Posts Tagged ‘Computing’

Economic Uncertainty: Perfect Time To Switch To Cloud Computing

November 9th, 2011

IT outsourcing has been a boon for companies going through tremendous amounts of economic pressure over the last few years. In addition to benefiting from outsourcing, enterprises these days, can further alleviate the costs of business technology needs, by tapping into Cloud Computing. Surprisingly, Cloud Computing, which has only found a wider market and application in recent years, traces its roots as far back as the 60s, when computer scientist John McCarthy began working on its earliest form, known as Utility Computing. Mr.McCarthy has peered into an IT crystal ball, and had predicted rather accurately that computer resources would be abundant and competitively priced in the future.

Today, Cloud Computing has a growing number of proponents who list its various benefits for not just businesses operating in a competitive marketplace but also increasingly cash-strapped government bodies. Among the many advantages cloud computing offers its users, foremost is easy access to latest application software. Given that softwares are constantly being upgraded and modified, almost all enterprises account for a steady stream of investment in this area, which may or may not be optimized. In addition to financial investment, storing software also costs ‘space’ in an enterprise’s IT ecosystem, resources for maintenance and upgrades are also essential.

For the first time, companies now have a solution in sight, to stem the outflow of precious resources on the purchase and maintenance of application software. A growing body of service providers allow easy access to a host of enterprise software that can be accessed from just about anywhere with a web browser. The providers maintain the software, with regular upgrades and store them on their data servers, which makes cloud computing an incredibly attractive benefit for a growing pool of companies across sectors. Small and Medium Enterprises, attempting to grow in a challenging economic climate, can especially benefit from services of providers like workbooks.com, Cloudmore, e sales track and others. By paying a subscription fee that matches their allocated funds, they can access a whole suite of business applications, paralleling the software range used by big companies, thus making their businesses more competitive. Service providers like Workbooks eliminate the need for Small and Medium business owners to invest in expensive hardware or allocate resources to maintain software. Further, Software-as-a-Service has also come to mean round-the-clock upkeep, service, and troubleshooting, without business owners worrying about downtime or maintenance from their end.

The increased effective and efficient use of servers is another all-round benefit of Cloud Computing. Since the access of software and applications is far more fluid and flexible than it has ever been before, servers can be shared by many number of users without affecting security or service. The overall benefit for enterprises is the cost-effectiveness of the service model, wherein they pay only for the computing resources they access. The hailed pay-per -use model of Cloud Computing offers a world of flexibility to users by letting them try IT applications that suit their needs the most and freeing up resources for businesses in a big way. In an increasingly competitive and evolving market, which remains unpredictable, easy and affordable access to software applications can make a world of difference.

Enterprises and government bodies can benefit from three distinct types of Cloud Computing services: Public, Private and Hybrid Cloud. All the three types are offered by service providers, however, they’re distinct in the way users can access the services.

Public Cloud Computing was the earliest forms of SaaS, and lets users access computing services from their service provider, from just about anywhere. It is great for users looking for flexibility; typically, they could also be users of the pay-per-use method, wherein they only pay transaction fee.

For those concerned with security, Private clouds have emerged as an option that is considered safer than Public Cloud Computing, as it restricts access. Users pay for the increased security by having to buy, build and maintain the system.

Hybrid Cloud services are a combination of Private and Public Cloud Computing, where the work load is processed at an enterprise data center, while the remainder of services are offered via a Public cloud. This delicate, wonderful and beneficial balance of virtualization and load balancing fuels the growth of cloud computing, enabling businesses to focus on their growth, and allowing public-funded bodies to divert tax payers’ money to other, more demanding areas.

The entry of many big players into the field of cloud computing, like Amazon Web Services, Microsoft United States, Google Apps, IBM is a testimony to the growth and future potential of cloud computing.

