Welcome!

Apache Authors: Pat Romanski, Liz McMillan, Elizabeth White, Christopher Harrold, Janakiram MSV

Related Topics: @CloudExpo

@CloudExpo: Blog Feed Post

Why Public & Private Sector Organizations Are Considering Cloud Computing

Cloud Computing gives you access to completely different levels of scale and economics

Cloud Computing gives you access to completely different levels of scale and economics in terms of the ability to scale very rapidly and to operate IT systems more cost-effectively than previously possible, as we can see by the results of the following poll:



We can say that the three main categories of benefits are:

1. delivery of service (faster time-to-value and time-to-market)
2. reduction of cost (CapEx vs. OpEx tradeoff and costs that are more competitive)
3. IT department transformation (focus on innovation vs. maintenance & implementation)

During economic downturns, the ability to speed up time-to-value and time-to-market becomes more critical than ever, and represents probably the most important benefit of the Cloud. Many companies are delaying projects unless they deliver a return on investment within weeks. With Cloud Computing, companies can speed up those times, because of the following benefits:

No upfront capital investments and less financial risk (allows companies to shift from capital to operational expenses, which also means better cash flow and a more competitive business); no more upfront huge capital investments on on-premise infrastructure (applications, servers, network, maintenance, licenses, hardware, facilities, etc.) with uncertain payoff and that may never be needed. After all, what if the benefits don't materialize? Too bad, the money's been spent! With Cloud Computing, you only pay for what you use when you need it and you can terminate the contract.

• Offers improved agility to deploy solutions (instead of taking months or weeks, now you just need days or hours) and choice between vendors (particularly when cloud interoperability becomes more of a reality than it is today)

Reduces the headaches of integrating and maintaining servers, storage & software, and eliminates mundane IT management tasks from skilled staff, leaving those tasks as the responsibility of the Cloud dedicated specialists. This allows your staff to concentrate on what they are skilled at, and to focus on things that drive the business: service innovation, in other words, rather than the drudgery of maintaining server uptime, installing yet another software upgrade, or adding yet another user account.


• Cloud computing also offers an on-ramp for your IT staff to recent computing advances such as non-relational databases, new languages, and new computing frameworks.

• Cloud Computing can lower IT barriers to innovation and increase interoperability between disjoint technologies

CLOUD COMPUTING: PAY FOR INNOVATION, NOT INFRASTRUCTURE ...

Maybe the best way to understand all these benefits is by giving an example:

Cloud Computing Benefits Example (IaaS)

Consider a researcher at a pharmaceutical company that needs to analyze a lot of data fast. If the results turn out as expected, the company could have a world-class success (and high profits) on its hands. But 25 servers are needed to crunch the huge volume of data!

• Scenario without Cloud Computing: wait until the purchase request is approved, wait until the servers arrive, wait until the servers are configured, etc. all of which can take several weeks or even several months. Let's say it takes three months. In an industry where the cost of delaying a product is estimated at $150 per second, that three months' wait would cost more than $1 billion.

• Scenario with Cloud Computing: the researcher clicks over to Amazon Web Services, configures the 25 servers in the Cloud in one hour, and within two hours has crunched the data. Total fee for the time using Amazon’s resources? Just $89.

Just a note: this isn't an imaginary example! This really happened at pharmaceutical company EliLilly, as you can see at:
http://searchsecurity.techtarget.com/magazineFeature/0,296894,sid14_gci1349671,00.html
Although this is a real-world example, there were some concerns about security and SLAs(Service Level Agreements) that Eli Lilly faced, such as: "How could they prove there was no trace of their data left in the Amazon Cloud? They had to take Amazon's word for it", and that's what we will address in the following sections.

IF ALL OF YOUR IT INFRASTRUCTURE (APPLICATIONS, DATA, SERVERS, ETC.) COULD BE MOVED 100% TO PUBLIC CLOUD MODEL, YOUR BUSINESS WOULDN'T NEED TO BUY ANY MORE HARDWARE, ANY MORE SOFTWARE, OR HIRE ANY ADDITIONAL IT STAFF.

So if Cloud Computing is all that, why isn't every business using Cloud Computing?

Well, because there are some risks – some major ones – and inherent challenges such as: the security of the enterprise data that is stored in the cloud, the risk of lock-in to cloud platform vendors, loss of control over cloud resources that are run and managed by someone else, reliability, governance, performance, human capital, compliance, integration with legacy systems. Some of these risks still don't have a industry-wide solution.

And that's what we will see in the next article: "What are the Cloud Computing Challenges and Risks?"

In the next article, I will cover the followings points:

- What are the Cloud Computing Challenges and Risks?
- Real-World Cloud Computing Applications- Cloud Computing Enterprise Implementation Road-Map

Thanks, and please let me know how can I help you.
Maria Spínola
http://www.twitter.com/MariaSpinola

P.S. Also see:
- Cloud Computing, in Plain English, to IT Directors, VP's, CIO's and CEO's
- Why Should IT Directors, VP's, CIO's and CEO's Care About Cloud Computing?
- Cloud Equals SaaS, Grid, Utility Computing, Hosting...?
- Why Large Public and Private Sector Organizations (not just SMB's) Are Seriously Considering Cloud Computing?

Read the original blog entry...

More Stories By Maria Spínola

Maria Spínola is a Researcher, White Paper Author and Copywriter, and Cloud Computing Evangelist and Advisor with more than 15 years experience in enterprise information technologies.

She holds a Software Engineering degree and a "Marketing and Innovation in Retail and Distribution" pos-graduation.

@ThingsExpo Stories
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.