|By Manish Desai||
|February 4, 2013 09:00 AM EST||
The pressure for organizations, in the public or private sector, to reduce costs is constant. At the same time, organizations have to remain or improve user productivity in all their departments to stay competitive. This is even further magnified during a recovering economy as organizations face challenges of sustaining or growing revenue from customers or even government. Management and shareholders are always on the lookout to reduce their expenses. Innovative technology is one area where companies can look into to help to lower expenses with efficiency gains.
Specifically with respect to technology, many companies are taking advantage of the cloud to help with reducing expenditures while simultaneously improving productivity.
Cloud Service Applications
These days, there is a lot of publicity around the "cloud" and how many companies, regardless of vertical or whether they're public or private, are using cloud technologies. It's important to quickly define what the cloud is before getting into more details.
At its basic level, cloud computing service refers to the delivery of software, infrastructure, or storage via the Internet in real-time and can be accessed by any device with Internet capability at any time and anywhere.
As opposed to traditionally having computing resources in house, cloud computing service provides a huge upside and workload shift from IT departments. They no longer have to spend significant money on purchasing dedicated hardware to run business applications. In addition, the time spent on configuring, maintaining, and updating is eliminated as well as taking up space. Cloud providers take care of this entire burden.
Cloud services can be up and running in significantly less time than traditional installations, and in general, they cost less. With a cloud service, you just open a browser, log in, customize the app, and start using it. For example, most of us already use some form of cloud service today such as Web-based email service from Gmail or file storage services such as Dropbox or iCloud. In addition, with the rapid growth of BYOD (Bring Your Own Device), cloud services enable users with their own personal mobile device to instantly access the application from anywhere and at any time.
At its core, there are six key characteristics of cloud services in general.
On-demand self-service - End users can provision computing capabilities, such as server time and network storage, as needed automatically without requiring the involvement of IT staff.
Broad network access - Capabilities are available over the network and accessed through standard devices including laptops and mobile devices.
Resource pooling - Computing resources are pooled to serve multiple end users with different physical and virtual resources (storage, CPUs, memory, network bandwidth, and virtual machines) that are dynamically assigned based on demand.
Elasticity - Capabilities can be rapidly provisioned, to quickly scale out and scale in.
Measured service - Resource use is automatically controlled and optimized through metering, and resource usage can be monitored, controlled, and reported to both the provider and end user of the utilized service.
Multi-Tenancy - Shared resources serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand.
Cloud networking is the next wave of cloud services and represents a fundamental shift in how IT services are provided to users.
Historically, a company's own IT department acquired, deployed, and maintained networking applications such as network management software. Such new applications often requires purchase of additional hardware such as servers needed to be deployed and run the application as well. This leads to not only more capital expenditures, but also the increased support time that must be devoted by IT personnel. IT departments are already stretched thin at a company's headquarter location. When trying to deploy and maintain networking equipment and applications in distributed sites, the costs and support time needed by IT is compounded even further.
Cloud networking introduces a new way to roll out distributed enterprise networks. It delivers enterprise-class network capabilities via an application that requires little or no capital investment in networking equipment. Unlike traditional hardware-based legacy solutions, cloud networking is extremely simple, enabling enterprises to deploy locations in minutes and operate their distributed networks via a cloud-based application, while providing unprecedented levels of centralized control and network visibility. Cloud networking is usually subscription based as well reducing any upfront capital costs.
Public cloud networking and private cloud networking are two distinct services. Public cloud networking is when a cloud provider makes networking applications available to IT users over the Internet with little to no deployment needed at the company's IT infrastructure. Public cloud networking services are also offered on a pay-per-usage model. Private cloud networking services refer to a proprietary computing networking architecture that provides hosted services to a limited number of people behind a firewall. For example, a company's internal IT department using a private cloud infrastructure essentially hosts applications within their own private network and provides them to their own IT users.
State of Cloud Services Market
Cloud services being used by companies are becoming as ubiquitous as using mobile devices. Cloud services, including those focused on cloud networking, are becoming more and more an essential part of an organization's service to its users and this is only expected to grow. Enterprises are even retiring applications that were once run on their own network for cloud-based services according to Gartner's latest findings on SaaS usage. Take a look at some of the forecast data and analyst feedback.
According to IDC's forecast on cloud IT spending, worldwide spending on public IT cloud services will be more than $40 billion in 2012 and is expected to approach $100 billion in 2016. From 2012-2016, public IT cloud services will enjoy a compound annual growth rate of 26.4%, five times that of the IT industry overall, as companies accelerate their shift to the cloud services model for IT consumption.
