Tag: cloud computing

  • The Networked Business

    The Networked Business

    The first of the City Of Sydney’s Let’s Talk Business workshops looked at how business can use cloud computing services to help improve the marketing, operations and profitability.

    My presentation, Business In The Cloud covered the definition of cloud computing, the benefits for business, the risks and the case for getting on the cloud.

    The text of the presentation, shown here has been broken into four segments each addressing the individual points.

    What is the cloud?

    The opening section looked at what cloud computing is, the underlying definitions and how it works. We discussed how the underlying concepts of cloud computing are nothing new and how the concepts of shared resources across a reliable and robust network are part of the very reason for the Internet itself.

    The benefits of cloud computing

    Having defined cloud computing we look at the benefits of these services, focusing on the flexibility online software delivers and how businesses can use these tools to quickly seize opportunities in our fast changing society.

    Risky business

    Every new technology has its risks and cloud computing is no different. In our third presentation we look at some of the online traps and how to manage them.

    The business case for cloud computing

    Concluding the presentation is a summary of the business case, balancing the benefits and the risks and concluding with how businesses might use cloud services.

    Further information

    Illustrating how businesses can use online tools, we have a list of some of popular business cloud services that can help your organisation use the web to be more flexible and innovative.

    The presentation was part of the Let’s Talk Business series of workshops run by the City of Sydney and held at the Customs House. There’s three more events in the 2011 series covering the new consumer, mobile internet and business leadership.

    If you’ve been along to the Lets Talk Business events, or have some ideas on how business can use cloud services, we’d love to hear your comments.

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  • Other peoples’ platforms

    Other peoples’ platforms

    “We have successfully established an online business, but we have run into problems with Ebay (indefinite suspension – unfairly I might add)” wrote Ralph*, an old client.

    “We are pretty desperate, as this is now our sole business and we are now without an income.”

    The Privately Owned Web

    Ralph’s problem is typical of thousands of businesses that rely on one Internet service. Some months back we looked at “Nipplegate”, the story of a Sydney jeweller who had her Facebook page closed down because of her anatomically correct dolls.

    All of these services are privately owned with their own terms and conditions along with their own corporate objectives. If you choose to use their product, you have to follow their rules – just like a shopping mall management can order you off their premises because they don’t like the colour of your socks.

    The most glaring example of this is Wikileaks where Amazon, Paypal, Mastercard and Visa all threw the whistleblower site off their services for allegedly breaching their terms of services in various obscure ways.

    The Terms of Service Trap

    A business’ Terms of Service usually feature clauses wide enough to catch even the most honest and diligent business, this is by design as it gives management the excuse to throw anyone who makes their lives difficult, which is exactly what has happened with Wikileaks.

    While Ralph’s problem is nothing like the scale of Julian Assange’s, all of these stories illustrate the dangers of relying on one service for your livelihood. Should that service change the way it operates, then any business that relies on that could be broke in hours, as many businesses that rely on Google search results have found.

    Most of the Internet is not a public space, almost all of it is privately run along similar lines to that shopping mall or a walled estate.

    Ralph and Julian Assange have shown us the limitations and risks of the privately operated web. As citizens and business owners we have to understand these corporations’ objectives are not always the same as ours and make judgements on how we live with the risk of finding ourselves in breach of a Term of Service in our business or personal lives.

    We’re still in relatively early days of the net and all of us are still learning. One lesson is clear though, we can’t allow our livelihoods to be held hostage by a small number of big technology companies. Make sure you have alternatives to your online channels.

    *Ralph is not his real name

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  • Why cloud computing isn’t just about savings

    Why cloud computing isn’t just about savings

    “Billions of IT savings in the Clouds” trumpeted the Australian Financial Review last week in a front page article on cloud computing that claimed moving services online could “slash technology costs by up to 80 percent”.

    If nothing else, those lines lead any IT industry veteran to rise a wry eyebrow; a business that adopts a new platform, technology or vendor solely on the claim of massive cost savings is in for a world of pain, disappointment and heartbreak.

    There’s no doubt that cloud computing and software as a service are the IT industry’s growth areas and there are many benefits for the businesses that adopt these technologies. Reduced costs is one of the attractions, but it isn’t the only factor a businesses should consider.

    Other aspects are the flexibility of not locking yourself into specific hardware and technology platforms, reduced capital and labour commitments along with improved security, reliability and data protection.

    This last point is probably the killer reason why you shouldn’t be looking for 80 percent cost savings with any product. As we discussed a while back, to go onto the cloud you have to trust your supplier has the utmost competence and integrity. A provider who offers nothing but slashed costs will struggle to provide peace of mind.

    It’s likely in a few years time only the biggest of the biggest companies will have inhouse IT staff and servers as most business IT operations will run over the internet and through web browsers. Most businesses will think having IT staff on the payroll is as unusual as employing a full time plumber or electrician in the office.

    Although we probably won’t get to bank those savings — as we’ve found with the roll out of IT services in the last 20 years, new industries will develop that will soak up the labour and create new cost centres. While today’s services may be 80% percent cheaper, just as today’s computers and mobile phone are 80% cheaper than those of 20 years ago, we’ll be using other services and the price of those will soak up a lot of those savings.

    A bigger concern is for the cloud and software as a service industries themselves. If online services are identified as merely a cost cutting product, then these markets are going to be rapidly commoditised with a race to the bottom not dissimilar to what we’ve seen in the PC industry. Which will perversely mean security and reliability conscious businesses will keep their IT in house rather than risk it to a cheap charlie data service.

    History’s shown that selling and buying cheap in technology is a mug’s game. So don’t get seduced by claims of ridiculous savings with any technology; be it cloud computing, telecoms services or any other line item. All too often that cheap price or massive saving hides some nasty traps.

    Because of the compelling benefits cloud computing is the way businesses will go over the next few years but those who choose a platform simply because it appears 80% cheaper probably won’t be around to tell us about it.

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