1) We have heard many definitions of 'cloud computing'. How do you define it?We are headed towards a pay-per-view model for most (not all) of IT. So with that set-up: Cloud computing is any “IT” service that can be sold pay-as-you-go over the Internet. Ideally a cloud service should be available immediately. Click-to-buy. But also click-to-exit. Minimal hassle or contractual obligations.
Software-As-A-Service accounts for a lion’s share of the market (e-commerce suites, cloud storage and on-demand business software). But that’s part of the story. The other part is sourcing key aspects of your business processes that span both talent (or labor) + software.
NIST (National Institute of Standards and Technology) has an air-tight definition.
My take on definitions is, that it’s OK to bend a definition but not break it. For example: If a cloud provider charges you by the day, and bills you by the month. That is OK. It’s still metered – if not by the hour or minute. If the cloud does not switch on the power in a split second – that’s OK if they give you a better service-level agreement.
Note: Cloud Types
- Not all cloud providers can compete on a low price point. So there will continue to be differentiation on value. In the future you will see software, and infrastructure and platform cloud services start to blur.
- A cloud provider can create sub-divisions where it can dedicate a pool of resources for 1 customer. That structure is in opposition to multi-tenancy- where more than one customer shares the infrastructure or application. The cost to operate such a cloud will be higher. And the more 1-1 relationships the more we are bending the definition of cloud computing
- It’s not all vanilla, there will be chocolate chip and mint. Organizations are actively looking at hybrid on-premise/off-premise hosting platform
2) Why, in your opinion, is the cloud getting so much attention right now? (It seems that no one was talking about it two years ago. Is this accurate?)
Every industry is rethinking how they get things done with a backdrop of scare resources–talent, budgets and energy. The stars happened to align the last 2 years for cloud computing. And the spotlight and vendor value proposition is squarely on Small/Medium Businesses, and now government agencies and the enterprise.
The appealing value is hard to ignore:
• Operating cost reduction (maintenance/support/upgrades)
• Better utilization of software licenses
• Any savings from replacing infrastructure CAPEX with subscription fee OPEX
Keep in mind that Salesforce.com was founded in 1999. And depending on how far you go in history we have been doing some sort of outsourced and time-shared computing for decades especially in the science community.
3) One of the challenges to cloud computing is security. What are the biggest things CIOs/IT managers should be wary of?
First, cloud computing introduces change. And change is the arch enemy of security. You add a window, you create a new way for someone to get in. So you need to understand all those things that change when moving an application or your data into the cloud. If you get these two rights right, you are on track: 1. can I tell what I own in the cloud, and 2. can I tell when something changes in the cloud?
Second, is your trust relationship. If a cloud provider won't let you see behind “their firewall”, won’t give you an audit of facilities (e.g. how they perform software upgrades, background checks for personnel), then you should look elsewhere. Mischief is inevitable. And you don’t know until you test, and you test because you want to verify, and you verify because you don't trust.
Third, you will have to ask yourself: how am I measured and what am I trying to protect? FISMA (Federal Information Security Management Act) makes it expensive for public cloud providers to meet Certification & Accreditation requirements. Enter the 1-1 cloud scenario’s (e.g. future Google Federal Cloud). Additionally, there are multiple Federal and State level Regulatory requirements, including HIPPA, GLBA, SOX, FFIEC, SEC, and PCI. Compliance is not security. You will need to keep the eye on the real issues: Cyber threats. Malware that morphs every 35 seconds, bot-nets that phone home and the active underground economy of cyber crime.
4) Another challenge sometimes has to do with a mindset. Some are worried about the cloud because . . . Well . . . It’s a new way of thinking. What do you suggest for CIOs/IT managers who might be timid about the cloud?
When a fixed enterprise mindset and the Internet collide, time and time again the Internet has won. This is no exception. Virtualization and cloud computing are here to stay. So why don’ you try before you buy? Get to know the technology, understand the Return on Investment and what you are giving up. There will be hidden costs. So it’s important to do your due-diligence and develop a business case for cloud services.
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