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_13.May.2014
CLOUDFOR
BUSINESS
FORECAST
GOOD FOR
NEW CLOUD
P.03
CLOUD
JARGON
BUSTER
P.08
F1 RACES
AHEAD IN
CLOUD…
P.15
CLOUD FOR BUSINESS
03raconteur.net twitter: @raconteur
ȖȖ Hopefully we are all now famil-
iar with the benefits of the cloud.
The lower capital expenditure,
the joy of passing on the job of
maintenance to someone else, the
limitless scalability – these have
been talked about so much it feels
almost redundant to rehash them.
So, what’s next with the cloud?
What are we going to be talking
about for the next five years?
Here’s one debate generating a
lot of noise: bespoke app devel-
opment on the cloud. It’s in its
infancy right now, but the way the
cloud works means ordinary firms
are going to be able to create their
own applications.
Apps for smartphones are
already being made in large num-
bers on the cloud. Using an online
service such as Appery.io, you can
drag and drop components via a
browser to build your app. Add
plug-insfromtheonlinecatalogue
and hey presto, your app is ready
to go. With nothing to download
or install, it really is that easy.
Adam Spearing, area vice-pres-
ident of Salesforce.com, reckons
this approach is about to trans-
form the cloud. “A few years ago,
app development was dominated
by people who were typified by
their extreme focus and deep
expertise in code and systems.
Frequently they had computer
science training and tons of rig-
orous study time to become an
expert.Afterall,buildingappswas
complex,” he says.
“Fast forward to 2014 and every-
thing you know about app devel-
opment has changed. The cloud
makes it easier than ever to create
great applications, regardless of
yourbackground.Anyonecantake
ideasandturnthemintosolutions
faster than ever before. Kids use
Scratch and create interactive
apps,whileLEGOMindstormsand
Raspberry Pi are bringing them a
‘maker culture’ in engaging ways.
“Businesspeople can create
enterprise cloud apps without a
professional programming back-
ground, too, as sites such as Code-
Academy make it easy for non-
programmers to learn the logic of
coding. And leading platform-as-
a-servicesolutionsgiveemployees
enough flexibility to build their
own apps while ensuring they
meet the governance needed by
corporate IT.”
Researchers at Gartner estimate
that,withinthreeyears,25percent
of large enterprises will have their
own app stores. Cloud-based soft-
ware vendor EvaluAgent already
offers a workforce optimisation
platformwhichis80percenthard-
codedand20percenttweakable.
EvaluAgent managing director
Jamie Scott says: “Bespoke appli-
cation development is possibly
the most compelling reason for
firms to move to the cloud, but
many companies are not aware
of this. Imagine a world where
software can be customised to
fit a company’s existing business
processes as a standard part of the
set-up process, without involving
prohibitive charges. This is now
already becoming a reality thanks
to the cloud.”
Another trend worth paying
attention to is the rise of virtual-
ised environments for graphically
intensive applications. Histori-
cally, if you wanted to run Photo-
shoporAutoCAD,youneededtodo
itonyourowncomputer.Willthat
stay the same? Not according to
Nvidia, one of the world’s leading
makersofgraphicschipsandcards.
Nvidiavice-presidentGregEstes
says: “Previously, cloud offer-
ings could not run graphics-rich
programmes such as Autodesk’s
AutoCAD and Adobe’s Creative
Suite, but we are now seeing more
and more companies moving
their most 3D-intensive users
to a virtual set-up. This allows
accesstocriticalapplications,any-
where, from any device, providing
employees with more flexibility
as well as eliminating the need for
local cumbersome desktops.”
This change could lead to con-
sumers gaming on the cloud. Mr
Estes forecasts: “It offers freedom
fromconsoles,whereserviceoper-
atorscanusethistechnologyasthe
base for their on-demand gaming-
as-a-service. This move will lead
to a revolution in gaming across
anydeviceofanyquality,beitaPC,
Mac,tablet,smartphoneorTV.”
Cost will remain a tricky area for
thecloud.It’sstillannoyinglyhard
to get a full picture on expendi-
ture and return on investment.
Service level agreements (SLAs)
need clearing up too. According
to Compuware, 79 per cent of IT
professionals believe SLAs are
sub-standard and 75 per cent say
cloud-providers may be hiding
problems, often using holes in the
SLA to get away with it.
Security will never stop being an
issue for the cloud. And now we
have regional legal issues to grap-
ple with. Do you want the United
States government to requisition
your data? What about EU data-
protection laws? It is revealing
that BT now permits its cloud cus-
tomers to locate their data in the
country of their choice; and there
are 16 to choose from.
One last prediction? The good
news stories will just keep com-
ing. Such as the Royal Society for
the Protection of Birds (RSPB),
which switched in-house automa-
tion processes over to a hosted
system by Redwood Software.
The cloud now handles the direct
debits, gift-aid paperwork and
donor tracking.
Does it work? The RSPB’s data
manager Andrew Oldham says:
“As a charity, we want to focus our
efforts on not-for-profit activity,
so it makes a massive difference
to us not having to worry about
hardware, infrastructure or main-
tenance costs. Automation has
been monumental in boosting the
charity’s productivity.”
No matter how the cloud devel-
ops, this is what matters.
Bespokeappdevelopmentonthecloudissomethingnewthat
forecasterspredicthasabrightfuture,writesCharlesOrton-Jones
	OVERVIEW
NEWCLOUDONHORIZON
ANDFORECASTISGOOD
Businesspeoplecancreateenterprise
cloudappswithoutaprofessional
programmingbackground
DISTRIBUTED IN
STEPHEN ARMSTRONG
Contributor to The Sunday Times, London Evening
Standard, Monocle, Wallpaper* and GQ, he is also an
occasional broadcaster on BBC Radio 4 and Radio 2.
TOM BREWSTER
Freelance journalist covering information security,
whose work has appeared in The Guardian and WIRED,
he was named BT Security Journalist of the Year in
2012 and 2013.
DAVE HOWELL
Freelance journalist, writer and micro publisher,
he specialises in business and technology, and has
written for a range of publications and websites.
MIYA KNIGHTS
Editor of Retail Technology magazine and website, she
also writes and consults for a number of national and
industry trade publications and analyst houses.
JOHN LAMB
Former editor of titles including Computer Weekly and
Information Week, he publishes Ability magazine on
technology for disabled people.
CHARLES ORTON-JONES
Former Professional Publishers Association Business
Journalist of the Year, he was editor-at-large of
LondonlovesBusiness.com and editor of EuroBusiness
magazine.
CAROLINE REID
Sport and business writer, she was formerly on the
staff of the official Formula 1 magazine.
PUBLISHING MANAGER
Michael Kershaw
DESIGN, ILLUSTRATION, INFOGRAPHICS
The Surgery
MANAGING EDITOR
Peter Archer
PRODUCTION MANAGER
Natalia Rosek
COMMISSIONING EDITOR
Charles Orton-Jones
Althoughthispublicationisfundedthroughadvertisingand
sponsorship,alleditorialiswithoutbiasandsponsoredfeaturesare
clearlylabelled.Foranupcomingschedule,partnershipinquiriesor
feedback,pleasecall+44(0)2034285230ore-mailinfo@raconteur.net
RaconteurMediaisaleadingEuropeanpublisherofspecialinterest
contentandresearch.Itcoversawiderangeoftopics,including
business,finance,sustainability,lifestyleandthearts.Itsspecial
reportsareexclusivelypublishedwithinTheTimes,TheSundayTimes
andTheWeek.www.raconteur.net
Theinformationcontainedinthispublicationhasbeenobtainedfrom
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canbeacceptedforanyerrors.Nopartofthispublicationmaybe
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	FINANCE
ȖȖ With internet-connected PC
andmobiledevicesrunningcloud-
based consumer software and
services, such as e-mail and social
networks,itiseasytoseewhycom-
pany finance departments want to
capitalise on the same cost-sav-
ings,accessibilityandconvenience
afforded their staff at home.
However, this vital line of busi-
ness has been comparatively slow
to realise the benefits of cloud
computing,comparedforexample
to its sales, marketing or human
resourcescounterparts,withtheir
highlydistributedandincreasingly
mobileworkforces.Aglobalsurvey
of 2,041 business executives, com-
missioned by Microsoft and con-
ducted by 451 Research, confirms
that 32 per cent of organisations
now include a formal cloud com-
puting plan as part of their overall
IT and business strategy.
A financial services sector study
published by Oracle, Accenture
and Longitude Research also
reveals 68 per cent of 1,275 execu-
tives are either planning to use a
cloud-based financial accounting
systemorarealreadydoingso.But
they are only likely to subscribe
or apply cloud-based software or
services in selective situations.