"The IT industry is in the midst of an important transformative period as companies invest in the technologies that will drive growth and innovation over the next two to three decades," said Frank Gens, senior vice president and chief analyst at IDC. "By the end of the decade, IDC expects at least 80% of the industry's growth, and enterprises' highest-value leverage of IT, will be driven by cloud services and the other 3rd Platform technologies."
According to Gartner's IT spending report, enterprise spending on public cloud services will grow from $91 billion worldwide in 2011 to $109 billion in 2012. And by 2016, enterprise public cloud services spending will reach $207 billion.
Ed Anderson, research director at Gartner, states ""Cloud computing is now at the point where technology has demonstrated its usefulness as an approach to the management of several IT resources".
Specifically related to SaaS, this area of cloud services will grow from $14.5 billion market in 2012 to $22.1 billion by 2015. The 2015 figure is an increase of almost $1 billion from the prediction Gartner made last year. This further demonstrates the rapid growth of cloud services use by companies worldwide.
Fears/concerns with Cloud Networking
Cloud networking is rapidly being adopted by IT groups within enterprises. However, there are always concerns by IT teams that need to be addressed.
Security - This is usually the top fear by IT managers when considering any cloud networking service. Most IT managers are concerned about controlling access of their sensitive data that would reside in the cloud and can't afford the data being compromised. Despite the macro trend of moving to the cloud, some IT managers may still be more comfortable with their data deployed on their own infrastructure. This fear can easily be alleviated by cloud networking providers clearly stating their physical security specifications of their data centers as well as other security certifications they have attained. Cloud networking providers must also assure their IT customers that only customers will have access to data & only customers can make changes to it.
Privacy - Another key concern of IT management is maintaining privacy of their networking data in the cloud. IT departments need to be assured that their data is not being monitored either internally within the cloud provider or by any outside hackers. For example, if an IT client can log in from any location to access data and applications, it's possible the IT client's privacy could be compromised. However, cloud networking providers adopt myriad ways to protect privacy such as using comprehensive authentication techniques and encryption methods.
High Availability - Ensuring high availability of data in the cloud is another fear of organizations. This is especially important for cloud networking as a company's IT department must keep their end-users happy and make certain the company's business can't be affected with any downtime. IT users are looking for some form of guarantee from providers that their networking data will be up at all times. A service level agreement (SLA) that states 99.99%, ("four nines"), for example, uptime of the cloud service is necessary to put this fear to rest. Cloud networking providers must also clearly state their resiliency details such as how they have redundancy and backup measures in place for the utmost availability of data.
Poor Application Performance - Another inhibitor of deploying cloud networking pertains to poor application performance. Companies can't afford to have their IT users becoming less productive while a page load times exceed several seconds, for instance when they need to use a cloud networking application. Cloud networking providers have to continuously monitor usage to make sure any application being accessed by their IT users is being delivered in no more than a few seconds.
Compliance - Many IT departments have to face regulatory compliance measures in order for their companies to stay in business. Some of these compliance measures could be HIPAA (Health Insurance Portability and Accountability Act), PCI DSS (Payment Card Industry Data Security Standard), or Sarbanes-Oxley. Companies that to have comply with such measures fear moving to the cloud. Cloud networking providers must be transparent in sharing details such as encryption methods being used, provide the capability of generating audit reports, or state the locations of their data centers.
Business Continuity - IT users also have concerns about recovering their data from the cloud quickly in case of a man-made or a natural disaster. If they use cloud networking, IT needs to know how often backups happen (i.e., hourly or daily), where they happen, and how long data is archived if at all from cloud networking providers. This fear can actually be mitigated as using cloud networking would actually be an efficient means of backing up networking data. Instead of purchasing additional expensive networking gear in house for backing up & storing data, a cloud networking provider for this capability would be more cost-effective.
Localization - Finally, IT departments may have concerns about using a cloud networking provider that may only reside in one region like the United States. Often, if IT users reside in EMEA and/or APAC, they would like cloud networking services to reside in their local region. The rationale of having cloud networking localized could be due to local government rules or even comfort reasons of having a localized service. Most cloud networking providers understand this concern and have localized data centers in the major regions of North America, EMEA, and APAC.
Over ten years ago, there were fears about using online banking and how secure it was to use. People were concerned about paying bills online, moving funds between accounts, and even simply checking their statements online. But they realized that bank companies have it in their best interest to ensure their customers would feel safe using their online services. Now, according to comScore, 1 in 4 Internet users access online banking sites globally. That represents over 423 million people. Banks put in place strict security measures, ensure high availability of their service, and make sure their customers' account information is always backed up in case of any disruptions. Today, cloud networking providers are following similar procedures to help their IT users stay comfortable with their service offerings.
