Private, not proprietary, cloud computing
Mar 10th
Amid rising costs, a challenging economy and an explosion in Web-based data, IT experts expect continued high growth in cloud computing.
Cloud computing saves energy and operating costs by pooling information-technology (IT) resources, scaling up or down as needed, and putting computer power to use, rather than leaving it idle while it still draws energy.
Over the next decade, cloud computing is expected to transform the way in which IT is purchased, sourced and provisioned.
Companies can use the advanced technologies that cloud computing offers to exchange digital information around the world and across a variety of devices. They can quickly deploy new applications and meet peak workloads without adding to existing infrastructure. The autonomic features of cloud computing can be applied to predict harmful events, such as overheating or unbalanced workloads, and take corrective action. These are all advantages enabling companies under pressure to save time and money and to maintain a complex IT infrastructure while keeping their primary focus on the business.
Public or external cloud-based services, which receive most of the media attention, are available from a third-party service provider, via the Internet. On the other hand, cloud-computing platforms can also be private, and hybrid architectures also integrate both private and public platforms.
For IT users, cloud computing offers fast access to diverse types of information regardless of the type of device they are using, including laptops, smart phones, or PDAs. Technology users, including workers, partners and customers, want access to sophisticated applications that are as simple to use as self-service ATMs.
Where security is concerned, all companies need to maintain the security of their data. Some data may not be permitted to leave an enterprise or a specific geographic location. Therefore, it is essential to evaluate which workloads can be sourced through public clouds and which need to be kept in-house and delivered through private clouds. A strategy working for some companies is to begin with private cloud-computing solutions in order to evaluate the results in a controlled environment.
Private clouds remain behind firewalls in order to maintain privacy and security. Companies are able to establish security protocols, carefully monitoring the levels of access to information that is available for exchange. Access can be limited to internal networks, such as employees, then evaluated before being expanded to other limited networks, for example, business partners. Private clouds can be managed without network-bandwidth restrictions, security exposure and the regulatory-compliance issues of public clouds. Customizing cloud services and determining best practices is a smart way to increase the productivity of sales teams and off-site employees.
No matter whether the clouds are private or public, companies need to begin with trusted; secure foundations in order to build the most secure, efficient, and resilient cloud-services platform. Some companies may be tempted to begin with the user interface. However, beginning with the underlying infrastructure is a better strategy for long-term success, especially if there may be a future need to integrate public and private clouds.
Industry standards are still developing, but they will solidify as the technologies mature and more enterprises use cloud services. Right now, companies may find the best strategy is to opt for cloud services that are interoperable and based on open technologies.
Whether public, private or hybrid, a major driver of cloud computing is the need for companies to get new ideas, products and services to market faster, and continually innovate to meet global competition.
Cloud computing delivers more advanced technology within a simpler, cost-effective infrastructure. It creates a flexible, robust infrastructure to serve the needs of today’s economy, where knowledge flows to countries and regions wherever IT infrastructures are reliable and responsive.
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Google App Marketplace Could Revolutionize Cloud Computing
Mar 10th
You must have noticed that Google has been slowly inching towards a culture of Online cloud computing, and most companies, individuals and businesses have adapted to the culture of cloud computing because of its obvious advantages. Cloud computing allows users to manage data, applications and information in a way that traditional software or hardware don’t allow and the most important advantage is that you could access your data, application and software from any computer in the world, provided you have the ID and password.
However, cloud computing itself is not without disadvantages, and the most unpleasant one is the lack of applications directly integrated into Google. Hence, users copy and paste data, use different applications time and again in order to get everything into the cloud. Google itself has admitted that it does not have the expertise to integrate the hundreds of business applications out there into the cloud.
Thus Google has now announced that Google Apps Marketplace is now open for business. Developers and software providers can now join the new Online store for integrated business applications. These cloud applications will allow Google Apps customers to discover newer applications without having to manage each one of them separately.
At the moment, there are already more than 50 companies who are selling their applications. Some of the apps already available are
Intuit Online Payroll: It allows users to run payroll, pay taxes and check paystubs within an integrated online office environment.
Manymoon: It helps in organizing and sharing information with co-workers and partners, including tasks, projects, documents, status updates and links.
Professional Services Connect (PS Connect): This provides contextually relevant information about people, projects, customers and transactions so that one could make better decisions.
JIRA Studio: This app helps to track and manage project issues and workflow, especially in design and development of tools.
What the Google Apps Marketplace Is
It works similar to the Apple App Store, but is only cheaper. Google is asking the developers and businesses a onetime fee of $100 and 20% of the revenue in exchange to the access to 25 million Google users. Apps would be authenticated using OpenID and would be secured through oAuth. The applications would be accessible through a universal Google Apps navigation system.
