Posts Tagged ‘cloud computing’

Planning For The Cloud: What Does A CIO Need To Know?

Wednesday, August 24th, 2011
Image Credit Soon We'll All Be In The Cloud, But Will CIOs Be Ready?

Soon We'll All Be In The Cloud, But Will CIOs Be Ready?

Let’s face facts shall we? Cloud computing appears to be the real deal. It can no longer be considered just yet another IT fad. It sure looks like every company will be using cloud based computing resources eventually. Since this appears to be inevitable, what should CIOs be thinking about right now?

Planning For The Cloud

CIOs need to realize that even though moving some or all of the company’s IT infrastructure into the cloud is pretty much a foregone conclusion at this point in time, it’s not going to happen overnight. Instead, it will happen piece-by-piece. An example of how an IT department could get started with a cloud would be starting to use cloud computing for help documentation software and wiki platforms that can grow/shrink at fast rates.

This means that as new projects are presented to you as the CIO, you need to start to ask some cloud-based questions. Specifically, you need to quiz the teams that are presenting the requests for funding exactly how they have considered using cloud computing as a part of their project.

Every company has surges in the IT computing resources that it requires. It could at the end of a quarter or it could be during the busy holiday season. As CIO you need to stop approving the purchase of additional servers just to handle peak loads. This type of IT need is better dealt with by cloud computing and after the surge is over, you won’t have additional hardware that you have to pay to support throughout the rest of the year.

Entering The Cloud

Where to start is one of the biggest questions that CIOs have to face when considering how they are going to incorporate the cloud into their operations. An easy place to start is with the company’s test-and-development environments. Since these systems are not used except during preproduction testing, they are ideally suited to being housed in the cloud.

Which cloud-based computing vendor a company should go with is another key question that CIOs need to answer. It turns out that there is probably not a single answer to this question. Rather, since the possibility of an outage or other failure is always a possibility, a firm should choose at least two and perhaps more cloud vendors.

When cloud vendors are finally selected, instead of just jumping into the cloud, the CIO should ease into using the cloud by using the cloud to create initial prototypes of new services. Using the cloud to create demos of new systems and services allows multiple versions to be quickly tested and for end user feedback to be collected in ways that were never possible before.

Living With The Cloud

Although within IT the focus always seems to be on the details surrounding the cloud: what applications move into the cloud, how to secure them, what cloud providers to use, it turns out that there is an even bigger issue that CIOs need to be worrying about. What to do with your employees.

When your company’s applications live in the cloud, you don’t need a lot of the hardware and networking skills that you currently probably already have in your IT department. However, at the same time you do need a lot of new skills. These include managing service-level agreements with cloud vendors and service management.

Once you’ve selected the cloud vendors that you want to move forward with, your next step: worrying about your company’s data. This means that you’re going to have to sit down with your cloud vendors and have a very long talk about where your company’s data is going to live within their cloud. What this means is that you need to ensure that you know what country your data is in at all times. Your company may be subject to regulations that prohibit your customer data from leaving the country and your cloud vendor needs to make sure that this never happens.

What All Of This Means For You

Every company will eventually be making use of the cloud in order to get the biggest bang for their limited IT budgets. This means that CIOs need to be planning now for how they are going to make the best use of cloud-based resources.

This planning needs to include understanding exactly how the company is going to move from today’s data centers to tomorrow’s cloud. Each company is going to have to come up with a process for selecting the cloud vendors that they want to work with. What IT staff actually does during a given day will change with the arrival of clouds and CIOs are going to have to make adjustments.

We should not fear the cloud. Instead CIOs need to add cloud planning to their already overloaded schedules and make sure that before the need to move to a cloud arrives, that they’ve spent the up-front time preparing for it and know what to do.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: How many different cloud vendors do you think a company should use: 1,2, 3, or more?

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What We’ll Be Talking About Next Time

You would think that since all of these computers, networks, and software things have been around for so long that most companies would be just about even in how they make use of them, right? A recent study reveals that this is not the case: some of us are using IT to move the company forward and some of us are slipping behind because of IT. Want to know more?

CIOs Are Learning That Clouds Aren’t Free

Wednesday, July 27th, 2011
Image Credit It Turns Out That Both Public And Private Clouds Have A Cost

It Turns Out That Both Public And Private Clouds Have A Cost

CIOs are currently being faced with making a decision that will impact their IT departments for years to come: should they move their IT operations into the cloud and if so, should it be a public cloud or a private cloud? There are a number of technical issues that can help drive this decision; however, the one factor that too many CIOs overlook is cost…

The Difference Between Public & Private Clouds

I thought that the whole “cloud” thing was supposed to make IT simpler – why are CIOs now being faced with a decision? It turns out that all clouds are not created the same – there are two very different types of clouds.