In addition to service providers like Workbooks, other companies such as Capgemini offer Software-as-a-Service for many small and medium enterprises. Capgemini, however, is not an exclusive SaaS provider, but is a global IT company that has been around for decades, and leverages its existing network presence in over 30 countries to offers its cloud computing services. Workbooks, however, exclusively offers cloud computing services, and its clients could benefit from the company’s focused approach in the area. While Capgemini does cater to a number of big companies, including IKEA, Volvo and Swedish Government agencies, Workbooks is exclusively dedicated to small scale and medium enterprises, and is among the fastest growing Cloud Computing companies, in the space, in the UK. However, the very nature of Cloud Computing, which allows access from anywhere, makes the reach of Workbooks, global. It is perhaps also important to note here, that Capgemini offers cloud computing through a subsidiary, Sogeti. The Company offers Infostructure Services (ITS) that promises cost-reductions from cloud solutions to both small enterprises and public bodies.

An article, here clearly demonstrates how organizations are benefitting by going the ‘Cloud’ way.

While highlighting the benefits of Cloud Computing, one also must mention that the growth of Software-as-a-Service has been hampered by some setbacks. The security of users has always been questioned, since data and information, along with software applications, is stored on servers that are outside of the direct reach of enterprises. Many legal issues have also arisen, due to the perceived disconnect between ownership of the data, and the servers. However, the advantages of Cloud Computing, particularly for businesses striving to remain competitive in a tough economic climate, outweigh many of the drawbacks pointed out by critics.

Source:http://www.business2community.com/b2b-perspective/economic-uncertainty-perfect-time-to-switch-to-cloud-computing-089967

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Cloud control

October 31st, 2011

Security tops users’ concerns when it comes to cloud computing. Nick Coleman outlines the methods for making systems secure

A survey recently carried out for IBM found that 77 per cent of respondents believe that adopting cloud ­computing makes protecting privacy more difficult, while 50 per cent are concerned about data breaches or loss.

Indeed, when it comes to security the question now is often framed in terms of: where will my data be, who will be able to access it and how can I be assured of this and know what is really happening?

When speaking of cloud security some talk in terms of the infrastructure, some of applications and some of the smartphones or other devices that people might use to access a cloud. In reality, security in the cloud is about all of these things and more. It is important to think of which model you are buying into and ensure the security is appropriate.

In many ways, the technology has moved from being a back-office function and enabler of cost reduction to a driver of growth and value. There are several models of cloud computing , and security has to be appropriate to the model being used.

A framework for questions

When asking questions about cloud ­security having a framework helps, as does thinking about what will be needed when moving to the cloud, such as shared ­infrastructure and applications.

Elements that should be considered for inclusion in this framework are governance, a focus on the protection of data, security policy and audit measures, management of problems, management of vulnerabilities, a focus on the authentication of users and the protection of physical assets and locations.

Taking this kind of proactive approach to security and risk management means ­staying one step ahead of vulnerabilities and being more secure and resilient.

At the same time, it is clear that a one-size-fits-all approach to security in the cloud will not work. It is about getting the ­appropriate security in place for the workload (or service) that is being considered.

The fundamental things apply

The fundamentals of security apply. ­Individuals and business still want to know where their information is, who is accessing it and how it is being used so they can ­manage and protect it.

Working out where and how to apply security is central to delivering it. Cloud security can be delivered either as part of the service or as a component that can be added. Depending on your provider, it may be that a combination of these approaches is necessary.

To ensure security in the cloud ­organisations have to think strategically. Not all workloads are created equal so ­careful ­consideration must be given to each before determining its appropriateness for movement into the cloud.

Organisations must understand the ­governance and security requirements for each proposed workload and then validate whether these can be met within the cloud environment. It is only through this selective evaluation process that customers can avoid audit exposure and control the proliferation of data that may be subject to a variety of controls and residency requirements.

