I have just returned from the Cloud Expo Europe conference and exhibition last week held in London. And as you have probably guessed from the title the subject was all about the cloud computing. Some excellent presentations and cases studies about how the cloud is transforming the I.T. function of businesses. The Cloud is no longer a woolly I.T. abstraction for most businesses. The Cloud is becoming a reality. Businesses are finally feeling confident enough that cloud computing can be successfully implemented to help run their operations.
The worldwide recession seems to have been a major catalyst in the changing of attitudes. Why incur the expense of file servers, Exchange servers, email servers, switches, hubs and gateways when they can all be relegated to the Cloud? For example, one speaker gave the example how a certain UK healthcare company was spending over £30,000 a year for the running and maintenance of a file server. They are now using Dropbox and have not looked back. The recession is a catalyst for cloud computing in the same way oil prices are driving up the interest and uptake of more sustainable energy models.
One of Spain’s Largest Banks moving over to Google Docs
One recent example of this change in attitudes touted a lot during the conference was the historic decision of BBVA, one of Spain’s largest banks, to desert Microsoft Office and Exchange and move over nearly 110,000 of their employees to Google Docs and Gmail for Business. Who would have thought, even five years ago, a business in a staid and conservative (traditionally at least) sector such as banking would be using Google for the drawing up of load agreements?
Marks and Spencer UK is another company leveraging the cloud. Simon Ellis of Box-It, explained how previously M&S human resources staff would have had rows and rows of filing cabinets in each branch for filing staff records. Now, using a solution from Box-It document management they just scan the forms to a centralised private cloud and where HR records can be quickly and easily retrieved.
The Cloud and Small and Medium Sized Business
It was not just the benefits of the Cloud for large enterprise which was discussed at this year’s Cloud Expo Europe but also the advantages for small business. Small business and consumer-level I.T. have always been the trailblazers for the Cloud computing revolution. (Before I.T. innovations used to trickle down from corporate level to consumer level)
Geoff Newman, CEO of Recruitment Genius gave specific examples how cloud computing helps him run his multi-million pound turnover recruitment business.
From selecting freelancers to collaboration, Newman described how the cloud has helped him grow his business. Using sites like Elance for hiring, Basecamp for collaboration, Gmail for Email and Vimeo for Video. Newman has built a truly scalable and flexible business thanks to the Cloud. This has not been without its hiccups though. Newman advised the delegates on the importance of having a secure cloud infrastructure. For example, he mentioned an incident where he started noticing his hosting bills getting bigger and bigger each month. Then it was discovered a couple of gamers where cyber-squatting on some of their virtual servers. His I.T. team evicted the squatters and secured the servers using the PFSense firewall on Apache.
Ray Baxter, an Antrim based accountant shared his experiences on how a small to medium sized business can benefit from the Cloud. Baxter stressed the flexibility which the Cloud gives to owners and employees. Using applications like Xero, Liquid Books or Quickbooks Online an employee armed with only an iPad or laptop can create and send invoices on-the-go. “Two years ago, I would’nt of recommended to any of my clients to use cloud based accounting systems, that has changed now” he said.
Bin-men with Smartphones
Kamel Uddin from Lewisham Council in London told attendees in his presentation how they are leveraging the cloud to have cleaner streets in their borough. They are asking residents in the area who spot litter or graffiti to use the Council’s downloadable app to upload a geo-tagged picture from their smartphones to their website. Their bin-men or cleaning operatives can then use their smartphones to retrieve the information and hone in on the area in need of cleaning, saving the council time and money.
Case Study -From old-style I.T. infrastructure to the Cloud – The Experience of Honda UK
“You can either say we are going to embrace cloud computing in our infrastructure and use it to move the company forward or you can simply choose to ignore it and you will find it will probably sneak into your company anyway. But that’s out of control and in a fairly random fashion” was the opinion of Mervyn Eyles, Customer Support Manager at Honda UK, warning delegates of the perils of ignoring cloud computing or adopting it in an ad-hoc fashion.
Honda UK really woke up to importance of Cloud Computing after the launch of their new Accord model in 2009. Their advertising campaign (The Cog – an entertaining commercial still viewable on YouTube) was more successful than anticipated. This resulted in an unprecedented number of people visiting their website. “Our website got more than 1 months traffic in the first 24 hours” said Eyles. “Our existing architecture could not cope” he continued. “We sort of got away with it because everyone was so flushed with the success of the advert. We still thought we should actually do better.” Their initial response was perhaps the normal I.T. response, with plans to increase bandwidth, upgrade the servers and add more memory. But the I.T. team at Honda started to think that having the infrastructure in-house was probably not the right model to follow. Yes, they could a certain amount of it in-house provisioning but it was going to be very expensive. So instead of acquiring more I.T. hardware and more bandwidth for their broadband, Honda UK decided to look upwards to the Cloud.
As a company they had a number of boxes to tick for their I.T. system. Firstly, they wanted scalable bandwidth. With their existing broadband supplier they had to define the bandwidth each time. With a hosted provider this could be variable. They wanted a business continuity facility. Honda being a Japanese company that is used to the risks of tsunamis and earthquakes were very keen to have an infrastructure to keep going no-matter what. And ultimately, they wanted a lower cost than internal provisioning.
Honda finally went to tender and opted for a private cloud infrastructure. This gave them an active and standby configuration. An active configuration in Slough and a standby site in London. The result – “It very much worked for us” said Eyles.
This Honda case study really shows us the beauty of the Cloud. The flexibility of being able scale up or scale down your I.T. infrastructure at short notice. Moreover, it demonstrates the cost-savings and the peace of mind of having a backup of your data and I.T. system configuration stored securely in another location.
Accessing the Power of a Super Computer with your Credit Card
A number of speakers brought up the topic of Amazon’s EC2 cloud. While Amazon is still known to a lot of people as the site you go to for the latest Harry Potter books. Amazon Web Services is becoming a global heavyweight of the cloud computing world. Their EC2 Cloud has still not pervaded the pages of mainstream media in the same way Facebook or YouTube has. Yet, the EC2 cloud is like something that you might have only read about in science fiction novels twenty years ago. To explain the EC2 cloud in detail goes beyond the scope of a blog post. But imagine having access to one of the most powerful computers in the world from the comfort of your office? Imagine having the compute power which was previously only used by NASA or multinational oil companies for geological modelling scenarios. With the EC2 cloud, this computing power is available to small or large business with just a credit card. One speaker gave the example how an American newspaper company was able to convert years of content into PDF format in just 24 hours with the help of EC2. Previously, this project would have taken weeks if not months to complete. Going to the Amazon EC2 Case Study page on their website and reading some of the case studies of how small and large businesses have leveraged EC2 makes for some interesting reading. It shows how a revolutionary I.T. concept of having a “supercomputer” in the Cloud is no longer the stuff of science fiction or no longer a pipe dream of computer scientists cloistered away in the basement of a university. With so many successful small and large businesses built around EC2 infrastructure it just shows us how inextricably linked information technology has become to modern business.