Assess business needs first before cloud move

 

Summary

Cloud computing cuts costs and frees up manpower, but companies must evaluate business needs before deciding to adopt platform, analyst advises.

Events

IBM Technology Conference & Expo 2012
May 23, 2012

Convention Centre B2 Room at 22nd Floor, Centara Grand @ Central World, 999/99 Rama I Road, Pathumwan, Bangkok 10330

Echelon 2012
June 11 and 12, 2012

University Cultural Centre, National University of Singapore

Startup Asia Jakarta 2012
June 7 and 8, 2012

12th Floor, Annex Building, Wisma Nusantara Complex, Jl. M.H. Thamrin No. 59 Jakarta 10350, Indonesia

MMA Forum Singapore
April 23-25, 2012

Grand Hyatt Singapore

SINGAPORE--Cloud infrastructure and services are attracting much attention for its easy, on-demand accessibility and promise to reduce operating costs, but enterprises must identify their business needs first before adopting the platform.

According to Avneesh Saxena, group vice president of IDC Asia-Pacific's research domain group, enterprises should "set firm goals in order to assess the right course forward". "The important thing is to start developing an IT framework, and not get hanged up on public or private cloud," he said, during his keynote at IDC's enterprise cloud conference here Thursday.

The size of the company size and the industry segment it plays in, are some key factors that determine the complexity of data center coverage it needs. These can also help establish the kind of cloud computing services and capacity the organization needs to incorporate into its IT environment, noted Saxena.

Hemant Shah, IBM's Asean executive for infrastructure business, systems and technology group, added that companies should also identify "workloads" that work well with public as well as private cloud networks.

Also a speaker at the IDC event, Shah referred to an IBM cloud computing study conducted in July 2009, which revealed that audio, video, Web conferencing, service helpdesk and data storage, were some of the workloads suited for public cloud computing. On the other hand, security and business continuity and disaster recovery programs were deemed to be more suitable in private clouds.

However, before the deployment of cloud computing services can grow, service vendors need to help prospective companies build a viable returns on investment (ROI) model, said David Rosengrave, practice manager of IT solutions and global services, Verizon Business. "We really need to help our customers build a business model or ROI that really stacks up," added Rosengrave, also a presenter at the event.

Shah also noted that the motivation to adopt these services have to be driven by the enterprises and their business strategies. He added that cloud computing is "not a socially aware" issue, but one very much derived from "business and technology" and should be driven from these factors.

Securing the cloud
Another issue that has affected cloud adoption among enterprises is security.

Companies are wary of placing sensitive information on public servers, primarily because the existing infrastructure does not assure compliance with regulatory policies during the shift to cloud. Businesses also worry about the lack of control over IT systems that are managed by external service providers in a cloud model, since corporate data will be stored in public servers.

Rosengrave said: "Compliance and where the data is kept will probably be the biggest factor in terms of who can utilize the cloud, and probably the number one thing that customers should look into. And I don't know if there's enough clarity around right now." He added that while security checks can be built into public clouds, there will still be organizations that will "perceive" this to be insufficient.

However, Shah noted that the "Internet has had security problems from day one"--and that has yet to be resolved--but this has not stopped people from using the medium to perform transactions that involve sensitive data such as e-commerce.

"For each kind of activity, there is a level of security that is acceptable or tolerable. And this is what will happen to cloud as well," he said. "We just have to start off with that."

According to Aylwin Lam, Asean senior consultant at F5 Networks and conference speaker, security concerns have also not slowed adoption among companies in emerging markets including India, Indonesia, Vietnam and Philippines.

Talkback

Add your opinion

In order to post a comment, you need to be registered. (Sign In or register below)

Post your comment

ZDNet Asia Live

Malaysia offers some manufacturing benefits over China - ZDNet Asia http://t.co/j04OySNl

RT @zdnetasia: Idea Cellular follows Airtel, cuts India 3G tariffs. http://t.co/WNjnBHSX

Malaysia offers some manufacturing benefits over ChinaZDNet AsiaBy Ryan Huang , ZDNet Asia on May 22, 2012 (16 h... http://t.co/JgEnj6fl

Malaysia offers some manufacturing benefits over ChinaZDNet AsiaBy Ryan Huang , ZDNet Asia on May 22, 2012 (16 h... http://t.co/VTbclPHW

India 3G tariffs become more affordable http://t.co/7dHfD5xr @zdnetasia

Military & Aerospace Electronics News and Event Guide 1.7.9: Military & Aerospace Electronics, updated several t... http://t.co/VJpI3f8h

RT @zdnetasia: Idea Cellular follows Airtel, cuts India 3G tariffs. http://t.co/BDMd0qm2

RT @eccouncilapac: Value of big data analytics largely untapped http://t.co/aG9ixVph

SingTel on acquisition spree, buys http://t.co/UzfGGmqH http://t.co/2SJXBrpG @zdnetasia

[Read] CFOs increasingly involved in #IT investment decisions http://t.co/jVHWyOdQ @zdnetasia

China solar cell makers seek Taiwan partnerships. http://t.co/yCKEwFw0

Idea Cellular follows Airtel, cuts India 3G tariffs. http://t.co/WNjnBHSX

Idea Cellular follows Airtel, cuts India 3G tariffs http://t.co/QMuksZTe http://t.co/erFSwAUB #arcavir

http://t.co/VNaUVSe1 Idea Cellular follows Airtel, cuts India 3G tariffs: Indian telco slash... http://t.co/ktKIGiZk http://t.co/wiqTBKkj

Value of big data analytics largely untapped http://t.co/aG9ixVph

So much as we know , MTK6575 extremely integrated frequency1GHz ARM Cortex-A9 processor, the superiority of 3G / HSPA Modem, and help the...

1 day ago by y15822137359 on 5 SaaS adoption speed bumps to avoid

I reckon your view: "CRM is strategy, not software", if a company replicating the approach uses in ERP implementation into CRM, what they...

2 days ago by wykoong on Gartner: Mobile CRM gives better ROI than social

This video will teach you about the Excel fill handle but also provide you with a workook to download... http://www.youtube.com/watch?v=...

2 days ago by TradeBrother on A quick fill handle trick for Microsoft Excel

waiting...

4 days ago by eapete on What should count in a company's market value?

Boy, you've opened a can of worms now.

Wait for the rants & raves.

4 days ago by eapete on What should count in a company's market value?

I was puzzling before this whether to replicate the success formula we executed for a financial institute, and come out with a standard s...

5 days ago by wykoong on Drop the egos, copy ideas, then innovate