

To have a global market for cloud, laws of all countries don’t need to be identical, but they must be compatible. Privacy and security rules are especially important. They should promote efficient data management while encouraging international trade.

To assist countries, the BSA proposes seven policies that governments should strengthen to expand economic opportunities in the cloud computing solutions:

1 – Protecting the privacy of users by allowing the free flow of information and commerce.
2 – Promote advanced cybersecurity practices without requiring the use of specific technologies.
3 – Fighting cybercrime with clear measures and actions against the perpetrators.
4 – Provide protection strengthened against the misappropriation and breach of cloud technologies.
5 – Encourage openness and interoperability between cloud providers.
6 – To promote free trade, reducing barriers and eliminate preferences for certain products or companies.
7 – Provide incentives for private sector to invest in broadband infrastructure and promote digital inclusion.

Here are the rankings of 24 countries surveyed and their score:

01 – Japan – 83.3
02 – Australia – 79 2
03 – Germany – 79.0
04 – United States – 78.6
05 – France – 78.4
06 – Italy – 76.6
07 – United Kingdom – 76.6
08 – Korea – 76.0
09 – Spain – 73.9
10 – Singapore – 72.2
11 – Poland – 70.7
12 – Canada – 70.4
13 – Malaysia – 59.2
14 – Mexico – 56.4
15 – Argentina – 55.0
16 – Russia-52.3
17 – Turkey – 52.1
18 – South Africa – 50.4
19 – India – 50.0
20 – Indonesia – 49.7
21 – China – 47.5
22 – Thailand – 42.6
23 – Vietnam – 39.5
24 – Brazil-  35.1

Posted on 01-03-2012

Filed Under (Cloud Computing) by Pravin Ganore
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Studies now indicate that about 75% of banking organizations will use Enterprise Cloud Computing, or hybrid solutions for cloud computing.

The technology resource with elements of applications, processors, storage capacity and data center in a cloud on the Internet, has also became a key theme and will be much discussed in the financial and insurance sectors. In India, data center providers are expanding their investments in infrastructure to meet the new wave, while IT executives, who confirmed to be not going back, argue that the application that is most appropriate and safe at this moment is a public cloud, private cloud or hybrid cloud.

The year 2012 will undoubtedly be the year where Cloud Computing will take the first steps to the movement that actually will become a reality in organizations. Outside India, the emerging trend, driven mainly by the advantage of cost savings, according to experts, it is the logical evolution in the banking sector. Studies now indicate that about 75% of banking organizations will use enterprise cloud computing, or hybrid cloud computing solutions, which implies the existence of a private cloud and through other means which are more open, in which any employee could have access.

The main issue, even debated in international forums is, “Is the Cloud Computing a valuable hedge for banks?” And the answer is “Yes“. In ’70s and ’80s, financial institutions already had a central computer, such as a mainframe terminal, whose main advantage was the saving of time, it was possible to keep all data centralized. The big difference is that, the cloud computing today relies on the fact that the information ends up being “hung” in the cloud.

The contribution that cloud computing can bring to the banking sector is very high. And beneficial as well. The main one is the flexibility that this technology can provide to the banks. In addition to allowing, among other benefits, “pay per use“, that is, offer a way to measure and manage the service network of computers in a more efficient and flexible way, the model will allow the bank to establish its variable costs and adjust their own real needs within their gains, the number of clients, etc..

Cloud Computing provides a model in which the payment is linked to the service that is used, it helps to increase or decrease capacity utilization. This new structure makes the planning of the different departments in a condition that is more flexible and agile, this is another added advantage.

For now, this trend began to take its first steps, especially because today, even if they have noticed the need for migration to this type of technology, there remain some issues to resolve before putting the whole process into practice. The need for legislation and regulation to adjust and establish how to act in case of catastrophe or disaster, which protocol is most appropriate at certain times or will be subject to audits. It is difficult to ensure that the banking sector will use a cloud computing which is open and transparent.

Hence, the service providers are investing all their efforts and financial resources to provide a flexible means of the use of internal and external solutions.

The more the confidence, the greater the opportunity to use private means that are based on two core values: integrity and availability of information privacy, two prerequisites for the confidentiality of user data is not lost, regardless of the technology.

Posted on 21-02-2012

Filed Under (Cloud Computing) by Pravin Ganore
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The words you use when talking about cloud computing are extremely fundamental to understand the concept.

