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Mary Jander

Clouds May Finally Be Forming for IT

Written by Mary Jander
10/15/2009 5 comments
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Maybe the cloud computing hype is closer to reality than we thought.

While the issue of cloud computing has indeed been shamelessly promoted beyond the bounds of reality, and the term itself begs for clarification on a number of fronts, it looks as though the trend toward using hosted application services from external providers is really taking off.

Let me qualify that a bit. There don't appear to be many large enterprises ready to hand over their business kingdoms wholesale to Amazon Web Services LLC or Google (Nasdaq: GOOG), but it sure looks as if they're ready to hand over some big chunks. (What about you? Take our latest poll.)

Take Rentokil, a U.K.-based conglomerate whose subsidiaries include businesses in pest control, work-wear rental, and parcel delivery. This week, Rentokil announced a deal in which it will hand over its email to Google. The company expects to replace multiple mail systems and servers for 35,000 employees worldwide with offsite cloud services via Google Apps Premier Edition by the end of 2010.

"We're also looking at Google chat, video, and security," Rentokil spokesman Malcolm Padley told me yesterday.

Rentokil decided on the move to Google Apps after a 100-day trial among 800 employees of one division who are located in various locations around the globe. "Through easing the burden on the IT department, facilitating knowledge sharing and collaboration, we are confident that our use of Google Apps will be of huge benefit to our colleagues, customers and other stakeholders," said Bryan Kinsella, Rentokil CIO, in a prepared statement.

Rentokil doesn't seem concerned about reliability -- a major question when it comes to cloud services. Indeed, Padley says, Rentokil expects better system uptime than it's had up to now. "We expect a significant improvement in our performance, in comparison to existing multiple systems that also have outages." Email fixes should be easier, and multiple SLAs with Google (terms undisclosed) cover Rentokil, should downtime occur.

The SLAs also cover any chance that data would be lost as a result of backup problems on Google's side -- an issue thrown into relief lately when Microsoft Corp. (Nasdaq: MSFT) lost data from Sidekick servers it provides to T-Mobile USA . (Thankfully, Redmond has apparently managed to restore some lost data.)

Rentokil's case is a big add for Google, of course. But it's intriguing nonetheless to see the willingness of a big company to hand over its internal apps to an outside provider -- for real. More stories like this could help get other enterprises off the fence.

Here's another: This week, the U.S. Department of Energy announced a plan to build a $32 million test bed of Intel cores for use with cloud services from Amazon, Google, and Microsoft.

"Cloud computing has the potential to accelerate discoveries and enhance collaborations in everything from optimizing energy storage to analyzing data from climate research, while conserving energy and lowering operational costs," said Pete Beckman, director of Argonne's Leadership Computing Facility and project lead, in a prepared statement. "We know that the model works well for business applications, and we are working to make it equally effective for science."

Sure, I still don't know what a hybrid cloud really is. And there are still lots of issues to be resolved for cloud services, such as security, which continues to be a bugbear for many would-be adopters. Still, with examples like the ones we've had this week, it's easier to forecast enterprise IT's future as cloudy.

— Mary Jander, ThinkerNet Editor, Internet Evolution

This blog is part of Internet Evolution's IT Clan, which addresses the continuing impact of the Internet on enterprise networks, applications, and management. Register here to join the IT Clan's conversation, and you just might win something unspeakably cool.

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GajaKannan
IQ Crew
Friday October 16, 2009 1:31:45 AM
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There is a place for cloud in organizations of every size.

For enterprises, Cloud can offer SaaS opportunities for applications that are not core to their business like email, crm, finance, etc.,  Cloud still needs to mature for them to move their core operations to cloud.

For small, mid size and startups cloud offers more than just SaaS opportunities.  They can be viewed for IaaS like amazon ec2, rackspace or PaaS like Microsoft Azure, AWS and Google appengine, so they can build and run their core applications at par with the big league without coming up with the big capex.

IMRAN
Rank: Cyborg
Thursday October 15, 2009 7:14:57 PM

Mary, great article. It is a topic I had been planning to write on but your article made me actually do it.

I posted a response at 

http://imran.com/media/blog/2009/10/clouds-over-cloud-computing-raining-on.html

and it discusses what you wrote.

Agree or disagree, I am certain you will enjoy it.

 

Imran

 

bwelford
IQ Crew
Thursday October 15, 2009 6:58:43 PM
no ratings

Unfortunately the word 'Cloud' does little to help define what this particular usage is all about.  You could stretch the concepts a little and say it implies data handling and computing that is done 'up in the clouds'.  In other words, it is somewhere out there as opposed to doing it all 'on the ground' in your own office space.  However cloud raises more false allusions than the central definition that is being attempted.

Having said all that, the technology should not be diminished because the name has been poorly chosen.  I've just finished installing a Non-Profit version of the SalesForce CRM suite for a charity that offers therapeutic riding for children with special needs.  That's pure cloud computing and it all runs very sweetly. There is very little need for the excellent customer help service that is offered.  Chapeau for offering this cloud software goes to the SalesForce Foundation since it is provided for free or at minimal cost.

The great advantage of these developments is that it offers up viable computing capabilities to many people who have only a cell phone as their Internet terminal.  As was said, clould computing is a trend that can only grow stronger.

GregBassett
Rank: Scrivener
Thursday October 15, 2009 6:26:26 PM
no ratings

A couple of quick points:

For some good definitions of the 'cloud computing' paradigm, check out NIST (National Institute of Science and Technology) definitions (2pg Word doc).

Other companies are making very big jumps to the cloud:  Glaxo-Smith-Kline (GSK) is jumping to Microsoft Online:  100,000+ seats.

 

robbie02494
IQ Crew
Thursday October 15, 2009 5:26:36 PM
no ratings

Even though there is no clear definition for the Cloud, I think one aspect clearly defines it.

If Email, collaboration suites and other such applications are housed within the same company's infrastructure, we can refer to it as local, since all applications reside on the Company Data Center.

If any of these services are hosted by a third party like Google, Amazon it can be called the "Cloud". Hopefully that can clarify some naming issues, although to most IT folks the "cloud" is the Internet and now we have to give that a new name- how about "Internet Cloud".

 

 

The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
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