Public clouds are what is getting all of the press right now. Cloud providers such as Amazon, IBM, Salesforce.com, etc. are offering IT shops a new way of doing business. Companies that move their applications off of their internal IT infrastructure and onto a 3ed party’s boxes will see significant cost savings. No longer will they have to worry about paying for (or supporting) hardware, software or IT staff.

It turns out that there is another way to go about using clouds: private clouds. If the company invests in building out its internal server farm then it can take advantage of all that cloud computing offers: fast application setup, the ability to scale both up an down as conditions require, and an internal pay-as-you-go way of tracking costs.

The concept of private clouds is still relatively new. However, it is catching on fast. The folks over at Gartner are forecasting that through 2012 the top 1,000 global companies will end up spending more on developing their own private clouds than they will spend on buying public cloud services.

What’s Cost Got To Do With It?

You might think that CIOs are going to have to knuckle down and so some serious technical investigations in order to determine if public or private clouds are the right solution for their company. You’d be half-right.

Certainly there is a technical side to this important decision. However, there is a much bigger question that needs to be answered first: how much is all of this going to cost?

All things being equal, it turns out that using a private cloud to serve as your IT infrastructure will provide you with about 60%-80% of the savings that your company can get if you went with using a public cloud. This should make making your decision easier, right?

As with all things in life, nothing is ever that easy. It turns out which type of cloud your company should go with may depend on how far along you are with your internal server virtualization program. A company that has already virtualized most of their servers won’t see very much of a savings by moving their IT operations into a public cloud. However, a company that has barely started to virtualize their servers could see a significant savings and would avoid the cost and effort of building their own private cloud.

In the end, it comes down to doing a careful ROI analysis for the company. CIOs need to understand that the decision to change over to using a cloud based IT infrastructure involves more than just technical decision making.

What All Of This Means For You

It’s all too easy for CIOs to get caught up in what everyone is talking about when it comes to cloud-based computing. However, it turns out that there is another decision that needs to be made regarding clouds: should I go public or should I go private? It turns out that on top of all of the technical issues that need to be considered, there is a very big financial one that may be even more important.

The choice between using a public cloud or building your own private cloud comes down to a question of costs. Companies that have already heavily invested in virtualizing their servers won’t see much of a benefit to moving into a public cloud. Likewise, companies that have not yet made the move to virtualized servers may want to bypass building their own private cloud and instead use public cloud resources.

CIOs are responsible for making the best decisions for their IT departments. What makes the job of being a CIO so challenging is clearly shown in the current era of moving to cloud computing. Technical IT knowledge is required in order to decide what type of cloud a company should choose to use, but business savvy is also required. Now that you know what to look for, go out there and choose the right cloud for your company.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: Do you think a company should complete a server virtualization project or just start to use a public cloud instead?

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What We’ll Be Talking About Next Time

Companies are all asking themselves one question: what’s it going to take to be successful? It turns out that a lot of the techniques that worked in the past won’t work anymore – lowering prices, etc. Going forward, the only thing that a modern company can complete on is their business processes. It turns out that the CIO plays a very big role in making a company’s processes the best that they can be…

Let’s Go Shopping: What A CIO Needs From Cloud Computing

Wednesday, March 9th, 2011
Image CreditWhat Should A CIO Look For In A Cloud?

What Should A CIO Look For In A Cloud?

Ok, admit it – cloud computing is here to stay. If you haven’t already signed up for a cloud then you will be doing so shortly. However, before you start writing the check, you really should know what you are buying. Everyone likes to talk about how good / bad cloud computing is; however, before now nobody has ever taken the time to talk about what you should be looking for when you go cloud shopping…

What Makes A Cloud A Cloud

At a high level, I suspect that we all understand what cloud computing is: somebody else maintains a collection of generic servers that you can pay to use as needed. Sure sounds simple enough – it’s just basically IT outsourcing taken to its logical extreme. However, there’s more to it than just that.

Dave Durkee has taken a look at cloud computing and he has identified what he calls the seven essential characteristics that make up cloud computing:

  • Access on-demand: one of the key features of cloud computing is that it provides a company with more and more computing power as their needs increase.
  • Grow / Shrink: unlike the days in which a company would purchase a server, install it, and then live with it forever, cloud computing allows companies to both add and shed computing power on an as-needed basis. .
  • Pay-As-You-Grow: cloud computing allows a company to match its IT expenses more closely to its actual needs. Just like a gas, water, or electric utility, cloud computing is a subscription service that you get charged for based on how much you’ve used. .
  • Lots Of Connections: although not discussed as much as it should, running your applications in the cloud assumes that you have reliable high-speed access to other servers and storage in the same cloud that you are using as well as high-speed access to the Internet. .
  • Economies Of Scale: since a cloud provider is not only servicing your company, but also other companies at the same time, they should be able to buy in bulk and therefore keep costs lower than you would be able to do on your own. .
  • Don’t Ask, Don’t Tell: when you use the cloud, you really don’t know where your data or applications physically are. Despite not knowing this, the cloud provider can be expected to provide you with some level of service level agreement. .
  • Dating, Not Marriage: just because you pick a particular cloud provider, doesn’t mean that you have to stick with them forever. Instead, you should imagine a future where you move from cloud to cloud based on business needs. .

