The hype around cloud computing has been justified, say enterprises

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85% of respondents in a Tata Communications survey say that cloud computing had lived up to industry hype in their experience, with 23% saying cloud had exceeded their expectations.

Increased productivity was the most popular benefit according to 69% of those polled, with better access to data (65%) and reductions in costs (63%) also highly cited. 83% of respondents admitted they experienced benefits they weren’t expecting to see.

The report added to the plethora of research confirming cloud computing was being widely used in the enterprise. 97% of respondents overall said their organisation had already adopted cloud, with only 1% saying it wasn’t an important part of their infrastructure. Private remains the most popular use case – 50% of respondents said they had deployed private cloud for between one and three years – while hybrid is certainly on the rise, with one in 10 deploying within the last year.

Almost two third (65%) of respondents said using the cloud had led to increased speed of access to technology, while a similar number (67%) experienced reduced delivery times to clients and partners.

Yet this doesn’t explain the full story. More than half (57%) of respondents admit they have migrated data back in-house from the cloud. Not surprisingly, it’s security and data protection they’re concerned about. Of the application structure in organisations polled, only two in five (39%) apps are ready to move to the cloud – and as a result companies are primarily relying on private cloud.

However 94% said their organisations would be more partial to using hybrid cloud is the connections within publicly-used internet structure could be made more predictable.

“This independent research shows that the cloud has exited the hype cycle and entered the real adoption phase for businesses globally,” said Julie Woods-Moss, CMO at Tata Communications. “It is now a strategic investment and a competitive differentiator.”

You can find the full report (email required) here.

Contemplating the Cloud

Cloud computing is being adopted at an exponential rate, with software-as-a-service (SaaS) arrangements being the leader. In the corporate sphere, infrastructure-as-a-service (IaaS) is leading. IaaS offers virtual hardware, storage capacity, and network connections. Another type of service is the platform-as-a-service (PaaS) which allows users to build applications on the internet.

 

Utilization of the cloud promises savings, flexibility, and ease, which is why many companies have begun to implement it. There are some big decisions to make before they can successfully apply cloud computing. These include: public, private, or hybrid clouds; cost-benefit analysis, and risk assessment.

 

cloud puzzle

 

Scenarios

When a company is considering a SaaS arrangement, the motivation is hardware or software upgrades. Usually a company has an old on-site application and they need to upgrade because the old system is running out of support. Since the cost of an upgrade may be comparable to a replacement, cloud computing should be seriously considered. If they opt for a private cloud, they are the only tenants and they own the license or software. This may be favorable for a company who wishes to cut costs and runs a tight IT division. A public or hybrid approach would be better suited for a company who experiences spikes in application usage or who wants their resources spent elsewhere.

 

Prominence of SaaS

SaaS has become the leader in the market for customer relationship management, supply chain management, payroll benefits, time and attendance, and ERP software. Since 2000, it has grown from being virtually nonexistent to accounting for just over half of all software deals last year. SaaS is beneficial for small companies due to its replacement cycle of only two to three years versus nine years with licensed software. Next, companies look towards IaaS and PaaS.

 

ERP Resistance

ERP systems are the last thing to be sent to the cloud. Integration of applications, data stewardship and governance all has higher priority than replacing or updating ERP systems. This is because ERP systems are high customized. Manufacturing companies have been the most resistant to adopt ERP SaaS solutions because the customization and integration it requires make it difficult for on site cloud systems to compete. Other highly regulated industries have also been reluctant to implement cloud arrangements due to burdensome compliance requirements.

 

Capital vs. Operating Expenses

One factor to consider when looking into cloud arrangements is capital vs. operating expenses. Cloud arrangements are more attractive to companies whose performance is measured return on assets deployed. On the other hand, regulated companies aren’t interested in cutting fixed assets, so they might be more likely to hold onto their data centers and other IT infrastructures and build out private clouds within these systems to reduce operating expenses. New companies and startups will most likely implement SaaS applications.

 

Other Considerations 

The cloud could potentially impact worker productivity, security issues, privacy issues, interdependency, and compatibility with other applications. Issues can arise when a security breach occurs, when the contract ends, and ownership issues. These risks need to be evaluated individually to come to the best conclusion for the specified use of the cloud.

The post Contemplating the Cloud appeared first on Cloud News Daily.

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Shining a light on shadow IT – and how to ensure you get it right

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The nature of work is evolving; employees are mobile and cloud-enabled, free to work anywhere from almost any device. In response to this shift, the BYOD trend has emerged stronger than ever. Coupled with this is the growth of employees desiring more accessible applications. However, these factors have undoubtedly contributed to the emergence of shadow IT, which is creating a problem for many IT departments.

Applications such as Dropbox are increasingly being used by employees for business critical functions. Yet many of these apps are not enterprise ready, leaving IT departments caught between the twin demands of employee flexibility and enterprise security. For example, a recent report from the Ponemon Institute revealed that 44% of corporate data stored in cloud environments is not managed or controlled by the IT department. More than two-thirds of respondents said that protecting sensitive data in the cloud was more challenging when using conventional security practices. Clearly, enterprises that want to embrace cloud but stay secure need a new approach.

Secure bridges beat blanket blockages

It is unrealistic to adopt a comprehensive block on all unsanctioned application. IT departments must empower employees by granting access to their favourite cloud apps, while protecting the organisation from data loss and network threats. Rather than blocking apps en-masse, IT departments need the ability to review the activities that pose the greatest risk, such as sharing data outside the company, and block those apps specifically to mitigate their risk. To do this, IT departments need real-time visibility into how cloud application are being used, so they can enforce smart usage policies and promote safe cloud practices. With the emergence of the latest cloud management and analytics tools, this kind of clarity is very achievable.

Teaching and engaging

Once IT departments have sight of the applications in used throughout the organisation, the next step is to educate employees about why certain activities have been blocked. Offering alternative apps that have similar features but are lower-risk, means employees will feel empowered by using apps and devices they enjoy, and corporate security is maintained.

Consulting and providing feedback also means IT is in a strong position to give guidelines of approved applications, policies and alternatives. Providing consultative advice ensures IT will be seen as trusted provider; staff will want to be informed and discuss their IT queries so they can get the job done and improve business processes. Ultimately, this open approach will give IT greater visibility and insight into what applications users are deploying.

The need for visibility

In the on-premise world, keeping track of the applications being used and by whom was relatively easy, as they were purchased and managed centrally. But with cloud, different applications are being used by different people across a multitude of devices; many of which have been purchased outside of traditional IT and procurement channels. This stops IT from having visibility and control over the applications being used in the cloud. Costs can also quickly spiral out of control as a result of ‘cloud sprawl’, thanks to the sheer ease of buying services and applications (e.g. employees paying by credit card). 

Without having visibility into cloud application usage across the business, organisations will be unable to consolidate applications and miss out on cost-savings as a result of procuring cloud services centrally. Having sight of the cloud applications being purchased allows businesses to easily forecast costs, and to make informed decisions that will improve business processes and cut costs.

Regaining control will deliver value

Cloud applications like Dropbox and Evernote are helping employees to be productive, but it’s up to businesses to ensure that the applications are secure. IT departments have a tricky job of securing data while allowing employees access to cloud applications; businesses need to support IT with tools which give visibility into the applications in use throughout the IT environment.

With this insight, IT departments can implement a far more strategic approach to cloud usage and security policies. With these controls are in place, the IT department can increase user productivity while securing the IT infrastructure. With this approach, IT can take back control and deliver value to the organisation with a skilled and productive workforce.