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Posts Tagged ‘ cloud computing ’

Red Hat Inc., one of the best known providers of open source solutions, announced the general availability of Red Hat Enterprise Linux 6, the latest major release of the company’s flagship operating platform, setting the scene for its server operating systems for the next decade. With Red Hat Enterprise Linux 6, Red Hat, according to a company statement, defines new standards for commercial open source operating environments. Designed to support today’s flexible and varied enterprise architectures, Red Hat Enterprise Linux 6 delivers the comprehensive foundation customers need for physical, virtualized and cloud deployments.

Available for almost a decade, Red Hat Enterprise Linux has gained a reputation for performance and reliability and presents a high-value alternative to proprietary operating systems. Today, customers all over the world rely on Red Hat Enterprise Linux for their most mission-critical workloads.

Incorporating software technologies developed by Red Hat, its partners and the open source community over the past three years, Red Hat Enterprise Linux 6 offers new features that span the product. Enhancements range from kernel improvements for resource management, RAS, performance, scalability, virtualization and power saving, through a greatly extended and standards-compliant development environment, to a comprehensive range of updated server and desktop applications. It is designed to improve agility, lower costs and reduce IT complexity for customers.

Red Hat is distributed in the Philippines by MSI-ECS. For inquiries, call (632) 688-3180 / 688-3181 or e-mail marketing@msi-ecs.com.ph. For more information about Red Hat Enterprise Linux 6, visit www.redhat.com/rhel.

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November 5, 2010

Cloud computing will gain momentum as both vendor offerings and buyer expectations mature, but government buyers will firm their resolve to keep data within the control of their respective legal and regulatory jurisdictions. Domestic telcos across the region will start to position as the dominant providers of enterprise-grade cloud computing services – differentiating on the basis of keeping data within country, their operational scale and their ability to manage end-to-end quality of service.

“Asian governments will continue to invest in local cloud computing capabilities to boost the competitiveness of their ICT industries in the region while Australia stays asleep at the wheel on the need to link the government procurement and industry development agendas”, said Dr. Steve Hodgkinson, Research Director. “The Government needs to wake up to the fact that cloud computing will offshore Australian ICT jobs if we are too slow off the mark in stimulating the growth of competitive cloud facilities downunder”.

On vendor side, there is increasing investment and traction in cloud-aligned IT services and the solutions and value-add services associated with the expanding cloud adoption.

The momentum for application-based shared services (such as HR, payroll and finance apps) will slow in government, while momentum for more commodity-like ICT infrastructure-based shared services (networks, application hosting and office computing) will grow strongly – drawing on the broader momentum of the utility-like services demonstrated by cloud computing.

Other trends Ovum predicts are Government 2.0 and Enterprise 2.0 initiatives. The Citizen-facing Government 2.0 will have a brief flurry of activity but start to wane unless initiatives are integrated explicitly as part of the service delivery and ICT strategies of departments and agencies. “It is quite likely that government 2.0 will turn out to be a blip on the radar if CIOs are not in the loop because it will just create an unmanageable mess of apps, data of questionable veracity and fragmented online channels”, adds Hodgkinson.

Enterprise 2.0 initiatives – within the public sector – will gain momentum in agencies that take the change management dimensions seriously, and whither in agencies that assume that web 2.0 technologies can inspire collaboration in the absence of collaborative behaviours on the part of agency executives.

IT Services in 2011 across AP are becoming expansionary on the back of positive budget directions across the majority of industries. Much of this is being driven by the ongoing investment and expansion into data centre space and the associated supporting services and ecosystem. “This is very much aligned with the anticipated growth cloud demand, increasing energy prices and drive for more sustainable computing”, said Jens Butler, Principal Analyst. In addition, Butler believes that Enterprise Applications (especially in the operations, product lifecycle and supply chain areas) and Business Intelligence (in performance management and customer intelligence) investment will expand substantially throughout AP.

Hodgkinson also regards desktop virtualization as a key trend to watch in 2011. “The technology is maturing, we are seeing some big enterprise implementations coming to fruition, and the iPad is turning out to be a useful catalyst for executives to insist on the ability to access the corporate SOE from any device.”