How It Could Help Businesses
Businesses and companies could stop using multiple applications and get rid of the burden of having to remember multiple passwords for each applications. Whether you are an employee or a proprietor, you could use your Google account to access all these applications, and edit/use based on the permissions you have.
How It Could Help Individuals
Google Apps are used by not just companies and businesses but also students, freelance workers, and independent professionals. There are several account management apps, data related apps and other applications that could help the end user to make use of Google cloud computing and the Google App Marketplace makes it easy for everyone.
How Cool Is It Anyway?
Like I mentioned earlier, cloud computing has already become popular and most of us have been using Google Docs, and other apps successfully. The marketplace would allow us to access more applications which are not developed by Google but have been authenticated nevertheless. This allows for a streamlined system of working and managing data, software, accounts and information.
Companies and individuals could make use of payroll, data entry, management, and an office suite for instance and integrate them to the Google account. It would also help in terms of social media, data management and communication. Google App Marketplace could thus be a great beginning and a step in the direction!
Read more: Google App Marketplace Could Revolutionize Cloud Computing | Walyou
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Google Apps Marketplace Launches as New Cloud Computing Store
Mar 10th
Google March 9 opened its Google Apps Marketplace, an online store selling enterprises business applications that integrate with and extend Google Apps.
The Google Apps Marketplace will let Google Apps users access business apps for project management, billing and accounting, travel management, and other services. This will provide third-party software
developers a larger cloud computing channel into which to sell their applications.
Click here for a tour of Google Apps Marketplace.
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The move, announced during a Campfire One event at the company’s Mountain View, Calif., headquarters, is Google’s most aggressive play to drive growth for Google Apps, a suite of SAAS (software as a service) collaboration applications. The play also threatens existing cloud application stores such as Salesforce.com’s AppExchange.
Google Apps, which Google offers in free and paid versions, includes Gmail; Google Docs word processing, spreadsheet and presentation applications; and Google Sites publishing software.
Google Apps has picked up more than 2 million business customers who opt to let Google host their business data so they don’t have to maintain on-premises solutions such as Microsoft SharePoint or IBM Lotus Notes on their own servers.
However, collaboration applications are only a part of the SAAS software ecosystem. As the success of Salesforce.com shows, there is a burgeoning market for enterprise applications based on the cloud.
To wit, the Google Apps Marketplace allows Google Apps administrators to purchase integrated third-party cloud applications and deploy them to their domains.
Google Engineering David Glazer, who shepherded Google’s OpenSocial movement, said that while many businesses
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How Google Keeps Your Data Safe in the Cloud?
Mar 5th
In a blog post today, Google essentially reminds its enterprise customers that Google Apps provides an alternative to expensive, complex solutions as far as data disaster recovery goes.
Synchronous replication is a system that Google Apps uses to store customer’s info in two data centers at once, so that if one data center fails, Google says it nearly instantly transfers data over to the other one that’s also been reflecting the actions taken by the customer all along.
On the practical side this means that thanks to the cloud-based storage solution, Google customers won’t lose any data in a data center failure. Just as crucially, they are theoretically back up and running straight away — although the online giant does acknowledge that no backup solution is perfect.
This synchronous replication is applied to the entire Apps suite as well as Gmail (Google Calendar, Google Docs and Google Sites), with the sales angle being enterprise-class back-up for all at a much lower cost than if companies were to provide or contract separately for their own data redundancy systems.
Google, ever keen to push its Apps suite to new corporate clients of all sizes, estimates that this kind of backup could cost up to $500 for 25GB of data from other providers, but says it can bundle it in because it’s already running large, fast data centers.
This is essentially Google reminding enterprise customers (and potential customers) about one of the significant benefits of cloud computing over traditional in-house server farm data storage. How does your business handle data backup and redundancy issues? Do you think cloud computing is the ideal solution to hardware failure?
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How To Move Your Business To The Cloud
Mar 5th
Tips for evaluating and implementing cloud computing technologies.
How in the world does a chief information officer or information technology professional cope with the challenge of delivering solutions for the second decade of the 21st century when they are saddled with 1980s technology?
Add the issues surrounding reduced budgets and the ongoing knock on IT workers–that they do not respond in a timely manner to changes in business–and you have the setting for change. Both in how IT delivers solutions and how IT needs to change itself.
The good news is that for once in almost 30 years, software is changing. No longer are you stuck with simply new features using outdated technology. You now have an alternative technology solution. The historical technology providers are, of course, trying to maintain their hold on you and your budget dollars by marketing “internal clouds,” alliances that merge hardware and software stacks that imply “infrastructure to application” environments but totally miss the point and the benefit of cloud computing. But of course you would do this, too, as part of the innovator’s dilemma.
As a CIO, how does your company take advantage of this changing technology and business model called the cloud?
