Is The Cloud Right For Your Business?

Is The Cloud Right For Your Business?
By Marc Arbesman

 

Many large technology giants are pushing cloud services as the

next big thing. They promote these services to be some sort of

panacea for small and medium-sized business owners.

The promise is that companies can reduce costs and enjoy leading

edge software and other virtualization by sharing these services

in the cloud. The objective is to greatly reduce the

expenditures involved with desk-by-desk purchases for office,

CRM and other products. Long-term it provides a savings for on-

site server upgrades and maintenance.

For those not familiar with the cloud, the wiki dictionary

defines it as "the use of computing resources (hardware and

software) that are delivered as a service over a network

(typically the Internet".)

End users can access cloud-based applications through a web

browser or a light-weight desktop or mobile app while the

business software and user's data are stored on servers at a

remote location.

Many claim that cloud computing allows enterprises to get their

applications up and running faster, with improved manageability

and less maintenance. They say it enables IT to adjust resources

more rapidly to meet fluctuating and unpredictable business

demand.

How does it work? Cloud computing relies on sharing of resources

to achieve coherence and economies of scale similar to a utility

(like the electricity grid) over a network. The foundation of

cloud computing is the broader concept of converged

infrastructure and the sharing of services.

Four types of cloud computing are available to meet most

business needs.

One is the Public Cloud. Public cloud applications, storage, and

other resources are made available to the general public by a

service provider. These services are free or offered on a pay-

per-use model with access only available through the Internet.

Another is the Community Cloud. The Community Cloud shares

infrastructure between several organizations from a specific

community with common concerns. They are managed internally or

by a third-party. The costs are spread over fewer users than a

public cloud (but more than a private cloud), so only some of

the cost savings potential of cloud computing are realized.

The Hybrid Cloud is a composition of two or more clouds

(private, community or public) that remain unique entities but

are bound together, offering the benefits of multiple models. By

utilizing "hybrid cloud" architecture, companies and individuals

are able to obtain local usability without dependency on

Internet connectivity. Hybrid cloud architecture requires both

on-premises resources and off-site (remote) server-based cloud

infrastructure.

Finally there is the Private Cloud. It is cloud infrastructure

operated solely for a single organization, whether managed

internally or by a third-party. It is hosted internally or

externally. Undertaking a private cloud project requires a

significant level and degree of engagement to virtualize the

business environment. When it is done right, it can have a

positive impact on a business, but every one of the steps in the

project raises security issues that must be addressed in order

to avoid serious vulnerabilities.

While the cloud has some benefits for email, marketing campaign

tools (such as e-newsletters), Customer Relationship Management

Systems (CRM) and office applications, maintaining an entire

network in the cloud is still cost-prohibitive.

Based on today's pricing structures a more efficient option is

for a small to medium-sized business to purchase their own

hardware and have it co-located at a data center or on the

premises of the company.

The concept of virtualization (one physical computer with many

virtual servers running on it), would provide a cost savings if

a company were to build out the infrastructure themselves.

Purchasing virtual servers from a large corporation like Amazon

is still a more expensive offering.

Regardless of which direction a business chooses they must be

managed by skilled engineers.

For smaller companies establishing or maintaining a relationship

with an IT or Managed Network Services firm is appropriate to

analyze and recommend which facets of the cloud are appropriate

for their needs.

In addition the IT firm can oversee cloud functions and provide

day-to-day technology assistance such as 24 x 7 remote support,

unlimited on-site support, a help desk, and even a Virtual CIO.

Larger organizations can take advantage of the tech firm's team

of engineers and utilize their knowledge and skill set to assist

with any transition whether it includes complete virtualization

or the development of a Hybrid Cloud model.

While the cloud is well publicized and certainly appealing, it

may not be appropriate nor economical for every organization.

Business owners should consult with a technology professional to

determine if the cloud is a good fit for their business

operations.

Marc Arbesman is a founder and CIO of ThrottleNet, Inc.

ThrottleNet offers an array of technology services and products

to help business owners achieve their corporate goals, while

reducing overhead. This is accomplished through outsourced

Managed Network Services which helps companies improve their

technology uptime and IT capabilities while, at the same time,

reducing costs. The firm offers custom software development and

mobile applications to help companies accelerate their business

growth. For additional information contact ThrottleNet online at

http://www.throttlenet.com or call 866-826-5966