“Cloud is the single most dis-
ruptive force in technology,” says
Steve Cardell, president of enter-
prise services and diversified
industries at HCL Technologies,
who runs the IT software and
services provider’s enterprise
applicationsoftwarepractice.“But
I would also say that finance has
beenatthebackofthebus.Andfor
goodreason–theyhavealotmore
legal and regulatory compliance
considerations than some other
parts of a business.”
This cautious attitude is slowly
beginning to change in response
toemergingchallenges.Speed
of deployment and lower
capital costs, for example,
are often the primary rea-
son a finance department begins
to evaluate what the cloud can
offer. Hosted IT infrastructure
services, for instance, are help-
ing finance departments manage
seasonal peaks in demand for
computing power.
“Budgeting and planning often
need a huge amount of IT capac-
ity,” says Mr Cardell. “In some
cases, the month-end processes
can cause IT-based systems to
COUNTINGTHECOST
OFBEINGCLOUDLESS
Finance departments are playing catch-up in
switching to cloud-based accounting systems,
as Miya Knights discovers
Machines
inthecloud
Page06
grind to a halt. So most build for
the peak and don’t use that spare
capacity the rest of the time or
struggle to meet demand during
peakperiods.”Wheredatagovern-
ance and security is often written
into service contracts, he adds,
“cloud infrastructure can be most
helpful for cost-effective opera-
tional speed and agility”.
The finance department also has
a range of options when it comes
to cloud-based software, includ-
ing those developed for time and
expense reporting, for example.
“I call these input applications,”
says Mr Cardell. “They
are usually the
first area
of cloud-based finance software
adoption.” Used by management
and staff to provide finance with
vitaloperationsdata,theseapplica-
tions, which can often be accessed
through a browser or mobile
device, can streamline the gather-
ing and dissemination of account-
inginformationinreal-time.
Mr Cardell highlights the core
finance function itself as the place
where cloud adoption has so far
failed to keep pace with the rest of
the business. “These applications
tendtobehighlytransactionaland
are therefore more liable to risk
and regulation, such as payroll or
statutory financial accounting
packages,” he says.
This is because enter-
prise resource plan-
ning(ERP)software
has historically
required signif-
icant invest-
ment and
in-house
manage-
ment
where
“there are
just not as
many cloud prod-
ucts on the market,” Mr Cardell
says. Major vendors, such as
Oracle and SAP, have introduced
large enterprise cloud-based
ERP offerings. But cloud-based
vendors, including NetSuite and
Salesforce, are also mak-
ing headway in the mid-
market.
The finance department
of Broadway Malyan
made the move to cloud-
based accounting soft-
ware early. Anne Howard,
head of UK finance for
the international archi-
tecture practice, says it
has enabled more effec-
tive resource planning,
as well as cost-savings
and improved productivity.
“The business had already made a
move into cloud with Google Apps
a couple of years ago,” Ms Howard
says. “So we were open to cloud
solutions where finding a fit with
ourglobalbusinessmadecost,flex-
ibility and scalability paramount.
It means we have no hardware
costs and that the software is
constantly upgraded. And we can
expand access to the systems to
ourpeopleanywhereintheworld.”
She adds that, although security
is a major consideration, cloud
providers’ systems are often more
securethanbusinesseswhosecore
purpose is not IT related.
Broadway Malyan migrated to
Twinfield, integrating the provid-
er’s online, cloud-based account-
ing suite with the company’s
existing customer relationship
management system in 2012. Ms
Howardsaysthecompanyworked
with Twinfield to develop some
specific local functionality, which
included handling BACS (Bank-
ers’ Automated Clearing Services)
and cheque payments. But this
was preferable to buying a larger
enterprise package with “more
functionality than we needed”,
she says.
“It’s just been so easy. We have
better visibility of what’s happen-
ing internationally, where before
that would only happen when we
physically visited each office to do
an audit. And we can now spend
the time saved on value-added
areas rather than churning out
the accounts.” This includes more
business-facing analysis of opera-
tions, to reveal the least and most
efficient projects or most valuable
clients, for example. “And we can
run reports knowing the data is
automaticallyrefreshed,”sheadds.
MsHowardagreeswithMrCard-
ellthatthemainopportunitycloud
now offers is around reporting
and analytics. “Different business
functions can pull external data
sourcesandunstructureddatainto
cloud-based analytic platforms or
tools,” he says.
“You can run finance data
through Power BI, for example, to
produce tables and integrate this
dynamically with a presentation,
so that the content of the slides
changes whenever the underlying
data changes.” With benefits like
these, it is easy to see why 47 per
cent of organisations, surveyed
by researchers at Gartner, plan to
move their core ERP systems to
the cloud within five years.
Problemsfloatawayinthecloud
Theadvantagesofworkinginthecloudarejust
toogreattoignore,says Big Red Cloud
sion2.0andnewlicencesareneeded,
you’llbeopeningyourwalletyetagain.
The cloud does away with all of that.
A user can log-on via a web browser
to have full and immediate access
to the very latest version of their
accounts software. It doesn’t matter
which computer they use. It could be
via a tablet. It could be on a PC in an
internetcaféatNaritaairport,Japan.
The cloud application provider
takes charge of all hardware
requirements so there are no serv-
ers to buy and no visits from the man
with the drill. The cloud provider
handles and pays for all the ongoing
nitty-gritty, such as upgrades, anti-
virus and back-up. Costs associated
with these activities simply evapo-
rate. Oh, and no electricity bill spikes
either – not your problem anymore
asyouaren’trunningadatacentre.
By moving to the cloud you’ll be
benefiting from your partner’s
technical expertise. They will have
a large cohort of dedicated techni-
cal staff, way in excess of what an
individual firm could justify sus-
taining. And cloud providers have
access to lavish resources, such
as Microsoft Azure’s platform. This
is Microsoft’s datacentre offering,
which leases mass-scale technical
infrastructure to cloud hosts.
Marc O’Dwyer, chief executive of
BigRedCloud,whichbasesitscloud
accounting service on Azure, says:
“Microsoft has thrown millions at
Azure. It offers incredible resilience,
back-up and cost advantages. The
power of Azure is now available at
thefingertipsofsmallbusinesses.”
Shouldyouraccountsbeinthecloud?
At first glance this might seem unim-
portant. What does it matter? Can’t
the IT guys decide the technical stuff
like this? Well, yes, they can. But
the question of where to host your
accountingsoftwareiscritical.
Inadditiontothecostconsiderations,
there is a long list of operational ben-
efits to the cloud. When you start to
graspthedifferencesbetweentheold-
fashionedapproachofbuyingsoftware
and installing it on your own equip-
ment stored in your office, and the
cloudapproachwherebyallyouneedis
access to the internet, the advantages
oughttogetyouprettyexcited.
Let’s start with something basic,
like capital expenditure. The old way
of using software was to do every-
thing in-house. This required firms
to splash out on servers to run soft-
ware.Thebillsquicklyaddedup.
The software costs money. And
you’ve got to fork out for an IT guy
to install the software. He’ll need to
maintainittoo.Upgradesandpatches
must be applied. The data must be
backed-up, which costs money. You’ll
need to make sure your anti-virus
systemisuptothejob.
The expenditure doesn’t end there, as
there are hidden nasties, like the cost
of ethernet cabling, electricity bills
andforkingoutforatechniciantodrill
holes in your walls to accommodate
your bulky kit. And there is possible
downtimeduringupgrades.Butwhen
the software maker launches ver-
This means even the smallest
firm can have the same technol-
ogy at its disposal as the very larg-
est. The cloud will change the way
your firm works, for the better.
There are game-changers. For
example, accountants can use the
cloud platform to access data in
real-time.
Mr O’Dwyer explains: “If you are
not in the cloud there is a time-delay.
Firms need to download their data
to a file and then send that to the
accountant. This is not a responsive
way to work. But with the cloud, the
accountant can look at the financial
information at any time of day and
always get the very latest picture.
This means the accountant can take
amoreactiverole.
“They can use our business intelli-
gencetoolstogiveadvancedinforma-
tionondebtorsdays[howquicklycash
is being collected from debtors] or to
warnexecutivesthatcashcollectionis
behind schedule and action needs to
be taken. It changes the relationship
between accountants, book-keepers
and their clients. It is for this reason
we offer free access to accountants
andbook-keepers.”
The same is true for business-own-
ers as real-time information gives
more accurate insight into the busi-
ness, allowing for faster and more
insightfuldecision-making.
There are additional improve-
ments, such as the ability to hot-
desk in the office. Workers can use
any machine to access accounts.
Perhaps you are stuck at home
with the kids or need to address an
urgent issue when on holiday. With-
out the cloud, you are reduced to
using some sort of “remote login”
third-party application or must
wait for someone to download and
e-mail you the files you need, which
may be out of date by the time you
get them. With the cloud you have
instant access to everything.
And the old system meant invoices
couldn’tbeprocesseduntiltheaccount-
antshaddonetheirwork.Withthecloud
thereisnodelay.Ifnecessary,therecan
be an ongoing conversation between
multiple parties, all viewing the same
accountsfrommultiplelocations.