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September 30, 2010

The last two years have seen a growth in the number of business organizations in the Philippines adopting cloud computing platforms for low cost, low maintenance but high efficiency formation of back-office infrastructure.

This increasing demand for cloud computing by domestic industries can be attributed largely to the recent global financial crisis, which prompted companies to find better ways to continue their business, amid subsequently slow economic growth.

Cloud computing is a technical metaphor for shared computing power from Internet-connected hardware and software. It is similar to using an electricity or water utility service wherein the supply of water or power comes from different sources, without the user having to know where these came from.

In a cloud computing platform, applications commonly used in companies are delivered via the Internet. The application itself is hosted and maintained by a third party provider, essentially freeing the end user from doing the installation, maintenance and upgrading of the application.

Cloud computing platforms only require smaller monthly maintenance fees or on the accumulated time each application is used.

The total cost savings is summed up from decreased maintenance, manpower, and computer hardware requirements, all of which are done by the third-party service provider.

Cloud computing has already made its way into many web-based services. In fact, many of these are already available on Google, one of the Internet applications companies that use cloud computing as backbone for its business. The Google App services are a premium paid version of Google’s free services, such as Gmail, Google Groups, Google Calendar, Google Docs, among others. These use cloud computing to enable paying customers, mostly businesses, to use more services without them having to install any application on their own computers.

Because Google Apps are primarily software in the cloud, these cost much less than the license-based office suite or about only 1/3 of retail desktop applications expenses. This makes Google Apps very appealing for both small and large-scale deployment and they are also easier to maintain.

In the Philippines, Google Apps is being offered by Orange&Bronze Software Labs, an authorized reseller of Google Enterprise products in the country. Through Orange&Bronze, local companies can now subscribe to Google Apps and benefit from using office applications “in the cloud.”

According to Calen Martin Legaspi, president and CEO of Orange&Bronze, many companies are now realizing the value of cloud computing in their operations.

“When it comes to ease of use and saving resources—people, time and money—companies, whether big or small would benefit a lot from cloud computing, especially from Google Apps. In the US, companies get an average savings of up to 67 percent in annual operational and capital expenditures from using Google Apps,” Legaspi said.

“There’s no need to worry about 24/7 operational costs, software and hardware upgrades, server maintenance, data storage, deployment, migration, mobility and security issues. A company will spend less in buying new computers and licenses for business application software as well as maintaining people for IT infrastructures,” he added.

Legaspi said that Google Apps is customizable to fit almost every organizational requirement. Orange&Bronze’s expertise in software development with a strong team of talented “software engineers and architects” allows for trouble-free customization of Google Apps for practically every business operation.

In addition, there is also Google Apps Marketplace which offers products and services that integrate directly with Google Apps from accounting tools to human resource management and even customer relationships management (CRM) tools.

Aside from Google Apps, Google is also offering premium services for its Google Maps. The web mapping service application is helping a lot of retail, distribution and manufacturing companies in its delivery services, through its route planner. Because of its global positioning system (GPS)-tracking capability, companies would now be able to track its distribution fleet to prevent un-planned stops, reduce mileage, and plan more fuel efficient routes.

Google Maps can also be customized to help companies track down and filter the right target market for real estate, insurance, wholesale and retail distribution.

Businesses can try to check how much they can save with cloud services via Google’s cloud calculator at: http://www.gonegoogle.com/#/company-name. To know more about cloud computing and Google’s premium services for businesses, Orange&Bronze can be reached at 894 3415 or 751 0303 or through their website at www.orangeandbronze.com.

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September 27, 2010

EMC has unveiled the RSA Solution for Cloud Security and Compliance for comprehensively managing security, risk and regulatory compliance of cloud infrastructures, helping increase customer confidence to virtualize business-critical applications.

“Security is a top concern organizations have about moving critical business applications to the cloud,” said Jon Oltsik, Principal Analyst at the Enterprise Strategy Group.  “Even with all the benefits cloud computing provides, CIOs will continue to be wary until there is a way to manage security and compliance with the same level of assurance that is available today with physical data center environments. With today’s announcement, EMC has made an important first step in addressing this fundamental concern with security in today’s growing virtualized and cloud infrastructures.”

