Whom does the cloud serve?

IT industry blogger Dominic Monkhouse tells us what issues need to be considered to make using cloud computing a viable option.

Cloud computing has been hailed as the future of IT, a way to cut-out the cost of hardware and maintenance, allowing employees to access applications from any location and so on. It can already fulfil much of this promise, and indeed small and medium sized businesses are already using the cloud with great benefit. However, there are equally some issues that need to be considered when a business decides when and where cloud is a viable option.

The immediate problem we face is that there is no accepted definition of ‘the cloud’. Is it a technology or a business model? Is the internet the cloud? And, if so, does that mean we should consider Google Apps and YouTube as the cloud? Is the cloud a replacement for locally-installed software, a content delivery network or is it a virtual storage and server park? There is no definitive answer to these questions and a wide range of cloud products exist, which makes it difficult for businesses to decide whether the cloud is right for them.

With confusion comes misconception; these need to be cleared up before deciding whether cloud is truly a sensible business option.

1. Cloud is not suitable for e-commerce. Cloud is, in fact, suitable for most businesses regardless of industry. The key is to understand what type of data to store in the cloud. The most sensitive business data, such as customer credit card details, should not be considered for cloud and should be encrypted, kept internal or stored with a specialist payment service provider to ensure maximum security at all times.

However, certain applications (CRM, ERP, messaging and collaboration) are common to many companies. Using an external cloud provider to manage the application at a lower cost makes sense. Businesses then need to assess the applications and build policies based upon the type of data. If these steps are taken, there’s no reason why any business should miss out on the advantages of cloud.

2. Cloud is a security threat. As long as the right data is stored, there shouldn’t be any security issue in the cloud. It is true that data is stored outside the company’s physical premises if it’s in the cloud. However, if employees are careful with passwords and other security, the data stored there is not critical, or you encrypt the data to be stored, you can rest easy.

3. All IT departments know exactly what ‘cloud’ is. According to a recent PEER 1 survey, 88 percent of key IT decision makers do not use cloud. Thirty nine percent of these claim lack of knowledge about the technology is putting them off. Clearly not all businesses are cloud-confident. It’s up to the experts, whether that’s technology vendors or service providers, to educate and ensure cloud is fully utilised across all sectors.

4. Cloud will replace the IT department. Cloud technology is designed to work alongside skilled IT staff, not make them redundant. Making applications, data and other information easily available and quick to access and manage, will free up time IT staff have spent on admin duties. This in turn will allow staff to concentrate on improving and future-proofing IT systems. The ‘rip and replace’ culture has never worked in IT – it’s no different with staff.

5. Cloud is the answer to all problems. Cloud can make things easier – benefits include reduction in the cost of hardware and maintenance, flexibility and scalability and the ability for employees to access applications from any location. However, if cloud is not understood and therefore used improperly, it can be a hindrance. It’s in these situations that data is lost, or stolen. The most important step is to do your research and understand exactly what your company needs from the cloud before you make the move.

The most prominent area of concern, surrounding the cloud, is security. After all, who would move their internal data out of their company offices onto the internet?

The reality is more complex. Cloud technology is sufficiently secure for the large majority of corporate data, but businesses must be ruthless about the security of passwords and logins to match this – the technical security measures in place at cloud providers are much better than internal IT at a typical company, but these are no use if an attacker can guess a password, or login and so access the system – which they can now attempt without visiting the company’s office.

However, the cloud is not yet ready for the most sensitive business data – for instance few clouds meet PCI DSS (Payment Card Industry Data Security Standards), so the cloud is not yet secure enough to host or process credit card data. A business looking to move into e-commerce and meet the online payment standards needs to make sure its system is as secure as possible. Customers won’t care that e-commerce employees can access cloud applications from anywhere if their card details have been lost. E-commerce in the cloud is best achieved in combination with a specialist payment service provider who processes and stores the most sensitive credit card data.

The size of the business is also a big determining factor for cloud uptake. For large businesses with their own IT department, cloud or on-demand IT services and applications offer a flexible resource to tap into. These companies will have the technical expertise to be able to manage, and make the most of cloud computing. For smaller businesses, in-house IT skills are a mixed bag – some have plenty of knowledge, others have very little. This level of knowledge has larger consequences than at first it would appear – especially since the benefits of cloud are largest for those small businesses who do have the in-house IT skills and so can use the cloud to access cloud systems of a quality and scale which they could not possibly afford in-house.

The aforementioned study found that 88 percent of IT decision makers do not use cloud technologies, with 39 percent of respondents claiming that lack of knowledge is putting them off. The independent study which canvassed the opinions of over 200 IT decision-makers reveals that concerns about security put off 24 percent of would-be cloud users, while 21 percent perceive that lack of control outweighs the benefits of cloud hosting.

Despite the concerns, 49 percent of those surveyed say that they are considering the technology. The availability and reliability of cloud computing are viewed as key benefits for 69 percent of respondents, while another 63 percent are attracted to its performance benefits. Scalability and flexibility are both factors that appeal to over 60 percent of potential cloud hosting users, with 43 percent citing security as being a reason to choose cloud hosting.

PEER 1 commissioned this research to gain a better understanding of IT decision makers’ perceptions of cloud hosting. The results clearly illustrate that there is lot of confusion around both benefits and limitations of cloud hosting. A case in point here is feedback on the security of cloud: 23 percent cite a perceived lack of security as a deterrent, whilst 43 percent see security as a benefit. There are some very mixed messages out there.

There are many benefits to cloud, as it can reduce costs and increase flexibility for businesses, which is appealing for any IT decision maker. But the industry needs to help leaders make an informed decision by providing standards that will address concerns around security and compliance.

So who does cloud works for?

The cloud provides a wide range of services, from web-delivered applications (such as SalesForce CRM) to scalable pools of server capacity (such as ElasticHosts). In all cases, they provide a great way to cut out the cost of hardware and maintenance, buy scalable capacity on demand and access this from any location.

Today, the cloud works best where businesses have a relatively high level of in-house IT skills and limited investment in existing solutions. New small businesses which have the skills to do so are building their IT on the cloud from day one, and so gaining access to cloud systems of a quality and at a scale which they could not possibly afford in-house – whether these are best-in-class web-delivered applications or scalable and flexible cloud server capacity. Equally larger businesses are using the cloud as a flexible resource to tap into, and are moving the systems which most need on-demand capacity, scalability and flexibility or remote access.

The thing to remember about cloud is that, like any IT advancement, it has its strengths and its weaknesses. There are significant advantages in reduced costs and increased mobility, flexibility and scalability. Security in the cloud is good, but the most sensitive systems or types of data should remain internal or with specialist processing providers. Cloud is not the panacea it is being hyped as, but does work harmoniously and fruitfully for many, providing capabilities which they could not otherwise access. Cloud should be considered by all, since the benefits are real and significant, while approached with open eyes and assessed skilfully for when and where it is best used.

www.dommonkhouse.wordpress.com