For fast-growing firms the cloud
offers seamless – and limitless –
expansion possibilities. You simply
aren’t going to hit a point where your
ITguyshakeshisheadandsays,“The
server is full”. In the cloud, it is com-
pletelyscalableandsimpletoaddten,
a hundred or a thousand new staff to
an application. With Big Red Cloud
an unlimited number of users are
allowed,fornoextrafee.
Maybe though the biggest pay-off is
mind-space. Business-owners need
to focus on their core activities. They
should not spend valuable time trying
toboneuponhowadatacentreshould
berunorwhethertheirsoftwareisup
todate.Thecloudmeansyoucanforget
aboutreamsofnigglingissuesforever.
Pick the right cloud partner and
you can take your business to new
heights. Big Red Cloud founder Mr
O’Dwyer says: “Big Red Cloud is
simple to implement, works from
the get-go and comes with full tel-
ephone support. We’re here to help
smart modern enterprises make
better business decisions and set
thefoundationforfuturegrowth.”
Clarity of mind, lower costs, maxi-
mum up-time, automated back-ups,
anywhere-access, easy expansion,
improved management control and
greater security all come as standard
in the cloud. It is pretty much impos-
sible to achieve anything similar in-
house. That is why there is so much
excitement about the cloud. You’d be
crazynottotakeadvantage.
Formoreinformation,pleasecontact
MarcO'Dwyer
Tel:01619268822
Web:bigredcloud.co.uk
E-mail:info@bigredcloud.com
Thecloudmeansyoucanforget
aboutreamsofniggling
issuesforever
THECLOUDAPPLICATION
ON-PREMISE
Largeup-frontcapital
infrastructureandinstallation
costs.Extrairregularpayments
Generallyonelicenceper
computerwithdatadownloads
andmanuallydistributedfiles
E-mail or physical back-up
data exchange with risk of
being out of synch
Server, hardware and
infrastructure required
Manual, potential downtime
and extra licence costs
Often pay for
separate licences
In-house reliability,
storage and back-
up issues
Extralicencesneeded
Nocapitalexpendituretoget
upandrunning.Regularand
predictablepayments
Real-timeinformationanywhere,
anytimewithinternetconnection
Real-time updating of a
single data set by client
and accountant
No limits. Accommodates
increasing volumes of data
Automatic, with every user
on the same version
Included in
subscription cost
Major industry specialist
delivers the required and
secure computing power
Potentiallyunlimited
FINANCIAL
USERS
BUSINESS
ACCESS
ACCOUNTANT'S
ACCESS
SCALABILITY
UPGRADES
TECHNICAL
SUPPORT
PLATFORM
SaaS CLOUD MODEL
COMPAREIN-HOUSEANDTHECLOUD
UPDATE
RECORDS
REAL-TIMECOLLABORATION
ACCOUNTANT BUSINESSOWNER
SIMPLEAND
INTUITIVEINTERFACE
SIMPLEAND
INTUITIVEINTERFACE
CLOUD FOR BUSINESS CLOUD FOR BUSINESS
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	 INTERNETOFTHINGS
ȖȖ Understanding the societal
impact of computing and test-
ing the possibilities of machines
withhuman-likeintelligencehave
always been passions of Sir Nigel
Shadbolt. Yet he recognises the
threats concomitant with trusting
toomuchincode,eveniftheyseem
like science fiction to some.
It’s only been 12 months since
Sir Nigel was knighted for his ser-
vices to science and engineering,
but his work stretches back 30
years. Over that time, through his
psychology and computer science
research, he’s seen the inexorable
spread of the internet as a force
for change and is now keeping
a watchful eye on the so-called
internet of things.
This will see the spread of con-
nected,automateddevices,largely
operating on their own, suppos-
edly for the benefit of the general
public. They will be powered
by cloud-based systems, again
consisting of collections of highly-
automated machines, spread
across global data centres, with
the ability to deal with massive
fluxes of traffic – something the
growing pool of connected things
isexpectedtodeliver.Fortheaver-
age home-user, this means being
able to let computers decide how
best to manage their energy use to
save money or having their fridge
send alerts when groceries have
reached their use-by date.
But Sir Nigel believes the most
successful internet of things pro-
jectswillinitiallybenefittheemer-
gencyservicesandurbanplanning
groups,astheycantakeadvantage
of open data streams. He has been
impressed by one initiative using
avarietyofinformationsourcesto
placeambulancesasclosetolikely
incidents as possible and expects
cities to get greener with more
efficient energy usage thanks to
automated controls.
In a bid to further the benefits
of the web for the common man,
Sir Nigel and his team at the Uni-
versity of Southampton, where
he is a professor of artificial intel-
ligence (AI) and head of the Web
and Internet Science Group, are
working on the study and practice
of social machines (SOCIAM).
The project will determine how
to develop distributed, crowd-
powered systems that have the
potential for profound impact on
individuals, businesses and gov-
ernments. “We want to make that
a routine way in which business is
done,” he says.
He also founded the Open Data
Institute (ODI) with the forefa-
ther of the world wide web, Sir
Tim Berners-Lee. The purpose of
the ODI is to encourage govern-
ment and businesses to open up
sourcesofdataforthepublicgood.
Yet Sir Nigel believes this idea of
openness needs promoting across
other areas to ensure the inter-
net continues to bring benefits
to a wide audience, whether via
web browsers, the cloud or con-
nected “things”.
Inparticular,ina“post-Snowden
world” and one in which a handful
of companies have massive power
over the way the web works, he
worries about excessive control
over the internet. He frets about
“intrusive and exclusive control
by any agency”, whether a state
agency, such as the US National
Security Agency, or an organisa-
tion on the scale of Facebook and
Google. Despite the intrusions on
privacysuchentitieshavebrought,
Sir Nigel is still hopeful. “The
thing that depresses me is when
people just sit on their hands and
say privacy is dead, get over it. It’s
entirely in the hands of our soci-
ety,” he says.
His answer is to build account-
ability into the internet, by having
tracking working for the average
user, rather than against them.
“We’vegotmorecomputingpower
than ever; some of it should be
devotedtothisissueoftrackingfor
ourbenefit,”headds.“Thewayyou
can do that is doing what’s called
‘accountable computing’, where
there’s a trace associated with the
flowofdatainthesesystemsabout
whereit’sbeen,whohashadaccess
to it.”
Those building the architecture
of the internet also need to be
wary of granting machines too
much decision-making power
through AI. “You have to keep
asking yourself, if we keep grant-
ing autonomy to these systems to
takedecisionsonourbehalf,dowe
understand the full range of their
responsesandtheside-effectsthat
might have?
“Fundamentallywehavetoaskat
everypointwherewe’redelegating
decision-making authority, do we
know how to take it back and do
we understand the limits of that
authority? That’s really crucial,”
he says.
While cloud systems have seen
failures, for example when Goog-
le’s Gmail goes down or Amazon
Web Services hosting collapses
causing websites to go dark, they
stillworkmostofthetime.Aslong
asmachinesarecodedresponsibly,
these systems will continue to
operate adequately, says Sir Nigel,
and the same goes for other, more
contentious technologies, such
as weaponised military drones.
“You have to put those rules of
subservienceintothefundamental
software systems,” he says.
Sometimes the code giving
machines their instructions does
get out of control, so much so that
humans cease to understand how
they work. “We’ve got this very
interestingareaofAIcalledgenetic
algorithms where you essentially
evolve programs,” Sir Nigel says.
“Those programs can do things
that you stare at as a designer for
hours and hours to work out how
it’s doing what it’s doing.
“There’s a very good example
in electronic design where they
had a program to design oscil-
lators and amplifiers, simple
electronic circuits. They found
some of these designs that the
genetic algorithms had evolved
and nobody could make any sense
outofthem.Thesystemhadlearnt
totakeadvantageofreallypeculiar
impurities and facets of the hard-
ware and the materials that you
wouldneverdesignforasahuman
designer. It’s fascinating, but it’s
kind of spooky.”
Yet fears of the fictional Skynet,
of a world in which machines
have taken over, are far-fetched.
It should be remembered humans
oftenmakefatalmistakes.Inmany
cases, we should trust machines
more than an individual with free
will and capacity for error, Sir
Nigel says.
He concludes: “What we do
know is that, in lots of routine
kinds of automation, the error
rates are much less than when
you’vegothumanoperatorsthere.
That’s just a sad fact. People make
mistakes more often than our
machines do.”
Fundamentallywehavetoaskat
everypointwherewe’redelegating
decision-makingauthority
Smartmachinescan
savetimeandmoneyin
thecloud
PLACINGOURTRUST
INTHEMACHINES
A fridge that knows the use-by date of food and appliances
which switch off to economise on electricity are just the start of
an internet-like network of machines increasingly entrusted to
make our decisions, writes Tom Brewster
Brightenup
business
Page12
ȖȖ Examples of national and
regional efforts to embrace the
cloud can be found in the United
States, Europe, Japan, China,
Singapore, Taiwan, Thailand and
many other countries and regions.