Featuring an easy to use dashboard based on the RSA Archer eGRC platform, the solution is designed to give organizations a complete assessment of security and compliance posture across their VMware virtual infrastructure. This allows customers to centrally manage security across both virtual and physical infrastructures using RSA Archer. The dashboard integrates with a library of more than 100 VMware-specific controls such as administrative authentication, that map to the most current global regulations such as PCI-DSS and HIPAA to ensure best practices for deployment. The solution also integrates with the RSA enVision security information and event management platform to provide a more comprehensive assessment of security events from across the enterprise.

“Demonstrating compliance on virtualized platforms has been a labor-intensive and highly complex process, particularly as many of our customers require FISMA compliance,” said Chris Day, Chief Security Architect, Terremark Worldwide, a leading global provider of managed IT infrastructure services. “We’ve given input throughout the design of the RSA solution and fully support their shared vision with partners VMware and Intel. Using the RSA Solution for Cloud Security and Compliance will enhance our ability to assess the security of the virtual infrastructure and help the customers that choose Terremark for their cloud infrastructure respond to compliance audits.”

The RSA Solution for Cloud Security and Compliance helps enable organizations to rationalize a multitude of compliance requirements, control frameworks, standards and best practices into a set of centralized security policies that can be applied to virtual infrastructure. Simple dashboards are designed to make it easy to visualize security and compliance posture. Through automated assessments and simple workflows, the solution helps streamline the process of managing tasks between security teams that define policies and IT operations teams responsible for implementing those policies

Capabilities delivered as part of the RSA solution include:

·         Dashboard views based on the RSA Archer eGRC platform designed to enable fast and accurate assessment of security and compliance posture across physical and VMware virtual infrastructure.

  • Top-Down Visibility for Control and Compliance: The RSA solution includes a comprehensive, centralized library and ready reference of security controls within the RSA Archer platform. This library has been expanded to cover more than 100 VMware-specific controls that map the most current, global regulations such as PCI-DSS and HIPAA.  New software available with RSA Archer automates the measurement of several VMware configuration elements to simplify the task of measuring compliance. RSA enVision is being enhanced to add further intelligence to the RSA Archer platform by updating the compliance assessments with security-relevant events.  RSA enVision collects security events from an ecosystem of products including the RSA® Data Loss Prevention suite, VMware vShield, VMware vCloud™ Director, VMware vCenter™ Configuration Manager, EMC® Ionix®, and HyTrust® appliance to enrich the compliance reports provided by the RSA Archer platform.
  • Process Automation for Managing Remediation of Security Policies: The RSA Solution for Cloud Security and Compliance leverages automated workflow and notification processes in RSA Archer to simplify the tasks of remediating security issues.

“Our customers are excited about the opportunity to continue extending and optimizing their use of virtualization but are hesitant unless they can deliver proof of compliance against security standards such as PCI or HIPAA and VMware best practices,” said Bret Hartman, Chief Technology Officer of RSA, The Security Division of EMC. “Today RSA is delivering the first step to give customers both the capability and confidence to extend their VMware deployments to handle business-critical applications while providing a simpler and easier way to help ensure compliance for cloud infrastructures.”

The RSA Solution for Cloud Security and Compliance is the first in a series of steps to deliver on the vision of security and compliance for cloud infrastructure which EMC outlined at RSA Conference 2010 in conjunction with key partners Intel and VMware.

EMC will feature demonstrations of the RSA Solution for Cloud Security and Compliance and will also show a technology preview demonstration for how the solution will evolve in the future to leverage VMware vSphere™ and Intel® Trusted Execution Technology (Intel® TXT) to ensure hardware root of trust and isolation of regulated workloads.

RSA is contributing actively in the Cloud Security Alliance (CSA) Consensus Assessments Project for developing an open question-set, based on the CSA Cloud Controls Matrix, for security assessment of cloud services.  When this work is complete, the RSA solution will be enhanced to offer tenants a way to assess the security of cloud service provider environments and their internal datacenters using RSA Archer.

