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1 Presented by Mike Jennings President BEI

2 Cloud Computing Defined Benefits of Cloud Computing Risks of Cloud Computing When and How to Utilize Cloud Computing Recommendations 2

3 Cloud Computing Defined 3

4 4

5 Colloquial Any type of data or application that is stored elsewhere, whether it be on a single server or a series of networked servers. 5

6 Wikipedia Cloud computing is Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand, as with the electricity grid. 6

7 Microsoft Delivering services to the user through a flexible, easily managed infrastructure. 7

8 Official Definition United States National Institute of Standards and Technology (NIST) Cloud computing is a model for enabling convenient, ondemand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of: 5 Essential Characteristics 3 Service Models 4 Deployment Models 8

9 1. On-demand self service 4. Elastic Aug-May Provisioning takes minutes 2. Broad Network Access June-July Any Quantity / Any Time Anywhere / Any Device 5. Resource Pooling 3. Metered Use On Off Off Automatically/Optimized Computing Resources Shared/Optimized Source: NIST 9

10 Cloud Provider Cloud Customer Software-as-a-Service (SaaS) Specific Program/Application One-to-many delivery Microsoft Office 365 Google Docs SalesForce.com Admin Control Total Control Application Middleware Operating System Hardware Limited Admin Control No Control Platform-as-a-Service (PaaS) OS/Development Tool Microsoft Azure Amazon Web Services Google App Engine Admin Control Total Control Application Middleware Operating System Hardware Limited Programmability No Control Infrastructure-as-a-Service (IaaS) Equipment (servers, storage, etc.) Datacenter-on-demand RackSpace Amazon EC2 No Control Admin Control Application Middleware Operating System Hardware Total Control No Control 10

11 1 Private Cloud 3 Public Cloud One organization On or Off Premise Managed & Owned by the organization or by 3 rd party General Public or Large Industry Group Off Premise Managed & Owned by cloud service provider 2 Community Cloud 4 Hybrid Cloud Several organizations with shared concerns On or Off Premise Managed by the organization or by 3 rd party Combination of two or more of other clouds (Private, Community, Public) with each other and/or with on-premise Clouds remain unique entities but technology allows data and application portability 11

12 Cloud Computing The computing resources being accessed are located in a different physical facility (than the location of the users who are accessing the computing resources), and To some degree the computing resources being accessed are themselves shared or are sharing supporting resources. 12

13 Cloud Deployment Type Public/ Community Private (Owned) Private (Rented) Hybrid Low initial costs Predictable recurring costs (CAPEX becomes OPEX) Good disaster recovery capability Very good reliability/uptime On-demand resource scale-up/- down Pay per use Focus IT resources away from admin toward strategic Ability to balance processing loads with regards to speed, security, cost, etc. 13

14 Cloud Deployment Type Public/ Community Private (Owned) Private (Rented) Hybrid Internet connection latency/responsiveness issues Security risk to your information Reduced flexibility Vulnerable to behavior of provider and/or it s other customers Possible compliance issues (PCI, HIPAA, SOX, etc.) Difficulty if need to perform forensics on data 14

15 LAN WAN FAST! NOT SO FAST! User 100 or 1,000 Mbps Server 1 to 10 Mbps LAN = Local Area Network WAN Wide Area Network 15

16 LAN WAN FAST! NOT USEABLE SO FAST! FAST! User 100 or 1,000 Mbps 1 to 10 Mbps 100 or 1,000 Terminal Server Server Mbps Citrix Server LAN = Local Area Network WAN Wide Area Network 16

17 When and How to Utilize Cloud Computing 17

18 As with any potential IT solution there are no black and white absolutes regarding cloud services We re going to talk in generalities about using cloud for four primary IT functions File Storage Business Applications Backup/Disaster Recovery Each situation should be analyzed in detail for all the pros and cons, tangible and intangible (If you need help with this we know a good company that can help.) 18

19 Good Public Cloud service (low data flow between user and server) Has been available long time/mature Costs are pretty low system hosted in data center(s) Users access via full client or web browser Examples Microsoft Office365 Hotmail 19

20 Pros Cons Generally low cost May require new client Enterprise features (group calendaring, PDA-sync, etc.) Reduced flexibility to customize system Good reliability/uptime Good for disaster recovery (i.e. if your office(s) damaged or destroyed) System updates at no cost If Internet is down your is down (although is accessible from somewhere else w/ Internet) Provider may not meet your compliance requirements System updates with no choice 20

21 Public cloud service OK but not great Good for Private Cloud if: Have strong security concerns Can put application servers in cloud, too Files/data stored on data center storage Access can be VPN or browser Examples Egnyte Box.net SharePoint Online 21