In the private sector, adoption of
cloud services is growing within
thebankingindustry,manufactur-
ing, healthcare and in many other
largecorporations,aswellassmall
and medium-sized businesses.
Despitethesimplicityoftheidea
of information and communica-
tions technology services offered
as a utility, on demand and pay-
as-you-go, the cloud computing
modelisbasedonacomplexchain
of interactions between multiple
parties, which operate in different
countries and cross jurisdictions.
The complexity and opacity that
sometimes characterise the cloud
“supply chain” have generated
somebarrierstofasteradoptionof
cloud computing, including:
•	Lackofclarityaroundthedefini-
tionandattributionofresponsi-
bilities and liabilities
•	Difficultiesachievingaccountabil-
ityacrossthecloudsupplychain
•	Incoherent global, and some-
timesregionalandnational,legal
frameworkandcompliance Wre-
gimes
•	Lack of transparency of some
service providers or brokers,
particularlyaroundsecurityand
risk management
•	Difficulties in performing inter-
nal and external due diligence
•	Lack of clarity in service level
agreements (SLAs)
•	 Lack of interoperability
•	 Lackofawarenessandexpertise.
A key underlying theme in all
theseistheneedforassuranceand
trustbetweencloudprovidersand
customers, and generally within
the overall ecosystem.
Barriers can be removed. Gov-
ernments, cloud service providers
and customers should be working
collaborativelytowardsincreasing
the level of trust in the market.
Tothisend,thedefinitionofsecu-
ritycontrolandcertificationframe-
works, SLAs, standardised contrac-
tualterms,andtheuseofcontinuous
monitoringarekeymeanstoprovide
moretransparencyandgovernance
tothecloudcustomer.
The European Commission strat-
egyforcloudcomputing,forinstance,
isbasedonthreemainpillars:
1. Identification of suitable stand-
ards and certification schemes
2. Definition of model terms
for SLAs, and contractual terms
and conditions
3. Definition of common
requirements in public sector
organisations, and use of public
procurementasamarketandqual-
ity stimulus.
Similarapproachesarecurrently
being adopted in the US and Asia-
Pacificregion.Cloudprovidersare
strivingtobecomemoretranspar-
ent, especially when it comes to
security and privacy.
Cloud Security Alliance (CSA)
STAR, a voluntary registry where
cloud providers can publish the
results of their security assess-
ment – either self-assessment
or third-party audit-based cer-
tification – against the CSA best
practices, namely Cloud Control
Matrix, is a clear example of cloud
providers’ willingness to maintain
the trusted relationship they have
with existing customers and to
provide assurance to potential
new ones that their service will
be sufficiently secure. Assurance
is provided by telling customers
whicharethesecuritycontrolsand
measures in place to manage risks
to their infrastructures, services
and data.
The objective is to put the cus-
tomer in a position to compare
competing offerings against their
requirements, to make informed
decisions when choosing the ser-
vicetheyneedandtobeableverify,
duringtheservicedeliveryphase,if
realitymatcheswhatwaspromised.
These are certainly steps in the
right direction and point to the
creationofamarketwheresecurity
is a market differentiator, where
transparency is the general rule
andobscuritytheexception.Cloud
solution providers have business
incentives to be transparent, to
shareinformationwithregulators,
enforcementauthorities,aswellas
current and potential users, about
their security practices.
The most obvious business
incentive is based on the simple
logic that the customer is more
likely to buy services only from
those providers which provide
enough information to effectively
managetheirrisks.Inthisrespect,
the example of an incident man-
agement process is very illustra-
tive; in fact a cloud customer
necessarily needs information
and co-operation from the cloud
provider to be able to manage an
incident properly.
Policy-makers are playing their
part by introducing a number of
“soft” policy measures, as well as
newbindingrulesontransparency
and accountability. We have also
seen a more proactive approach of
somecloudsolutionproviderswho
are voluntarily sharing relevant
information with the general pub-
lic. What is still missing, perhaps
surprisingly, is a more active role
of cloud service customers.
Cloud Security Alliance is a
not-for-profit organisation focus-
ing on best practices, standards,
research-provider certification
and education in cloud computing
security. CSA’s activities include
the Open Certification Frame-
work/STAR Certification, aware-
ness and educational campaigns,
conferences, seminars, summer
schools, webinars, educational
papers, guidelines for companies
and government, and finally train-
ing and professional certification
through the CCSK (Certificate of
CloudSecurityKnowledge).
TRANSPARENCYAND
ASSURANCEFOR
ATRUSTEDCLOUD
Shareanddiscussonlineatraconteur.net
	OPINION
Cloudcomputingisbecomingamaturebusinessmodel,
andmanycompaniesandgovernmentsaroundtheglobe
areimplementingstrategiestoembracecloudservices,says
DanieleCatteddu,managingdirector,Europe,theMiddle
EastandAfrica,atCloudSecurityAlliance
raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0908
CLOUD FOR BUSINESS
CLOUD FOR BUSINESS
ȖȖ WhentwoHelpforHeroesweb-
sites crashed under the weight
of traffic following the murder of
soldier Lee Rigby in the streets of
London, the charity turned to the
cloud to make sure it did not hap-
pen again.
“Before that I was a bit of a
sceptic about the cloud,” admits
Charles Bikhazi, head of IT devel-
opment at Help for Heroes. “But
the move was forced upon us by
events – we needed to be able to
handle these spikes in demand.”
As cloud services move into the
mainstream, companies ranging
from the giant Coca-Cola down to
the small, corner restaurant are
looking to the web to deliver their
information and communica-
tions technology (ICT). Although
most avoid Help for Heroes’ crash
course in technology, many strug-
gle to make informed decisions
about the cloud.
Marketing hype and the absence
of reliable, independent analysis
make it difficult for hard-pressed
managers to understand an eco-
system in which nearly every
ICT function from servers and
storage to application software
and telecommunications has its
cloud equivalent.
Underlying the services is a bit-
ter commercial struggle involving
suppliers that only operate in the
cloud and established firms jug-
gling their cloud offerings with
older products developed for use
“on-premise”.
The competition has led to
keenerpricesforsomecloudprod-
ucts, although comparing services
iscomplicatedbythelargenumber
ofsuppliersandthemanydifferent
ways they have of presenting and
charging for their wares.
For example, providers are not
abovemakingcloudbuyerspayfor
resources that they do not need.
Organisationsmaybeaskedtobuy
extra disc storage and processor
power in order to get the amount
of main memory they require.
“Many of these problems stem
from[services]thatweredesigned
aroundlegacyarchitectures,which
is why we see such dramatic per-
formance and cost differences
among providers,” claims a study,
from cloud company Profitbricks,
called The Secret World of Cloud
Integration-as-a -Service Pricing.
The industry has created an
alphabetsoupofjargontodescribe
its technology. At the top floats
Software-as-a-Service (SaaS), the
longest established cloud service.
In SaaS, software solutions and
associated data are held centrally
by one or more suppliers and can
be accessed by their customers
throughanyPCwithawebbrowser.
Common business applications
– e-mail, human resources man-
agement, customer relationship
managementandaccounting–are
available as a service from well-
known names such as Salesforce,
Microsoft and Google. Instead
of laying out for a single licence,
customers pay monthly for each
user, sometimes according to how
muchtimeusersactuallyspendon
the service.
AlthoughSaaSisthelargestmar-
ketforcloudcomputingatpresent,
in the longer term Platform-as-a-
Service(PaaS)islikelytobeamore
important sector.
PaaS is aimed at business man-
agers who want to develop and
adapt their own applications.
Suppliers provide both the hard-
ware and operating systems for
running applications, and the
tools for developing them. The
tools are usually presented as an
application stack.
	ECOSYSTEM
Howthecloudworksandinteractswith
othertechnologyasanIT“community”can
beconfusing,unlessyoureadJohnLamb’s
jargonbuster
UNDERSTAND
THECLOUD
ECOSYSTEM
LOOKINGBEHINDTHECLOUD
Theindustryhascreatedan
alphabetsoupofjargonto
describeitstechnology
TheadvantageofPaaSisitmakes
itmucheasiertodevelopnewbusi-
ness processes without involving
IT experts. Off-the-shelf services
enable managers to develop and
adapt business applications with-
out incurring high costs and long
lead times.
The business of loading up a
server with systems, data and
software, known as provisioning,
is faster in the cloud. End-users
areabletoselectandremovecloud
services by themselves. Indeed,
many services include software
that adds additional resources
automatically.
Infrastructure-as-a-Service
(IaaS) is the third main category
of cloud service. It is aimed at
organisations that want to reduce
the amount of money they spend
on buying,hostingandsupporting
their computer servers.
