Smart Cloud Computing Strategies For Indian Businesses

At the live chat session during the Biztech2.0 Cloud Strategies Virtual Summit 2010, R “Ray” Wang, Founding Partner & Research Analyst- Enterprise Strategy, Altimeter Group shared his views on ‘Smart Cloud Computing Strategies for Indian Businesses.’ Here are excerpts from the chat.

In your opinion, are there are specific business verticals that are more suitable for cloud computing?

Cloud computing tends to appeal more to service-based industries, organisations that require the option of flex up and flex down capacity, as well as newer organisations without legacy infrastructure. I don’t see a specific industry pattern, but more of an influence of an organisation’s cultural propensity to identify cost savings to fund innovation.

What are the issues associated with moving to the cloud?

Issues with moving to the cloud include, often coming back to enable effective data and metadata processes and application level integration. Also, supporting hybrid models requires good integration tools as well as a good architecture.

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In your opinion, what could be some of the reasons for not opting for cloud computing?

Some reasons could include significant privacy requirements, complex onsite testing and development. Some other factors could be integration, legacy mainframe and on-premise applications.

Is there a PCI compliant cloud offering?

A PCI compliant cloud offering that I know of is Rackspace Mosso. I think a few more have emerged in the past few months.

Is SAS 70 valid in India?

SAS70 is an AICPA standard. However, it’s rapidly becoming accepted on a worldwide basis. Companies that intend to offer cloud solutions in the US, typically certify against SAS70.

Do you think that cloud computing vendors should include innovative offerings on service levels, which would boost this technology in India? Could you please share a few innovative ideas?

Service level innovations will have to come from multiple levels including:

1. Continued reduction in the overall cost of computing
2. Constant level of increased uptime.

Scale and efficient PUE standards drive the factors above.

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How valid is the concern of CIOs in terms keeping the infrastructure closer to their premises?

Having the infrastructure close to the premises theoretically helps with latency, cultural standards and peace of mind. However, like utility and power, you may also want backups and escrow agreements to be safe.

How can one ensure security in a Public Cloud?

There are a number of standards to ensure security in a Public Cloud. SAS 70 audits are one option. A better source of information is what the US Federal Government and Vivek Kundra have put together.

What’s the latest on Oracle VM?

Oracle has a good VM solution from a technology perspective. The licensing terms however do not allow for customers take advantage of any virtualisation savings.

How does a company know that it is ready for cloud computing or is the right candidate for the same?

Cloud computing makes sense when you need to have access to scalable resources at all levels of computing, that is, IaaS, DaaS, PaaS, and SaaS. For example, if you need to scale up on applications and want to free up the CAPEX over the OPEX, this is a good option. If you are involved in custom development, and need to do heavy testing in the DaaS layer, you can avoid buying unnecessary hardware just for testing.

From an Indian perspective, is it a good idea for a set of small banks to form a consortium and form a Public Cloud?

Depending on your data privacy requirements, a private cloud may be the safer option. The idea of a consortium does make a lot of sense. As you proceed with the idea, you’ll find that governance models must be in alignment in order to be successful.

Who according to you has a better virtualisation strategy, VMware or Microsoft?

When it comes to end-to-end virtualisation, VMware is ahead in the game. Microsoft HyperV covers a small part of the market, while Citrix is a good option for desktop virtualisation.

Is the size of the organisation a criteria to opt for Private Cloud?

Size isn’t the issue as much as how much control you want to give up. View a private cloud as whether or not you have the right business requirements in place. For example, you may have differentiated custom development projects that have competitive differentiators. You could deliver this via your own datacentre, but that would be very expensive. If a cloud can help you scale up to deliver this, you can get to have your own development environment at a scalable cost structure.

The Private Cloud should also strive to function at PUE levels of other datacentres to be competitive. Datacentres are today’s equivalent of manufacturing plants.
How important is holistic virtualisation for a good Private Cloud?

Holistic virtualisation is important for a Private Cloud but you should be clear about what you want to virtualise first.