There is no real straight forward answer to this question, it really does depend on your current situation, what applications you are using, whether you have the trust, what type of company you have. All these things need to be discussed before you can make a final decision. LAN Support Cloud services could be live and business changing for your company, the best thing sliced bread. On the other hand it may not ever be suitable for you.
However, I'm being asked 'almost on a Dailey basis now' about cloud! Some clients just say "get me a price for this cloud thing, Its cheap", only if it were so simple? While completing some of my own research i stumbled upon this blog about cloud computing and while I continue to challenge and to be challenged I thought I would just share these with you, although it might back fire on me somewhat!!!!!
So many vendors are now looking to “the cloud” as the solution and growth path for business involved in the SMB space. I mentioned in my blog post last week that Microsoft had killed EBS 2008 based on the growth of the cloud as a solution. This really makes me think a lot about the cloud movement and what it means to us in the future.
The cloud is seen by many vendors as a great solution to oh-so-many business problems. There are many fanciful claims about having your data and applications in the cloud, and it’s hard to tell fact from fiction at times.
The upside of cloud hosted applications and data is that it will always be available to you, from anywhere in the world with only the need for a web browser and an Internet connection. You won’t need to invest in expensive hardware to run your business. You won’t need to worry about maintenance of the hardware or software. You’ll only need to pay a fixed fee per month for it all. Sounds fantastic, doesn’t it? In reality it is pretty cool, but let’s think a little about that for a moment.
You ONLY need a web browser AND an Internet connection....
What connection speed will be acceptable? What happens when your Internet connection is down, maybe due to a cable cut in the street? How will your office survive if that is the case, given your email is all hosted externally now? Who else will have access to your data when it’s stored in the cloud? How can you guarantee compliance with the various regulatory bodies in respect to that data?
You won’t need expensive hardware to run your business or maintenance...
But you will pay a portion of your fixed monthly fee towards that as will everyone else who uses that service. Great in theory, but what happens if the vendor decides to skim on the expensive, reliable hardware to make more profit? Maintenance periods will be at the cloud vendors choosing now, not at yours. How will you cope if the maintenance period is at a busy time for you?
The fixed monthly fee is nice, too...
But what happens when the vendor who has your applications and data decides to increase the fee? Or decrease service levels that they give for the existing fee? How easy will it be to get access to your data and move it to another vendor or in fact back in house?
How about some other questions...
What happens to your apps and data when the company hosting them goes bankrupt? Who OWNS your data hosted in the cloud and what access would you have in those circumstances? What about where your data is located? If you are not a U.S. company and your data is located on U.S. soil (which much of it is), how much do you know about the Patriot Act?
Yes, I know. I’m asking a LOT of questions in this blog post and not providing many answers. That is the point; there are way more questions than answers and we as IT professionals need to be aware of these things when we go to advise our customers of the latest and greatest cloud solutions.
With all that in mind, what do you think the risk of putting all your data and apps into the cloud?
Comments (6)
17-Mar-2010 09:17 Brian Kraemer says:
Wayne -- some great points here. I'd never considered how a cloud application will be maintained. That's something solution providers and customers should probably address in a contract, don't you think?
17-Mar-2010 11:08 David Dadian says in response to Brian Kraemer:
Excellent points Wayne, and Brian you are absolutely on track! A very detailed cloud/SaaS agreement/contract is required. We spent a fair amount of time having one developed and it addresses many of the questions Wayne raises, with the major point being "data ownership". Fee increases are a concern, but many tend to understand these as they are similiar to the services they now utilize like, gas and electric, cellular phone service and cable tv (when was the last time you experience a price decrease there)? We even had to include clauses for European end-users and Government end-users. All in all a 15 page document, not quite the size of the healthcare bill, but at least once you read it you understand and know what is in it!
17-Mar-2010 12:43 Robert Williams says:
Although your points and questions are valid; however, you sound a bit pessimistic. The solutions provider should be helpful and responsive enough to know how and when loads are too heavy (or times of year) to avoid the issue of downtime. One would also assume that any upgrades or maintenance would be announced. At least those are my thoughts.
17-Mar-2010 14:59 Old ISV says:
Wayne,
You have hit all the obvious points but haven't addressed the 800 pound gorilla, response time.
Take this example; in house reponse time averages .25 seconds and cloud response time averages 2 seconds. A service writer (the industry for our vertical) sees this difference 250 times during the full cycle from initial estimate to finalized invoice. Working on 10 tickets a day that means that worker loses 25 minutes of productivity a day. The technicians working behind that service writer lose a similar amount of time because they get their instructions later and they spend that extra time waiting for response at their stations. If the shop has 2 service writers each handling 4 techs the net loss is 3.75 hours a day. At an all up cost of $50 an hour (top line techs make $60K plus) that is $187.50 a day for an average 240 days a year comes to $45,000 a year in lost productivity.
That company would still need the same 10 user LAN to access the cloud. The one time cost of a quad core server with dual hot swappable power supplies, redundant drives and controllers and a substantial UPS plus maintenance is far below the cloud cost. The annual cost of server monitoring and maintenance is fairly low.