“Intel is working with VMware and EMC to enable a hardware-based root of trust for the cloud,” said Boyd Davis, Intel Vice President & General Manager, Data Center Group Marketing, “We’re excited to see RSA taking the first step in delivering products and solutions that support our shared vision.”

“Our collaboration with RSA is designed to help customers deploy cloud environments that provide comprehensive security up and down the virtual stack,” said Parag Patel, vice president, Global Strategic Alliances, VMware. “RSA’s solution ties security controls to higher order compliance objectives, including collecting and correlating security and compliance events across the cloud infrastructure and key security services delivered through VMware’s vShield™.”

The RSA Solution for Cloud Security and Compliance and the RSA SecurBook for solution deployment best practices will be available in Q4 2010.  In addition, strategic services from the RSA Security Practice of EMC Consulting can guide customers on the approach best suited to their business and operational objectives.

RSA, The Security Division of EMC, is the premier provider of security, risk and compliance management solutions for business acceleration.  RSA helps the world’s leading organizations succeed by solving their most complex and sensitive security challenges.  These challenges include managing organizational risk, safeguarding mobile access and collaboration, proving compliance, and securing virtual and cloud environments.

Combining business-critical controls in identity assurance, encryption & key management, SIEM, Data Loss Prevention and Fraud Protection with industry leading eGRC capabilities and robust consulting services, RSA brings visibility and trust to millions of user identities, the transactions that they perform and the data that is generated.

For more information, visit www.RSA.com and www.EMC.com.

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By Michael Ansaldo
August 31, 2010

SAN FRANCISCO – The bidding war for 3Par ramped up this week when HP raised its offer to $30 per share, a $3 increase over Dell’s bid, bringing the bidding to $2 billion. Dell had launched the opening salvo in mid-August when it had offered just over $1 billion to buy 3Par. As of this writing, 3Par had deemed HP’s bid “superior” and Dell was mulling over its response.

The unlikely battle of these PC behemoths over a small Fremont, CA data-storage company emphasizes the storage market’s continuing shift toward enterprise cloud computing. Thanks to the recession, more corporate clients are embracing the kind of affordable virtualized storage that companies like 3Par provide.

The fight for 3Par is undoubtedly fueled by the fact that Both Dell and HP have seen their “beige box” business falter as personal computing evolves toward handheld devices. At the same time, however, both companies have lead the growth in the server market. As that business migrates toward the promise of cloud computing, it’s not hard to see why the two companies are vying for a seat at the table.

Cloud computing offers several indisputable advantages for small businesses. It reduces upfront costs, as the initial infrastructure is paid for by the cloud storage provider – no small break for small business owners, who constantly struggle to keep costs down. As it negates the need for vast on-site data centers, it also reduces the need to employ a large in-house IT staff. And because multiple customers share resources in the cloud model, it further lowers ongoing costs.

Whichever company ultimately comes out on top in the bidding war will undoubtedly incorporate 3Par’s virtual storage solutions into its already robust storage portfolio. The acquisition will position either HP or Dell as a one-stop storage solution with greater production and cost efficiencies, which should make it pretty attractive for cash-strapped customers looking to pare down the number of physical servers and decentralize their data in the cloud.

It’s still not clear which PC giant will end up owning 3Par. Dell has three business days beginning Monday to announce whether it will counter HP’s $2 billion bid or concede. Regardless of which company triumphs, ultimately, small businesses may come out the winner.

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By Rick Broida
August 6, 2010

SAN FRANCISCO – I know a handful of people who suffer from netbook-buyer’s remorse: they bought one of the inexpensive little machines, then stuck it in a closet when they discovered how sluggishly it ran Windows.

If you’re in the same boat, you might be able to give that system a new lease on life. Jolicloud is a free, Linux-powered operating system designed specifically for netbooks. It’s fast (way faster than Windows), easy to use, and better optimized for cloud computing.

