Expert Session: Ten things I learned in the Cloud

You will by now have heard of Cloud Computing. It's the IT term 'du jour' for 2009 – and that's not about to change in 2010.  But what is Cloud Computing? Are you as confused as Oracle CEO Larry Ellison when he flamboyantly declares: "I have no idea what anyone is talking about. It's really just complete gibberish. What is it?"

That's a big question and one that would take up a lot more time and space than we have here. In fact, if you want that bigger picture exploration, head over to BusinessCloud9.com, Sift Media's dedicated Cloud Computing community, or pop along on 2 December to our BusinessCloud 09 Summit, the Cloud Computing event of 2009, and hear from thought leaders and experts in the field.

But for now, here's a brief Cloud Computing 101 – or Ten things I learned in the Cloud.

1.  The Cloud is nothing new. A lot of the concepts and technology that IT vendors label Cloud – both legitimately and opportunistically – are existing products and services that are now gathering under this convenient umbrella label.
    
2.  There are three main planks of Cloud, the 'buckets' into which we allocate Cloud technologies. These are Infrastructure as a Service, Platform as a Service and Software as a Service. Some commentators offer up Services as a Service or Computing as a Service as well, but the most widely accepted triumverate are the first three.
    
3. There's an ongoing debate/battle for hearts and minds to be had over the divide between Private and Public Clouds. Public Cloud – such as those offered by Amazon or Google – have attracted a lot of attention, but for the wary end user/purchaser Private Clouds may be more appealing in the short term as they offer more dedicated resources and thus a presumed higher level of security.
    
4. Ah yes, security. That old bug bear. It's the most commonly cited excuse for not making the move to the Cloud. Certainly the Cloud demands a mindshift in thinking about where your data sits/is housed. But remember, once upon a time you didn't want to put your credit card details into Amazon to buy a book. Even further back, you didn't want to take money out of a hole in the wall. You got over those phobias. In reality, the main Cloud providers exercise and deliver a level of security that is far and away better than most end user organisations could ever put in place themselves, especially end users in the SME space. A Google or a Salesforce.com or a NetSuite live and die on their security track record – they just can't afford to make mistakes or be found wanting.
    
5. What do CIOs do in this Cloud-y new world? One of the other big inhibitors to Cloud adoption is CIO resistance. There's a huge element of be careful what you wish for here. CIOs have spent years bemoaning that they have to spend most of their time doing 'the plumbing' for their organisations. Cloud Computing takes a lot of that plumbing away. No more complex ERP or CRM upgrades needing to managed, for example. So what does the CIO do now? Well, the savvy CIO embraces the Cloud as an opportunity and turns the I in his or her title into innovation. Chief Innovation Officer – got a nice ring to it, hasn't it?
    
6. Cloud Computing is probably cheaper. I say probably because the long term jury remains out on this one. The start up costs are lower, the running costs are lower, you pay 'by the drink' for your computing resources and you only pay for what you use, not what a licensing band tells you to pay in your contract. But the counter-argument is that it's akin to moving to a new town. If you're going to be there for 6 months, you rent a place; if you're still there in 6 years, you're probably going to buy. It's a horses for courses situation – what suits you and your organisation best.
    
7. Choice! Decisions! This is not a holy war! There is no requirement to pledge undying allegiance to the Cloud or to sign up wholeheartedly to on premises computing. The reality will be a hybrid future. Very few organisations are seriously going to throw out all that installed SAP software just to move everything up into the Cloud. What they will do is start to bolt on Cloud applications as complementary add ons or decide that all future procurements must be Cloud-enabled. Eventually all new technology roll outs may be Cloud only, but the point is that this will only occur over time. For now, integration between the old world and the new world will become increasingly critical. Vendors need to start preaching a loud and lucid gospel of co-existence.
    
8. The vendor wars have barely begun. There's a new breed of Cloud start-ups out there that are making their way into the mainstream. The likes of Salesforce.com, NetSuite, RightNow and SuccessFactors have been around for ten years or more – they're practically establishment figures themselves.  Now they in turn are being joined by another wave of Cloud newcomers, such as Workday and Zuora.  To date, the Cloud generation have focused on evangelising their own world view, highlighting a new computing model largely on their own terms. But now the old world order is massing for its Cloud offensive. Microsoft, SAP and even Oracle (despite Larry Ellison's comments) will be making significant Cloud pushes in 2010. Once those big hitters start playing hardball in this space, the competitive dynamics in the market will become considerably more turbulent. The pureplay Cloud vendors set out to define a new market; the hybrid Cloud vendors will set out to redefine it in their own terms. It's going to be very much a case of buyer beware.
    
9. The Cloud can change the way government works. The internet has already enfranchised entire countries that were fundamentally disenfranchised. It gave people information, it exposed them to alternative viewpoints and it provided them with a global voice. Now it's time for governments to embrace the Cloud to bring about a fundamental change in the way they deliver services to their citizens, services that are funded by taxpayers who currently see their money poured away on abortive IT projects. Never more need there be a £12.7 billion (and counting) NHS computerisation project that still doesn't work after years and years of trying. You need a centralised patient records system? Why not stick it up in the Cloud? Quicker, cheaper, easier. What about security? Well, any Cloud is likely to be more secure than letting a hapless civil servant drop a USB stack in the pub or leave a laptop in the back of a taxi, don't you think?
    
10. The Cloud is the future. And the future lies this way...

If you’re interested in reaching senior IT Managers/Directors in the Cloud Computing space contact Catherine Evans here.

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