Service Models & Things That Impact Price

The next thing that a CIO needs to understand when they go cloud shopping is just exactly what type of service model they are interested in. All clouds are not created equal.

Currently there are three different flavors of clouds for CIOs to choose from:

  1. IaaS: Infrastructure as a Service – this is a bare-bones cloud offering. You get an OS on a server with some storage and connectivity. That’s it – you need to provide everything else. .
  2. PaaS: Platform as a Service – this is one step up from IaaS. Instead of a raw server, this time out you’re purchasing a complete development environment. This means that you’ll get the server, OS, and some set of applications such as LAMP [Linux (operating system), Apache HTTP Server, MySQL (database software) and Perl/PHP/Python] .
  3. SaaS: Software as a Service – this is the most sophisticated cloud offering currently available. Instead of worrying about servers or development stacks, you purchase access to an application that runs within the cloud. Salesforce.com is a great example of SaaS. .

What All Of This Means For You

CIOs know that moving into a cloud is no longer an “if”, but rather a “when”. This means that they need to spend some time to learn what they need to look for when they go cloud shopping.

CIOs need to ensure that clouds that they are considering have a set of basic characteristics. These include on-demand access, elasticity, pay-per-use, connectivity, etc. CIOs will need to decide which of the three basic cloud service models will best meet the needs of their IT department.

All clouds are not created the same. Every CIO will eventually find himself / herself shopping for a cloud. Using the guidelines that we’ve discussed, CIOs can compare and contrast clouds so that they can end up selecting the cloud that works best for their company…

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: Do you think that a CIO should select two separate clouds to use at the same time?

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What We’ll Be Talking About Next Time

No matter if you are already a CIO or simply hope to become one someday, you are going to want to become a success. Just because you are the CIO, does not guarantee that you’ll be a success – it seems to take something else, something extra. It turns out that social signals are what determines how successful a CIO will be. Do you know what signals you are sending out?

Everything A CIO Needs To Know About Desktop Virtualization

Wednesday, December 8th, 2010
Image Credit Can CIOs Virtualize Desktops That Look Like This?

Can CIOs Virtualize Desktops That Look Like This?

Darn that 80/20 rule. CIOs realize that they are spending way too much money just keeping the IT systems that they’ve already deployed up and running. If only this task didn’t cost so much: then they could spend that money on bold new initiatives that would benefit the entire company. One of the most expensive parts of any company’s IT infrastructure is all of those desktop systems that every employee is using. Hmm, maybe there’s something that we can do about those…

Welcome To The World Of Desktop Virtualization

Sure, by now every CIO is familiar with the idea of virtualizing servers. That’s where you use some fancy software to allow multiple “instances” of software to run on a single CPU. Within each of these instances you can run one or more applications and each application will believe that its running on its own dedicated server. In the end, this allows you to better utilize your underlying physical servers.

When it comes to virtualizing the desktops that are used within your company, pretty much the same concepts come into play. Matthew Sarrel has been looking into desktop virtualization and he has discovered that although there are a lot of advantages to doing it, there are also some downsides.

Can We Talk About Cost Savings?

When you virtualize a user’s desk top, what you are really doing is allowing their desktop operating system and their enterprise applications to run on a virtual machine that is located somewhere in the company’s data center. What this means for the user is that they can get away with using a so-called “thin client” – it no longer matters what type of computer they are physically using (PC / Apple / Linux) since the heavy lifting is being done in the data center.

By implementing such a system, the CIO is able to separate the software that your users are using from the hardware that they are running it on. This can greatly reduce your IT costs.

It is currently estimated that on average a single user’s desktop costs the company between $3,000 to $6,000 to manage and maintain each year. Hold on a moment: if you’re starting to picture $6,000 / user showing up in your budget if you virtualize everyone’s desktop, you’re wrong. Half of this cost comes out of the IT budget but the other half comes from the lost user productivity that physical desktop system maintenance causes.

Implementing virutalized desktops will reduce the costs of management updates and other IT tasks. The best guess right now is that moving to virtual desktops can reduce your total cost of ownership (TCO) for your desktops by 15% – 35%.

The Downside To Desktop Virtualization

As with all things in IT, there are no silver bullets. The same is true when it comes to desktop virtualization – it does have its drawbacks.

