Demonstrable gains

Within large enterprises tensions are known to arise between the chief marketing officer, the chief information officer, and the chief financial officer over the resources that ought to be allocated to IT systems in order to keep the business running effectively. Khaled El Amrawi, Intel’s regional director for enterprise solutions in the Middle East, explains how cloud computing can help smooth over differences in management’s strategic IT outlook for a business, and allow the enterprise to benefit from significant efficiency gains

Khaled El Amrawi says in terms of a cloud computing strategy, it begins first with virtualisation of non-core data before mission critical ones are added

“IT has traditionally been seen as a cost centre within enterprises, however more progressive companies view it as a resource,” Khaled El Amrawi starts by telling Comm. “In terms of a cloud computing strategy, it begins first with virtualisation of non-core data before mission critical ones are added.”

The development of platform as a service (PaaS) alternatives, which facilitate the deployment of applications without the cost and complexity of buying and managing the underlying hardware and software, instead provisioning hosting capabilities, allow for the transformation of fixed IT capex investments into variable opex undertakings.

“Cloud computing offers a different way to do business, and given the social network explosion it makes for a more efficient way in which to manage data,” El Amrawi said. The evolution to cloud computing has already begun in many organisations, with the deployment of private clouds first. “Private clouds represent 70-75 per cent of the implementations taking place in the region for the meantime,” El Amrawi estimated.

According to IDC, the public cloud segment is set to flourish with cloud servers expected to grow from a US$8.4 billion market opportunity in 2010 to US$12.6 billion by 2014.

However, much commentary and concern has been raised regarding the security of public clouds particularly as they relate to mission critical and highly sensitive information. El Amrawi acknowledges that security is a key element in cloud development and believes that IT providers are working diligently at making the cloud as safe an environment as possible.

On its own part, Intel has developed its Advanced Encryption System (AES), which continues to be updated with new instructions, and which delivers faster, more affordable data protection and greater security, making pervasive encryption possible in areas where it was previously unfeasible.

The company has also invested heavily in the development of its Trusted Execution Technology (TXT), which is a hardware extension to some of Intel’s microprocessors and respective chipsets, intended to provide computer users or system providers with a higher level of trust and control over computer systems. Intel claims TXT is especially useful in the business world, as a way to defend against software-based attacks aimed at stealing sensitive information.

“Intel also acquired McAfee, the security specialist, further raising our security credentials and allowing the company to develop anti-theft technology embedded in the silicon,” El Amrawi said.

It has also become clear that the benefits to be driven by cloud computing have been picked up by technology providers beyond the realm of traditional enterprise IT providers. Last June, Apple introduced iCloud, a set of new cloud services that work seamlessly with applications on iPads, iPhones, iPod touch’s, Macs, or PCs to automatically and wirelessly store content and push it to all devices. iCloud services include new versions of Contact, Calendar, and Mail; iCloud Backup and Storage; Photo Stream; and iTunes in the Cloud, and became commercially available at the end of the year, along with iOS 5.

“Consumer devices are becoming very different given their increased processing power, and the amount of data that passes through them,” El Amrawi said. “Cloud becomes a much more efficient way of managing all of this data.”

Leading telecom technology provider Ericsson is also following a determined cloud strategy. In February the company announced it is developing the concept of a network-enabled cloud, representing Ericsson’s comprehensive effort to simultaneously evolve cloud computing and telecom network technologies.

In an Ericsson business user study, 78 per cent of the respondents said they work more efficiently when they have access to mobile broadband and 92 per cent said they needed access to mobile broadband everywhere.

Ericsson says its network-enabled cloud builds on and combines today’s telecom assets and delivers improved quality of experience, new business opportunities, faster time-to-market and reduced cost for operators.

Ericsson is taking a ‘5C’ approach to the network-enabled cloud:

Connect: Anytime, anywhere connectivity and a high-quality experience thanks to high-quality, high-capacity networks

Control: Efficient operations through integrated management of networks and the cloud for reliable service-level agreement (SLA) implementation

Compute: Embedded capabilities that can be activated dynamically thanks to high-performance, telecom-grade infrastructure

Create: Unified communications, enterprise software as a service, service enablement and accelerated business growth through the facilitation of rapid service creation

Customise: Architect, build, optimise and operate complete professional services.

Ericsson says development of the network-enabled cloud will progress in several parallel flows. One starting point is today’s emerging content delivery networks, which benefit from Ericsson’s approach to cloud acceleration. Another starting point is for operators to dedicate one or more telecom-grade cloud data centre(s) to enhancing the level of quality and security for the applications they offer, such as unified communications and enterprise applications.

According to IDC, the public cloud segment is set to flourish with cloud servers expected to grow from a US$8.4 billion market opportunity in 2010 to US$12.6 billion by 2014

Ericsson also plans to deliver an integrated cloud and network management suite that facilitates the end-to-end implementation of SLAs resulting from service exposure through application programming interfaces (APIs).

Intel’s El Amrawi also sees a growing trend where cloud builders are collaborating more with telecom technology providers and together coming up with recipes for how to build clouds effectively. Through organisations such as the Open Data Centre Alliance, which is an independent group that gives stakeholders a voice in shaping the future of cloud computing, CIOs of large IT companies try to have the voice of end-customers heard.

The Open Data Centre Alliance is developing a unified vision for cloud requirements – particularly focused on open, interoperable solutions for secure cloud federation, automation of cloud infrastructure, common management, and transparency of cloud service delivery.

The Alliance’s fast-growing membership includes 300+ companies spanning multiple continents and industries, representing more than US$100 billion in annual IT spend.

Lastly, El Amrawi points to another benefit of cloud, which is the energy efficiency that may be established through the implementation of a well-considered strategy. The number of servers that need to be utilised by an enterprise can be reduced drastically through a cloud implementation, thereby slashing an enterprise’s electricity bill by as much as 90-95 per cent.