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Cloud Computing The Ultimate Guide to CLOUD COMPUTING WHATISCLOUDCOMPUTING? Andwhyit’s goingto change theface of ITinyourbusiness HOWTO GET SAVEMONEY STARTED USINGCLOUD From the Gettingto grips Howto keep expertsat withthebasics costslow Greener hosting Rent your IT infrastructure from Memset and discover the incredible benefits of cloud computing. hosting Find out more about us at ISO 9001: Quality ISO 14001: Environmental ISO 27001: Security www.memset.com or chat to our anaged S M er P t v 0 C s ic 1 P e e 0 R 2 O B WINNER S A D W R A A R W sales team on 0800 634 9270. D A S O 2 R 0 P 1 0 C P 2010 2011 w k w .u BEST w rg .is .o WEB HOST paawards Welcome EDITORIAL Editor Maxwell Cooter Managing Editor Marc Beishon Design & Layout Heather Reeves Contributors Adrian Bridgwater, Dave Cartwright, Graham Jarvis, Billy MacInnes, Lesley Meall LICENSING & SYNDICATION Welcome Licensing Hannah Heagney, [email protected], +44 20 7907 6134 Welcome to the Ultimate Guide to Syndication Anj Dosaj-Halai, [email protected], Cloud Computing – your indispensable +44 20 7907 6132 reference point to all things cloud ADVERTISING & MARKETING Advertising Manager Ben Topp +44 20 7907 6625 YOU’VE PROBABLY PICKED UP this book because MagBook Account Manager Katie Wood +44 20 7907 6689 you’ve come across the term cloud computing and Digital Production Manager heard that it’s going to be the dominant platform Nicky Baker +44 20 7907 6056 for delivering computing resources in the future. Marketing & Editorial Executive Emily Hodges +44 20 7907 6270 Research company IDC estimates that worldwide MANAGEMENT +44 20 7907 6000 cloud market expenditure will be more than $70bn MagBook Publisher Dharmesh Mistry by 2015 – that’s a 25% annual growth rate. Publishing Director Jon Westnedge Over the following pages, you will read about what Managing Director John Garewal Deputy Managing Director Tim Danton cloud computing is, what applications can run in the MD of Advertising Julian Lloyd-Evans cloud (and what can’t), how it can streamline your Newstrade Director David Barker costs and how it will change your organisation – be Chief Operating Officer Brett Reynolds Group Finance Director Ian Leggett that a major enterprise or a small business. You’ll Chief Executive James Tye see how cloud will have an impact on all aspects of Chairman Felix Dennis business life, from sales and marketing to managing a supply chain. And you’ll read about the downsides too: from handling security to managing contracts, The “MagBook”“MagBook” brandbrand is a trademarktrademark of licensing and breakdowns in service. Dennis Publishing Ltd, 30 Cleveland St, We’re set for a huge change in the way companies London W1T 4JD. Company registered in England. All material © Dennis Publishing operate. The parallel that is often drawn is with the Ltd, licensed by Felden 2011, and may not electricity supply and how we moved from a position be reproduced in whole or part without the consent of the publishers. where companies operated their own local power stations to using a national grid. It’s an apt parallel Liability While every care was taken during the but it doesn’t go far enough – changing the source of preparation of this MagBook, the publishers the electricity supply didn’t fundamentally change cannot be held responsible for the accuracy of the information or any consequence the way that businesses were run – cloud will. arising. All judgements are based on products The notion of offices in various locations available to us at the time. Dennis Publishing takes no responsibility for the content of supported by a dedicated IT team is going to slowly any external websites mentioned or for any disappear. What the office of the future will look like advertising within the guide. is anyone’s guess, but there is one guarantee – it will Printed by Stones be served by some form of cloud computing. The Ultimate Guide To Cloud Computing The future starts here. ISBN 9781907779831 Maxwell Cooter, Editor The Ultimate Guide to Cloud Computing 03 Contents The Ultimate Guide to CLOUD COMPUTING WHATISCLOUDCOMPUTING? Andwhyit’s goingto change theface of business HOWTO GET HOWTOSAVE STARTED MONEYUSING to Guide The Gettingto grips CLOUD Computing £7.99 withthebasics Keepingcostslow Ultimate Cloud INSIDE 06 What iscloud? A cloud definition, history and the way the market is moving 14 Cloudconcerns Any new technology throws up worries about its impact – so what do you need to know? 22 Businesschange Here’s a strong case for cloud as a business change enabler 12 26 Publicvsprivate The differences between the two main cloud models 30 Enterprisecloud A briefing for board level executives on cloud issues 38 Just forSMEs Why cloud is a great match for smaller organisations 43 Cloudcontracts Businesses must be aware of 43 the small print in