WHITE PAPER REDCENTRIC

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1 REDCENTRIC WHITE PAPER EIGHT POINTS TO CONSIDER AS YOU MOVE TO THE CLOUD: WHAT TO AVOID, WHAT TO LOOK OUT FOR AND WHAT TO INSIST ON WHEN MAKING THE JOURNEY TO THE CLOUD.

2 Cloud services represent one of the most fundamental changes to the world of IT for decades. The ability to move the hosting and location of applications, data, hardware and services to data centres where they can be managed and maintained with both flexibility and scalability is proving highly enticing to many businesses. However, beyond all the hype, firms need to realise that all Cloud solutions are not the same. The smart businesses will be the ones that check the small print before committing themselves, rather than afterwards when problems start to arise. Worryingly, survey results from a study by Computing found that many firms are making all manner of mistakes when moving to Cloud environments. These errors range from not having service level agreements checked by legal experts, signing up with data centre resellers rather than the actual site owners, neglecting to visit the actual data centre facilities that host the Cloud services or to assess the monitoring and support capabilities of the service provider, failing to obtain adequate guarantees with respect to the physical location of their data be that live information or backup and recovery sites and a catalogue of other issues that could cause serious headaches. In this paper, these issues will all be examined in an effort to highlight the eight most crucial areas that firms must consider on the use of data centres on the journey to the Cloud. THE CLOUD: BENEFITS AND CONCERNS There can be no doubt that Cloud services represent the future of much of IT. They are changing the way that businesses operate, allowing them instantly to increase their server and storage capabilities, scale software to match staff levels, implement software upgrades quickly and easily and let staff access applications and data on-the-go from a raft of mobile devices. For many firms the flexibility and scalability of using a data centre to host applications is the key advantage of Cloud services, with 50 per cent of respondents citing it as the biggest benefit. Furthermore, the ability for mobile devices, both in the form of tablets such as the ipad and smartphones such as the iphone, BlackBerry devices and a slew of Android-based phones, to access applications on the go is another huge benefit, with 32 per cent of respondents citing it as the key advantage to Cloud services. Additionally, 19 per cent said that outsourcing their hardware to a dedicated facility where it can be managed and maintained by specialist firms is the most beneficial reason for moving to the Cloud (Fig. 1). FOR MANY FIRMS THE FLEXIBILITY AND SCALABILITY OF USING A DATA CENTRE TO HOST APPLICATIONS IS THE KEY ADVANTAGE OF CLOUD SERVICES FIG. 1: PLEASE RANK THE FOLLOWING BENEFITS THAT YOU ARE SEEING, OR HOPE TO SEE, BY MOVING TO THE CLOUD More flexible software deployments that can be easily scaled up or down Allowing staff to access business apps using mobile devices such as tablets and smartphones Having dedicated staff managing the hosting and storage of our hardware Most beneficial Least beneficial