The first challenge is that by virtualizing desktops you can slow down the end user’s experience. Since the applications that they are running are no longer local on their computer, all of the data transfer delays and remote storage loading issues can combine to significantly slow down how they interact with their applications.

In order to prevent (or at least minimize) the amount of delay that you end up introducing into everyone’s life, you are going to have to spend some big bucks to upgrade your enterprise networks. This will include boosting storage to support all of those desktop operating system / application images, upgrading the link between your storage area network (SAN) and the servers that use the data, as well as potentially upgrading the data pipe that comes into your data center.

What All Of This Means For You

Desktop virtualization is the next great frontier that CIOs will have to cross. The advantages are great: cost savings and less effort. However, there is a downside to using this technology.

Switching to virtual desktops poses the risk of introducing delay in how each user interacts with their applications. In order to minimize this, CIOs are going to have to spend to upgrade the corporate IT infrastructure.

Desktop virtualization is something that every CIO needs to keep an eye on. The time may not be right now to move in this direction right now, but the time is coming and you’ll want to be ready to make the leap when the time is right.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: Do you think that slowing down user’s desktops would be worth the cost savings of desktop virtualization?

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What We’ll Be Talking About Next Time

The Dark Side Of Cloud Computing

Wednesday, November 10th, 2010
Image Credit There Are Two Sides To Every Cloud…

There Are Two Sides To Every Cloud…

If IT was a game show and you were a contestant on it, right now it sure seems as though you could correctly any question that you were asked by replying “cloud computing”. That’s because cloud computing, basically outsourcing parts of your company’s IT infrastructure and applications, sure seems like a great idea. However, early reports back from the front lines by other CIOs are starting to paint a different picture…

…And Why Are We Talking About Clouds?

The reason that we’re talking about cloud computing is because it’s ushered in an era of “software as a service”, or SaaS if you want to be cool. The reason that CIOs like to talk about SaaS based applications that run in the cloud is because they offer an opportunity to save the company a lot of money.

A single user’s subscription to a SaaS application generally costs a CIO about $10 – $50 per month. The beauty of this approach is that that cost includes maintenance, support, and even the hardware that the application runs on. Oh, and all of a sudden your users can log into the application from anywhere – they don’t have to be in the office to do work.

Just How Big Of A Deal Is This?

SaaS (and Cloud Computing) is growing like a weed right now. The folks over at Gartner are telling us that in the business software market, SaaS offerings make up about 9% of what’s out there right now and it’s expected to hit 16% by 2013 because it’s growing at about 20% per year.

This is where CIOs are starting to see problems pop up. Since the whole SaaS market is growing so fast, even the people who work in it are finding themselves unable to keep up. This means that CIOs are starting to run into sales people who really don’t know what their company’s product can and cannot do. This is where problems with SaaS offerings start…

What’s Wrong With SaaS?

Unlike the glowing brochures that you’ll get from SaaS providers and the industry rag articles that are falling over themselves saying that Cloud Computing is the “next big thing”, CIOs who are on the front lines are reporting that SaaS is not a silver bullet and has its own set of problems.

In fact, some companies that went down the SaaS route are now pulling back. Gartner reports that the top reasons that CIOs have been deciding to discontinue their SaaS deployments are:

  • Difficulty in integration with existing applications
  • High cost of services
  • Lack of agility provided to the business
  • Level of investment required
  • Lack of robustness
  • Poor track record of provider
  • Poor client references
  • Inadequate security, privacy, or confidentiality
  • Didn’t meet technical requirements

Bottom Line Issues

In the end, it all comes down to money. One of the biggest attractions of SaaS is that it offers hard-pressed CIOs a way to stretch their IT budgets farther. However, CIOs that have implemented SaaS solutions are reporting that the benefits may not be so clear after all.

In the initial years, yes – the IT department will save on having to make the big CapEx spends that they would normally have to make in order to create the infrastructure to support another enterprise application. However, what seems to be missing is the ultimate reduction in headcount and infrastructure costs over time.

What All Of This Means For You

The world of IT keeps changing all the time and as CIO you’re going to have to move fast in order to keep up. SaaS offers many benefits; however, there the drawbacks are also starting to show up.

CIOs on the frontlines of SaaS deployments are reporting that they are running into issues with integrating the SaaS applications with their existing enterprise applications. Additionally, many of the economic benefits appear to be only in the first few years with the long term benefits not being nearly as clear.

Right now Cloud Computing and SaaS are hot topics that every CIO should be looking into. However, look before you leap as the saying goes…

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: Do you think that IT headcount reductions should be a benefit of a SaaS deployment?

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What We’ll Be Talking About Next Time

When you become CIO, one of your main jobs will be to lead the IT department though changes. However, here is where you may run into a problem. Considering how many layoffs, cut backs, and canceled projects most IT departments have had, the last thing that your IT staff really wants is more change. What’s a CIO to do?