Posts Tagged ‘servers’

3 Questions That Every CIO Should Be Asking About Clouds

Wednesday, January 18th, 2012
Image Credit Get over your excitement about clouds and start asking questions

Get over your excitement about clouds and start asking questions

I love clouds, you love clouds, we all love clouds. It seems like everyone in IT is talking about cloud computing and how it’s the next big thing. Cloud computing has almost become a part of the definition of information technology. Look, I think that there’s a lot of good things about cloud computing, but I’m not convinced that it’s the right solution for everyone. This brings up the question of how a CIO can find out if cloud computing is right for his or her IT department. It turns out that there are three questions that just might provide the answer that you are looking for.

How Much Will This Save Me?

A lot of the excitement about cloud computing comes from the simple fact that most CIOs view the cloud as a way to reduce the cost of running an IT department. However, before visions of cash savings start dancing in your head, you need to answer some questions first.

Roger Cheng over at the Wall Street Journal has taken a look at where the expenses in running an IT department come from. What he’s discovered is that servers run about $2000 – $6,000. This capital expense can be avoided if instead of buying more servers a CIO simply subscribes to more cloud computing resources when it’s time to expand the company’s IT infrastructure.

In addition to saving on buying more servers, there are potentially other savings that a CIO can realize by moving to the cloud. Buying more servers would require more IT staff to act as systems administrators – no servers means no hiring of additional administrators.

Are Cloud Services Reliable Enough?

It seems as though every other month or so there is another story in the paper about some cloud provider having an outage. One time it’s Amazon, the next it’s Google. Given the importance of information technology, as a CIO you need to be asking yourself if this cloud computing stuff is really reliable enough for you to be trusting your company’s IT infrastructure to.

It turns out that the analysts have taken a look at the overall reliability of the clouds that are being provided and they are as, if not more, reliable than most company’s IT infrastructure. One reason for this is that providing a cloud is all that the providers do and so they hire and staff in order to ensure the reliability of their product.

What Don’t I Know About Clouds?

The wise CIO knows to ask “what don’t I know enough to ask about?” One key issue has to do with your company’s most precious asset – its corporate data. When you move this data to a cloud, you are asking another company to take care of it. Are you comfortable doing this?

Is your company really going to save money by moving to the cloud? Not every company will – it all depends on how your IT department is set up now and what it’s going to look like in the future. You have other options for saving money – virtualizing the servers that you have today is one way to accomplish this.

What All Of This Means For You

Cloud computing is all the rage these days in the IT sector. CIOs are getting more and more pressure to introduce cloud computing into their IT departments. Before they take this step, they need to get some questions answered.

The promise of cloud computing is that it will save the IT department money. Do you know where these savings will come from? How does the reliability of the cloud compare to your IT department’s current level of reliability? Finally, what other options besides cloud computing do you have for boosting your IT department’s performance?

Cloud computing appears to be here to stay. However, that doesn’t mean that every CIO should race out and jump into the cloud today. Take your time and get the answers to the important questions and your next step will become clear to you.

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

Question For You: Do you think that the company’s finance department should be involved in determining if the savings of moving into the cloud would be worth the effort?

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What We’ll Be Talking About Next Time

Cloud Computing 101: Just Exactly What Is A Cloud?

Wednesday, January 4th, 2012
Image Credit CIOs need to understand just exactly what a cloud is

CIOs need to understand just exactly what a cloud is

So there I was the other day talking with one of my CIO customers and I was going on and on about how they could introduce cloud computing into their IT department. I had been working with this client for several years and we know each other very well so he felt comfortable in stopping me in mid-sentence.

He said “Jim, I’ve been hearing a lot about this cloud computing stuff and I sorta know what is it, but I’m not sure that I fully understand it. ” Oops, I hadn’t realized that there were still folks out there that hadn’t “drunk the cloud Kool-Aid”. Ok, so now we’re going to take care of this.

Say Hello To Cloud Services

So why are CIOs (and everyone else) struggling to get their hands around just exactly what cloud computing is? I believe that the cause of the confusion is simply that there are a bunch of different things that have been lumped together and are now being called “cloud computing”.

Let’s start with the most basic form: subscription services. In the old days, when an IT department purchased some software disks would arrive in the mail, get installed on servers, and you’d be up and running. That’s not the way that it works when you are using the cloud.

When you are using cloud computing, instead of having to physically touch hardware and software in order use an application, now all you have to do is to subscribe to it and you can access it over the Internet. No disks, no servers. Great examples of these types of subscription services include Google’s Gmail email service and Salesforce.com’s CRM application.

This is where things can start to get confusing. There’s more to cloud computing than just subscribing to someone else’s application. The company applications that are currently running on servers located in your data center can be moved “into the cloud”. What this means is that you can use servers and storage systems that are remotely located in a cloud provider’s data center to run your company’s applications. You would access your applications and data via your Internet connection.

How Much Is All Of This Going To Cost Me?