3 HOWEVER, LIKE ANY NEW TECHNOLOGY, THERE ARE NEW ISSUES AND WORKING PRACTICES THAT MUST BE CONSIDERED, WITH FIRMS CITING SEVERAL FACTORS AS KEY REASONS WHY THEY ARE CONCERNED ABOUT MOVING TO THE CLOUD. However, like any new technology, there are new issues and working practices that must be considered, with firms citing several factors as key reasons why they are concerned about moving to the Cloud. These relate to data security (77%), legal issues around where it will be stored and who will have access to it (48%) and the reality of moving equipment offsite (46%), as shown in Fig. 2. Yet despite firms citing these concerns, numerous respondents to the survey also revealed that they have made elementary mistakes on their journey to the Cloud, putting their business and its data at risk. Taking steps to minimise these risks is crucial and will be the difference between a smooth journey to the Cloud that brings the benefits cited above against one that causes headaches, frustration and ultimately a wasted opportunity. 1. BACKUP AND DISASTER RECOVERY Proper backup and disaster recovery systems are, of course, vital for any Cloud-hosted service. If the service goes down, for whatever reason, no firm will be able to plead for understanding from consumers or staff if there is no mirrored system in place that can kick into action should failure occur. However, while many data centre providers are keen to stress that data stored in their environments remains within a certain jurisdiction such as the UK or EU, they are not always so forthcoming about where backed-up data will reside, or where mirrored or replicated sites are located. 2. DATA LOCATION This is something businesses must address before any contracts are signed, yet the Computing survey found that an alarming number of firms are failing to consider this important point. A staggering 28 per cent of those surveyed said they had not even considered where data is stored at any point, whether during normal operations or during a fail-over period, while 16 per cent said that while they know where it is stored during day-to-day operations, they have no knowledge of where it would be sent during an outage (Fig. 3). The secure transfer and encryption of backed-up data must not be taken for granted. Here the backup medium is a factor. Some firms forgo encryption onto tape or disks due to the time it can take. This creates a security risk that businesses should quiz any data centre provider on, to ensure that all data is encrypted before backup. FIG. 2: WHAT ARE YOUR BIGGEST SECURITY CONCERNS ABOUT THE USE OF THE CLOUD? Data security (77%) Issues of compliance and legal responsibilities (48%) Outsourcing the location of hardware, software and data to a third party (46%) Vendor lock-in (38%) Unproven businesses models and return on investments (31%) Other 5%

4 FIG. 3: DO YOU KNOW WHERE YOUR DATA RESIDES NOW AND WHERE IT WILL GO IF THERE IS AN INCIDENT AT THE MAIN SITE? Yes, we discussed this fully and know where it will at all times No, we have not considered this point before 28% 56% 16% Yes, we know where it will be during normal operations, although are not sure where it will go if it has to be stored elsewhere 3. ASSESSMENT This may sound like obvious advice, but many firms are failing to ask even the most basic questions when discussing contracts with potential suppliers, including finding out if the firm they are dealing with is the actual data centre owner or a reseller. A surprisingly high 48 per cent of respondents admitted they were unsure whether or not the firm they had signed their agreement with was the owner or a reseller. A further four per cent admitted they discovered it was a reseller after contracts were signed. For some firms the difference was not an issue, with 31 per cent saying they pressed ahead despite the fact that they were dealing with a reseller. However, 17 per cent said they backed out of any potential agreement once they realised they were not dealing with the owner of the Cloud facilities (Fig. 4). FIG. 4: DID YOU CHECK THAT THE FIRM SELLING YOU SPACE IN A DATA CENTRE WAS THE ACTUAL OWNER OF THE SITE AND NOT A RESELLER? PERCENTAGE OF RESPONDENTS Yes, and once we found out it was reseller we decided not to use its services 17% Yes, but we were happy with this and signed up anyway 31% No, we weren t aware of this until after we signed the contract 4% No, we are still unsure if this is case or not 48% While resellers are often highly reputable and can offer good quality services, dealing directly with the actual data centre owner offers far more security and control over access to data and ensuring equipment is securely maintained and managed effectively. 4. PHYSICAL ACCESS AND SECURITY The specific issue of data security is a pertinent one. The Information Commissioner s Office (ICO) has the legal ability to fine organisations up to 500,000 for a data breach and as such, ensuring data stored in the Cloud is safe from unauthorised intrusion should be an important part of any firm s risk assessments when moving to the Cloud. Data centre providers are themselves aware of these issues and are often keen to establish their security credentials from the start to reassure potential customers their equipment will be adequately protected from any risk of tampering. Most respondents appear happy with the way their equipment is stored, with 60 per cent saying the location is like Fort Knox, giving them peace of mind that their data is secure. However, 23 per cent said they had to ask the provider to create a stronger protective environment as they were unsatisfied with the initial offering, and 17 per cent said they were concerned their equipment was sharing rack space with others and security clearance protocols did not appear sufficiently stringent (Fig. 5).

