Have you heard the term “cloud computing” and wondered if you should find out more about what it might mean for your organization? The goal here is to try to demystify the “cloud” so you can make some educated decisions on what you should (or shouldn’t) be doing.
1. What IS cloud computing? The “cloud” simply refers to the Internet. This was born from the traditional network diagram of connecting to the Internet represented graphically by a cloud. To complete the definition, this is simply using the Internet to perform tasks which would traditionally have been performed on a computer located within your office walls such as e-mail hosting.
2. What are some examples of cloud solutions? Examples of applications that can be moved to the cloud are hosted e-mail, online backup, any software as a service (SaaS) such as online CRM or accounting applications, or simply online data storage.
3. What are the benefits? There can be many benefits to using the cloud based upon your organizational needs. For example, if you are sharing large amounts of data between several offices, having the data on a virtual server might be beneficial. Also, web-based applications that can be used seamlessly by people traveling without having to connect back to the office over a virtual private network (VPN) can save a lot of time and frustration.
4. What are the drawbacks? The single largest drawback to relying on the cloud for your computing services is that you are 100 percent reliant upon your connection to the Internet. If you lose your Internet connection and you have moved all of your systems into the cloud, you will be at a standstill until the connection is reestablished. You can mitigate this by implementing a redundant Internet connection (cable connection if your existing connection is through your phone vendor or vice versa), but you will incur the added expense of a second connection.
5. How do I know if it’s right for my organization? A thorough evaluation of your organizational goals as they relate to the technology will be necessary to figure out if the cloud can help you. You need to look at how you use technology today and what challenges you are facing, plus how you think your organization will evolve in the coming years and what scalability you will need. After doing this, you can determine what types of cloud-based solutions might be right to support your organizational goals.
6. Is it safe? Data stored in the cloud is as safe as any other transmission over the Internet. You should implement solutions ensuring that data is encrypted not only while traveling to and from your cloud solution, but also when being stored and backed up on the other end. If properly designed, this can be as safe as any other solution you could implement locally and many providers are already Sarbanes-Oxley, SAS90 and HIPPA compliant.
7. If I move to the cloud, are there additional monthly fees I have to pay? The short answer is yes. Most cloud-based solutions charge a monthly fee for application usage and data storage. The slightly longer answer is that you may be paying this today anyway in the form of hardware maintenance and software fees, some of which could be eliminated by moving to the cloud.
8. Can I move some things to the cloud and keep some in my local infrastructure? Yes. Not all applications and hardware should be in the cloud for all organizations. The real key to using cloud computing well is to figure out which ones will provide the most value by moving them and which should be kept local.
9. What if I migrate and I don’t like the results? There is a risk here as your migration costs could be significant and some cloud solutions require a long-term contract to avoid setup fees. That said, you can weigh the costs and benefits of rolling back at any time and do what is right for your organization in the long run.
10. Will my data be shared with other companies if it’s hosted in the cloud? A reputable provider will take the right steps to ensure the proper segmentation of your data, but if there are certain requirements based upon your industry, be sure to ask this question before making a decision on a provider.
Moving an application to the cloud can be a complex decision which may have significant positive (or negative) impact on your organization. Consider the pros and cons and work with your IT resources to help make sure that your internal infrastructure can support the change. While this is a technology implementation, it is more of a business decision about what best fits your organization today and will in the future.
Michael Giuffrida is president of ForeSite Technologies Inc. in East Hartford.
