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Defining the Cloud

Cloud computing draws its name from the familiar cloud drawings used to depict the Internet in network diagrams. Besides being an easy way to render a complex concept, it is also an appropriate metaphor. Like real clouds, the cloud computing model has no clear boundaries or borders and is constantly shifting and changing.

Initially, the basic notion of cloud computing involved harnessing the massively scalable Internet infrastructure to provide multiple customers with on-demand access to data, applications, and services. This was a logical progression from the remote and virtual computing capabilities provided by the Internet.

Over time, however, it has become clear that this only describes one flavor of cloud computing. There are actually a variety of deployment methods that leverage either the Internet or internal networks to connect virtual infrastructures. These methods can involve leveraging Web-based resources, adding cloud-like interfaces to existing systems, building new systems on virtualized, highly interoperable systems, or using server hosting or online services to meet specific business needs. What all of these methods have in common is the use of shared or virtualized resources to lower costs, reduce complexity, and increase flexibility at a time when building or installing commoditized applications or IT infrastructure services no longer provides any tangible competitive advantage.

Benefits of the Cloud

The most obvious business benefit of a cloud solution is reduced acquisition and deployment costs. The economies of scale that get passed on to the customer effectively convert CapEx into OpEx. Paying for service on demand requires less upfront capital and allows businesses to efficiently ramp up and power down based upon current needs, as well as providing the flexibility to introduce new IT services.

Cloud computing fosters business innovation by enabling organizations to take on tasks or services that might be cost prohibitive if onsite hardware and software purchases were required. Architecturally, cloud computing provides business value by masking complexity. The technology behind the user interface is essentially invisible to the user, allowing less tech-savvy end-users to focus on their particular expertise and business function.

Cloud computing also presents extraordinary possibilities for data center transformation. Many data centers are based upon decades-old technology, and have become too complex, too costly and too difficult to manage. Gartner reports that more than 70 percent of Global 1000 organizations expect that they will need to significantly modify their data center facilities by 2012.

Environmental issues also have become increasingly worrisome. Power costs for data centers have skyrocketed by an estimated 800% since 1996. But even if power wasn’t an issue, it is becoming increasingly challenging to adequately cool the data center space. Traditional cooling systems simply weren’t built for today’s high-density computing environment. Cloud computing addresses these pain point by reducing data center real estate requirements, while driving down power and cooling costs in the process.

Some questions to ask if you're considering moving to the Cloud?  . 

Needs
What part of our business/operations makes sense for us to put into the cloud?
How will this move help me reach our business goals?
What happens if the cloud provider goes out of business or disappears?

Training
Is there an on-boarding process? What does it consist of?

Infrastructure
What control do I have over the environment?
Will I meet my regulatory compliance (HIPAA | PCI | SAS70 | etc) obligations?

Security
Who has access to my data?
What security measures do you, the cloud provider, take to protect my environment?

Pricing
How long are the current prices locked in for?
How do I upgrade and add assets (servers | storage | networking | etc)?
What is the minimum commit/contract timeframe?

SLA
Is there a minimum/maximum service level agreement for incident resolution?

Support
Is there regularly scheduled maintenance? How and when will I be notified?

Value Added Services
Who is responsible for the backups?
What is involved with switching vendors or retrieving my full data set if I want?
How long will the vendor retain my data, even if I am done with them?
Are there hidden costs for migration | data transfer rates | backup | OS changes | licenses, etc.?