Michael Rehkopf

Sourcing Insight

By Michael Rehkopf

The real deal on IT and business process outsourcing trends


Cloud computing--a new paradigm?

Posted in Sourcing Insight by Michael Rehkopf on 2008/04/22 16:05:38

Have you checked out the computing power "rental" offerings of Amazon, Google or Microsoft, to name a few?

Fascinating stuff. I get access to computing power on a per unit per day type of basis. This gives me the ability to scale the computing power I use, up and down, to meet my needs and someone else manages this for me--like electricity, it's just another utility.

This is great. Or is it really?

Let's think about a few perennial IT issues and see how they're addressed in this model.

Compatibility. Who manages the issues associated with changes to the infrastructure when they impact the things you use it for? We know how to deal with power spikes, power outages and even power conversion when we travel. Do we know how to deal with re-building our application so that it works on the new IT infrastructure our "cloud" provider kindly installs to keep its environment up-to-date and its costs down, or vice-versa, when we need new infrastructure to support our new application features?

Data privacy. Who gets to see the data that I store on those systems, and how do I convince my own customers that their personal data stays private?

Security. Who is responsible for security? Or is it somehow a joint responsibility, which typically means it becomes nobody's responsibility?

Resiliency. This is most likely taken care of by whoever is selling me this infrastructure service.

Even considering just those few issues, we see topics that are likely well addressed, topics that are not really addressed and new topics. None of this is surprising, in fact, it's pretty common with new ways of doing things.

Think of Facebook and MySpace, and you can start to imagine both how things can be different and how issues can arise.

This is certainly interesting, challenging and potentially disruptive which makes it exciting.





Disclaimer:
Views and opinions expressed in this blog are the author's, and do not necessarily represent those of ZDNet Asia.

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Talkback 1 comments

Cloud computing--a new paradigm?
Couple things:

1. Compatibility - Changes to Cloud providers' infrastructure will not affect the end user. Cloud Computing uses virtualization to add a layer of abstraction, allowing the end users to be completely hardware agnostic. Users build their servers into the appropriate virtual image (Ex: Amazon's EC2 AMI), upload, and start computing.

We've created a system that lets you easily build your application or component stack into a virtualized Elastic Server(tm) and deploy it with one click into the cloud. We support Amazon EC2 and will support other clouds as they come online. You can also build to vmware, xen, and parallels formats, so you can easily test your virtualized server locally and then launch the cloud version with speed and quality.

Check out Elastic Server On-Demand: (web link)

2. Data privacy - Amazon EC2 uses cryptographic user authentication and allows users to encrypt data before storing it.

3. Security - It will most likely be a division of labor, but expect cloud providers to be addressing this soon with security dashboards similar to Amazon's Service Health Dashboard. What metrics they will provide is cloudy ;-).

The Elastic Server On-Demand builds Elastic Servers that are each injected with management and security tools like: unique identity, MAC address, user management admin, and a firewall. The idea is that you treat each instance running in the cloud the same as you would if it were a blade server sitting in a colo'd rack somewhere.
Posted by ryanK on Tuesday, April 22 2008 11:05 PM

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About the blogger

Michael Rehkopf

Michael Rehkopf



Michael has more than 20 years of experience in operations, strategy and sourcing covering all major parts of the globe. He has also worked for Australian, Canadian, German and Japanese companies in both business process outsourcing and IT outsourcing.
Michael's industry experience includes the financial services, manufacturing, telecommunications and travel sectors. He leverages this diverse industry experience and his university background in accounting, IT and his Master of Dispute Resolution, to assist clients in the development of business strategies and the implementation of sourcing strategies. These include the associated evaluation, negotiation and organizational change.
Michael is currently a partner at TPI, the world's oldest and largest sourcing advisory firm. Prior to joining TPI, Michael held leadership positions with Siemens Business Services, OpenPlus International, Mitsubishi Electric and Netron.