There are a few things to consider with cloud computing. First, a number of research firms suggest that cloud implementations can take up to 50% less time, and total cost of ownership can be up to 46% cheaper. Both of these are shown in numerous white papers provided by cloud solution providers, and for the most part are reflective of the power and benefits cloud computing can provide.
However, one caution: Should you need or require multiple integrations, go cautiously. Integrating cloud solutions to on-premise solutions still takes time. Although somewhat less expensive, it still can add to project costs. Also, ERP cloud providers have some perverse view that makes integrating their solutions with other necessary cloud solutions very difficult. This is still the throwback to the “old software model” where your vendor “knows best.” Key takeaway: As you get into cloud computing, make sure your vendors not only have robust application programming interfaces, but also that they have demonstrated those integrations with other vendors you may be considering.
Another consideration in cloud computing is the vendor’s openness regarding service-level agreements, disaster recovery and security. Even the larger providers have their outages, but they still deliver higher uptimes than your internal data centers. However, with newer vendors and providers, make sure they are invested in your SLA so it is not just a contract term.
Final consideration for you in exploring cloud computing solutions: customization. One of the key benefits of cloud computing is the ability to customize the solution to some degree. So you have the advantage of changing the cloud solution to your process and behavior; with on-premise solutions, you need to change your behavior to their process.
Cloud computing will change your internal business model. It allows you to significantly reduce your capital outlays for hardware and software.
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Cloud Computing Investing Ideas
Mar 2nd
“Cloud Computing” is a new buzzword (or is it buzzwords?). Everybody is talking about it and most people don’t understand it. I will try to review the current state of cloud computing from an investment perspective and possible future developments in the area.
IT expenses are huge in most companies. At least that’s what any manager (with some exception) will tell you. To reduce those expenses, companies have adopted various business practices: cutting the number of personnel (usually with disastrous consequences later), appointing MBAs as IT department managers, buying software packages instead of in-house development (not a bad idea) and, of course, outsourcing (with the whole spectrum of results, from awful to great). In most cases, IT costs have ignored all heroic efforts of managers and have continued to grow. They continue to grow for two reasons: IT does more work every year and most of the efforts of managers are counterproductive- they actually increase costs instead of cutting them.
Looks like managers see cloud computing as a great new way to cut IT costs. They are both right and wrong. They are right because when implemented properly, cloud computing can cut costs and/or increase productivity. They are wrong because there is no such thing as a free lunch and correct implementation still costs a lot of time, effort, and money.
In the news, especially investment news, there are three different IT developments which are lumped together under name of “cloud computing”. Below is a quick review of them.
Internal Cloud
Also called server farm, this is a new way of organizing computing infrastructure. Companies set up big server farms with thousands of individual servers. Servers belong to the company, although management might be outsourced. The biggest plus of internal clouds is the fact that all data is kept on company’s own hardware. Usual features of such farms include: virtualization, automatic computer management and virtual networking. I am not going to explain all these terms, there are enough explanations on the Web. The first server farms, as far as I know, were used by Web oriented companies, such as Amazon.com (AMZN), Yahoo! (YHOO), Ebay (EBAY) and Google (GOOG).
But for investors, the most interesting companies are those which provide hardware and software solutions for internal clouds. The biggest of them are: Dell (DELL), HP (HPQ), IBM (IBM), Cisco (CSCO), EMC (EMC) in hardware; and in software, Microsoft (MSFT), VmWare (VMW), Oracle (ORCL) (which is also a hardware vendor after buying Sun Microsystems). There are also a lot of smaller players, but judging by the latest earning report from Brocade (BRCD), competition is stiff and prospects are not certain.
External Cloud
If the idea of storing data on somebody else’s hardware doesn’t scare you, the cloud itself can be outsourced. Currently, Amazon, Google, Microsoft, AT&T (T) and a lot of smaller companies provide this kind of service. I think that Amazon and Google have an advantage here, both because they are better at managing relationships and have better hardware/software combinations. Microsoft’s policy of using exclusively the Windows operating system is a drag on performance, while Amazon’s and Google’s reliance on Linux is a plus. AT&T is at a disadvantage here as well, because its problems with customer service are not restricted to the mobile phones area.
The companies provide virtual machines to their customers, with the operating system of the customer’s choice. But Linux is a better base for virtualization than Windows. Unfortunately for investors, external cloud doesn’t look like a significant piece of business for any of these companies or any other big companies which might get into it. Possible candidates are IBM, Ebay, Yahoo!, Dell, HP, Oracle. Of specialized companies, I only found Rackspace Hosting (RAX) and Enomaly, which is not public (yet?). I don’t know if specialized companies have any chance inside of the herd of elephants, but Rackspace is on my watch list.
Software As a Service
I don’t really know why is it often called “cloud computing,” it has nothing in common with the other two. These are suites of applications provided to businesses online, usually through web browser interface. True, companies providing applications might use internal or even external computer clouds, but the business model is completely different.
