What is the cloud?

The term cloud is a metaphor for the internet and describes the nebulous nature of the net whilst hiding the complex infrastructure that underpins the technology. 

Traditional computing relies upon software installed on individual computers. For instance a traditional e-mail package, such as Outlook, would be installed on a computers hard drive and a user of that PC would utilise the software by running it directly on the machine.

Cloud computing refers to software that operates within the cloud so whilst a user would access the software from a PC, the software itself is running on a server somewhere else in the world. A familiar example would be Hotmail. You are accessing the email system through a web browser on your PC but the actual data and processing are occurring on Google's servers - perhaps in another country or continent.

As it's one of the earlier systems to migrate to the cloud, and one that many people will be familiar with, we'll be using Exchange e-mail server as an example throughout the newsletter. Whilst this is used an an example most software could theoretically be run and accessed in the cloud given the right infrastructure.

You might be thinking 'But why bother' and it's a very valid question. Cloud computing offers a number of benefits, some to you as end users, some to us as administrators and some to business budgets.

Cost Savings

Cloud computing removes the need for large capital expenditure as hardware and software are paid for as they are used rather than being purchased up front. This reduces barriers of entry, reduces risk and allows access to a broader range of IT on a limited budget.

Continuing e-mail as a simple example a company may decide they need the features of an Exchange e-mail server (such as shared calendars and communal mailboxes) but don't want the expense of buying and supporting an on-site mail server. In these cases a company may decide to use a cloud Exchange server on a monthly lease which provides many of the benefits for a flat monthly fee.

Some software, such as CRM systems, may simply be too complicated and expensive for small businesses to warrant their use in a traditional on-site framework. An installation of Microsoft dynamics CRM for instance can deliver massive benefits for a small business but requires significant investment in the form of hardware, software and support. Using a hosted solution removes the need for this initial investment and opens up software that would otherwise be unavailable.

End User Benefits

As IT becomes more pervasive in everyday life people have a need for their business data on the move. Hosting data in the cloud means that business information can be accessed from anywhere in the world on any number of devices. Whilst this can be achieved using technology hosted on-site (i.e. Terminal Servers & VPNs) the cloud can provide a more resilient system for a distributed workforce as there is no one single point of failure. Because users access the same services wherever they are in the world cloud computing can also provide a more seamless user experience.

Administrator Benefits

Anything that makes the IT administrators job easier will reduce IT downtime, reduce IT support costs and improve end-user experience. Cloud computing takes many of the headaches away from your internal administrators as the software is hosted and maintained offsite. Cloud providers will often offer uptime guarantees of near to 100% so productivity should theoretically increase as downtime decreases - of course it's not always that simple as the next section will show. 

Microsoft Business Productivity Online Suite

Microsoft have recently released their business productivity online suite (BPOS) to the UK market and Geek-Guru are proud to be certified BPOS consultants and resellers.

The BPOS suite consists of an online hosted implementation of Exchange, SharePoint, Live Meeting and Office Communications and provides all the features of these products with no upfront investment and no on-site servers.

The suite is available from a little as £10.50 per user, per month on a 12-month contract.

For more info please e-mail us or call the office on 0845 234 0580

So, with all these benefits you might think traditional on-site IT is dead. Maybe not yet; read on.

Economics

Whilst cloud computing has the potential to reduce IT costs the economics don't always stack up. Even with many of your applications hosted in the cloud, businesses will still require on site IT to achieve many of their business functions - Including PCs, Servers and networking equipment.

For instance many SME's will chose to use a single physical server to host their domain controller, file server, print server and Exchange e-mail server (The feature set of a typical Windows SBS server). It might make sense in some circumstances to host your Exchange software in the cloud but this will not remove the need for the on-site server which performs numerous other related functions. As Exchange is bundled with SBS, hosting the Exchange component in the cloud will actually cost more than hosting it internally.

When you factor in the costs associated with running some IT functions in-house and other IT functions in the cloud the economics don't always looks so enticing.

Broadband Quality

As cloud based software is hosted on the internet the end user experience is directly related to the speed and quality of the broadband connection. Lose your net connection, lose your software!

Complete broadband failure aside, users will be used to accessing software directly on a PC and may be frustrated at the performance of similar software running remotely, where network lag becomes an issue.

With 1 in 5 UK broadband users receiving broadband at less than 2Mbps - is the UK currently ready for the cloud?

Feature Loss

The remote nature of hosted, cloud, solutions does usually lead to some feature loss as some functions of in house software simply can't be replicated across the internet. The decision to use hosted solutions therefore hinges on what features are required by each particular business and what features are an acceptable loss.

Security

Deciding to go down the cloud route involves placing your data, and with it your IT security, in someone else's hands. This may be seen as a benefit by some (and rightly so if IT security is not high on your agenda) but for others this represents an 'unquantifiable' threat over which they have no control.

To mitigate security risks businesses need to ensure they have full legal rights to all the data they store in the cloud and to ensure that data is backed up and secured using industry best practice. Cloud based software 'farms' represent a nice target for hackers and as such security should very much be at the forefront of any cloud providers business model.

Our Advice

It's easy to see from this newsletter that cloud computing offers numerous benefits to businesses of all sizes but not without some drawbacks.

Each and every company is different and as such there is no one single correct solution. Choosing to host on-site or in the cloud depends on numerous factors including the distribution of workers, broadband speeds in your area and specific business requirements. Because of this each and every project needs to be evaluated on its own merits.

Cloud computing is one area where good solid advice could save you a great deal of time and money and we recommend seeking expert advice to identify the best solutions for your business.

For more info or a free initial consultancy meeting please e-mail us or call the office on 0845 234 0580