It is not just a semantic exercise, the inaccuracy may expose managers to misunderstandings (or worse) in the hands of his superiors and failures generated by unrealistic expectations.

Key Findings

  • The concept of cloud computing is not an abstract concept that can be constructed, acquired or sold.
  • Use of cloud computing terminology inaccurately is the leading cause of confusion surrounding the topic.
  • Confusion allows some retailers to label old products products as cloud products, regardless of whether or not to deliver the advantages of cloud computing.

Recommendations

  • Avoid using the word cloud as a motto for all things associated with cloud computing.
  • Challenge the allegations of cloud computing from its resellers to differentiate the marketing reality.
  • Make the IT sector focus on their efforts on delivery or acquisition of cloud services, rather than deliver or acquire technologies in the cloud.

Cloud computing is a phenomenon that seems confusing and becomes even more confusing with each passing day. One reason for this is that there are so many areas affected by cloud computing. It is difficult to determine exactly what will impact on the concept. The fact is that, different terms are often misunderstood and aspects are used to describe the phenomenon, and it is not hard to see why confusion reigns. This research is about the terminological confusion generated by the natural complexity of the concept of cloud computing and the tendency for people to re-interpret (or misinterpret) the things that are better suited to their needs, world vision or plans for their products.

In an effort to clarify this confusion and provide a common language to talk about the phenomenon, we present a rule broad and some key terms to help you to deal with this.

Rule Terminology for Cloud Computing

Avoid talking about “clouds”? Rather, always speak about the specific aspect of cloud computing with which it works. Always add a more specific term for the word “cloud” for example, cloud computing, cloud services, cloud platform, cloud infrastructure, cloud application, process or company to cloud.

Much confusion comes from the fact that so many people use the term cloud or “clouds” to refer to many things (which is driven largely by retailers). They use it to refer to all and all, and so the term is replaced by little or without meaning. The confusion lies in the fact that there is no issue that affects every aspect of cloud computing in the same way.

“The cloud” or “A cloud” is an abstract concept that cannot be touched, seen, bought or sold. However, there are different aspects of cloud computing that are quite tangible, such as services, infrastructure and platforms. It is dangerous to remain vague about the terms because the thought becomes endemic and difficult to change when words are confusing. People who say “cloud services” are often referring only to the platform or the cloud infrastructure, and not necessarily other services. Many dealers refer to “our cloud services” or the “cloud services provided by us” as a way to make users think about their platforms and infrastructure, and not about the delivery of cloud services. It is to maintain their differentiation by encouraging all people to focus their attention on the implementation. Allowing this to happen, it will result in the dependence of the specific features of the implementation of a single dealer, instead of the service resources that are needed to service consumers.

Being Specific Is Very Helpful

Being more specific helps to make it very clear and objective to which you are referring. And make no mistake, though the “cloud infrastructure” is delivered as a “cloud service”, delivering the infrastructure is very different from delivering the service. The issues that have to be deal with with are different. For example, an integrator, to build a set of private cloud services can say, “We are building a private cloud”. It becomes confusing when you realize that private cloud services can be delivered by a public cloud infrastructure. But to say “a private cloud” or “a public cloud” obscures the reality that some parts of the implementation, or even some of the services used to deliver the fundamental solution, may not be “private” or “public” respectively. The terms “private” or “public” are not terms that can be applied intelligently to every initiative in a particular cloud, for example, considering that few initiatives “private” end to end will be private. So yes, the underlying mechanism of delivery is maintained by the provider.

Clarifying The “Cloud” Terminology

Considering our advice, always use language qualified with the word “cloud,” we also present some simple descriptions of terms that are useful to achieve this goal:

The Cloud: A euphemism for an abstraction. This is a purely abstract concept, originated from representations of presentations on the Internet and networks for many years. Nobody can buy or sell a cloud service. The cloud service comes to life when one or more cloud services are delivered to one or more clients. For this reason, there is only a public cloud, because the only way to distinguish between them would be considered one of the other terms as the demarcation line. There may be many private cloud services, and certainly there are numerous infrastructure and cloud platforms, but only a public cloud.

A Cloud: Used only in the private sense to describe the whole set of cloud services delivered in private. We should avoid using this term because it is too vague to add value and can cause significant confusion. For example, a private cloud can be delivered by using a public cloud infrastructure and still continue to be private. However, there are risks associated with it that should not be obscured by the use of the generic term “service cloud” to describe private services. When private services are delivered through a public infrastructure, there may be an impact on the service level agreement (SLA). The SLA needs to be ensured by the provider of services and by the provider of private and public cloud infrastructure. For example, if a bank provides services only to private agents, but the servers that host these services are delivered from the cloud infrastructure of ESDS, which owns the SLA, it is best to be specific.