The fact that cloud computing is even an option is pretty cool. However, just being a shiny new technology is not enough – there has to be a solid business reason for moving your IT operations into the cloud.

Let’s take a look at costs. First, if you choose to not take advantage of cloud computing then you are still going to have IT costs — these costs come along with the very definition of information technology. In order to stand up new IT applications (and expand what you already have in order to meet growing user demand) you are going to have to buy and install more servers. As long as you are getting more servers, you’ll also have to get more storage. All of these new boxes will need to be maintained and so you’ll need to hire more staff to administer them.

In order to avoid these upfront IT costs, CIOs can make use of the cloud. If you are going to make use of cloud computing’s application subscription services, you need to be ready to pay per user, per month. Salesforce.com charges between $5-$25 per user per month. Google’s office suite of applications costs $50/user per year.

If you choose to run your existing IT applications in the cloud, then you’ll end up paying for how much computing horsepower and storage you use. One cloud computing firm charges six cents per processor per hour of usage.

Oh, and one more item. The way that you’ll connect to your applications in the cloud will be via your Internet connection. Given the importance of information technology, this connection that used to be important will have just become vital. This means that you’ll need to get a larger bandwidth connection and you’ll probably need to invest in a redundant connection in case your primary connection goes down.

What All Of This Means For You

Cloud computing seems to have shown up almost overnight. CIOs might have initially thought that it was another one of the seemingly countless IT fads that have come along in the past few years and shrugged it off. However, for some compelling financial reasons, it’s starting to look like it’s taken hold in the IT sector and is here to stay.

Some of the reasons that cloud computing has caused so much confusion among CIOs is because it is so many different things. In its simplest form, cloud computing is a subscription service where software is delivered over the web. One step beyond this is using remotely located computing power (servers and storage) to execute company IT applications which are then accessed via the web.

All of this functionality comes at a cost, of course. CIOs can avoid the upfront costs of having to purchase IT hardware in order to launch a new application by using the same resources located in a cloud. However, they need to do some investigations in order to make sure that they’ll be comfortable with having their data and applications being stored someplace else.

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

Question For You: Do you think that CIOs should insist that their applications and data be stored in their own country?

Click here to get automatic updates when The Accidental Successful CIO Blog is updated.

P.S.: Free subscriptions to The Accidental Successful CIO Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

It seems as though at least once a year CIOs get a bee in their bonnet and decide that the company’s IT department needs to knuckle down and improve its processes. This means that it’s time to implement one of those far-reaching process improvement programs. Oh, oh. No matter if it’s Six Sigma or some other flavor-of-the-week program, they all seem to end up the same way – having no lasting impact. Let’s take a look and see why this happens…

Video: CIO Cloud Computing 101: Why Use The Cloud?

Sunday, August 28th, 2011

Dr. Jim Anderson tackles the question that all CIO’s are asking: just exactly what is “cloud computing”?

Dr. Anderson identifies the 4 different flavors of cloud computing that are available and points out how a CIO would go about using each one of them.

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CIO Cloud Computing 101: Why Use The Cloud?

Wednesday, July 29th, 2009

By Dr. Jim Anderson

CIOs Need To Make Sure That Cloud Computing Is Not Just A Fad

CIOs Need To Make Sure That Cloud Computing Is Not Just A Fad

Does anyone besides me remember the big Furby craze that swept the U.S. in the early ’90′s? People went crazy for these little plush dolls and they started collecting them in hopes that they would one day be valuable. Well, that never happened and a lot of people got stuck with expensive toys that they couldn’t get rid of. Is is  possible that the current cloud computing craze in IT could be another Furby fad that will fade away?

What Kind Of Services Come In A Cloud?

If a CIO can move beyond the hype, he/she needs to spend some time doing their homework in order to find out what kind of services a cloud could offer that their company could make use of. Neal Leavitt has spent some time studying cloud computing and has boiled cloud services down into four types of services:

  • Basic Services: this is not glamorous, but it may be the most popular type of service that a cloud environment can offer to your business. Basically simple Internet based services such as database functionality and capacity, middleware, and additional storage are used to supplement what your company already has.
  • IaaS: Buzz word alert – “Infrastructure As A Service”. This is when you are renting a complete computer (CPU, storage, bandwidth, etc.) that you access via the Internet. You would use this infrastructure to run your company’s applications on lock-stock-and-barrel.
  • PaaS: Platform-as-a-service – provides your firm with a development environment that your IT staff can use to create new applications for the rest of the company (and your customers) to use. This is computer plus development tools.
  • SaaS: Software-as-a-service – this is where you don’t care about what the software is running on, you just want to purchase access to the application. The most famous example of this is Salesforce.com’s CRM application.

Why Bother With A Cloud?