The OS offers just the basics, without the clutter. It comes with about a dozen apps already installed (Facebook, Dropbox, Gmail, Google Docs, etc.), but you can browse a library of hundreds more–all of which are free to download. I think it’s safe to say that virtually everything you can do with Windows, you can do with Jolicloud.

The OS comes in two flavors. The first installs alongside Windows, creating a dual-boot configuration. That’s great because it leaves your existing Windows installation alone, allowing you to return to it as needed (and uninstall Jolicloud as easily as uninstalling any piece of software).

You can also load Jolicloud on a CD or flash drive, then boot from either one (keeping in mind that netbooks don’t have CD drives). Unless you’re a tech-savvy user, I recommend going with the Windows installer.

Either way, Jolicloud is currently available only via Bittorrent. That might prove a hassle if you’re not already familiar with it (in which case I recommend this beginner’s guide).
I installed it on an aging Acer Aspire One. After a few confusing moments with setting up a Jolicloud account and activating the computer, I found myself navigating a speedy, stylish, mostly intuitive interface that never once left me longing for Windows. Admittedly, there’s a learning curve, but I think most users will figure out the basics fast enough.

Speaking of fast, I can’t say Jolicloud booted significantly faster than Windows on my Aspire, but overall operation was definitely zippier.

I’m not 100% decided I’ll stick with Jolicloud, only because it still seems a bit buggy, but I like what I see so far. It’s a lovely, simple operating system, one that can breathe new life into old or unloved netbooks. If you own one, this is definitely worth a look.

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June 24, 2010

Despite the growth of cloud computing in the Philippines, there is still much apprehension from even IT managers of local companies on how to implement cloud computing.

In a recent roundtable discussion on cloud security hosted by Internet security software developer Kaspersky Lab, it showed that this is largely because of the general lack of information about cloud computing as well as its security from digital thieves and hacking.

Simply put, cloud computing is using the shared resources of the Internet to run various computing tasks without having to rely on just one physical machine. The sizeable computing power pooled by interconnected computers into the Internet can be harnessed for individual IT uses, such as running web-based office applications; increasing bandwidth to speed up data transfer, providing real-time access to large databases, and even streaming multimedia services such as video and audio.

Cyber Services Group head of the Commission on Information and Communications Technology Monchito Ibrahim noted that one of the main concerns of Filipino companies regarding cloud computing is its different forms — software-as-a-service, platform-as-a-service, and infrastructure-as-a-service.

This confusion also stems from the fact that many IT infrastructures even in big companies are already outdated and also remain not fully utilized. Ibrahim pointed out that there should be more engagements to educate the local IT industry on cloud computing to let these confusions rest.

But aside from having to understand the different levels of cloud computing, Ibrahim also stressed on another question raised by many IT managers and that is security – a question brought about by incidences of hacking and other cybercrimes, many of which have gone unreported.

“I look forward to learning more about ways we can actually overcome some of the issues related to cloud computing specifically security issues. And some of these may be secure access to intrusion detection, data location. Because in cloud computing we actually don’t know where data is located. Physical security forensics, standards is a very important matter to actually look at. Regulatory compliance,  data ownership. Issues that are related to the multi-tenancy nature of cloud computing. And one of the most important issues is data privacy,” Ibrahim said.

Such concerns are not at all unfounded as there are still some inherent problems with cloud computing, according to Magnus Kalkuhl, a senior virus analyst for Kaspersky Lab’s Global Research and Analysis Team.

Kalkuhl noted that a malicious application called Ghostnet actually uses cloud computing measures to spy on concept. He also stressed that host servers of cloud computing applications can still be hacked. During the forum, Kaspersky’s virus analyst raised the simplest yet most profound issue: what if Internet access becomes slow or unreliable, what happens to applications running on cloud computing?

In a study by Canadian IT research company XMG Global, one of the main concerns of IT managers about cloud computing is security, followed only by lack of administrative support from the cloud computing providers.

XMG Global Associate Analyst Calen Legaspi said security issue is more prevalent at the side of the cloud computing service provider rather than from the end-user. Because of the nature of cloud computing, the service provider is tasked to manage the services and ensure that data from end-users are secured from data theft, hacking or corruption.