IaaS providers offer comput-
ing power on a rental model
that IT departments can access
instead of buying their own serv-
ers and running the risk of having
too much or too little capac-
ity. Organisations access virtual
machinescreatedwithinsuppliers’
datacentres.
A price war has already broken
outbetweenmajorplayers,suchas
Amazon Web Services, Microsoft
Azure and Google Cloud. In April,
Microsoft cut the price of renting
virtualmachinesbyuptoathirdin
order to match earlier reductions
by Amazon. Not to be outdone,
Google has followed suit.
Recent tests of the performance
of virtual servers on Amazon EC2,
Google Compute Engine, and
Microsoft Windows Azure, carried
out by InfoWorld magazine, put
Googleaheadintermsofspeedand
cost, closely followed by Azure. But
thatpeckingorderislikelytochange
asthesuppliersjockeyforposition.
Amazon and Google’s public
cloud services have grown out
of the huge server capacity the
companies built up to run their
own businesses. Microsoft on the
other hand is a relative newcomer
and has adopted a hybrid strategy
with Azure mixing private and
public cloud.
There are growing pains. Some
service providers suffered outages
lastyear,butthatseemsunlikelyto
dent the growth of a business that
now sees Amazon installing more
server capacity each day than its
entire business required to run a
decade ago.
Few organisations of any size
have moved their ICT entirely to
the cloud; most manage a mixture
of existing software and hardware
on their premises together with
new cloud services.
They must also choose between
buying public cloud services that
are shared with other users and
building their own private cloud.
Many users opt for a hybrid
approach, running a mixture of
public and private cloud services.
For example, Help for Heroes is
keepingitsall-importantdatabase
ofdonorsin-houseforthemoment
and relies on its cloud supplier
Rackspace to provide additional
computing power when needed.
However, in future Mr Bikhazi
is looking to expand Help for
Heroes’ use of the cloud. Projects
include introducing cloud-based
customer relationship manage-
ment and adopting Microsoft’s
Azure, which provides both IaaS
and PaaS resources.
Help for Heroes will also take
advantage of the free access to
Office365,theSaaS thatMicrosoft
offers to not-for-profit organisa-
tionstorune-mailandPowerPoint
applications online.
Managing a transition like this
can be tricky. “Businesses can find
themselvescobblingtogetherend-
to-end processes as a result,” says
Jez Back, cloud expert at manage-
ment consultancy Deloitte UK.
Recently, cloud brokers have set
upshoptoaidtheprocess.Brokers
combine technology, consulting
and buying power. They act as
middlemen between business
users and cloud suppliers, putting
together packages of services.
Securityremainsoneofthehottest
issuesforcloudusers.NationalSecu-
rity Agency whistleblower Edward
Snowden’s revelations about the
extent of covert data gathering
by security services in the United
StatesandtheUKhaveundoubtedly
affected corporate attitudes to the
securityofcloudcomputing.
Around two thirds of organisa-
tions not currently using cloud
feel the revelations have pre-
vented them from moving their
ICT into the cloud, according to
the NSA After-shocks survey by
the Japanese communications
company NTT.
Many are looking for reassur-
ance about where their data will
be stored in increasingly global
networks of cloud datacentres.
But looking ahead the cloud is
likely to provide fewer shocks. It
will become more transparent as
suppliers fine tune their services
and terms of business. Mean-
while, customers will buy with a
greater certainty of what they will
be getting.
Shareanddiscussonlineatraconteur.net
CLOUD
SERVICE
MODELS NUMBEROFPROVIDERS
DATABASE,WEBSERVER,
DEVELOPMENT TOOLS...
VIRTUAL MACHINES,
SERVERS, STORAGE,
NETWORK...
THECLOUDPYRAMID
CRM, E-MAIL,
VIRTUAL DESKTOP,
COMMUNICATION,
GAMES...
Software-as-
a-Service
Platform-as-
a-Service
Infrastructure-
as-a-Service
CLOUDCLIENTS-APPS,BROWSERS,MOBILES
PUBLICCLOUDSERVICES,WORLDWIDE(US$M)
Source: Gartner 2014
MOST
POPULAR
LEAST
POPULAR
WHICHSERVICESAREYOUUSINGINTHEPUBLICCLOUD
ORTHEPUBLICPORTIONOFYOURHYBRIDCLOUD?
42%
Collaborationsoftware
42%
IaaS
39%
Disasterrecovery
56%
Cloudstorage
62%
SaaS
23%
Cloud-based
networkmanagement
26%
Businessintelligence
21%
Security-as-a-Service
21%
Hybridcloudintegration
13%
Desktop-as-a-Service
SaaS
PaaS
IaaS
PUBLIC,PRIVATEORHYBRIDCLOUDSTORAGE?
35,777
2,492
22,374
3,604
9,208
132,605
49,060
5,045
38,720
7,199
25,117
214,313
53,553
5,957
45,503
8,718
32,802
253,436
20152013
Cloudbusinessprocess
servicesTOTAL
2014
Cloudapplication
infrastructureservicesTOTAL
Cloudapplication
servicesTOTAL
2016
Cloudmanagementand
securityservices TOTAL
2017
Cloudsysteminfrastructure
servicesTOTAL
2018
Publiccloud
servicesTOTAL
58,843
6,912
52,911
10,136
41,826
293,918
THOUSANDS OF
APPLICATIONS IN
THE CLOUD
FEW CLOUD
PLATFORMS
ELITE GROUP
OF PROVIDERS
SCALABILITY
SECURITY
PERFORMANCE
RELIABILITY
COST
PUBLICCLOUD PRIVATECLOUD HYBRIDCLOUD
Veryhigh Limited Veryhigh
Good,butdependsonthesecurity
measuresoftheserviceprovider
Mostsecure,asallstorageis
on-premise
Verysecure;integrationoptionsadd
anadditionallayerof security
Medium;dependson internet
connectivityandservice
provider availability
High,asallequipment
ison-premise
Mediumtohigh,ascached
contentiskepton-premise,but
alsodependsonconnectivityand
service provider
Verygood;pay-as-you-gomodel
andnoneedforon-premise
storage infrastructure
Good,butrequireson-premise
resources,suchasdatacentre
space,electricityand cooling
Improved,sinceitallowsmoving
some storageresourcestoapay-
as-you-gomodel
Lowtomedium Verygood Good,asactivecontentiscached
on-premise
Source:TechTarget 2013
Source:Raconteur
40,207
3,330
27,321
4,643
13,341
157,776
44,555
4,143
32,646
5,830
18,585
184,537
CLOUD FOR BUSINESS
11raconteur.net twitter: @raconteur10 raconteur.net twitter: @raconteur
ȖȖ Over the past few years, more
businesses have discovered the
benefits of using the cloud to pro-
vide elements of their IT infra-
structure. Often the initial deci-
sion will have been based around
costefficienciesandtheattraction
of not having to pay large upfront
costs, but for many the cloud has
also been a source of innovation
that has helped to drive organisa-
tionalgrowthorchangethewayin
which they operate.
One of the biggest advantages
has been the ability to experiment
with new offerings without hav-
ing to commit to costly projects.
“Many business leaders will tell
you that true innovation is try-
ing out different ideas and cloud
computinghasbrokendownsome
ofthetraditionalcostbarriersthat
can prematurely halt this kind of
trialanderror,”saysAndyBarrow,
technical director at ANS.
“If a small enterprise is develop-
ing a smartphone application or
website for particular territories,
public cloud providers like Ama-
zon or Google can be used to build
apresenceandrolloutacampaign
quickly, while only paying for the
cloud provision that they need in
each of those territories.”
Othershavefoundmoreefficient
ways of working on the back of
being able to access information
from almost anywhere, across a
rangeofdevices.“Physicallocation
no longer matters, so the best tal-
ent can be sourced wherever they
are to create unique, global teams
basedonexpertise,”saysPeteBax-
ter,vicepresidentatAutodeskUK.
“The cloud is enabling businesses
todowhattheycouldn’tdobefore.”
The ability to access software
through the cloud is also helping
IT departments provide extra
resources or functionality to busi-
ness teams, without physical or
geographicrestraints.“Cloudplat-
forms are allowing thousands of
point solutions to be developed
by IT and the business alike,”
says Steve Cardell, president of
enterpriseservicesanddiversified
industries at HCL Technologies.
“Thisisahotbedofinnovationand
creativity,bringingthepotentialto
enrich every job role.”
	 AGILITYANDINNOVATION
CASESTUDY
CASESTUDY
TRACINGSUCCESSTOTHECLOUD
GETTINGACAFFEINEBOOST
Demand-generationmarketingagencyTrace-
pointstartedupthreeyearsagoanddecidednot
toownanyserverhardware,butinsteadtorely
onthecloud.