5 FIG. 5: ARE YOU SATISFIED WITH THE PHYSICAL SECURITY OF THE HARDWARE CONTAINING YOUR DATA OR SERVICES? PERCENTAGE OF RESPONDENTS Yes, it s like Fort Knox in there and that s exactly what we want 60% Yes, although we had to specify what we wanted as we weren t impressed with what we first saw 23% No, we are sharing rack space with other firms and access appears to be granted too easily 17% While a secure and well-marshalled data centre is vital, this should not be at the expense of legitimate access: businesses will require access to their data without having to endure lengthy security clearances. This makes it important for businesses to discuss access policies and security clearance protocols during negotiations. Most respondents (69%) said that they were satisfied with the security processes in place to access their data, with the process well managed and consistent in its requirements. FIG. 6: ARE YOU ABLE TO EASILY ACCESS YOUR DATA? However, 21 per cent professed themselves to be less than happy about the length of time it can take to gain access to their systems, feeling that procedures were not always consistent. Even worse, ten per cent said they were alarmed at how easily they can gain access to their data, again highlighting the importance of discussing every facet of a data centre provider s working procedures before any deals are signed (Fig. 6). PERCENTAGE OF RESPONDENTS Yes, the process is the same every time and is well managed 69% Yes, although it can take a while and procedures seem to vary each time It s sometimes a bit alarming how easily we gain access and how lax procedures are 21% 10% IT IS IMPORTANT WHEN MOVING TO THE CLOUD TO FIND A SUPPLIER THAT OFFERS THE LEVEL OF MANAGEMENT AND SUPPORT THAT WILL ENSURE THAT ANY ISSUES ARE DEALT WITH QUICKLY AND EFFICIENTLY. 5. CUSTOMER SUPPORT Having a member of staff dedicated to your needs and aware of your relationship with the firm is an important way to ensure that moving to the Cloud is well managed and that a smooth relationship is established over the long term. The perception of relationships between IT decision makers and their account managers varies, with 26 per cent describing it as strong, and 25 per cent saying that they are pleased with the service they receive, but that they are not always available. However, 11 per cent said they have to go thorough call centres before they are able to talk to someone that can help them, and an alarming 13 per cent are provided with no support from their supplier (Fig. 7). Clearly, it is important when moving to the Cloud to find a supplier that offers the level of management and support that will ensure that any issues are dealt with quickly and efficiently. A look behind the scenes is always advisable assessing physical infrastructure, security polices, general track record and capabilities and the size and scale of operations to ensure that the trust given to a service provider is warranted.

6 6. SERVICE LEVEL AGREEMENTS & CONTRACTS Many of the issues mentioned above can be avoided by ensuring service level agreements (SLAs) are satisfactory before signing off on the deal. It is a basic rule of life: always read the small print. Yet a number of respondents revealed that they had only undertaken basic due diligence checks on the contracts offered. While most firms were happy to get their legal and corporate teams to look over contracts (23%) only six per cent actually went as far as using dedicated outside consultants and Cloud services specialists to assess the paperwork. While some firms may have the necessary legal and corporate staffing expertise and skills to adequately assess contracts in-house, for most this is unlikely to be the case, and the use of specialist help could be of enormous benefit. Being a relatively new business model, the in-house legal team might not always be best placed to form a judgement on a Cloud provider s contract, but even this advice would be better than the seven per cent of those surveyed who admitted that they had merely signed what was put in front of them in good faith (Fig. 8). It is important to understand what the SLA is, whether monitoring and support is offered on a 24/7/365 basis, whether any part of the operations and support is outsourced, whether the call centre is in the UK, and what call escalation and error resolution procedures are. 7. COSTS Failing to assess contracts adequately can lead to numerous issues, not least of which is the possibility of missing hidden extras and having to find further funds for the services you thought you had already paid for as was the case with a small but noteworthy number of respondents (5%). In addition, seven per cent of respondents said that despite discovering that some services FIG. 7: DO YOU HAVE A DEDICATED ACCOUNT MANAGER YOU CAN RELY ON TO DEAL WITH YOUR COMPLAINTS, CONCERNS AND QUERIES AT ANY TIME? Yes, they are fantastic and always answer our questions Yes, although it can often be difficult to get hold of them 26% 25% were not covered by the basic contract and required additional spending, they decided not to pay for these services in the hope that their absence would not become an issue. A service provider s cost model should be simple and transparent, so that only actual usage and not available capacities and performance are billed for. 11% 13% No, we are often on hold to call centres for an age, although someone will generally help us eventually No, they offer no support; we are on our own FIG. 8: DID YOU THOROUGHLY CHECK THE SERVICE LEVEL AGREEMENTS OFFERED BY THE CLOUD PROVIDER BEFORE YOU MOVED YOUR SYSTEMS TO THE CLOUD? PERCENTAGE OF RESPONDENTS We had our legal and corporate team look over the contracts before we signed We just signed what was put in front of us 7% Yes, we used outside consultants to make sure we were fully aware of the finer points of the contract 23% 6%