Cloud Services: The features enabled by IT and delivered to a group of consumers from a range of providers. They must have a well defined interface and can be provided programmatically.

Cloud Platforms: Groups of cloud services. This provides access to features enabled (eg, storage, processing, data formats and application programming interfaces) and existing in multiple levels.

Cloud Infrastructure: Technically speaking, it is a relative term like “cloud platform”, which refers to the enabling of technologies that are unexposed. It is often used to refer to the sum total of infrastructure services for cloud applications and services infrastructure system. It is also sometimes used to refer to resources underlying hardware and OS level.

The Cloud Application: An application designed specifically to take advantage of the characteristics of cloud services, such as scalability, flexibility, multi-location and shared resources.

An Application In The Clouds: An application that runs on a cloud infrastructure service that is not designed to take advantage of the characteristics or attributes style in the cloud. It is synonymous with “cloud-hosted” or “hosted on a cloud infrastructure”. However, one of these applications could be used to deliver a service cloud, such as billing.

Conclusion: Talking about cloud services is an exercise that is much more useful than simply talk about “clouds”. Be specific with the language of cloud computing that will create less confusion and more concrete actions.

Companies that seek to exploit this phenomenon should devote the highest priority to the correct use of terminology of cloud computing especially in this early stage. Companies that deliver cloud services will benefit from the specificity of their infrastructure services, application services or services of business processes. The benefit will have happier customers who will begin to trust what they hear, instead of fearing its consequences.

Posted on 17-02-2012

Filed Under (Cloud Computing) by Pravin Ganore
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The use of information technology as a competitive advantage is already out of the question because of its efficiency and necessity. Another issue now demands the attention and decisions on the part of CIO’s – the profound transformation experienced today, where the traditional models of provision are to live with offers based on cloud computing. The avalanche of new solutions and services available via the Internet and cloud model puts more “connected” new services, new lines and granular cost (or demand) into the hands of users. These services are noted for their ease of acquisition and speed of activation. Curbing the use of these solutions in the cloud means showing the user that the company or its governance processes in information technology are late and are very conservative.

The solution to meet the demands of internal customers with the speed and cost is appropriate to adapt the processes and solutions for use in cloud computing model. This is something similar to the services that the user already uses, but within the processes and security policies and provisioning defined by the company. Once that is done, control of the use of IT is to be rescued by CIOs and security mechanisms will regain their efficiency.

In this scenario, IT departments are looking for implementations of cloud applications customized to your environment. This migration planning for part of their environment or implementation of new applications in the cloud requires a use prior here consulting and provisioning prior to ensure lower costs, greater speed and efficiency in project implementation. This is where the Cloud Facilitators comes come in, companies specializing in analysis of the current scenario, considering the complexity of the production environment of IT companies. The Cloud Facilitators know how to turn this environment, or a portion thereof, for use of cloud-based models.

In addition, Cloud Facilitators are responsible for ensuring the security of information that travels on the corporate network and are now, in part, acting in an external environment (even in private cloud). Cloud Facilitators also manage the environments and provisioning between the traditional atmosphere and new environment implemented in the cloud. This process of outsourcing creates a new model of outsourcing that we are calling CloudSourcing.

Rather than make use of information technology, the implementation and use of cloud solutions by enterprises is changing the methods and processes of acquisition and deployment of IT. This happens primarily because the mechanisms for provisioning, purchases are made in periodic demands and are geographical (by area of interest). A second issue to be addressed is the fact that the cloud solution is governed by its acquisition contracts and at the same time, strict service levels (SLA).

Thus, today’s IT managers must have specialized tools to manage traditional contracts, outsourcing contracts and contracts for CloudSourcing. We are living in a transitional phase in which all these models can live together in harmony. One way the corporation meets the challenges of the present moment is to rely on the expertise of cloud facilitators. People ahead of these companies can help the CIO to carry out environmental management. This is done to ensure IT staff to deliver essential and summarized information that may allow monitoring of what happens, even to the point to understand what impact does the use of new technologies and providers make to increase efficiency of business results.