Thebusinesssawimmediatepracticalbenefits,
particularlyaroundsharingfileswithclients
andstaff,buthasalsousedthecloudtohelpit
becomemoreinnovativeandresponsive,toboth
itsownneedsandthoseofclients.
CompanyfounderJamesCoxsaysthereallight-
bulbmomentwaswhenthebusinessswitched
fromatraditionalaccountancymodeltoacloud-
basedpackage.“Althoughwewerequitequick
atgettinginvoicesandexpensesacrosstothe
accountants,itwouldtakefourorfiveweeksto
getfinancialinformationbackintothebusiness,”
saysMrCox.“Nowwecancloseourbooksfive
daysaftertheendofthemonth,andveryquickly
seewhichactivitiesareproducingthebest
resultsandwhichneedsomeattention.”
Thecloudmodelhasalsohelpedthecompany
competewithmuchbiggeroperatorsbyenabling
ittoaccessarangeofsoftwarepackagestooffer
clients.“Thesebringtogetherdatasilos,inplaces
suchasGoogleAnalytics,customerrelationship
managementorsocialmediasoftware,andcon-
nectitalltogether,”hesays.“Itwasalwaysmuch
moredifficulttolinkupdifferentpartsofthebusi-
nesswhenthingsweren’tinthecloud.”
LikeMrMilligan,MrCoxattributesmuchofhis
business’ssuccesstothiswayofworking.“We
wearitasabadgeofhonourthatwehavenever
lostaclientandwecouldn’thavegrownaswe
havewithoutdeliveringatangibleimpacttotheir
businesses,”hesays.“Wecouldn’thavedone
thatwithoutthecloud.”
ForAndyMilligan,founderofconsultancy
firm CaffeinePartnershipandauthorof
Brand ItLikeBeckham,thecloudhascome
toepitomisetheinnovationhisbusiness
stands for.
“Whenwefirstsetup,wewantedtobean
unconventionalconsultancysowelookedat
whatwewoulddodifferently,”says
Thecloudisenabling
businessestodowhatthey
couldn’tdobefore
This ability is helping organisa-
tions embrace trends, such as big
data, modelling and simulation,
and 3D animation, says Professor
Sian Hope, chief executive of HPC
Wales. She gives the example of
architectural visualisation firm
iCreate, which has used the pro-
cessing power of supercomputers
based in the cloud to improve
details of its animations and
reducetheamountoftimeitspent
rendering them. “This increased
quality, alongside faster produc-
tion speeds, allows the company
to compete more effectively in a
globalmarket,takingonlargerand
more ambitious projects, and pro-
viding services to more customers
thanpreviouslypossible,”shesays.
But Chris Harding, director
of interoperability at The Open
Group, a vendor and technology-
neutral IT consortium, also has a
wordofwarning,despiteacknowl-
edging the potential of the cloud
as a source of innovation. “The
advantages of being able to use
resources as and when you need
them, and paying only for what
you use, often make the decision
tousecloudfordevelopmentano-
brainer,” says Dr Harding.
“Buttheconsiderationsforlong-
term operation of systems are
very different and cloud is not
always the best solution. Do not
fall into the trap of relying on the
specialfeaturesthatyourdevelop-
ment cloud provides, so that it is
impossible to move to an in-house
or hosted platform, or even to
anothercloudproviderthatmaybe
more economic for your produc-
tion system.”
INNOVATIONISAS
FREEASACLOUD
Flexibilityofferedbycloudcomputing
makesbusinessesmoreagileandableto
innovatewithoutcostlycommitmentstoIT
infrastructure,asNickMartindalereports
MrMilligan.“Wethoughtnimblenesswasthe
key,andtodothatweneededpeoplewhowere
reallygoodatthinkingsmartlyandquickly.”
Byenablinggenuinelyflexibleworking,the
company’suseofthecloudhashelpedboth
recruittherightkindofpeopleandcreatethe
conditionsinwhichtheirnaturalinstinctscan
flourish.
“Ourclientstendtobeseniorleadersand
ourpropositionisgivingthemexperienced
businesspeoplewhowillhelpthemtogrow,”
hesays.“Youcanonlydothatifyouhave
expertpeople,andtheytypicallytendtobe
self-startersanddon’twanttobemanagedina
traditional way.”
Morepractically,thecloudalsomeansstaffcan
bebasedalloverthecountry,whichallowsthe
growingconsultancytorespondquicklytonew
projects.“Ifaclientasksifwecanstartwork
tomorrowinBirmingham,Glasgoworeven
overseas,wecansayyesbecausewe’llhave
oneofourconsultantassociateswhodoesn’t
livethatfaraway,”saysMrMilligan.
Thecloudalsocreatesaculturewhere
partneringwithotherorganisationsbecomes
thenorm.“Theabilitytolinkupwithnimble
networksallowsustocreateamuchbetter
offering,”hesays.“Atrulyinnovativemindsetis
naturallycollaborative.”
sioned by Adapt, 75 per cent do not
feel that their cloud provider really
understands their business and one
in four businesses does not expect
their cloud provider to be meeting
their business needs within the next
12months.
The survey, conducted by Easy-
Insites on behalf of Adapt in March
2014, comprised 102 respondents
from commercial organisations
with 200-plus employees in the
UK. It discovered that cloud is cur-
rently used to support a wide range
of requirements. Some 60 per cent
of businesses use it to manage
diverse workloads from test and
development to business-critical
applications, with specific com-
pliance and governance require-
ments and varying infrastructure
demands. With this diversity comes
natural specialism – you wouldn’t
put your low-priority workloads
on an expensive extreme perfor-
mance platform in the same way
you wouldn’t buy a Ferrari to tow a
caravan – it’s about fitness for pur-
pose and the most efficient, appro-
priate solutions for the objectives
you need to achieve.
What all businesses agree on is
the need to drive maximum return
from their existing investments and
develop a future strategy that is both
relevant and the right-fit. So can one
provider do it all? Tellingly, some 62
per cent of businesses are already
multi-sourcing and 53 per cent of
respondents had learnt from experi-
ence that a single provider could not
meetalltheirneeds.
Provider specialisms can help busi-
nesses achieve more, faster. How-
ever, managing a range of provid-
ers requires considerable time and
effort on the part of in-house teams,
Three quarters of UK businesses
are now officially “in the cloud” in
one form or another. The universal,
horizontal benefits of agility and
utility are undeniable and compel-
ling, but businesses still need to be
able to translate these into enable-
ment and competitive advantage
to really get the most out of their
cloud investments.
Not all clouds are created equal,
and depending on your drivers,
desired outcomes and preferences,
some will be a far better fit than
others. But in a fragmented, rap-
idly evolving provider market that
features niche startups, traditional
infrastructure providers, telcos
and a technicolour array of differ-
ent propositions and services, it is
hard to be (and stay) well informed.
It’s sometimes difficult to know
where to go and how to map your
changing requirements to individ-
ual provider capabilities.
Amismatchisevidentbetweenwhat
UK businesses need versus what
they actually get from their provid-
ers. According to research commis-
forcing investment at both a service
management and supplier manage-
ment level, and potentially missing
out on economies of scale. The indi-
vidual providers meanwhile inevi-
tably have an incomplete view of
the customer, so organisations are
not aligned to support their overall
long-termgrowthstrategy.
Against this backdrop, the idea of
working with a single overall pro-
vider that manages these various
relationships can be highly appeal-
ing. Cloud brokers or aggregators
match organisations with providers
that can service their needs at a par-
ticular point in time, or on a certain
cost model. But because the broker/
aggregator is a tactical rather than
strategic role, their ability to develop
long-term relationships that evolve
withcustomerdemandislow.
Another option is the cloud inte-
grator. Integrators are the advisory
conduit between the business and
what the complete provider land-
scape can deliver. Unlike brokers
and aggregators, who simply bundle
ABOUTADAPT
multi-provider services together to
be consumed through one contract,
integrators take the long-term part-
nership view, comparing providers
and clouds through the eyes of your
business, and evaluating the poten-
tial for specific commercial, opera-
tional, technical and compliance
gain. Cloud integrators are not cre-
atedovernight–ittakesyearsofreal-
world experience and significant
investment in platforms, people and
processestoreallydeliverresults.
But the fundamental difference is
that the integrator takes account-
ability and responsibility for end-
to-end service management,
bringing together provider, legacy,
customer-owned and public hyper-
scaler solutions to achieve a set
of goals or outcomes. This single
pane, comprehensive view reduces
complexity, and delivers more
meaningful insight and intelligence
back to businesses.
The integrator approach empow-
ers organisations to maximise their
return on investment, and really capi-
talise on the breadth of choice and
options available, maintaining a per-
manentlyoptimisedblendofservices,
solutions and providers that repre-
sent the best fit for delivering busi-
ness outcomes for today and tomor-
row’s aspirations. This is a marked
difference from the traditional out-
sourcing concept, under which cus-
tomers tend to be locked into three or
five-year cycles with little scope for
flexandchangealongtheway.