7 8. REPUTATION Negotiating contracts and SLAs with Cloud providers is clearly vital, but before getting to that step businesses should perform their own background checks on potential providers. This may seem obvious, yet 24 per cent of respondents revealed they settled for their supplier without undertaking any prior research, and 21 per cent only used the credentials provided to them by the supplier themselves as a guide. In fact, only 55 per cent spoke with industry contacts and carried out their own investigations, a surprisingly low figure given the scale of the undertaking and its potential effects on staff, customers and the organisation as a whole. It appears that the relative infancy of the Cloud market causes some firms to forego traditional assessment procedures and instead to trust in the veracity of the provider. Yet as we have shown, when it comes to the Cloud, due diligence is just as important as with any other IT purchase, and likely to reveal strong differentiating factors between rival suppliers. All providers are not the same, and performing proper checks in the areas outlined above will make the journey to the Cloud a straightforward one without any nasty surprises becoming apparent once the ink has dried on the contract. CONCLUSION The eight steps to the Cloud outlined here are not complex or confusing but simple, sound advice that could equally apply to most IT decisions. Yet the Cloud is a new, much-hyped model and while the benefits are real and being realised by more firms than ever before, businesses should forget about all the marketing messages and treat the Cloud as they would any other major IT purchase. These points are not exhaustive and there are likely to be other issues that should be considered, but they provide a strong starting point for any IT team or business leader charged with taking their business to the Cloud. The key point is to ensure that no decision is made without thought and consideration of the problems that could occur and how these can be avoided, while the vast wealth of industry expertise and lessons that can be learned from others both those who got it right and those who got it wrong should not be ignored either. Following this advice should help lead to a smooth, successful and rewarding journey to the Cloud that empowers staff to perform more productively and businesses to run more efficiently. ABOUT REDCENTRIC With over 30 years experience as leaders and innovators in the managed services market, Redcentric is one of the UK s leading providers of Cloudbased voice and data services to public and private sector businesses. Trusted by some of the UK s highest-profile organisations, our continuously upgraded data centres are embedded in our own high availability, multi-meshed, multi-carrier MPLS network. They offer colocation, virtual hosting and managed data services and complement our unified communications, hosted IP telephony and hosted Exchange solutions. THE EIGHT STEPS TO THE CLOUD OUTLINED HERE ARE NOT COMPLEX OR CONFUSING BUT SIMPLE, SOUND ADVICE THAT COULD EQUALLY APPLY TO MOST IT DECISIONS. Redcentric Solutions Ltd. Registered Office Address: Central House, Beckwith Knowle, Harrogate HG3 1UG. Registered Company Number REDCENTRICPLC.COM

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