Roles model

There is also a need to establish clear roles and responsibilities. When adopting public and hybrid cloud solutions the relationship between consumer and provider closely resembles a traditional IT outsourcing arrangement. Therefore it is critical that each party has a clear understanding of their security obligations. For example, the responsibility for securing software as a service offering is largely that of the provider because the solution is consumed as a ­packaged static application. At the other end of the spectrum, infrastructure exposes users to a greater responsibility for securing individual virtual machines.

Call for backup

It is also essential to have a backup plan. Most public and private cloud solutions trade direct control for cost savings and efficiencies derived from the economies of scale. ­Transferring control of specific IT functions to another party does not obviate responsibility for the availability of key workloads.

Organisations must consider a provider’s disaster recovery and restoration plans in the context of their needs, keeping in mind requirements regarding service availability, data backup, data residency and so on.

Reputable cloud providers should offer a variety of service level agreements (SLAs) that include metrics such as availability, outage notification, service restoration, average time to resolve and notification of breaches. Providers should report on SLA compliance and deliver agreed remedies.

All too often organisations spend time and money developing security strategies that employ the latest – and most expensive – technical controls while turning a blind eye to the basics of risk assessment, policy ­development and the continuous validation of established and required controls.

Source:http://www.thelawyer.com/cloud-control/1010019.article

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Businesses turn to cloud computing

October 29th, 2011

Businesses and consumers are increasingly relying on cloud computing services, and information technology research and advisory firm Gartner predicts that, by next year, 80 per cent of Fortune 1000 enterprises will be using some cloud computing services, with 20 per cent of all businesses not owning any IT assets.
Microsoft Asia-Pacific chief marketing officer Andrew Pickup estimated that Viet Nam would post the highest growth in the region this year for cloud computing services.

“Overall the Asia-Pacific market is growing 33 per cent per year, but in Viet Nam, it’s 50 per cent,” he said. “Viet Nam has a small base and is expected to grow faster”
Cloud computing was already a fixture of consumer-oriented services such as email, social media and entertainment-delivery sites, Gartner said, adding that the shift from traditional software models to the internet offered opportunities to enterprises of all sizes, enabling them to deliver scalable and resillient services to employees, partners and customers at lower cost and with higher agility.

“In the near future, cloud computing will help enterprises and organisations save a lot of expenditure for IT infrastructure and energy and provide more suitable applications to users,” said Cisco Systems Viet Nam chief technology officer Phan Thanh Son.

Cloud computing delivers infrastructure, services and software on demand via the internet. Traditional computing requires traditional hardware, manual addition of new services and in-house repair of system failures. Provision of cloud computing services can be made on a monthly basis, meanwhile, with costs based on incremental purchases, and users don’t have to invest in infrastructure, hardware and software, paying only infrastructure leasing and service fees.

Cloud computing therefore can allow businesses, organisations and governmental agencies to save money. Japan, for instance, maintains public databases and primary applications of the Government on the cloud, allowing users to access through a conventional internet connection. Singapore has also built a government cloud with a focus on e-government applications.

In Viet Nam, provinces and cities receive budgets of only VND5-20 billion (US$238,000-952,000) per year for developing information technology, not even enough to acquire hardware, according to ICT news.

Giving shape to the Vietnamese Government’s vision of the nation becoming a leader in IT and e-government, various departments and ministries here have begun using cloud computing to increase efficiency while cutting costs.

Dr Quach Tuan Ngoc, director of the information and communications technology department of the Ministry of Education and Training, told the website FutureGov that his department had instructed local education and training departments to shift to cloud computing.

According to Ngoc, the cloud is suitable for the education sector and would lead to significant cost benefits.

“Every school needs one server and one website,” Ngoc said. “With cloud computing, we won’t waste time, money or effort in installion, upgrades and maintenance. Cloud computing will make it much more efficient when many more students are accessing our system.”

Nguyen Trong Duong, director of information technology for the Ministry of Information and Communications, said the ministry was considering a mechanism for applying cloud computing at State agencies under public-private partnerships or service outsourcing.