Posted on 14-02-2012

Filed Under (Cloud Computing) by Pravin Ganore
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With regard to services, at the present time, the concept of cloud computing involves the provision of the following types of services to its users:

Everything as a Service : This type of service is provided to all users of the software and hardware to control the business processes, including the interaction between users, the user only needs to have access to the Internet.

In my opinion, this kind of service is a general concept with respect to the services. Below mentioned are some of the more special cases.

Infrastructure as a Service : The computing infrastructure is given to the user, typically virtual platforms (PCs) connected to the network. It adjusts itself to suit your purpose.

Platform as a Service : The computing platform is given to the user, with the operating system and required software.

Software as a Service : This type of service is usually positioned as “software on demand“, this software is deployed on remote servers and the user can access it via the Internet, and all updates and licenses for this software is governed by the service provider. Payment in this case is made for actual use of the software.

Hardware as a Service : In this case, the user of the service leases the hardware for his own purposes. This option allows you to save on maintenance of the equipment, but in essence little different from “Infrastructure as a Service” except that you have the bare hardware on which you can deploy your own infrastructure using the most appropriate software.

Workplace as a Service : In this case, the company is using cloud computing for the organization of employment of its employees by setting up and installing the necessary software required to operate personnel.

Data as a Service : The main idea of this type of service lies in the fact that the user is provided with storage space, which may be used to store large amounts of information.

Security as a Service : This type of service enables users to quickly deploy, allowing products to ensure the safe use of Web technologies security of electronic communications, as well as the safety of the local system, which allows users of the service to save on deploying and maintaining their own security system.

Posted on 07-02-2012

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The real protection depends on having the right architecture for the right application. Organizations must understand the individual requirements of their applications.

An excellent starting point for an organization wishing to implement a cloud computing platform is to examine the current IT architecture. Only by aligning the applications architecturecomputers, network, data center and storage resources, do you get to keep the company on track to achieve the reliability and performance necessary for a good cloud environment?

In the area of cloud computing, real protection depends on having the right architecture for the right application. Organizations must understand the individual requirements of their applications and, if already using a cloud platform, understand the corresponding cloud architecture. With this knowledge, you can make decisions about what cloud platform responds to the needs of reliability and performance of your applications.

Listed here are five points to consider when evaluating cloud computing architectures:

Availability : Not all applications are equal, as all platforms are not on the same cloud. Organizations have to prioritize their applications, identifying those that must always be available and that may have breaks in service, and service breaks are acceptable. They must understand the risks associated with the unavailability of data. For applications that must always be available, it is necessary to consider high-quality technology and business class have been rigorously tested at the expense of developing an internal solution. It is also important to seek solutions for multi-site planning and disaster recovery / business continuity. For most organizations, this means working with a service integrator or a consulting firm, which includes these services in its core business.

Security : Security remains the primary concern for organizations looking to the cloud. Among the main concerns are loss of control of sensitive data, the risks associated with multi-user environments, and responding to various standards and compatibility needed. You must know how a multi-user shared environment is segmented in order to avoid overlapping customer service and breaking the boundaries that must be established between them. As the solution is architected, and the infrastructure of the Cloud service provider (network and virtualization platforms and storage) is secure.

Management : Organizations must understand what are their obligations, rather than just knowing what to expect from a service provider. Most solution providers of cloud do not support public administration. Or potential customers of these solutions have the expertise to design the right solution at home, or should seek the services of an outside vendor. There must always be an understanding of the level of management that their applications need and the identification of a process of changing management.

Performance : As in traditional hosting models, it is important to understand the requirements of workflow that will lie in the infrastructure. Organizations must also understand what their problems are and how is the cloud architecture that they have, or want to purchase. They must make their own tests to understand how a cloud environment can affect the computational resources, network and storage.

Compliance : Organizations must understand where their data is and who interacts with them, and how. They must understand the areas of compliance that the service provider controls and compare with the standards and regulations that they aim to join.

Posted on 01-02-2012

Filed Under (Cloud Computing) by Pravin Ganore
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As reported in an article published in the pages of the New York Times, research experts conducted an experiment in which it was planned to find out whether wireless devices can be used for communications between dedicated servers, data center in the future or not.

The researchers set out to find out whether the use of wireless systems will speed traffic between servers, data center , if the basic (cable) system is overloaded in the near future. Several server racks in one of the centers were equipped with small corporations directional antennas for wireless devices and switching, which were installed on top of the server racks.