From my point of view, this is a very interesting development. There is only one problem for the companies here: data is kept on devices which belong to a different company. But in this case, companies don’t need expensive IT departments to run the application. It’s not a big help to big companies, which use hundreds of different applications, including a lot of custom built. But for a small company, which needs less than a dozen applications, this is a very interesting proposition. Current competitors in this area: Salesforce.com (CRM), Oracle ORCL), Rightnow Technologies (RNOW).
Salesforce.com is a leader, and any independent company is a possible acquisition target for Oracle and SAP (SAP). There is a possibility that Microsoft might get into this business, using acquisitions or internal developments, but so far I don’t see any indication.
Of the above mentioned, software as a service is the most interesting investing area. I’m looking at Salesforce.com often, but the stratospheric P/E scares me every time. I might be wrong and the P/E might be justified. For internal clouds, software companies look like the best bet with VMW being the leader. I don’t see any investing possibilities in the external clouds yet. I am long GOOG for different reasons and I think that AMZN is a great company, for other reasons as well.
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Cloud vs. in-house: Where to run that app?
Mar 1st
Options include public clouds and external private clouds. Here’s how to choose wisely.
Computerworld – One of the biggest decisions IT managers have to make is how and where to run data center applications. Fortunately, there are multiple choices that lower costs and increase business agility, including server virtualization, internal clouds, public clouds and external private clouds.
Many IT organizations are taking advantage of these options. Server virtualization is currently being used by more than 70% of enterprises to reduce costs, and cloud computing is being used or planned for use by more than 10% of corporations, according to Antonio Piraino, research director at Tier1 Research.
It can be confusing and difficult to determine which cloud environment to use (see sidebar below for descriptions of the most popular types of clouds). There are few, if any, guidelines, and each company will almost certainly have a unique discussion about its choices because each will have varying requirements and different views of what cloud computing means.
To take advantage of the new opportunities afforded by cloud computing, IT organizations have to learn the differences between server virtualization and various types of clouds, and understand the risks associated with using each execution environment in terms of the characteristics of various applications.
What is a cloud?
One may wonder why there’s an interest in cloud computing when server virtualization is already providing significant cost savings by reducing the number of physical servers that enterprises buy. But it’s not the same thing at all.
Different clouds to choose from
There are basically two types of clouds: public clouds and private clouds. Cloud types can generally be characterized by their location (on-premises or off-premises) and the perceived degree of security that they provide.
A public cloud is one in which a cloud service provider makes resources such as servers, storage, networking and, possibly, applications available to users over the Internet. Public clouds are off-premises by definition. A customer’s applications may be running in an intermingled style on the same physical server as another customer’s applications, meaning public clouds are multitenant. Public cloud services, such as Amazon’s EC2, are usually offered on a pay-per-usage model — you pay for what you use.
Private clouds take two forms: internal clouds and external private clouds. An internal cloud is inside your data center (on-premises), giving IT managers complete control over the available resources. A typical internal cloud relies on the security measures available within the cloud and within your data center. Ubuntu Enterprise Cloud and Microsoft Azure are examples of packaged software for creating internal clouds.
External private clouds combine characteristics of internal clouds and public clouds. They are like public clouds because they are off-premises. But unlike public clouds, applications run on dedicated servers, and the cloud provider has built container walls around the external private cloud to make it more secure than public clouds. IT managers have more control over the resources in a private cloud than over resources in a public cloud. Amazon’s Virtual Private Cloud is an example of an external private cloud.
“Clouds provide automation and orchestration not found with server virtualization,” says Jeff Deacon, cloud computing principal for Verizon Business. (Although Deacon’s day job is helping figure out which of Verizon’s internal applications should go on the cloud, his company also sells a public-cloud offering called Computing as a Service.)
In other words, Deacon says, cloud computing involves imposing a layer of abstraction between the applications and servers — physical or virtual — that automates many tasks typically done manually.
“Clouds can be viewed differently, depending on what you want from a cloud,” adds David Escalante, director of IT security at Boston College. “We view cloud computing as running software applications that you would normally run in your own data center in someone else’s data center. It is very important to create a definition of cloud computing for your organization.” Armed with that definition, Boston College can focus on determining whether cloud computing is right for its data center needs, and which applications can be run on clouds.
Because clouds are based on virtualization, applications have to be virtualized before being moved to any of the cloud environments. But some cloud vendors can help with this, especially if the vendor supports a specific hypervisor.
On the other hand, organizations that already have their applications virtualized in a server virtualization environment may be able to move them to a public cloud without any extra work. Also, the operating systems supported by server virtualization and clouds play a role in where applications can be run. For example, clouds based on Microsoft’s Azure support only Windows applications.
