COMMENT
Everyone's talking about cloud computing but the Naked CIO just doesn't see what all the fuss is about. Here's his take.
For some time now I have been reading and hearing dynamic discussions about cloud computing and software as a service models. It appears this is the new hot topic of conversation. And with Amazon, Google and Salesforce.com all in the picture, there is also some big money being spent on marketing and promoting these services.
I have, for once, stayed somewhat clear of the debate, allowing discussions to roll on without my sourpuss perspective on things. However, I now feel I need to weigh in because I really don't see what the hype is all about.
For small businesses who cannot afford to have robust infrastructures and yet need strong infrastructure to support their products and services, cloud models are a no-brainer. Equally, those companies that can leverage the subscription applications of products such as Salesforce's without supporting or investing in software can benefit. These arguments are simple, although are biased towards smaller entities.
There are some simple arguments against the cloud model as well. For instance if cash flow and P&L performance are critical to your business, capitalising expenditures could be more beneficial than going to a subscription service. Equally in general the larger the company and larger the requirements, the less beneficial these services will be.
With larger companies it is likely you will require some level of infrastructure anyway. So using cloud offerings would mean managing mixed complex environments - which can present more problems than managing it yourself or through datacentre services. Then again, if your business is agile and needs to set up remote operations quickly, these services can be beneficial to supporting these business needs.
In the end these services fall into the same category as many other current hot IT debates. There is no right or wrong answer but there are right and wrong decisions.
Before choosing a cloud offering, look at your needs and current business drivers closely and decide on models that support these. Make sure your organisation is aware of the additional expenses compared with simply the depreciation of fixed assets. For many companies, especially in today's economic environment, these are very important issues and challenges.
Finally, make sure you understand the risks. Cloud computing can present some real privacy compliance issues which need to be considered.
It drives me nuts when people pick sides on issues such as these because it is in vogue to do so. When choosing a particular technology, platform or product, ask the right questions, understand your capabilities and resources, and map out your needs not only today but for the term of the agreement.
Then consider exit strategies and terms that may impede changes in the future - and most importantly, make a decision based on all the information - not just the desire to be cool.
Comments
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1. anonymous
Aaggh, but you will be accused of being obstructive and get the label 'not a supporter of change', so your opinion will be sidelined by the bullsh1tter5.
It's all the same marketing puff over the last 20 years of computing that has never ever really come to anything. IT is a mish-mash of all of the above, with lots of sticky tape, scripting & Remoteware hanging it all together - Hell half my Retail clients are still extracting value from their Windows NT investment!
Just another excuse for the hatchetmen on the board to plump up their bonus' by booting more IT out of the business to out-sourcers/off-shorers and rid the company of the waste of money on experienced/competant staff.
Procurement will drive this through, and sideline IT even more.
2. Karen Challinor
privacy is an important topic with cloud computing, for example the british government is notoriously nosey and is passing legislation in the Coroners and Justice bill that will allow them free access to pretty much any data they want and if it's in the cloud so much the better as you will never know they looked
then there's security, what happens if the cloud company you store your data with finds itself in reduced circumstances and can no longer store your data securely, what do you do then and would you know it had happened ?
then there's the question of jurisdiction, who's law applies ? your data and usage of data may be perfectly legal in your own country but is it still legal in the country where the server physically resides ?
hypothetical point, you are a business doing work for another company in country A, by the laws of both countries everything is above board and hunky dory, you store data and use applications from the cloud to service this arrangement, the cloud servers are physically located in country B, which country for some reason does not agree with country A's business practises, country B then freezes access to your companies cloud resident data and software putting you out of business in a few months if the situation is not resolved
everyone is behaving within the laws of their respective countries, everyone concerned is technically in the right and yet you still go out of business, why ?
because you were unaware of what jurisdiction the cloud servers resided in, which is one of the selling points of cloud computing you are not supposed to need to know where your data and applications are
3. Dustin
I totally agree with your premise that consumers (people, enterprises, etc.) should evaluate any technology offering as to whether or not they can realize benefits from its use. However, you seem to discount the case of large enterprises utilizing a cloud approach within their own data center to cut costs and provide on-demand capability. Cloud computing is not just about remote hosting and management. The principles of cloud computing can, and in some cases should, be applied to on-site infrastructure.
4. anonymous
So what do your developers do?
When I get home I'll sometimes do a bit of Google App Engine development, or fire up an Amazon EC2 instance or two.
Perhaps I do it because I like experimenting with new stuff, or perhaps I do it because my workplace IT is so locked down these days it's easier and more rewarding than researching new ideas there.
Who knows? :-)
5. anonymous
In response...
Windows based Cloud Computing in a companies own Datacentre was invented by Citrix a decade ago......
Current incarnations are quite funky, and they also actually work !!!
6. Chris Carter
Hang on...
The Naked CIO claims “I really don't see what the hype is all about…” before going on to point out that he knows exactly what all the hype is about, he just doesn’t realise it, possibly because he is too set in his ways.
“For small businesses who cannot afford to have robust infrastructures and yet need strong infrastructure to support their products and services, cloud models are a no-brainer.”
That's why the hype - how many other technologies are a certified 'no-brainer' for any business?
However, his assertion that this is a SME play is well wide of the mark. And the inference that companies who can afford to waste money on infrastructure would still do so – based on their size - is almost a dictionary definition of financial mismanagement.
As for suggesting the move to cloud services owes much to an individuals’ “desire to be cool”.
Oh dear, has it come to this?
That line, more than any other tells us there is a mindset among the industry and CIOs which will be found out in this recession. ‘Resistant to change and innovation’ is not a good quality on anybody’s CV during a downturn, least of all in technology.
I don't want to be unkind, but this certainly helps explain why The Naked CIO is currently looking for work. Other industries have seen many people proclaim “fad” in the face of overwhelming evidence.
Dusty old newspaper owners leveled this very accusation at the internet – and branded evangelists as desperately seeking “cool” - because they’d invested too much in the past and knew too little of the future.