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Removing the Black Cloud from Cloud Computing?

By Steven James Mulka, SIS Software, LLC

With all the confusing terminology around Cloud Computing, Virtualization and Software as a Service it is difficult to evaluate and make a decision on strategic Information Technology investments without a clear understanding of the topic. This Technical Brief looks to remove the black cloud from Cloud Computing.

Cloud computing is the latest buzz word today in Information Technology. More than a latest buzz word, the Cloud can deliver a positive Return on Investment when properly utilized. Information and miss-information abounds in all aspects of communication around the Cloud. Investment and strategy decisions will be harder as "dark storm clouds" cover the normal evaluation process. Whether you are an IT Manager, Controller, President or Purchasing Agent it is imperative that you have a clear understanding of the Cloud to be able to decipher the noise in the market today.

Cloud Computing is not new. Cloud Computing is a new name for the evolution of the internet and software applications. A brief timeline and history of the web helps to demonstrate the evolution of the Internet and the origins of the term "Cloud Computing"

Web 1.0 1994-2000: Netscape releases the Browser allowing content on the World Wide Web to be viewed as graphics and hyperlinks changing the way information is accessed forever.

Web 2.0 2000-2008: Salesforce.com and NetSuite define the term Application Service Provider by delivering software over the internet to the public.

Web 3.0 2008-Today: The phrase "Cloud Computing" gains momentum to define the shift in IT services from in On-Premise to being delivered from "The Cloud" over the internet.

Google "Cloud Computing" and you will find enumerable definitions and confusion. For purposes of clarity the following terms are defined below which represent how IT services relate to Cloud Computing.

On Premise: The traditional IT model that is very familiar to most readers. A centralized File Server providing to user’s applications and files that are accessed by workstations connected together by a network. Connectivity to the internet is provided by an Internet Service Provider.

Cloud Computing: Cloud Computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction. Cloud Computing Definition: According to the National Institute of Standards and Technology: (NIST). www.nist.gov

It is generally accepted that Cloud Computing types can be categorized under three distinct definitions.

1. Private Cloud: Hosted IT Services for a single entity
2. Public Cloud: Public IT Services, commodity based
3. Hybrid Cloud: Mix of Private and Public Cloud

1.) Private Cloud: Defined as Hosted IT Services over the Internet, and provided for one entity and not the general public. Data Centers are a classic definition of a Private cloud and used by many organizations for centralized IT strategy or disaster recovery purposes. There are different types of Private Cloud offerings as illustrated below:

• Co-Location: You own Servers/Applications in a shared facility providing Internet Connectivity and Power
• Managed Provider: You rent Servers/Applications in a shared facility providing Internet connectivity, rack space and Power
• ASP: Application Service Provider: You rent specific software applications to meet a business requirement

2.) Public Cloud: IT Services delivered over the Internet from 3rd Party Providers. A major differentiator in the Public Cloud is the fact that the Public Cloud facilitates deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers. Another key aspect of the Public Cloud is the paradigm shift that from the old adage of "paying for software up front" to a "pay as you go" model. Billing is typically a monthly fee based on the services that are utilized or provided.

Public Cloud offerings provide additional benefits as a result of software and/or servers can be rapidly deployed in minutes to customer’s specifications. What used to take weeks to order a new server, get delivered, setup and running now can be completed in as little as 10 minutes.

The Public Cloud can be further classified by three major types of Public Cloud offerings.

2.1 SaaS: Software as a Service
2.2 Iaas: Infrastructure as a Service
2.3 PaaS: Platform as a Service

2.1 SaaS, Software as a Service is the new nomenclature associated with "Utility Like" software applications available and delivered over the Internet. Under the SaaS model, software delivery becomes similar to the electric or gas utility companies. You order the service that meets your requirements and receive a monthly bill based on usage or the number of users on the service. Some examples of Software as a Service include:

• Google Docs,
• Microsoft Office 365 / Microsoft CRM
• Salesforce.com

2.2 PaaS: Platform as a Service: PaaS is the gray area between SaaS and IaaS that is more geared towards delivering a combination of infrastructure and development tools to developers who are interested in running or developing applications that will be delivered under the SaaS model. PaaS is early in its life cycle and will experience many changes that need to be watched closely as the landscape changes. PaaS is evolving and the future holds tremendous opportunity as more software companies release products build under the PaaS model. The major players in the PaaS market have unique approaches and offerings and the standard has yet to be defined.

• Amazon EC2
• Microsoft Azure
• Force (Salesforce)

Key underlying components of PaaS
• Multi-Tenant Capability: Ability of an application to support multiple customers in once instance but each customer/application being confined to its area and permissions
• Upgradeability: Ability for central administration of the complete application across all of the application and customers.
• Usage Monitoring and Billing: Ability of the application to monitor usage and provide billing information for the services based on the defined usage.

2.3 IaaS: Infrastructure as a Service: IaaS provides to customers IT infrastructure such as file servers, software, backups, firewalls and more in the cloud. Virtualization of servers has been the technological driver behind the ability to deliver IaaS in a cost effective manner. The first generation of IaaS has its origins in the older data center delivery models. With the advent of the IaaS model and virtualization the Data Center model as defined under the Private Cloud is becoming less relevant and being replaced with IaaS. The number of providers in the business of IaaS is numerous with overlap between the PaaS and IaaS providers.

• RackSpace
• Navisite
• GoGrid

Summary
Cloud Computing is here today and is having an immediate impact on both purchasing and strategy decisions related to Information Technology. When evaluating Cloud Computing the following are key benefits to an organization.
• Reduced hardware and software acquisition costs
• Ability to focus on the core business
• Improved cash flow under Pay for Use payment models
• Eliminating software upgrade and update processes
• Improved accessibility of applications remotely

While the benefits of Cloud Computing seem clear the concerns are not always as easily distained and any consideration around Cloud Computing must include a discussion around the following points.
• Data Security and Reliability: Mainstream cloud providers in many instances provide a secure and reliable service. The business model is based on state of the art data centers with a large staff dedicated to security updates and monitoring. In many cases they can provide a more secure computing model than On-Premise. It is up to the consumer to understand and validate this fact.
• Responsibility: The Cloud blurs and shifts responsibilities between both the customer and provider. Special attention should be given to the governing document called the Service Level Agreement, SLA before signing any agreement. The SLA needs to clearly outline the responsibilities of both the customer and provider. Given the fact that these are written by the provider they historically have limited the accountability.
• Shutdown or Decommissioning: The most overlooked aspect of getting into the Cloud is how do we get out? The ownership of the data and what information can be retrieved in what format is a key question to fully understand before hopping on the Cloud. Many applications are specialized and the data requires the application to properly access the information. A strategy for exit must be in place before executing any contracts.

About the author
Steven James Mulka is a founding partner of Microsoft Dynamics Gold Certified Partner SIS Software, LLC. He has over 15 years of experience in providing financial and operational software solutions to support the A/E/C industries. Steven Mulka can be reached at smulka@sisn.com.