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Cloud computing

By Michael Smith
NBS Information Specialist

Whether you are a workshop fitter or technical director of a multinational company you are likely to be touched by 'cloud' computing before too long. However, there are many new openings and threats arising from the movement of computing requirements to 'the cloud'.

What is 'cloud' computing'?

'Cloud' computing is a situation where computing resources are provided as a service over the Internet, and are situated at a location which may be remote from the user; 'the Cloud'. However, it is more than this; cloud computing can accommodate service demand with massive swings in usage (for example, from computing requirements for 2 employees to 200), in seconds.

Microsoft is now offering cheap, unlimited usage of MS Office through the Cloud (as is Google for equivalent applications); Apple computing already allows users to store and access iTunes from the Cloud.

Hence, the main benefit of the Cloud is that not much software is required on the main computer. Effectively this means that as long as there is access the Internet, users can outsource email, database work, word processing, CAD etc. software to a remote site with a server and make it some else's responsibility. The office/home computer becomes merely a stand-alone 'software-less' device, serving to connect to a remote server where the applications are located.

Why is this happening now?

The internet generally has become much faster and more reliable, which makes the move to outsourcing software quite feasible. And with IT specialists trying to keep systems running flawlessly 24x7, at considerable expense, what better time, especially under current economic conditions.

Is the move to cloud computing a good thing?

Certainly, it is an attractive concept. It means no more day-to-day problems with IT, and networking trying to handle massive swings in demand. These problems are outsourced and effectively become someone else's worry. However, there are problems with cloud computing that come immediately to mind:

  • Security: How can data security be ensured? This may be a major problem if sensitive data is located in another country. The legality of housing personal data on someone else's server may be an issue
  • Access: What happens when the cloud server fails or internet connection is lost? A technical nightmare would ensue as all IT services immediately ceased
  • Control: Control of your data lies with someone else. This could lead to becoming captive to them (e.g. sudden price rises in cloud use)
  • Loss of data/crashes of system: What happens when the cloud server crashes and loses all or some of your data?

One immediate concern should be on regulation of users. Who are you outsourcing your computing requirements to? Are they licensed by a central controlling body? Do they have a proven track record? At present the answer to all of these questions is probably no.

Industry experts say companies must be very specific when negotiating cloud contracts, asking questions about disaster recovery plans, security provision and insurance.

With thousands of businesses springing up to offer cloud services, it can be hard to judge whether a particular company is an experienced operator with a well thought-out contingency plan. Some companies will hire security experts, to check out an outsourcing companies security and disaster recovery processes; however, such due diligence has been estimated to cost anywhere from £5,000 to £100,000.

The Cloud Industry Forum (CIF), an industry body that champions and advocates the use of cloud-based services, is trying to simplify matters by setting up a scheme to certify service providers that meet certain minimum standards of security, confidentiality and service.

Data intrusion and safety

Hacking is one of the greatest concerns for companies considering cloud computing. A recent survey by the CIF found that 64% of companies named this as their chief worry in moving to a cloud-based IT model.

Although the majority of businesses, a recent survey quoted 90%, are taking steps to outsource IT, their approach is often hesitant and limited to transferring less critical functions such as e-mail and data back-up. The CIF survey says that over 40% of companies outsource their e-mail, but only 11% process their payroll through an external service.

A survey by the Ponemon Institute, a privacy research group, found that a majority of cloud providers believed that security was the customers' responsibility. Typically cloud providers allocate 10% or less of their operational resources to security, and most do not have confidence that their customer's security requirements are being met.

The Achilles heel of cloud computing, it seems, is also it's greatest strength: dependence on the internet.

Advantages of cloud computing

While there are definite answers to be sought in using the Cloud, the potential advantages are enormous, but are dependent on a case by case basis:

  • Easy global access to software
  • Responsibility for IT applications lies with someone else
  • Reduced overheads - fewer IT staff, servers and storage devices
  • Superb software interoperability between services for businesses and clients
  • Software updates carried out cleanly and effectively behind the scenes
  • More effective security - data left in the care of outstanding and committed professional services.

Cloud computing looks like a trend that is here to stay; this alone makes it worth investigating. However, only you can know what is good for your business. A cloud computing deal will ultimately about how much is put into the Cloud and with whom the 'cloud relationship' is formed.

Further information

Cloud Industry Forum (CIF)
Established in 2009 to provide certification for credible online cloud service providers, CIF is a UK company, limited by guarantee, and an industry body that champions and advocates the use of cloud-based services by businesses and individuals.
http://www.cloudindustryforum.org/

Transition to the cloud - the case for a Code of Practice
http://www.cloudindustryforum.org/downloads/transition-to-the-cloud-v4.pdf.

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September 2011

 

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