Benefits Realized with Cloud Networking
While there are fears of using cloud networking, the fact is that networking applications are moving to the cloud. This is not just a fad and the momentum is gaining. Companies realize that there are many benefits of deploying cloud networking.
Lower Costs - According to the 2012 Cloud Networking Report by Dr. Jim Metzler, lower costs were identified as the primary driver for IT's interest in using SaaS-based services. The reasons are obvious. With cloud networking, companies would have lower capital expenditures as opposed to purchasing all their own equipment and software. In addition, there is no worry about purchasing upgrades on hardware or software; the cloud networking provider takes care of this. Cloud networking is based on a pay-per-use model and payments will usually be monthly or yearly. Cloud networking is also considered a green solution since no rack space is used and hence it results in lower utility costs.
Fast Deployment - Another major benefit of cloud networking is faster deployment instead of purchasing and installing your own networking equipment. Many cloud networking applications such as network management can be turned on within a few days, hours, or even minutes depending on the provider. Using cloud networking lets IT users quickly utilize new applications without spending time installing and configuring networking equipment.
Productivity - By using cloud networking, the in-house IT staff can be offloaded to focus on other tasks. IT doesn't have to worry about configuration or any maintenance updates associated with cloud networking service; this is fully taken care of by the cloud provider. IT's productivity will go up while any of their administration costs will go down.
Mobility - Since cloud networking applications are typically Web-based, IT users can access their networking related data at any time and from anywhere using any device with Internet capability. IT users don't have to be tied to their desks. Along with the continuous growth of BYOD, IT users can take advantage of their personal mobile devices to access cloud networking applications and increase their productivity while they're on the road, roaming the office, or at home.
Instant Scalability - The ability to quickly add capacity is a huge benefit with cloud networking. Instead of IT procuring more networking hardware and/or software in house for their additional end-users and waiting weeks or months to be up and running, cloud networking providers can quickly enable their IT customers to add more of their end-users instantly, sometimes within minutes.
Minimal Downtime - Updates related to cloud networking applications as well as any networking infrastructure updates are handled by the cloud provider. There is no need for the company's in house IT department to worry about this and they don't have to bring the internal network down for updates. This is a tremendous advantage of using cloud networking since there is no downtime that could affect business.
Great Security - Ironically, security, which is one of the greater fears of using cloud networking, is actually a big advantage offered by cloud networking vendors. Most providers have stringent security policies for their cloud networking offerings. Encryption and authentication, data loss prevention, physical security of data centers, firewall implementation, and malware protection are just a few of the security features commonly provided by cloud networking providers. Ultimately, they have it in their best interest to protect IT customers' data and ensure long-term loyalty.
As described in this article, cloud networking is definitely an emerging technology being used by IT departments worldwide. IT users are running various networking apps in the cloud, like VoIP, network management, unified communications, virtual desktops, and more. Many organizations have devoted their IT spending now and certainly in the future to take advantage of cloud networking as they realize the benefits it can bring.
IT departments see how cloud networking enables them to become more agile and save costs. Even when the economy recovers fully, cloud networking will remain an area to help IT managers reduce their capital expenses and offload their department to focus on other critical tasks. In addition, cloud networking goes hand-in-hand with the BYOD trend. As users in general continue to use their own personal mobile devices for corporate network access, IT users will also certainly use those devices to access any cloud networking applications as well.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 24, 2016 11:45 AM EDT Reads: 1,701
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 10:45 AM EDT Reads: 580
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 24, 2016 10:30 AM EDT Reads: 639
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
May. 24, 2016 09:30 AM EDT Reads: 1,664
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 24, 2016 09:15 AM EDT Reads: 773
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
May. 24, 2016 09:00 AM EDT Reads: 1,940
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
May. 24, 2016 08:30 AM EDT Reads: 2,025
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
May. 24, 2016 06:00 AM EDT Reads: 3,367
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 24, 2016 04:30 AM EDT Reads: 2,382
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 24, 2016 04:00 AM EDT Reads: 2,997
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 23, 2016 05:00 PM EDT Reads: 4,607
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 23, 2016 04:00 PM EDT Reads: 1,815
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 23, 2016 03:00 PM EDT Reads: 1,659
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
May. 23, 2016 02:00 PM EDT Reads: 2,333
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 23, 2016 01:45 PM EDT Reads: 2,056
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 23, 2016 12:45 PM EDT Reads: 1,330
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 23, 2016 12:30 PM EDT Reads: 1,790
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 23, 2016 12:30 PM EDT Reads: 2,029
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 23, 2016 08:15 AM EDT Reads: 2,381
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
May. 23, 2016 03:45 AM EDT Reads: 1,669