Used for communications range of ultrashort radio waves: The frequency – 60 GHz, the wavelength – about 5 millimeters. According to the researcher, the detailed system of wireless communications has allowed to significantly accelerate the speed of communication between the racks – from 45% to 95% depending on the specific experimental conditions.

It is known that wireless communications are often not completely reliable. Communication may be interrupted, for example, by the inclusion of a microwave oven or by unfavorable conditions for admission to a particular point. So it is the fact that this idea will be accepted by most operators or the data centers. Nevertheless, the situation in case of data centers is radically different from the usual situation with unreliable mobile phones with unstable connections to Wi-Fi.

The fact is that, the entire situation within the data center is under strict control, all occurring processes are well predicted, and the equipment is serviced by staff for uninterrupted services.  In addition, this system uses directional antennas, ie relationship between the switching devices is carried out through the narrow beams of radio waves.

Posted on 30-01-2012

Filed Under (Data Centers) by Pravin Ganore
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Jan
23

Often we discuss technology trends and the changes they cause. We debated the technological complexities involved and estimated its rate of market adoption. But most of the technical articles forget one key factor: the driving force behind the adoption of any technological change is the economic factor.

When looking at the future of IT, we can learn something from the past and how organizations and society invested in these technologies. In the past, a few mainframe companies had access to computers (the computers were too expensive) and the expectation was that IT would enable them to automate their business processes, to make them faster and cheaper. Later we saw the emergence of the distributed model, client-server, which cheapened the cost of acquisition of technology, allowing you to create solutions aimed to generate more speed and functionality demanded by specific Departments. However, the rapid proliferation of different systems has created a demand for integration that culminated in the emergence of the ERPs.

The situation today is very different from years ago. The Internet is already a part of our daily life and is ingrained in the IT business. The companies did not begin to settle more in just reduced costs. This is “business as usual”, the duty of every self-respecting manager. IT has already done much in this sense, “how to create shared-services center and consolidate its data centers?“. IT now has the opportunity to be looked at from the perspective of revenue generation and as a platform for creating new business and support growth strategies and not just an operational area.

To view IT as revenue generator is a different “mind-set“, because IT was always seen as supportive for the business, but now, it generate new revenue. Now IT can be seen even as its source of income. The adoption of IT cloud computing allows you to generate revenue and profits. We can start talking at the end. Cloudnomics.

Cloudnomics can be translated as a new economic model for IT, where metrics like TCO lose enough of its importance and IT begins to be seen through the eyes of a business case. In fact, any business is started to go forward, generate revenue and profitability!

As cloud computing enters this process?

With public cloud. IT will no longer install, configure and upgrade physical servers, and the standardized and automated processes that characterize a cloud environment, the number of technicians dedicated to support greatly decreases. IT can focus on innovation and value creation for the company. The cost models also change with cloud and its concept of elasticity. You pay for the use of resources consumed, which can be directly linked to revenue generation, increased use of IT, more revenue generation. It is an economic model that changes the rules of the game. It costs the same to rent a server for 1000 hours to 1000 servers for one hour.

A practical example of how the current IT model limits the generation of significant revenue: To explore new business opportunities that have a short life. In the current model, it is not economically justifiable to purchase a technology platform and put it into production (with high up-front investment) for it to operate for only a few months, taking advantage of a unique business opportunity. The bill probably will not close. With this cloud, it is perfectly possible. A simplistic example, but it shows the idea: producing an animation, where the defendant is a huge computing power to render final film, much more than the sum of all previous months of production and that after the closure dispensing with all computers. Cloud computers are allocated as they are needed and that there is no turning off computers . The provider, in turn, also enjoys economies of scale, keeping thousands of servers to be shared by hundreds or thousands of customers.

The conceptual shift is much larger than technological change. Comes the entrepreneur CIO, attached directly to the CEO. A profile is much less technical and more focused on business and entrepreneurship. In fact, a suggestion of an MBA could be “Entrepreneurship in IT” .

Among the structural changes to IT, we see the start of an organization aimed at supporting other sectors of the company to a revenue-generating industry and the transformation of an organization focused on building activities and support systems and computing power for an organization aimed at creating a computing platform where new businesses will be generated. The choice of applications and consequent utilization can be moved to their users.

This new IT may act as an incubator for business start-ups within the company.

Finally, IT is a business unit which is simple to write, but hard to put into practice. Sure, it’s not going to happen from one day to another, but a process that will happen over the next year. But can get started today.

Posted on 23-01-2012

Filed Under (Cloud Computing) by Pravin Ganore
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