The Ministry of Natural Resources and Environment has already cut its costs for IT infrastructure by about 20 per cent. The director of its ICT department, Nguyen Huu Chinh, said the ministry would use cloud computing to integrate all data relating to Viet Nam’s natural resources and environment. Cloud computing would help the ministry address its fragmented IT infrastructure with data centres scattering at local department and provincial-level offices.

A senior executive of IBM Viet Nam, Tran Viet Huan, said that developed countries have already implemented policies encouraging cloud computing, and the EU and Malaysia have laws in place on protecting the privacy of personal data maintained on the cloud.

Nguyen Manh Quyen, deputy director of the e-commerce and IT department under the Ministry of Industry and Trade, thinks that there is no need to design a specific policy for cloud computing. Viet Nam already has a Law on Information Technology and a Government decree and other regulations guiding implementation of the law. Additional regulation might simply impede the development of cloud computing, he said, or it might serve only the big cloud computing service providers while not levelling the playing field for other enterprises.

Quang Trung Software Park Development Company director Chu Tien Dung disagreed. The Government needed to give some advice to enterprises and let the enterprises make decision for themselves. However, it would be necessary to issue legal documents to the State agencies which stipulate that budget resources be allocated to cloud computing and which provide guidance on the implementation, purchase and uses of such services.

Source:http://vietnamnews.vnagency.com.vn/Economy/217061/Businesses-turn-to-cloud-computing.html

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Cloud computing’s real creative destruction may be the IT workforce

October 25th, 2011

Cloud computing, which amounts to be the industrialization of enterprise technology infrastructure, will bring a lot of advantages coupled with a lot of lost jobs.

Few disagree that cloud computing will be disruptive to industries, enterprise technology and the way we conduct businesses. The disruption will extend to the workforce.

In other words, humans will be virtualized just like servers are. The upshot from cloud computing is that companies will need fewer data centers. People run data centers. Those jobs are likely to simply disappear.

Johan Jacobs and Ken Brant, two Gartner analysts, made the cloud computing-jobs connection last week at the Gartner Symposium in Orlando. The presentation was categorized as “maverick” in that it may not happen in the allotted time frame. Jacobs and Brant argued by 2020 demand for IT staff dedicated to supporting data centers will collapse.

“The long-run value proposition of IT is not to support the human workforce – it is to replace it,” wrote Gartner in its presentation. In other words, any job loss related to offshore outsourcing may look like a walk in the park once cloud computing gets rolling.

The rough argument goes like this:

Computing will be outsourced to the cloud and become an IT utility.
Business processes will be outsourced to software. That outcome will hit all economies—especially emerging ones like India that now dominate technology outsourcing.
As the data center is virtualized the need for people to maintain that infrastructure will go away. In addition, all the people in sales and services linked to building and designing data centers will also lose jobs. When there’s less technology infrastructure to support jobs will disappear.
Some of those workers will reinvent themselves and find more opportunities. Others will never match those previous positions. Many IT workers will face hollowed out job prospects just like factory workers did as the U.S. manufacturing base disappeared.
This cloud computing-job connection is just a whisper today. But a few executives I talked to see an offshore outsourcing backlash as a possibility for cloud computing.

If Gartner’s post-human industry theory, which dictates that intelligent machines will drive the economy more than people, pans out the economic implications will be huge. There is no need for a human-machine singularity to impact career prospects. Creative destruction looks great on the whiteboard, but there is a human cost.

Source:http://www.zdnet.com/blog/btl/cloud-computings-real-creative-destruction-may-be-the-it-workforce/61581

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Cloud computing no longer just buzz but seismic shake to outsourcing

October 20th, 2011

I have been asked by the National Outsourcing Association to speak at an event next month. At the event I will be talking about what trends I am seeing in the outsourcing sector.

I sat down the other day to put some thoughts together and after a few minutes it really hit me just how big this year has been for cloud computing in the IT outsourcing sector.