Crucially, it also releases in-house
IT teams from managing those rela-
tionships, freeing them to focus on
getting new products to market more
rapidlyanddeliveringreal-worldben-
efitbacktothewiderbusiness.
According to the research, almost
half (48 per cent) of UK businesses
expect to make big changes to their
cloudplatformsinthenext12months.
Ifyouareoneofthem,takethetimeto
consider your options carefully. Keep-
ing your teams focused on creating
business value and outsourcing the
effort, worry and uncertainty associ-
ated with choosing, migrating to and
managingmultiplecloudenvironments
mightjustbetherightmoveforyou.
Ifyou’dliketofindoutmoreabouthowa
cloudintegratorstrategycouldhelpyour
businessmakethemostofthecloud,visit
www.adapt.com/extending-your-cloud
Canoneproviderdoitall?
The rise of the integrator model helps UK businesses make the most
of the cloud, says Adapt's Tom Needs
Outsourcingtheeffort,worry
anduncertaintyassociated
withchoosing,migratingto
andmanagingmultiplecloud
environmentsmightjustbethe
rightmoveforyou
“Inrecentyears,financialuncer-
taintyhasforcedtacticaldecisions–
it’snowallaboutgearingforgrowth
again.Agoodcaseinpointwasacus-
tomerwhohadbeenacquiredand
leftwithcostlyout-of-supportlegacy
infrastructureandarequirementto
integratecomplexcoreHRandpay-
rollsystems.
“Ourexperiencemeantwewere
abletotakeonmanagementofthe
legacyand,collaboratingwiththe
customer,designedcreativetrans-
Adaptisanaward-winning,end-to-
endmanagedservicesproviderand
cloudintegrator.Wehelpcustomers
makethetransitiontohighlysecure,
scalable,enterprise-classITthat
deliversreal-worldadvantage,ena-
blingchangeandinnovation.
formationplansthatexploitedamix
ofpublicandprivatecloudservices,
whilemovingtowardscomplete
integrationwiththenewparent
company’ssystems.Theresult–a
fastertimetobenefitandasizable
costreduction,puttingthemina
strongpositiontogrowtheircom-
binedmarketshare.”
KevinLinsell
Headofservicedevelopment
Adapt
Adaptservicesincreaseagility.Our
integratedofferingspanstheentireIT
infrastructurefromend-to-endman-
agementandcloudservicesthroughto
colocation,hostingandcomplexnet-
workingsolutions.Formoreinforma-
tion,visitwww.adapt.com
INTEGRATEDCLOUDINCONTEXT
ONECLOUDPROVIDERDOESNOTFITALL
Useprivatecloud
65%
Usepubliccloud
43%
Usecommunitycloud
23%
Useblendedhybridcloud
31%
COMPANIESARETRYINGTOCREATETHERIGHTCLOUDMODELTOMATCHTHEIRNEEDS THEREISAMISMATCHBETWEEN
WHATBUSINESSESREQUIRE
VERSUSWHATTHEYACTUALLY
GETFROMPROVIDERS
OFUKBUSINESSESARE
OFFICIALLYINTHECLOUD
75%
USECLOUDFORBOTHBUSINESS-
CRITICALANDGENERALPRODUCTION
ACTIVITIES
60%
AREUSINGMORETHANONE
PROVIDER
62%
AGREETHATONECLOUD
PROVIDERCANNOTDOITALL
53%
DONOTEXPECTTHEIRCLOUDPROVIDERTOBE
MEETINGTHEIRBUSINESSNEEDSIN12MONTHS
DONOTFEELTHATTHEIRCLOUDPROVIDER
REALLYUNDERSTANDSTHEIRBUSINESS
Tom Needs
Chief commercial officer, Adapt
CLOUD FOR BUSINESS CLOUD FOR BUSINESS
13raconteur.net twitter: @raconteur12 raconteur.net twitter: @raconteur
	OPINION
Perceptionofthe
cloudisshiftingtothe
bestwayofmoving
companiesintothenew
ageofdigitalbusiness
CLOUDFOR
DIGITALBUSINESS
GregorPetri,Gartnerresearch
director,looksintothecloudand
thenewageofdigitalbusiness
33
Movefrombeing
anITbuilder
toaservicebroker
COMMERCIALFEATURE
The modern chief information officer needs to
focus attention on finding new ways to add value
to the business, says Dave Allen, NetApp vice
president for Northern Europe, the Middle East
and Africa, and general manager for UK  Ireland
Thethingsthatcreaterealvalue
aretheapplicationswhichpower
yourbusinessortheproductsyour
businesscreates
modityareas,youcanmakedecisions
about how to deal with them. Do you
have them delivered to you as a cloud
service? Or do you build shared infra-
structures that are highly efficient
and automated to reduce the costs of
running them? Typically this is a dis-
cussion focused on operational excel-
lence and legislative requirements,
ratherthantechnology.
The opportunity for CIOs to add
value and competitive differen-
tiation to the business increases
exponentially as investment shifts
from commodity IT to business
value IT and new opportunities.
According to Gartner, 63 per cent
of IT budget is spent running cur-
rent IT infrastructure, 21 per cent
on meeting the natural growth in
application performance require-
ments and data, but only 16 per
cent on new opportunities, where
there is the potential to create the
most value.
This is the challenge for a modern
CIO: how do you maintain opera-
tional excellence while increasing
investment on ways to add busi-
ness value and exploit your unique
data? How do you move from being
abuilderofITtoabrokerofservice?
NetApp creates innovative prod-
ucts, storage systems and software
that help customers around the
world store, manage, protect and
retain one of their most precious
corporateassets–theirdata.
For more information visit
www.netapp.com /uk
The IT market is changing faster
than ever. Industry trends, includ-
ing cloud, big data, mobile, flash
and the software-defined datacen-
tre, mean this will only acceler-
ate. The landscape is changing for
chief information officers (CIOs) as
workloads are becoming more dis-
tributed and hybrid cloud becomes
reality. So, given this complexity,
what should CIOs and the rest of
us in IT be discussing and thinking
about? Where should you be look-
ing to save money and where to
invest your time?
The things that create real value
are the applications which power
your business or the products your
business creates. With more focus
here it’s amazing how much addi-
tional value IT can add through
aggressive application of tech-
nology innovation. An example is
accelerating test and development
by enabling developers to instantly
create database copies. The focus
should be providing high levels of
automation and self-service.
Companies are constantly look-
ing to exploit data and informa-
tion, whether it’s social media
feeds, such as the Twitter Firehose
which streams 500,000,000 tweets
directly to you every day, new ana-
lytics tools, such as Hadoop, to
mine vast quantities of information
for trends and patterns or develop-
ing BYOD (bring your own device)
strategies to better enable your
mobile workforce.
For example, NetApp IT recently
deployed a Hadoop solution, which
has reduced queries on 24 billion
records from four weeks to less than
10.5 hours, accelerating the compa-
ny’s ability to respond to customers’
needs.Itenabledapreviouslyimpos-
sible query on 240 billion records in
less than 18 hours, further enhanc-
ing its proactive service capabilities.
A survey by Vanson Bourne shows
that 69 per cent of C-level executives
cite technology as one of the main
reasons why business decisions are
notbeingmadequicklyenough.
The things IT has to do to sup-
port the business are necessary
and time consuming, but typically
add little value. Ask yourself the
question, “If I started today from
scratch, what would IT do and
not do?”
Once you’ve identified these com-
ȖȖ For a while, business leader-
ship considered cloud comput-
ing merely as a smarter way to
do IT – with smarter most often
meaning faster, better and, espe-
cially, cheaper.
The part about the cloud being
faster is certainly true. Many a
company finds their IT depart-
ment is able to respond sig-
nificantly faster to their needs by
using cloud services. And if not,
they gain speed by going rogue,
simply bypassing their IT depart-
ment and going straight to the
cloud themselves.
Cheaper is a different question.
Eventhoughcloudproviders,such
as Amazon Web Services, Micro-
soft Azure and Google Compute
Engine, continue to lower their
infrastructureserviceprices,many
companies find that the cost of
infrastructure is only a very small
partoftheirtotalITcost.Sotheuse
ofthecloudisnotnecessarilymak-
ingoverallITsignificantlycheaper.
In response, perception of the
cloud phenomenon is shifting
from merely a smarter way to
facilitate “business as usual” to
the best way of moving companies
intothenewageofdigitalbusiness.
Digital has taken the business
communitybystorm.Afterdecades
of IT lingering at the bottom of the
annual chief executive top ten pri-
oritylistandcostreductionbecom-
ingthemostdiscussedaspectofIT
in boardrooms across the world,
the idea of gaining competitive
advantagethroughdigitalcapabili-
tiesisbackwithavengeance.