The Philippine National Police (PNP), one of the invited participants in the discussion, said it is doing data warehousing of their sensitive data, though they have been looking to implement cloud computing to speed up sharing of information among their various offices.

Police Inspector Berniel Gotoman from PNP’s Communication Electronics Service noted that the national police is apprehensive since they do not know the capabilities of securing data on a cloud computing environment. “Our concern here is if ever we will be going to cloud computing in the future, we want to assess our infrastructure if it is more secured to go on cloud computing. Because the data we are going to share with our offices are considered as delicate information,” he shared.

Amado Malacaman, vice president of the Information Systems Security Society of the Philippines (ISSSP) identified three areas of concern about implementing security of cloud computing. The first is the simple failure of the machine, which can prove problematic trying to deliver services to multiple clients over the Internet. The second is security from internal staff who may be intentionally or unwittingly giving away data from their IT infrastructure. The third is external of which hacking or data theft are included.

Nevertheless, Malacaman stressed that the main concern that must be addressed is lack of security standards from a security perspective. “This means you will have to go through training or re-training. There are also new business models to be implemented as the technology changes. Standards have to be in place to ensure proper implementation,” he said.

Kalkuhl noted that even if “the real productive cloud is still a few years ahead from now,” these should not deter Filipino companies from implementing cloud computing plans.

“Right now I would say it’s important for everyone to look at the cloud and to experiment with it, to play with it… There’s no need to hurry up,” he advised.

Kalkuhl said there are still viable measures that ensure the reliability of cloud computing, especially on security aspects. “At the end, all I can suggest is to check the benefit and the relationship of the benefit to the risks and costs. If it turns out that for certain applications the cloud is good for you, then use it. But don’t just use it for everything to be in the cloud.”

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June 23, 2010

cw-execbriefing-data-storage-photoreleaseJojo Colina, Head of Product Development and Management of premier IT company ePLDT (shown in photo), discussed new technologies for data storage during the Computer World Executive Briefing held at the AIM Conference Center. Organized by Media G8way, the event entitled “Data Storage” focused on emerging trends and technologies for storing mission-critical data. In his presentation, Colina focused on cloud computing, giving more details on its many benefits to today’s businesses. Event visitors also learned more about ePLDT services at the ePLDT booth.
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By James A. Martin
February 2, 2010

SAN FRANCISCO – Cloud computing. For some, the term is wildly nebulous. Not long ago, even Oracle’s Larry Ellison publicly asked what the heck people meant by “the cloud.”

For others, cloud computing instantly raises concerns about security and reliability. After all, Gmail, a popular cloud-based e-mail service that has endured some high-profile outages, didn’t earn the nickname “Gfail” for nothing.

Before you dismiss the cloud as a lot of vapor, though, listen to what three small-business people told us about their experiences with it:

• “We saved over $4000 in up-front costs by moving to an entirely cloud-based solution [for e-mail, Web hosting, virus protection, and more]. We were also able to substantially reduce our power bill and the costs needed to maintain and upgrade hardware.” –Bob Everett, president, Bottom-Line Consulting, a three-person firm offering various small-business services.
• “As a non-IT person, I find cloud-based applications easier to set up and use than many [computer] applications, and I don’t need to rely on internal IT support as much for assistance.” –Cristina Martin Greysman, executive vice president, business development, Vuzit, a six-employee software company.
• “A power surge nearly destroyed our in-house e-mail server. Had we not recovered it, a great deal of historical knowledge and valuable information would have been lost forever, not to mention the lost productivity for days or weeks. Now we have a secure, redundant, cloud e-mail system we can access anywhere, anytime, with a consistent interface, and it’s made our business stronger.” –Kevin Hart, partner and founder, Hart-Boillot, a ten-employee marketing and communications agency.
To be sure, cloud computing has its shortcomings (more on that later); but small businesses looking to cut computing costs and improve efficiency during this long recession are finding the many benefits of Internet-based software and services increasingly attractive. In fact, companies with 100 or fewer employees are expected to spend $2.4 billion on cloud computing services in 2010, up from $1.7 billion in 2009, according to Ray Boggs, vice president of SMB research for IDC.