cloud services 04 The Ultimate Guide to Cloud Computing Contents 54 50 Cloudstorage Storage is the number one app in the cloud – with good reason 54 Financeandlicensing Financial factors for the cloud; cautions on software licences 63 Greencloud Is cloud computing greener, and can we prove it? 30 68 HRandcloud How cloud applications could 76 Marketinginthecloud transform the people factor A laggard normally in IT, marketing now has power 72 Supply chain Another key area for the cloud is 80 What notto do collaborating on moving goods Not everything is suitable for the cloud, and here’s why 84 Securityinmind Data security is a top concern and a degree of trust is needed 88 Leadingplayers/glossary A who’s who of major cloud 76 players plus a glossary of terms The Ultimate Guide to Cloud Computing 05 Introduction What iscloud? Maxwell Cooter introduces the hot topic of cloud computing: what is it and where did it come from? IT’S THE BUZZWORD on everybody’s vagaries, the US National Institute of lips but what does cloud computing Standards and Technology put forward a actually mean? It’s not been an easy definition that has now become widely term to define and there have been many accepted as the closest that the industry different attempts to explain what the has to a definitive answer. The NIST term means. Cloud companies have definition is as follows. been prone, like Alice’s White Knight, to “Cloud computing is a model for define the term in a way that they want it enabling, convenient, on-demand to mean. network access to a shared pool of In some ways it’s strange that the term configurable computing resources has been so slippery. Millions of us are (eg. networks, servers, storage, happy to use such cloud-based services applications, and services) that can be as Facebook, Gmail and Twitter, thinking rapidly provisioned and released with nothing of it, yet pinning down an exact minimal management effort or service definition has been as elusive as provider interaction. This cloud model grabbing a cloud itself. promotes availability and is composed In an attempt to put a stop to these of fi ve essential characteristics, three 06 The Ultimate Guide to Cloud Computing cloudpro.co.uk Introduction service models, and four deployment models.” Difference between outsourcing The service models are types of and cloud computing offering, such as software-as-a-service (SaaS), and deployment choices include Outsourcing is widely known and used in public and private clouds. But the key technology circles. It’s when a third party performs characteristics of cloud from a an IT function or other service on behalf of its customer’s point of view are: customer. Outsourcing can be employed for a • Self-provisioning so a customer can variety of reasons – lack of expertise in-house, lack provision facilities without any human of personnel or because the resources are needed interaction purely for an individual project. • Delivery of services over a network The key differences with cloud are defined by • Ability to be accessed by a variety of the underlying technology of the cloud provider. devices, not just PCs but also by Essential to this is the use of virtualisation – all netbooks, tablet computers and cloud providers make use of virtualisation smartphones technology – and automation (the ideal cloud • Rapid ‘elasticity’ – the ability to scale service has little human intervention). The other up or scale down computing resources. key element of cloud computing is the use of From a cloud provider’s point of view, self-provisioning – one of the major benefits is the a major element of the process is the ability to make a business more agile and fl exible pooling of computing resources toserve because services can be turned up and down at will. multiple consumers, using what’s called a multi-tenant model whereby cloud services are provided to leading lights in cloud technology. customers as and when they’re needed. Millions of us around the world are One of the important factors for cloud willing to entrust our personal details and service providers is to be able to credit cards to that company believing measure usage accurately and, even they’ll be held safely – why should more importantly, to bill accurately. trusting the company’s cloud division, Amazon Web Services, be any different? Securityconcerns In many ways, a more important The factor in cloud services that makes consideration than security is the most users nervous is the level of location of the data. This is for two security within a multi-tenant model. reasons. First, there is the inherent This is a major concern. Customers are latency within the system: the further entrusting some of their sensitive data away the data is stored the longer the lag to a third party and there is, ofcourse, in accessing it.
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