A year ago everybody was talking about the cloud. But there was not much context to what they were saying. Everybody had a cloud strategy or was devising one.

But this year when I think about the case study type articles I write and the conversations I have with businesses and IT suppliers I can see things have really moved on.

Recent examples include Everything Everywhere setting itself, and its supplier T-Systems, the target of having 40% of its internal systems in the cloud within three years. Read my interview with the CIO here.

Then there are companies such as International Personal Finance, which has embarked on a 12-month project to move its IT infrastructure into a private cloud which will cut costs by millions of pounds and make its planned expansion easier. Read my case study here.

This year could see clouds used by businesses get a whole lot thicker. More cumulonimbus than cirrus as companies put more and more IT into clouds.
From recent discussions with CIOs, IT directors and the like, it does appear that businesses are now ready to move deeper into the cloud.

At a recent meeting with a big supplier I was given the prediction that 60% of the average enterprise will have 60% of its applications in the cloud.

Last month I sat down with the global IT head at one of the UK’s biggest banks. This was a meeting in advance of a raft of announcements set to come from the bank.

The bank is about to begin a process of wrapping a private cloud around all of its systems, both internal and those that face customers.

It was described to me as creating a cloud that customers and workers just point a device at to get to what they want. Obviously this is a big bank with lots of in-house IT expertise. But it will not be doing it itself but rather using an ecosystem of suppliers.

This brings me on to the new role of the IT outsourcing service provider. Forget systems integration it is now cloud integration.

Source:http://www.computerweekly.com/blogs/inside-outsourcing/2011/10/cloud-computing-no-longer-just-buzz-but-seismic-shake-to-outsourcing.html

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Cloud computing: implications for the IT support sector

October 18th, 2011

When Google unveiled the Chromebook in May, Sergey Brin, its co-founder, described it as “a new model of computing”.

And yet, the Chromebook is a mere laptop, a breed of computer which tablet PCs and smartphones are rendering, if not yet obsolete, then certainly ungainly and ill-suited to surfing the web.

But Brin wasn’t referring to the physical interface. Rather, Google’s new device, which is manufactured by Samsung and Acer, purports to be the first hardware purpose-built for using applications and storing data exclusively through the internet.

With just 16 gigabytes of hard-disk space to act as a fall-back cachet in case of connection failure, the Chromebook’s raison d’être is to enable users to do their computing entirely through a web browser (in this case, Chrome, of course).

The concept of delivering software and services over a network rather than a computer dates back to the 1960s, when American computer scientist John McCarthy speculated that “computation may someday be organised as a public utility”. But it’s only in the last few years that broadband speeds have become fast enough to make computing through a browser truly viable.

Paradigm shift
Google is gambling – and sales figures are yet to be published – that the world is ready for a paradigm shift in how they use software and store data.

You don’t have to buy a software licence to use cloud-based services; you just pay for your own usage, so it’s generally cheaper
David Mytton, Boxed Ice founder
In truth, a number of cloud-service providers already provide ‘software-as-a-service’ (SaaS) to growing numbers of businesses. According to a survey by Cable&Wireless Worldwide, 45% of multinationals have adopted third-party-hosted cloud services in the past year, rising from 28% the year before.

Data management, including security, storage and data backup, was the most commonly used service (by 51%), followed by networking services (48%).

David Mytton, founder of Boxed Ice, a software developer whose first product monitors the performance of cloud-based servers, outlines the advantages of SaaS: “You pay a service fee and everything is maintained and managed by the server provider. You don’t have to manage software updates or any other infrastructure.

“You can get going a lot faster and because you pay monthly, you’re not tied into any contracts, so there is less initial capital outlay. You don’t have to buy a software licence; you just pay for your own usage, so it’s generally cheaper.”

