Welcome!

Mobile IoT Authors: Yeshim Deniz, Elizabeth White, Liz McMillan, Shelly Palmer, Janakiram MSV

Blog Feed Post

Cloud for Business

Earlier this month the Times ran its regular "Cloud for Business" insert, in which I was asked to write a column on "Cloud for Digital Business" (see full text here). For reference I included below the piece on "The future of Cloud Computing" that it ran in an earlier edition. An item called:

Cloud Spotting is the Shape of Things to Come.
When asked to write a column with an ambitious title like “The future of the cloud”, it is a good idea to look first at where cloud is at the moment and to realise that it is still very early days. Today, of the $2.7 trillion that global business spends annually on IT, just 4.8 per cent is spent on cloud computing.

The cloud’s penetration of the world of business is considerably less than its penetration of our daily lives. As consumers we get most of our news, information and increasingly entertainment through cloud services. In fact, the consumer industry has become the major driver of IT innovation. Many years ago, IT innovation was largely driven by defence spending, later by space exploration and then, for many years, the best place to see new innovative products in action, such as colour laptops, projectors and colour printers, was inside the offices of large enterprises.

How different things are now. The largest screens with the highest resolutions, the fastest network connections, “premium” tablets and the best connected mobiles are probably the ones you use at home. Even in large data centres, innovation is now largely driven by consumer-oriented organisations, such as Facebook, with its open computer server design initiative or Google with its MapReduce approach to making sense of very large sets of information. Many enterprises are still getting used to the idea that they are no longer in the driving seat. Where in the past they typically expected vendors to come running to deliver exactly what they asked for, they now need to figure out how standard offerings based on consumer-facing innovations can be used inside their business.

The cloud is not the only consumer-driven innovation businesses need to make sense of. It is joined by a nexus of new digital forces, including the social, mobile and information, or big data, forces. These offer truly new capabilities when combined. For example, businesses can now connect more directly with their customers using social and mobile technology. This provides huge amounts of customer information that can be analysed to enable businesses to communicate in a more relevant and useful way – a change facilitated by the use of software and IT infrastructure in the cloud.

Another element shaping the future of the cloud is the increasing importance of sharing content and knowledge across organisations. The value of using cloud services, such as Google Maps and LinkedIn, comes from sharing more information (on roads, traffic, people, skills) than individual companies could ever hope to collect or keep up to date in their own internal systems. For many years businesses sought efficiencies and gained competitive advantage by integrating and co-ordinating their internal processes better. Now we see increasingly that, driven by big data, future efficiencies lie in optimising processes across multiple organisations. This leads to “social collaboration networks” between businesses, similar to what a cloud application like Facebook did for individuals.

However, by saying that the cloud is especially valuable for doing things that were not possible before, or at least not practicable or affordable, we make predicting the future of the cloud a lot harder. Ironically, uncertainty about the future is also one of the main reasons for using the cloud. When a business is uncertain whether one thousand or one million customers will watch its latest webcast or play its latest game, the elasticity of the cloud makes it an ideal platform because a business can rapidly scale up its IT capacity to meet its needs at the time and then scale it back when it is no longer required.

Similarly, when organisations are uncertain whether a new software implementation will be a tremendous success (leading to all divisions in all countries using the whole platform on a daily basis) or a modest failure (leading to a few divisions using some parts of the software in a couple of countries), it is better not to invest up-front but to “pay as you go”. An example of a company using this is game provider Zynga, which uses cloud computing extensively when launching new games, but then brings established games back in-house when many of the uncertainties about usage and capacity requirements have been resolved. It is this agility, the ability to “turn on a sixpence”, not cost-savings, that is the main driver for the cloud's use by businesses today and it is likely to remain an important driver in future.

Using the cloud should not be a goal in itself: it should be a means of achieving specific benefits. As a result, business cloud strategies, today and in the future, must be driven by higher-level objectives, such as reducing lead times or improving customer experience by delivering core services through the cloud. Cloud adoption should not be driven by artificial IT metrics, such as aiming to have a certain percentage of applications running in the cloud by 2015. Selecting projects potentially suitable for the cloud is a question of weighing the benefits against the risks. If the risks of using the cloud are very high and the benefits relatively low – for instance, when migrating stable and predictable yet crucial workloads that already run efficiently internally – it may be something to avoid.

Conversely, if benefits are high and risks low, as for example in big data modelling and analytics where tens of thousands of processors run for short periods to simulate or predict customer behaviour, using the cloud may be a “no-brainer”, allowing a business to pay only for what it needs, and to avoid overheads and maintenance during times when this capability is not required.

Risk, however, is not a constant. Just as Japanese manufacturers pursuing just-in-time and Lean manufacturing concepts refused to accept that the changeover time between products on a production line was a constant and so actively worked to reduce them, consumers and cloud providers should work on reducing the risks, both real and perceived, associated with cloud computing. There are many ways to do this.

Concerns about the security of information held in the cloud can be allayed by applying technologies, such as encryption or by agreeing to more transparency about the physical location in which data is stored. It is also important to realise that confidence in the cloud will grow naturally as users and providers gain more experience. Passengers of the first airlines needed to be quite brave as there was no track record that warranted trust in pilots and their equipment.

Trust increased as the industry learned from initial disasters and actively improved service – you can also expect to see both disasters and subsequent improvements with the cloud. Not all the cloud will be as regulated as the airline business, but some cloud services could well be more regulated than they are today, for example in privacy-sensitive areas like healthcare.

The cloud changes attitudes to IT more than it changes IT itself. The concept of delivery “as a service”, so central to cloud computing, will lead to IT organisation acting as an intermediary within business where managing the consumption of external cloud services will be as important as managing the delivery of internal services – leading to a future that is facilitated by, but not determined by, the cloud.

Author: G. Petri Source: Racontuer - Times instert

Read the original blog entry...

More Stories By Gregor Petri

Gregor Petri is a regular expert or keynote speaker at industry events throughout Europe and wrote the cloud primer “Shedding Light on Cloud Computing”. He was also a columnist at ITSM Portal, contributing author to the Dutch “Over Cloud Computing” book, member of the Computable expert panel and his LeanITmanager blog is syndicated across many sites worldwide. Gregor was named by Cloud Computing Journal as one of The Top 100 Bloggers on Cloud Computing.

Follow him on Twitter @GregorPetri or read his blog at blog.gregorpetri.com

@ThingsExpo Stories
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.
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...
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...
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...
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.
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...
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.
SYS-CON Events announced today that Ryobi Systems 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. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...