Getting your head around cloud computingCloud101: an introduction from Gen-i

Cloud computing is a relatively new concept

There are lots of definitions and it means different things to different people. Getting clarity on where and how it can be practically applied to add value to your business can be challenging. To us, cloud computing is about computing functionality as an on-demand service over a network.

“Cloud Computing is an on-demand delivery model for IT services or applications with the characteristics of multi-tenant hosting, elasticity (variable capacity) and utility based billing.”ANDREW YEE, EBIZQ.NET

“Common, Location-independent, Online, Utility, on-Demand service” JOE WIENMAN, AT&T

“The Fifth Generation of Computing (after Mainframe, Personal Computer, Client-Server Computing, and the web).”SUSIE ADAMS, MICROSOFT

“A style of computing where massively scalable IT-related capabilities are provided ‘as a service’ across the Internet to multiple external customers.” DARYL PLUMMER, GARTNER

“A pool of abstracted, highly-scalable, and managed computer infrastructure capable of hosting end-customer applications and billed by consumption.” FORRESTER

The term ‘cloud computing’ originates from the use of a ‘cloud’ drawing to illustrate the Internet and its components in flow diagrams. Here’s an example…

The name is a bit cloudy...

To understand how cloud computing has evolved, let’s go back and look at how computing technology has transformed over time.

Traditionally all the applications we used and the storage we had access to was located on premise. It either lived on the computers we used or on servers we connected directly to.

We purchased these as products and typically had to install and maintain them ourselves.

Email Server

Word processoremail & otherapplications

Traditional Computing

Storage

Traditional computing

Traditional Computing

Cloud Computing

Email Server

Word processoremail & otherapplications

Storage

Hotmail, Google Apps, E-bay, iTunes, Salesforce

With cloud computing the software and hardware we use no longer needs to exist locally. Service providers now offer access to software and hardware from off premises.

They sell this as a service, which means we no longer need to purchase them outright. The provider is responsible for looking after the service (upgrades, maintenance, etc.), we don’t need to worry about this ourselves.

Cloud computing

Cloud services are everywhere, in fact you’ve probably used some of them already.

• The economic climate is forcing businesses to closely examine costs and achieve better value from their ICT spend. Cloud computing is seen as an enabler of this as it offers some compelling cost benefits.

• Being able to access services in the cloud when you want to, for however long you need it and paying only for what you use is an appealing proposition for organisation trying to improve cost predictability and business efficiency.

• Cloud based services are easily available direct to business areas like HR, Marketing and Sales, enabling them to now have even greater influence over their ICT needs to achieve their goals.

Why is cloud computing gaining so much popularity?

“I need a market analytics tool now. I don’t care how it’s delivered to me.” Marketing Manager

“I don’t want to go through the process of a Capex request for an application I’m only going to need for 6 months.” HR Manager

“Our staff need access to our inventory management system in real time when they’re on the road.” Sales Manager

“Where our tools are stored doesn’t matter to me. I just want our virtual team to be sharing work and collaborating as soon as possible.” Project Manager

Cloud has a business wide appeal

The benefits of cloud computingBusiness Efficiency

Scales up and down as your needs change

Increased speed to benefit realisation

Refocus staff on core business

Geographical expansion becomes easy

Financial Pay-per-use pricing

No capital investment

No long term contracts

Inexpensive test and development

Technical Self-service portal

Infrastructure managed by the cloud provider

Developer-ready framework for all levels of developers

One button deployment

Content adapted from: James Staten, Principal Analyst, Forrester Research

There are three broad categories of services provided by cloud computing. Combined these three services are able to provide the majority of computer functionality provided by a traditional model of computing.

• Software-as-a-service allows users to access software applications on-demand. It’s a broad fi eld and common examples include web-based email and customer relationship management services.

• Platform-as-a-service provides computing platform and software stacks as a service. It allows companies to deploy applications without the cost of buying and managing the required hardware and software.

• Infrastructure-as-a-service provides virtual servers and on-demand data storage. Users pay only for the capacity they need, and they can get more if they require it.

Users can select one or more of these three service layers to meet their needs.

The components that make up cloud

PaaS

SaaS

IaaS

Adapted from Wikipedia

Public clouds sell services to anyone over the Internet. Private clouds are managed and maintained by a business its self or a provider who delivers dedicated infrastructure services within a private firewall. Hybrid clouds are a mix of public cloud services and private cloud services.

The different types of cloud

PUBLIC PRIVATE HYBRID

What’s the typical journey that businesses go on to get to the cloud?1. Traditional Inhouse IT Dept 2. IT resource consolidation

+ virtualisation

CRM

Website, Mail, CRM

ERP, Testing

Mail, Unified comms

Testing

Mail

Unified comms

ERP

Website

An inhouse IT environment allows for high levels of control and the potential for customisation of IT resources, but duplication and inefficient allocation of IT resources can make it costly to run.

Virtualisation offers a more efficient use of server resource. It can reduce your server investment, utility costs, and free up physical space onsite.

SERVERS FOR: SERVERS FOR:

IT Dept. IT Dept.

3. Managed hosted services 4. Cloud: pay to use services on demand

By outsourcing your data requirements to a specialist you have the benefi t of their expertise and you can cost eff ectively leverage their access to the latest technology and best practice methods in data management.

Testing, Mail, Website

DATA CENTRE

Where it makes sense to you can put some of your IT resources into the cloud and access them when you want, only paying for what you use and scaling your use as you need to.

Website

Testing & Dev

vDesktop

CRM

SecurityERP, unifi ed comms, CRM

IT Dept.

ERP, unifi ed comms, HR

IT Dept.

Here are some practical examples of how businesses are using cloud services today…

CRM

IaaS Mobile Offi ceBack-up

Test & Dev

vDesktop

Branch 01

Branch 02

Distribution Centre

Factory

Head Offi ce

Reception

Customer

Sales Rep

Website eg. Customer Portal

Lease infrastructure to build web services that enable a faster go-to-market initiative e.g. a customer portal - without worrying about raising the capital achieve this.

Rent storage space for a CRM system in a data centre that is connected to a nationwide network to enable your staff to access it securely from anywhere.

By moving all your desktops into a cloud desktop environment, you can reduce costs on licencing, deployment and maintenance services.

Ensure quality customer service by enabling staff to dynamically manage their communication and collaboration tools anywhere, anytime.

Businesses that have seasonal fl uctuations in workload – can take advantage of the scalability of cloud services and increase their resource use during peak times and then scale back down as required.

Cost eff ectively and securely back up critical data off site – reducing your storage costs while ensuring you leverage best practice security standards to protectyour business.

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01

02

02

04

04 05

05

06

06

03

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IT Dept.

It’s easy to see the benefi ts of cloud, but how it is applied to your business is the key.

Have a chat to us about the options available and how we can help you achieve the business outcomes you’re looking for.

Contact your Gen-i client manager, or call us on 0800 694 364

Disclaimer: The information provided in this document is based on information supplied by Gen-i, a division of Telecom New Zealand Limited (“Gen-i”), unless otherwise specifi ed, and is intended only as an introduction to cloud computing. While every endeavour has been made to supply accurate information, errors and omissions may occur. Accordingly, Gen-i does not accept any liability for any loss or damage which may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this document. The content of this document is the copyright © of Gen-i. All rights expressly reserved.  Except as otherwise expressly permitted under copyright law, the content of this document may not be copied, reproduced, republished, downloaded, posted, broadcast or transmitted in any way without fi rst obtaining the written permission of Gen-i.