Outsourcing the management of software and data, businesses can focus on their core competencies and enjoy greater flexibility – much the same advantages that fuelled the rise of other B2B services, such as recruitment, PR and marketing. Paying monthly fees to a cloud-services provider, which centrally manages and upgrades software and data on behalf of dozens or hundreds of customers, is hugely more cost-effective for a business than maintaining its own, internal IT infrastructure.

But will this de facto consolidation of IT maintenance spell disaster for an industry that has mushroomed throughout the still-nascent information age? Technological leaps forward have often brought an unwanted corollary: redundancies.

Rupert Murdoch’s newspaper group, News International, marginalised the striking printing unions in in 1986, for example, with the clandestine establishment of new printing presses, which reduced labour demands. Similarly, the reason SaaS is so much cheaper is because labour costs are reduced.

Google’s Chromebook could certainly be the nemesis of the multibillion dollar security industry based around providing antivirus protection for Windows. Google claims that Chrome OS, the operation system, is virus-free because it runs a self-check called Verified Boot upon boot up, which can detect and repair software corruption.

Businesses can liberate themselves from the burden of helpdesks, antivirus, firewalls, backups and so on if they start using Chromebooks and Google Apps, the cloud-based apps suite challenging Microsoft Office’s two-decade hegemony. Whereas the cost of maintaining each PC is roughly $3,000 a year when you factor in IT maintenance costs, US businesses (UK prices are yet to be announced) can rent a Chromebook for $336 a year ($240 for students).

Mark Osborn, director at digital marketing consultancy Acertis, thinks “there is going to be an impact” on the IT support sector. “On what scale, I don’t know, but you can see it happening already – a lot of big companies have shifted to the cloud.”

But a prominent advocate for the cloud industry suggests that the new paradigm offers as many opportunities as threats to the IT support sector. “I think cloud computing opens up a tremendous opportunity for IT support businesses to move much of the back-office side of IT into more resilient infrastructures and data centres,” says Andy Burton, chairman of lobby group the Cloud Industry Forum.

“It opens the market up for these ancillary services that set up, migrate, manage and integrate your data applications between your various depositories. Helping your customer manage the best of on-premise and in-cloud solutions is actually a great market in its own right.

The way people license technology in the software-as-a-service or infrastructure-as-a-service model opens up possibilities for the sector. They might sell services for a straightforward annuity that covers a range of costs, including IT maintenance.”

Centralised
Mark Osborn, whose company Acertis partners with cloud-based customer relationship management service SalesForce, believes the impact on IT jobs of the centralisation of IT support can easily be overstated: “Many people looking after a company’s infrastructure will move on to work in data centres, which will still need IT maintenance staff. It’s not like the profession is totally dead, it might just be more centralised and less fragmented.”

Not so centralised, though, that Google can dominate the landscape to the degree that it dominates the search engine market. “Public cloud isn’t for everyone,” continues Osborn. “Some companies want complete control so they might build a private cloud, and that’s becoming quite common in big enterprises.”

Adoption of cloud services is more likely, says Osborn, if “businesses don’t have in-house IT expertise and it’s not core to their business.” Companies big enough to have in-house IT departments are less enthusiastic adopters, as Andy Burton, who is also the CEO of web hosting company Fast Hosts, explains:

“I would say small companies are more likely to adopt cloud services. For bigger companies, which will want a rich client experience, the cloud won’t necessarily be a benefit because of the volumes of data involved and connectivity issues.”

David Mytton suggests another reason for slower uptake among large enterprises: “It’s very beneficial for smaller companies and individuals because they can sign up and start using them immediately. It’s going to be slower for larger companies, because they tend to have more complex requirements and a longer sales process.”

The resistance of many businesses to cloud services is underpinned by serious misgivings about security and connectivity. “They wouldn’t issue security patches if they weren’t aware that there were security holes, and breaches happen every month,” says Andrew Corbett, membership services director at the UK IT Association, who cites the recent theft of millions of customers’ credit card details from Sony’s Playstation Network. “If Sony can’t stop it happening, how can anyone else?”

