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January News and Notes

"To the Cloud?"

What is cloud computing? It might surprise you that there are many definitions, depending on who you ask. Loosely speaking, the word cloud generally refers to the internet. Thus, the most basic definition of cloud computing is the use of virtual servers, accessed via the internet, to store data and run application software. Others take the definition to a much broader level, using it to encompass all IT activities that occur beyond a company’s owned servers and firewall. While the concept of cloud computing has been around for a long time, the recent avalanche of articles and, most importantly, advertising, indicates that a lot of companies have decided that now is the time to push for widespread commercial availability to users at all levels.

Some examples of the virtual server concept include Google Apps, a suite of conventional office software applications that are accessed by logging onto a Google site. From there, you can upload and download data files, use the software to create or edit files, and store the results, all without the use of in-house software and hard drive storage. Another example is the licensing of gateways and virtual servers by Intuit, the makers of QuickBooks software products. These allow companies to lease the software for a monthly fee, while storing data on remote servers operated by the licensed providers. Although the software is not loaded onto individual workstations in the office, the on-screen look is exactly the same as if it were.

Who should be using cloud computing? Some visionaries think that eventually everyone will be using this approach, negating the need for owning hardware that needs to do anything beyond accessing the internet. Interestingly, most of the mass advertising, principally by Microsoft, seems to target a narrower market. The two primary ads feature personal use and use by a startup company. In the first ad, a couple stranded at an airport use their laptop to watch videos stored on their home computer. In the second, key personnel of a startup company, all of whom have other full time jobs, collaborate on a client proposal stored on a virtual server.

We’ll examine some of the pros and cons below:

PROS:
• Minimize up-front costs of purchasing servers and software licenses.
• Eliminate the need for IT management, either on staff or via third parties.
• Maintain the ability to access shared files from any location that provides internet access.
• Negate the need to email files to traveling employees, or those working from home.
• Make files available 24/7 to anyone who needs them.
• Leasing software applications provides access to the latest upgrades as soon as they are available.
• Your data is regularly backed up for you.

CONS:
• For businesses that already have made significant investments in IT infrastructure and software, there may be no cost savings.
• Over time, the cost of leasing software could easily exceed the initial investment of purchasing licenses.
• If someone else is maintaining the servers storing your data, you have to hope they will be reliable.
• Billing disputes or payment errors, instead of just being a nuisance, could cause the virtual server provider to temporarily restrict access to your vital records.
• Security issues are a concern, especially after the recent attack on the servers of a major credit card company.
• Legal issues over ownership of data and liability have yet to be worked out due to the newness of the technology.

These are just some of the issues to consider before plunging into the world of cloud computing, or deciding if it is right for your business.

Normally, it is our practice to link various articles on different topics in the newsletter. However, due to the widespread interest in this topic, we are providing links to various discussions of cloud computing, from different perspectives.

From InfoWorld.com: http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031

From Wikipedia.org: http://en.wikipedia.org/wiki/Cloud_computing

From InformationWeek.com: http://www.informationweek.com/news/smb/1000to1500/showArticle.jhtml?articleID=225200751

From InformIT.com: http://www.informit.com/articles/article.aspx?p=1324280