Educating you on the benefits and "how to" of integrating cloud computing with your business network.

Many IT professionals view cloud computing as offering greater flexibility than traditional computing environments and state their organizations have plans to implement cloud computing solutions within the next five years, according to recent studies of senior IT professionals worldwide.

A study conducted by IDG Research Services and CIO Custom Solutions Group featured several compelling stats on the growing trend toward cloud computing.

The IDG/CIO study found that:

• 69% of IT professionals perceive greater flexibility in cloud computing solutions
• 64% of these IT professionals expect company spending on cloud-based services to increase in the next year
• the trend toward cloud computing is accelerating, with 75% of companies employing the surveyed IT professionals planning to implement or expand their cloud computing solutions within the next 5 years
• 60% of IT professionals surveyed indicated it was difficult to find the right cloud computing solution, slowing near-term adoption of cloud-based initiatives

A two-part study by Boston-based market researcher Chadwick Martin Bailey, comparing perceptions of cloud computing a year ago with perceptions in August 2010, found security concerns and general confusion over “cloud computing” among IT professionals had dropped dramatically.  The study shows nearly 30% of IT professionals surveyed now say their companies have aggressive, near-term plans to shift to cloud computing architectures – doubling the number of firms with such plans when the original survey was conducted a year ago.

Confused about what, exactly, is cloud computing?  You’re not alone!  Business leaders and even IT professionals find it challenging to strip through the hype and buzz – as well as the conflicting definitions and terminology – and get a grip on understanding what cloud computing is and whether it’s a good fit for their businesses. 

Enter tech titan Intel, announcing this week a new initiative “Open Data Center Alliance.”  The alliance, part of Intel’s Cloud 2015 project, is a coalition of 70+ major players in cloud computing.  Their task: to help standardize facets of cloud computing by establishing hardware and software standards for technology providers.

Read more here. 

Will it work?  Maybe, at least as far as establishing standards goes.  But will the standards be enforceable?  So far, the greatest cloud computing experiment – the Internet itself – has been called “the largest unregulated computer network on the globe” by more than one expert.  Will Intel’s “Cloud 2015: Open and Interoperable” slogan change to “Open & Inoperable?”  Stay tuned…

On the upside, establishing standards will help reduce the number of “snake charmers” attempting to take advantage of the technology’s latest Wild West frontier.  And that can only help business leaders and IT professionals feel more confident in pursuing and applying cloud technologies for their businesses.

Researchers Gartner Group and McKinsey & Company agree: cloud computing will be one of the defining trends of the next decade (we’d say “of the 21^st Century” but who knows what will be on the horizon in future decades!).   Google records 40,000+ news stories in 2010 on cloud computing.  Adoption of cloud applications, platforms and strategies is accelerating – one great example is the quintupling of Facebook users in the past two years.

SMBs face the challenge of growing – or even maintaining – revenues in struggling economic conditions and growing competitive environments while managing risk and costs.  Efficient and effective leveraging of technology – getting the greatest “bang for the buck” – is key to SMBs surviving and thriving in today’s economy.

Cash is king.  How can SMBs conserve cash and still get the tech toys they need to succeed?  Many SMBs are investigating ways to get this done – and are exploring the role cloud computing can play.  If you’re considering how best to stretch your IT dollars, consider some of what cloud computing offer SMBs:

1. Integrating new technologies without coughing up large up-front capital costs. Reducing CapEx helps SMBs grow faster while limiting their risk exposure.
2. Expanding  business more efficiently. Cloud computing helps to grow needed  infrastructure efficiently, allowing SMBs to spin up new services or ventures without taking as many resources from mission critical tasks.
3. Eliminating the need to manage servers, upgrade software and maintain your IT infrastructure.  Cloud computing frees financial and personnel resources otherwise committed to the care and feeding of IT infrastructures.
4. Enjoying greater flexibility and scalability of IT infrastructure – you can grow (and reduce) IT assets as needed without either cash outlay for new IT equipment or mothballing already-paid for IT assets.
5. On-demand technology – a kind of “pay-by-the-drink” use it when you need it approach.
6. Continuous innovation – as technology continues to evolve and upgrade, SMBs get the benefits of the “latest and greatest” without the cost of obsolescent IT assets..
7. Better collaboration. Most cloud tools are highly interactive, allowing your staff to work together on the Internet at any time.
8. Increased productivity and focus. Your staff focuses on the main production goals of your business, rather than being slowed and distracted by ineffective IT tools and resources – or by becoming “shade tree mechanics” trying to fix their IT problems.
9. Reduced risk – you don’t own it or maintain it.  If it breaks or if it becomes obsolete, it’s someone else’s problem to fix or replace.
10. Trading CapEx for OpEx – SMBs, whether cash-strapped or simply ill-equipped for the level of budgeting and strategizing necessary when owning and maintaining their own IT infrastructure, trade the ups and downs of capital expenditures for more even and steady operating expenses associated with a monthly fee-based cloud computing solution.

Wall Street news recently has been full of M&A activity among tech firms large and small as the impact of cloud computing has become evident.  HP and Dell are in a bidding war for cloud computing firm 3Par.  CA Technologies today announced a $200 acquisition of cloud computing firm Arcot Systems, bringing their June 2009-to-present spending spree to a billion dollars and change.

But what does that mean on Main Street?  Small- and medium-sized businesses (SMBs) are implementing cloud computing in significant numbers.  While some are opting for an “all-in” approach, other SMBs are looking at various “hybrid” options.

Read more.

While the article cites some cases in which SMBs are opting to keep a portion of their IT assets in-house, a strong case can be made for a “hybrid” or “local” cloud computing approach that benefits from the cost efficiencies of owning few – if any – IT assets and partnering with a trusted IT provider that owns, manages and maintains the SMB’s IT assets behind their own firewall.

Or so says a recent article in Business News Daily.  Close to 4 out of 10 businesses with fewer than 20 employees use cloud computing solutions or plan to in the next 6 months.

Cloud computing provides firms the flexibility and economic advantages of storing data, accessing software applications, even hosting entire network infrastructures, without purchasing or maintaining the necessary software and hardware.  Costs stay lower – an important benefit for cash-strapped small businesses or simply those wishing to reduce operational costs in the current economy.

This finding was part of a global survey of 1500 IT professionals at small- and medium-sized businesses.

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