I believe the most impactful technology for all industries is cloud computing – specifically hybrid computing. There has been a general trend to hosting data and infrastructure in Co-Location facilities for quite some time. This trend began out of concern of separating a business’s two most critical assets – its data and its people. Today, cloud computing, along with Software as a Service (SaaS) and Platform as a Service (PaaS) will ultimately drive business growth.
Cloud computing is a bit of a misnomer – the Internet can be considered one gigantic cloud of computers. For the purposes of businesses however, I define cloud computing in the private sense – the ability of businesses to store their IT systems and their data in a 3rd party location that is still managed by firm personnel. These systems, for the most part are still under the control of the IT departments, notwithstanding any issues that may occur in the Co-Location facility itself. There is also the public cloud where data is being stored in a 3rd party location, and the business does not own or directly manage the infrastructure. An example of a public cloud application would be Google Mail for Business, or Office 365. A hybrid cloud is a system in which a business utilizes both a private and a public cloud and shares data between the two. Software as a Service and Platform as a Service are service delivery models that allow businesses to scale up (or down) certain software or platforms on a demand basis.
The major industry issue this will solve is that it will allow businesses to grow quickly. Today, companies have to predict growth rates of their firm, and usage rates of their mission critical applications. Poor planning of these rates can lead to either underestimating the amount IT resources need to support this growth, in which case the business either has to scramble to catch up, or it leads to wasted resources if the business overestimates its growth and usage rates. By introducing SaaS/PaaS into their existing infrastructure, the firm can scale up or down, on demand, and also share their data within the hybrid cloud. This will allow for greater efficiency for the business and ultimately drive growth for the business as they will no longer have to worry about having too much or too little IT resources available to them.
It’s not all positive when it comes to cloud computing, especially with the public cloud. Once you outsource some part of your infrastructure to a 3rd party, you essentially lose control over how those services are managed. For example, you cannot control when Microsoft or Google performs maintenance on their systems. Your firm may have a major proposal due via email at a certain time, and you cannot ask to have that time changed. With that said. these companies do give plenty of warning when they are performing maintenance and do tell you which services will be unavailable during that downtime.
Of bigger concern are security breaches that may occur on these systems. Since these services are more public, they is a greater likelihood they they will suffer from a cyber attach, which may either cause downtime, or worse stolen data. There have been plenty of stories recently of data breaches and downtime due to DoS attacks. These firms do take great measures to protect their clients data, but it always seems that hackers are one step ahead of them.
Overall, I think the benefit and cost efficiency of using cloud computing systems far outweigh the cons. We will see firms shift more to cloud based systems, and I expect there to be greater innovation in this area.
Key Takeaways:
- There are two types of “clouds” – the public cloud and the private cloud.
- Cloud computing allows businesses to scale quickly.
- Cloud computing systems are more prone to security attacks and stolen data.
- The pros of cloud computing outweighs the cons.
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