NOA Cloud Special Interest Group
by Rupert Hodgson, sourcingfocus.com
Cloud based services have become ever increasingly popular, cloud services are now being employed by a global user-base from companies to individuals. The cloud market has grown rapidly and was worth $3.7 billion in 2011, web-based services are expected to be worth $10.l5 billion by 2014.
The cloud market has been attractive to companies who have expended revenue on large computing infrastructure to run a diverse set of applications to deliver and manage services. However web-based services are not without risks and their use has disadvantages as well. The NOA Cloud Special Interest Group discussed the merits of moving to cloud based infrastructure and in discussing the importance of weighing up the situation before the transition.
This roundtable discussed the situation on both sides of the fence, bringing together suppliers, support, agencies and end users to analyse the risks and challenges businesses will face when moving to the cloud.
Josh Cornejo is director of Sales Engineering EMEA for Verizon Business, said: “Verizon have acquired various organisations over the past few years to boarder their reach of the market. We provide an integrated global situation with all cloud models.
He acknowledged that security issues are intrinsically associated to the concept of the cloud. The definition of cloud is quite varied however it is extremely important to know where, what and how to choose a journey to the cloud.
John said that ““Not everyone will have the same processes, IT etc but the outline of the journey will remain the same for all organisations”.
The implementation of cloud computing should be carefully planned, taking into account individual business requirements and should follow the model laid out below:
• Create the foundation for technical IT Governance
• Corporate and Technical Compliance
• Reduce the risk and impact of change
• Need to asses infrastructure as part of a compliance program (PCI/SOX)
• Make IT decisions based on facts, not assumptions
• Auto-populate the CMDB, avoiding costly manual audits
• Confirm your capability to scale effectively and reduce time to market
• You recently experienced a merger / acquisition and need to understand what you now have
• Architect next-generation business enabling solutions
• Enable rapid incident diagnosis and resolution
• Identify redundant equipment and software licenses
• Discover potential tactical fixes in IT
• Clear the IT “forest” and create a path for decision makers
• Enable Operations by giving them a clearer view of their IT
• Improvements are necessary in the IT environment, but not sure where to start
Josh Cornejo, discussed how Amazon dominate 60% of cloud service with a product that provides lean, simple and clear contracts which are relevant for 1 person or 1000 people. Amazon’s market domination provides them with the advantages in training the people who are responsible for the next wave of software services.
Andy Rodgers of the NOA, said : “It is extremely important for a company to understand what is core to their business and what they feel can be placed in the cloud and also what can be outsourced. Security can never be guaranteed but it’s increasingly sophistication has encourage many organisations to adopt strategies which at one stage it would deem ‘too risky.”
The roundtable then discussed the development of the cloud and how cloud costs stemmed from applications and licensing, which represented 60% of costs, storage also represents a large percentage of overall costs.
The conference moved to future implications of cloud services, Andy Rogers pointed out that issues may arise from the transitional phase in the future when users want to migrate between cloud providers. Consumers are now savvy and lapses in security, connection and issues with the cloud are no longer tolerated. Security is still a big issue with cloud and trust over the services having been a limited factor in the service.
Rob Sumeroy from Slaughter and May detailed how old contracts are still being used for what is actually a new procurement model. Customers also feel that cloud process should be a lot simpler than it actually is in a lot of situations.
There needs to be a focus on cloud contracts, legal tender and the advisory process. Sometimes the cloud model does not meet the business risk and such cases demonstrate the need of analysis that should always be done before the contract