Are You Working in the Cloud?

Acronyms and buzzwords seem to be as common in the Information Technology industry as are mosquito’s in Minnesota. Most of these buzzwords are flavors of the day, describing ideas that are here today and gone tomorrow. Others however, are game changers that shift the ways we use technology in all aspects of our lives, from personal to business. One such phrase is “Cloud computing”.

What is “the Cloud” or “Cloud computing”? The industry definition of Cloud computing is Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand.   In non-technical language, Cloud computing can be simply thought of as using the internet to access an application or environment hosted by somebody else. A personal example of Cloud computing would be as simple as checking an internet email account like Gmail. Business examples vary from running a CRM application on the internet such as Salesforce.com, all the way to the other end of the spectrum of having an entire business network hosted through the web.

Cloud computing is not new to the industry and has been utilized by larger businesses for years. More and more small and medium businesses have begun to move their systems into the cloud recently due to some of the clear advantages Cloud computing provides.

1.      Fast start-up  Companies no longer need to make significant purchases for hardware, software and services to get their businesses going. These front-end capital expenditures are replaced by monthly access fees.
2.      Business agility   Usually providers will not lock you into long contracts for cloud services. If a Cloud customer changes their mind on their technology direction, they can simply turn off the service.
3.      Faster product development   Using the cloud is an easy way to test new programs before actually deploying them to employees.
4.      Scalability   Cloud environments can be adjusted on the fly when more space is needed, more users, more speed etc… Contrarily, features (and costs) can also be reduced when no longer needed.
5.      Accessibility   Businesses with mobile users or even remote offices need only an internet connection to access the Cloud environment. If the environment is in the Cloud, remote users are not dependent on the main site being up for them to have access to work.

As great as the Cloud sounds, there are also some drawbacks to consider before making the jump.

1.       Bandwidth   Companies with high network bandwidth needs (e.g. video rendering) will not want to pay for the amount of internet bandwidth they would need to run in the Cloud. These types of companies will get the speed they need by running in their local networks.
2.       Internet Failover    What happens if your internet connection goes down? Internet failure does not happen nearly as much as it did 5 years ago, but on occasion the internet can still fail. If a business is relying on the internet for access to its environment, a second line from a different provider should be setup to allow for immediate failover. These costs should also be considered.
3.       Compliance    Regulations such as HIPAA, FISMA etc… all have restrictions not only on what you can put in the cloud, but how it needs to be accessed and stored to ensure compliance.
4.       Security    Some argue that customer data is more secure when managed internally, while others argue that cloud providers have a strong incentive to maintain trust and as such employ a higher level of security.
5.       Availability and Performance   There have been concerns about a cloud provider shutting down for financial or legal reasons, which has happened in a number of cases. Be sure your Cloud provider is financially stable and do not be afraid to ask for references.

“Cloud computing” is a term that in a short time has become part of the vernacular in the Information Technology industry. Some compelling advantages have been realized by businesses from moving a small part or their entire infrastructure into the Cloud including lowering capital expenditures, improving accessibility, and providing scalable means to support business growth or lowering costs. Moving forward into the next decade, look for the Cloud to continue to grow, and be aware of the many ways the Cloud can be utilized to benefit your business.

Article by Todd Warner