Here’s what you need to know about cloud computing: what it is, pros and cons, suggested services, and tips for applying it to your business.

What Does Cloud Computing Mean?

For decades, engineers have drawn a cloud to depict a network (such as the Internet) whose inner workings were unknown to them. From there, cloud computing evolved as a term to describe free or subscription-based services delivered in real time over the Internet.

Cloud computing can refer to software as a service, such as Salesforce.com for customer relationship management (CRM); to file storage, synchronization, backup, and other utility computing, such as Dropbox; and to infrastructure as a service, including Amazon’s Elastic Compute Cloud, which delivers customizable computing capacity over the Internet.
For further discussion of what the cloud covers, see “Cloud Computing Explained.”

Examples of Cloud Computing Services for Small Business

We queried dozens of small businesses about the cloud services they use, and why they use them. Among the most popular services were these:

Google Apps ($50 per user per year) and Google Docs (free) are offerings from the Google cloud empire. Google Apps is a business-class version of Google Docs and includes souped-up Gmail, Google Calendar, and Google Docs (for word processing, spreadsheet, presentations and forms) components along with administration capabilities.
With either Google Apps or Google Docs, your data remains in one place no matter where you access it from, according to Brian Armstrong, founder of BuyersVote, a product review site that relies on Google’s premium services. Despite Gmail’s periodic outages, Armstrong says, Google’s cloud tools are “actually more secure on the whole because, although you’re trusting your data to an external provider, Google works hard to secure a ton of data; and it’s the sort of attention to detail that you probably don’t have time or money for in your local IT department.”
Box.net (free for 1GB of storage; $10 for an individual plan; $15 monthly for three or more users) is an online workspace service for file sharing and collaboration. Paul Rosenfeld, cofounder and CEO of Fanminder, a mobile marketing firm with 12 employees, calls it “incredibly easy to use and powerful”: “Having a virtual team makes it nearly impossible to coordinate workflow without their tools,” Rosenfeld says.
QuickBooks Online ($10 to $35 per month), unlike QuickBooks installed on PCs, makes collaboration easy across a small team. “It enables our bookkeeper, accountant, and outsourced CFO to all look at the same up-to-date information to advise us on our financial situation,” says Nicolas Boillot of Hart-Boillot, whose company uses the service.
Skype is popular for its free video chats as well as for the low-cost calls to landline and cell phones that it makes possible. Brand Thunder, a browser customization firm with 11 members, uses Skype for all-team meetings, says Patrick Murphy, the company’s founder and CEO. Though Skype call quality varies, the service “allows easy and open communication between team members, despite their being geographically dispersed,” he says.
Highrise for CRM and Basecamp for project management ($24 to $149 per month each, depending on the level of service you choose) both come from 37signals. A number of small businesses we contacted recommended these services for their feature sets and ease of use.

The Benefits of Cloud Computing

Cloud-based services can help small businesses dramatically reduce their software and other computing costs.

For example, Microsoft Office 2010 Home and Business will cost $199 for a downloadable version and $279 for a boxed version. By comparison, Google Docs, which offers office productivity tools via the cloud, is free. (Microsoft is currently working on Web-based versions of Office 2010 apps.)

Storing files on a secure, reliable, cloud-based service helps eliminate backup worries and gives you anytime access to your files. Usually, cloud-based services are simple to use–the only things you need are a computer (or in some cases, a mobile handset), a browser, and an Internet connection. And such services require no maintenance from the user.

Easier collaboration with colleagues in distant locations is another oft-cited cloud benefit.

“If you’re the kind of small business that has employees who work from different places–or has remote employees, board members, or vendors who need access to your data–cloud computing is the only way to go,” says Rosenfeld of Fanminder.

These benefits enable small businesses to “stay focused, be more collaborative, and bring products to market more quickly, because they’ve got access to the kind of infrastructure that only large companies used to have,” says Judith Hurwitz, president and CEO of Hurwitz & Associates and a coauthor of Cloud Computing for Dummies .

