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Cloud as major cost saver"Companies love the cloud as they have onlyoperating costs to pay. As more and morepeople are using multiple screens, desktops,laptops, mobile phones and TV screens toaccess their data, the cloud is inevitable.Corporate India can save lots of money byusing the cloud," says Vijay Mukhi whopromotes 'The India Cloud Initiative'.Ascentius Consulting Principal Analyst AlokShende: "We anticipate cloud computing tobe adopted in segments that currently havelow IT penetration and demand solutionswith low complexity. Small‐ to medium‐sizedbusinesses will be the prime candidates.Large enterprises may have some initialconcerns on compliance, data security andunproven reliability of cloud computing.However, there will be pockets such as backupstorage and hosted email service wherelarge enterprises will be more open toemploy the cloud."When a company needs more capacity duringits peak season, it simply pays for it ondemand. When business slows down and thecompany needs less capacity, its bill goesdown because it uses fewer resources. Infinancial terms, this allows a company tomove much of its infrastructure costs frombeing a capital expenditure to an operatingexpenditure.Research firm Saltmarch Intelligence saysdata confidentiality and ability to be auditedtopped the list of primary obstacles for theuse of cloud computing technologies in theirorganizations, according to a survey of over1,100 Indian Business Technologyprofessionals."Security incidents in the cloud have madeclear that this new promising technologycomes with complexity and security andprivacy challenges. Cyber attacks areexecuted with precision and patience andsecurity technology seems to fall behind thethreat curve," says Indu Britto, grouppublisher & senior vice‐president, SaltmarchMedia.Vendors say they have the resources to maketheir data centers more secure than anybodyever could and resilience is better becausedata is distributed and backed up ingeographically dispersed locations. Cooper ofsalesforce.com says: "That cloud computingcompromises security is a myth. We have1,800 customers who mostly comprisefinancial institutions and banks."Analysts also say that few firms have workedout "which data should go where from abusiness point of view. This failing meansmoving everything to the cloud would notprovide any real benefits as the fundamentalshave not been sorted out. It would merely"create a new set of network dependenciesbecause the data is no longer in the samedata centre".There are other hurdles too. Dearth ofsufficient bandwidth, lack of robust networks,virtualization and security issues could delayadoption of the technology. More than 30per cent of large businesses have someenterprise applications in the cloud, but twothirdsdo not have a security strategy forcloud computing, a survey conducted by IDCfound.In spite of all these hurdles the cloud is a winwinfor everyone, in this critical juncturewhere majority of the industries looking forways to cut down the cost and improveefficiency.18
Learning from Adopters of CloudComputing VendorsAccording to survey by KPMG in May, 2010the benefits of cloud computing aremeasured by the profits achieved by vendors.The multi tenancy concept of cloudcomputing the IT resources are exploitedmore efficiently which leads to low costs. As aresult the services are offered at much lowerprice compared to on premise alternatives.At every layer cloud computing providesalready installed and instantly usable servicesdue to which implementation is lesscomplicated and less time consuming.Combing with ‘pay‐as‐you‐go’ or subscriptionmodels that are common to cloud computingcustomers only pay for what they use and theIT capacity is always available.The survey result of the main concerns forusing cloud computing is shown below. Thesurvey was conducted among 125 memberswho were from various organizations ofdifferent sectors.Source: KPMG the Netherlands, 2010Some of the major problems KPMG figuredout during the survey, organizations that arebenefitted by cloud computing services willhave some major concerns in near future.The report says till now the major incidentsregarding security breaches are low. Thevendors who providing cloud computingservices have a higher adoption rates andexceptionally strong market positions but itsdependency will increase in future which canlead to major disruptions regarding securitybreaches.Integrating different systems and applicationshas been long stumbling block in IT but cloudcomputing is not about to change it as thevendors are building their own standardswhich complicates integration with othervendors.The further development of cloud computingwill remove the need of hardware, andsoftware licenses .There would be limitedconsultancy and IT management which wouldchange the IT markets profit model which ismainly based on on‐premise IT for the lasttwo decades. The cloud computing vendorsshow that profit margins are paper thin andfinancially so far it has been a dubiousbusiness model.Future scope for Cloud ComputingOnline opt‐in survey fielded by the PewResearch Centre reveals that nearly 71% ofthe respondents well versed in technologyagreed with the statement:"By 2020, most people won't do their workwith software running on a general‐purposePC. Instead, they will work in Internet‐basedapplications such as Google Docs, and inapplications run from smart phones. Aspiringapplication developers will develop forSmartphone vendors and companies thatprovide Internet‐based applications, becausemost innovative work will be done in thatdomain, instead of designing applicationsthat run on a PC operating system."Some experts believe that people intechnology driven areas will allow them tohave the cloud in their homes.Mobile cloud computing is the thing of thefuture, with mobile cloud computing19
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