22 Pros Cons Fairly low cost Often provides capability to retrieve files from anywhere with a PC Good reliability/uptime Good for disaster recovery (i.e. if your office(s) damaged or destroyed) System updates at no cost Slow file open/download times if Internet bandwidth is not properly sized Difficult integration with onpremise apps If Internet is down you re not getting to your files (although is probably accessible from somewhere else w/ Internet) Provider may not meet your compliance requirements System updates with no choice 22

23 Pros You have better control over protection of your data You have more control of security and regulatory compliance Good uptime/reliability Cons Equipment and software costs (if you don t lease some cloud servers/storage) You may be responsible for management and administration of equipment and software Slow file open/download times if Internet bandwidth is not properly sized If Internet is down you re not getting to your files (although is probably accessible from somewhere else w/ Internet) 23

24 Can be good Public, Community or Private Cloud service Application is installed on server(s) in data center(s) Depending upon application may be accessed by fat client, thin client or browser Examples QuickBooks Online SalesForce.com Microsoft CRM Online 24

25 Pros Cons Are a lot of very good products available at good prices SalesForce.com Microsoft CRM Office Web Apps SAP Sage (See System updates at no cost If Internet is down you re not getting to your app (although is probably accessible somewhere else w/ Internet) If app is not browser-based it may be slow Access to your data can be shut off Lack of customization Interfaces? Devices (scanners, printers, etc.) Business Partners System updates with no choice 25

26 Pros Cons Good when you have Thin Client You have better control over protection of your data You have more control of security and regulatory compliance You have full flexibility and customizability of the application Not good if application does not work well with thin client Equipment and software costs (if you don t lease some cloud servers/storage) You are responsible for management and administration of application If Internet is down you re not getting to your application (although is probably accessible from somewhere else w/ Internet) 26

27 Available as Public, Community or Private Cloud service Ranges from simple data backup all the way up to near-real time server failover Examples Mozy JungleDisk ibackup Carbonite Evault 27

28 Pros Cons Good products available for all kinds of backups Automates getting data offsite and in redundant, geographically separate locations Many different Recovery Time Objectives (RTOs) (and, hence, costs) can be accommodated Public cloud versions really only good for simple file backups (My Documents) Solutions that backup databases and/or server images become more expensive (but still a very good value today) If Internet is down you re not getting to your backups (although is probably accessible from somewhere else w/ Internet) 28

29 People often think that going to the cloud means no more IT support costs.well, that depends Public/community cloud offerings generally do reduce the need for some of your IT management/admin Private cloud solutions will offer varied changes to IT support costs each case requires thorough analysis of Total Cost of Ownership (TCO) And no cloud solutions eliminate the primary source of IT support needs end users 29

30 Each case for to cloud or not to cloud should be analyzed in detail for all the pros and cons, tangible and intangible Total cost of ownership (TCO) A good time to do this is when there is an IT discontinuity When you need to consider an application or equipment upgrade/change 30

31 A 3 physician office needs to replace its existing server for its Electronic Health Record (EHR) system. Since implementing the EHR, the EHR vendor has begun offering its application as Software-as-a- Service. The physicians want to analyze which scenario is best for them: stay on the server based software or move to the SAAS. There are non-monetary pros and cons of each approach; however a financial analysis certainly must be part of the decision process. The analysis will be conducted over a 5 year period, because that is the expected life of a server. Option 1: Buy the Server One Time Costs Server Cost $7,500 Server Software (OS and CALs) $1,200 Server Installation $4,000 UPS $750 Total $13,450 Annual Recurring Costs Server Maintenance ($200/mo) $2,400 EHR Software Maintenance ($1500/physician) $4,500 Server T&M Service $750 Total $7,650 Option 2: Use SaaS One Time Costs Data Conversion and Upload $10,000 Annual Recurring Costs Cloud EHR Software Licensing ($600/physician/mo) $21,600 Backup/Secondary Internet connection ($300/mo) $3,600 Total $25,200 Total 5-Yr Cost = $10, x$25,200 = $136,000 Total 5-Yr Cost = $13, x$7,650 = $51,700 31

32 Just about everyone should consider cloud File storage is probably still best on-premise or private cloud Moving Business Apps to the cloud should be evaluated on a case-by-case basis Is the app available publicly? Does it require fat client? Will it work with thin client? If browser-based how different will cloud user experience be? Does vendor support app in virtual environment? Will you be able to customize it to meet your needs? Most applications can at least go to private cloud with thin client 32

33 Everyone should implement some kind of cloud Backup/Disaster Recovery option Online file backups Online image backups Hybrid of local + online image backups (with online virtualization capability) High availability using online failover or cloud virtualization If you move to any kind of cloud solution seriously consider a secondary/backup Internet connection 33

34 Many of the cons for cloud computing will be solved The cloud will become more accessible and attractive for a broader range of uses and applications Likely we ll never be 100% cloud there will always be requirement for on-premise computing 34

35 35 Thank you!

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