The Cloud’s Dark Side

The biggest misgiving that most businesses have about the cloud involves security, according to two recent surveys.

In a December 2009 Forrester Research survey, 51 percent of SMB participants said that security and privacy concerns were their top reasons for not using cloud services.
Similarly, respondents to an IDC survey in late 2009 said that their biggest worries about cloud computing were, in descending order, security, availability, and performance.
It’s not difficult to find instances of security breaches in cloud computing, of course. On the other hand, you can’t entirely eliminate risk from any computing environment. Intruders may hack into files stored on your business’s own servers or hard drives. Hard drives may fail. Unencrypted information stored on laptops may lead to identity theft or lawsuits when the laptops go missing.

Cloud computing security lapses are “like airplane disasters,” says Rosenfeld. “Trillions of transactions happen without any problem every day. You only hear about it when something goes wrong.” Rosenfeld adds, “I know enough both to worry about [cloud computing] security and to not give it too much thought.”

Here are some other commonly cited concerns about cloud computing:

• Privacy: How much data are cloud companies like Google collecting about you, and how might that information be used?
• Availability: Will your cloud service go down unexpectedly, leaving you without access to critical customer records, e-mail, or other information for hours or more? Gmail outages are widely reported, but Salesforce.com and other well-established services have gone dark on occasion, too.
• Data loss: Some online storage sites have shut down abruptly, sending users scrambling to recover their data, sometimes with only 24 hours’ notice. And T-Mobile Sidekick users were unhappy to discover that their personal data had been erased from their devices–especially when Microsoft said that the data loss was irrevocable. (A few days later, Microsoft announced that it had recovered most of the data.)
• Data mobility and ownership: Will you be able to share data between different cloud services? If you decide to stop using a cloud service, can you get all of your data back? What format will it be in? How can you be certain that the cloud service will destroy all of your data once you’ve severed ties with it?

• Tool robustness: Cloud-based tools frequently aren’t as powerful as software applications. Google Docs, for instance, lacks a number of features that Microsoft Office has had for years, such as the ability to track changes in a text file.

Tips for Moving Into the Cloud

Once you’ve weighed the pros and cons, you may be ready to take your first steps into cloud computing. Before you do, consider these tips from small businesses that have already made the transition.

• Start small. Cloud computing is a different way of working from what most people are used to, and building familiarity and trust takes time, says Trevor Doerksen, CEO and founder of MoboVivo, a 12-member video content portal/software company. Doerksen recommends starting small–for example, by having two or more workers collaborate on a Google Docs file. Once team members grow more comfortable with the new work environment, you can start adding more cloud services to the mix.
• Think big. Can the service you’re considering scale to meet your needs as your business grows? If not, keep looking.

• Make sure you can export your data in standard formats. You’ll want to be able to export in the formats used by Word, Excel, and other programs you use. That way, you can back up (and access) your data locally or move it easily to another service later.

• Read the agreement closely. To use the service, you’ll most likely have to accept an endless service-level agreement or other contract at the outset. Read it carefully to ensure that you know what you’re paying for, what the service provider’s privacy policy is, whether there are fees for early termination, and so on.

• Get creative. Look for ways to use free or low-cost cloud tools instead of more-expensive ones, suggests Doerksen. For example, his team uses free Google Docs spreadsheets as a basic CRM system, rather than springing for a paid CRM cloud service.

• Evaluate more than one service before deciding. Most services offer a free trial, and “you can usually figure out in 10 minutes whether the service’s user interface will drive you mad or is easy to use,” says Rosenfeld.

• Consider open-source cloud services. This arrangement encourages third-party developers to build add-ons that make a cloud-based service even more feature-rich. Plus, it allows you to create your own tools for using the service that are unique to your business.

• Don’t be afraid. It makes sense to cautiously approach any big change in how you do business, and this certainly applies to moving to the cloud. But many feel that the business world is already making the transition to cloud computing, and–given the lousy economy–now is a good time to make the transition.

“I can’t think of any company that shouldn’t try it,” says Doerksen. “If you don’t, you’re missing out on an opportunity to prepare your business for the future.”

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