But citing Salesforce’s exemplary record, Osborn argues that cloud storage can actually be more secure than the traditional on-premises solution: “What’s more secure, an infrastructure set up and maintained by people who work for a company who aren’t particularly experts, or an infrastructure security backed by hundreds of millions dollars of investment and a huge team of qualified experts?”

And a stolen Chromebook does not equate to stolen or lost data. All the user needs are log-in details, without which data is inaccessible, and another Chromebook, to access their files.

That there are connection issues, however, is unarguable. “I don’t think the realisation is there yet about the importance of connectivity,” says Corbett. “Cloud service providers must see their resilience to connectivity issues as a priority.”

It’s difficult to envisage even the biggest cloud evangelists failing to retain some sort of contingency capability for when internet connection fails, however infrequently, particularly for business people using laptops and tablets on trains. So for all the advantages of the ‘cloud’, businesses will need to maintain some level of internal IT support.

“I believe both on-premise and cloud services be credible and maintained for the foreseeable future; one won’t replace the other,” says Andy Burton. “Challenges will remain that mean some rich content is better managed locally then in cloud. We don’t advocate that everything should be in the cloud.”

But with many balance sheets threadbare and a double-dip recession looming, the cost advantages of shifting the bulk of a company’s IT capabilities to a cloud data centre will be increasingly difficult to ignore, according to Osborn. “I don’t think every company will do it, but many will realise that they don’t need to bear the costs any more. I’ve seen the pain involved in having to run, manage and maintain infrastructure.

“There seems to be a global consensus that it works for all businesses, regardless of industry. It is highly flexible, scalable and it removes many IT maintenance tasks that are not core activities for businesses.”

Those in the IT support sector must confront – and capitalise on – the inexorable rise of software as a service, says Corbett. “When my server needs replacing I’m going to say, ‘well I’m not replacing it, I’m going to start using cloud services’. Unless the IT maintenance people start moving into cloud services themselves, they’re going to lose their customers.

“They need to consider becoming resellers of cloud services so they can get a margin on Google Apps, Microsoft Office 365 and IBM Symphony online. They need to convey that message to their customers before someone else says ‘we can look after your servers and do cloud as well’.”

Resistance, he warns, is definitely futile. “IT maintenance professionals should refrain from trying to put their customers off cloud – because if they do, they’ll lose. They should say ‘look, there are downsides, but if you want to do it, you can get the service from me for a low price. We can continue our relationship so you don’t have to go elsewhere.

“Don’t try and be King Canute, saying it’s not all it’s cracked up to be, because customers will say you’re only saying that because you can’t provide the service yourself – and go to someone who can. I’ve seen people in the IT maintenance business telling customers that they don’t need cloud, and they will lose customers. It’s like the dinosaurs: some of them did actually survive. You either evolve or you die out.”

Source:http://www.businesswings.co.uk/articles/Cloud-computing-implications-for-IT-support?pageNum=1

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Cloud computing ‘changing the face of outsourcing’

September 22nd, 2011

The flexible benefits of cloud computing mean that it is completely changing the dynamics of IT outsourcing, it has been claimed.

According to a study by K2 Advisory, chief information officers across the globe are increasingly looking for flexible sourcing options.

“In particular [they] favour outcome-based contracts from firms supplying cloud services,” Dr Katy Ring, director of K2 Advisory, said.

“Whilst the theory is good, large scale uptake of these types of contracts is unlikely in the short term due to levels of vendor risk and lack of experience from both procurement and sourcing advisors.”

The study also emphasised that internal IT departments will play a key role in the shift towards cloud services as they will be tasked with making sure that the technology fits in with their organisation.

Nicola Mortimer, head of ICT and business development at O2, recently said that the cloud is changing business dynamics with a greater emphasis on flexibility and mobility.

Source:http://www.qas.co.nz/company/data-quality-news/cloud_computing_changing_the_face_of_outsourcing__7913.htm

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