The Forrester research company has done some investigating and they now claim that most company’s data centers are using less than 50% of their total capacity. Despite the hype that is currently surrounding cloud computing, Leavitt has uncovered three very good reasons for looking into having your firm start to use cloud computing:

  1. Availability: interestingly enough, despite many firm’s misgivings about losing control over their IT equipment, there is a lot to be said to having a professional firm that has the deep pockets needed for redundant systems and tested disaster recovery plans run your IT infrastructure. If you work at a small or even a medium sized firm, this may be especially valuable to you.
  2. Integration Of Applications: sorry, we can’t do anything about those old apps that you are running. However, the new ones that are developed to run in the cloud will almost automatically be easy to integrate because they will use the suite of Web interface languages/tools  (SOAP, XML, etc.) that make this easy to do.
  3. Flexibility: unlike the majority of cell phone vendors in the U.S., currently most cloud computing service providers don’t require users to sign long term contracts that lock them in. This makes it easy to quickly get more cloud resources when your firm needs them.

Final Thoughts

It is all too easy for CIOs who are adverse to change to look at the current excitement over cloud computing and decide that it is yet another fad that will fade away in time. The reality is that cloud computing provides several different types of services that are useful to any IT department. This can’t be ignored.

Additionally, successfully adding cloud computing resources to the company’s existing IT infrastructure will mean that a CIOs will have found a way to apply IT to enable the rest of the company to grow quicker, move faster, and do more.

Questions For You

How much of your existing IT infrastructure do you think that your firm is currently using – more or less than 50%? Which of the four types of cloud computing services would have the most immediate value to your company? Why? Leave me a comment and let me know what you are thinking.

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What We’ll Be Talking About Next Time

Cloud computing is all the rage these days and everyone who is anyone is making plans to implement at least some flavor of it as soon as possible. It turns out that the decision to go with a cloud computing solution for your IT department might not be as simple as some would lead you to believe. There are challenges to successfully using a cloud and we need to talk about them…

CIO Cloud Computing 101: Who Are The Players?

Monday, July 27th, 2009
CIOs Need To Understand Cloud Computing

CIOs Need To Understand Cloud Computing

One of the great things about working in the IT field is that whenever things start to get boring, we have the ability to create new buzzwords and make things interesting all over again. The arrival of “Cloud Computing” on the scene a couple of years ago showed that this cycle has not gone away. Maybe it would be worthwhile to take a step back and make sure that we’re all on the same page here – what is cloud computing and why should anyone care?

The Many Flavors Of Cloud Computing

Neal Leavitt has spent some time studying cloud computing and has some thoughts for us.  A quick definition of just what cloud computing is might be a good place for us to start. In olden days (3 years ago), if you wanted to run an application you pretty much had to go out, buy a server, plug it in, load up the software, connect it to a network and then you were in business. Cloud computing changes all of that.

Now all you have to do is set up an account with a company who has already done all of the above steps. You can then load  your application onto their server(s) using the Internet to reach these servers and ta-da you are in business.

There are three main “flavors” of cloud computing that users are employing currently:

  • Thin Clients: allows you to minimize the processing power / storage needed by the end user’s computer and do the “heavy lifting” on servers and storage that are stored elsewhere.
  • Grid Computing: allows computers that may be located in completely different locations to be connected together in order to form a single virtual computing system. An example of this would be specialized image processing computers that were linked to a massive image storage system for processing.
  • Utility Computing: this is cloud computing in its purest form – CPUs for hire. You pay for what you use and you can use as much as you need. This is a great solution for firms that have seasonal spikes in the amount of data that they have to process.

Who Are The Cloud Computing Service Players?

The list of cloud computing service providers is long and seems to be getting longer every day. Here’s a partial list with a number of names that you’ll probably recognize…

Final Thoughts

Ok, so clearly this is not the final thought on Cloud Computing. I’ve got a lot more to cover with you, but this is a good place to quit for now. Cloud Computing was treated as a bit of a novelty when it first showed up. I mean, who would trust unreliable links to remote computers to run critical corporate apps?

Times have changed and the economics of Cloud Computing have also changed to make this a more attractive option. Every CIO needs to be thinking about how his / her IT shop is using computing resources right now and what role Cloud Computing could play in the future. Addressing this issue this will mean that CIOs will have found a way to apply IT to enable the rest of the company to grow quicker, move faster, and do more.

Questions For You

Have you spent any time thinking about using Cloud Computing yet? How long until you run out of room to add more servers to your company’s infrastructure? Have you calculated the total cost of ownership for the servers that you do have? Are your applications too critical to trust to a cloud? Leave me a comment and let me know what you are thinking.

Click here to get automatic updates when The Accidental Successful CIO Blog is updated.

What We’ll Be Talking About Next Time

Does anyone besides me remember the big Furby craze that swept the U.S. in the early ’90′s? People went crazy for these little plush dolls and they started collecting them in hopes that they would one day be valuable. Well, that never happened and a lot of people got stuck with expensive toys that they couldn’t get rid of. Is is  possible that the current cloud computing craze in IT could be another Furby fad that will fade away?