Granted, new imaginative
capabilities, such as 3D printing,
smarterdecisionsthroughbigdata
analysisandthepotentialofreach-
ing out directly to millions of con-
sumersthroughsocialnetworking
technologies, did more good to
the momentum of digital than IT
departments finding ways to run
their existing enterprise resource
planning system “in memory” or
“on Amazon”.
Thismadesomearguethatdigital
business should not reside under
the current chief of information
processing and indeed we are see-
ing the new role of a chief digital
officer or CDO emerge in many
organisations. Some old-school
chief information officers (CIOs)
may worry that these fast-moving
CDOs have the same devastating
impact on IT’s role as that other
type of CDO, collateralised debt
obligation,hadonfinancialmarkets
inthewakeofthesub-primecrisis.
Other CIOs cannot wait to
embrace the role themselves to
get back into making a real differ-
encebyusingthecloudtorunwhat
could be described as “software-
defined business”.
Over time, digital business will
make digital resources as impor-
tant to companies as today’s most
mentioned critical success factor
–humanresourcesorHR.Andjust
asbusinessesdidnotconcededay-
to-day control over their human
capital to a corporate staff depart-
ment, neither should we expect
them to do so with digital.
Already we see lines of busi-
ness taking a more active role in
defining their digital future. For
example, by bringing architects
anddevelopersbackintotheirline
organisation.Thatwouldmeanthe
emergence of “rogue” or “citizen”
ITisnotapassingfad,butasignof
times to come.
To manage this change, corpo-
rate IT will need to eschew its
traditional service provider role
for a brokering role, similar to the
roleofcentralHRincorporations,
to provide the crucial governance,
complianceandbusinesscontinu-
ity still needed in the ever-faster
moving digital economy.
Advertsforcloudcomputingareusuallyaboutasexcitingasthoseforanewmicrowave
oven.Youcanheatfoodupquicker,saysone;noupdatestoinstallandnobig
capitalexpenditure,saystheother.Thesedaysweallknowthere’smoretolifethan
microwavedfood.Andthesameistrueforthebenefitsofthecloud.Fiveyearsagothe
internetwaslikethehighstreetwithcompaniessellingtoconsumers.Nowit’scentral
toalmosteverycompany’sbusiness,connectingthemwithsuppliers,employees,
customersandpartners.StephenArmstronghasourtoptenwaysthecloudhelps
businesseswithsomeshop-freshexamples…
	 TOPTIPS
CLOUDCANBRIGHTEN
UPYOURBUSINESS
TEN
WAYS
JohnWinsor,chiefinnovationofficerat
HavasandchiefexecutiveatVictors
Spoils(VS),saysthecloudisrestruc-
turingtheadagencymodel.VSuses
aglobalteamoffreelancerspaidper
job.XeniosThrasyvoulou,founder
andchiefexecutiveofPeoplePerHour,
arguesthatcrowdsourcingtalentis
thefutureforflexiblefirms.Theonline
marketplaceletssmallfirmsadvertise
projects;freelancersrespond.
04DIFFERENT
WAYS
TO EMPLOY
06SHARING
INFORMATION
NewhamUniversityHospital
NHSTrustservesapopulation
ofsome240,000inEastLondon.
Theadventoftablets,smart-
phones,wi-fiandthecloudmeans
doctorsandnursescanaccess
datainstantlywherevertheyare.
DavidBolton,directorofpublic
sectormarketdevelopmentfor
QlikTech,saysthecompany’s
softwarespeedsupproductionof
reportsandsharesinformationvia
an online dashboard.
Lockingallsuppliersintoyour
supplychainallowsafreeflowof
information,measurement,and
costandinventorycontrol,says
DebraHofman,vicepresidentof
supplychainresearchatresearch
giantGartner.Thecompany
predictsthatby201660percentof
banksworldwidewillprocessthe
majorityoftheirtransactionsin
the cloud.
01SUPPLY
CHAIN
“Usuallyitiseasytodeploywherever
youwant,”saysRobKeenan,headof
UKportfoliomanagementatSiemens
EnterpriseCommunications.London
agencyJamesParkAssociates
designsfirst-classseatsforairopera-
tors,includingSingaporeAirlines,
andusesthecloudtoenableitsAsian
andLondonofficestocollaborateon
design,thuseffectivelyoperatinga
24-hourworkingday.
07WORKING
FASTER
SalessoftwarehotshotSalesforce
measureshowinfluentialemployees
areonthecompany’scloud-based
internalsocialnetworkChatter.Chief
executiveMarcBenioffinvitesthe
company’stop20influencerstothe
quarterlyoff-siteretreatwithtopexec-
utives.“Weestimatewehave25 per
centfewermeetings,26percentless
e-mailandaccessto39percentmore
informationusingChattertocommu-
nicateandcollaborateinternally,”the
companysays.
09COLLABORATION
Manylargeserversrunatlessthan
30percentcapacity,accordingto
PeterZonneveld,co-founderandchief
executiveofGreenclouds.The com-
panybuyssurpluscomputingpower
fromthosewithtoomuchandsellsto
thosewithatemporaryneed.InBrazil,
startupAudioMonitorlinkstothe
country’sradiostations,viathecloud,
andpromptsartistswhentheirtunes
areplayedtomaximiseroyalties.
03NEW
BUSINESS MODELS“Forbusinessfacingachangingmar-
ketandclientneeds,thecloudbrings
incredibleresponsiveness,”says
JacquelineDavey,IBMvicepresident,
cloud.Thecompanyhelpedonline
gamedeveloperMojang,ofMinecraft
fame,spinupitscloudpresencefor
itsnewBattlefield4game.“Using
thecloudallowedustoaddanextra
25,000playersinjustfourhours,”
Ms Davey says.
02MARKET
RESPONSIVENESS
Thecloud’sreal-timedatarecord-
ingandresponseallowsTPVision,
ajointventureofHongKong-based
TPVTechnologyandTVmanufacturer
PhilipsElectronics,tomeasureview-
ers’habitsandfine-tuneprogramming
suggestionsforPhilipsSmartTVcus-
tomers.Thecompanycanpersonalise
programmesuggestionsaspeople
viewandtargetadvertswiththepreci-
sionofasearchengine.
08DATA
GATHERING
Cloud-basedsoftwarecompany
CallidusCloudhasdeveloped
MySalesGame,pioneeringthe
gamificationofsales.MySalesGame
setslevelsandmissionsintoa
company’scustomerrelationship
managementsoftware,suchas
salesstaffadoptingbestpractice,
reachingmilestonesandhitting
targets.Thosefinishingamission
oralevelgetrewardsfrompeer
recognitiononsocialcollaboration
platformsoraperk.
05NEW WAYS
TO MOTIVATE
GreeneMotionistheEuropean
Union’scontinent-widebidto
promotetheuseofelectriccars.
Thesystemhastolink43coun-
tries,allownewcomersonstream,
enableanyGPSdevicetoconnect
tothesystemandmapelectriccar
rechargingdocksacrossEurope.
“Thiswouldhavebeencompletely
impossiblebeforethecloud,”
saysJacquelineDavey,IBMvice
president,cloud.“Usingthecloud,
however,thesystemcangrowas
largeasitneeds.”
10SCALABILITY
CLOUD FOR BUSINESS CLOUD FOR BUSINESS
15raconteur.net twitter: @raconteur14 raconteur.net twitter: @raconteur
The complexity and volume of data generated by
sophisticated racing cars means cloud
computing could soon be in pole position
for Formula 1, writes Caroline Reid
Asenterprisesofallsizescontinuetoadopt
cloud-basedservices,DaveHowellasksis
securitystilla major concern?
SKY’STHELIMITFOR
F1ANDTHECLOUD
ACLOUDOF
INSECURITY?
	 FORMULA1
ȖȖ When millions of dollars are
spenttogainameretenthofasec-
ond advantage, it’s little surprise
that Formula 1 teams are looking
to high-tech solutions, such as
cloud computing, for the future
direction of the sport.
Competing in F1 is a costly busi-
ness. The leading teams spend
more than $400 million each to
propel two cars around a track for
a few hours 19 times a year. Every
teammustdesignandbuilditsown
chassisand,withonly2.5secondsa
lapseparatingthechampionsfrom
the losers, getting the technologi-
cal advantage is crucial.
The most visible components
may be the sponsor-covered chas-
sis and wheels, but it’s what the
eye can’t see that makes the cars
so costly. Incorporating on-board
computing power in an F1 car
presents its own challenges and
increases costs.
To make sure the bodywork is as
slender and aerodynamic as pos-
sible, all the wiring, electronics and
cooling systems must be packed in
a tight space around the engine –
more difficult than it sounds when
there’s 1.25km of wiring and up to
150on-boardsensorstobeinstalled.
Each sensor gives readings up to
1,000 times per second and data is
sent wirelessly from the car to the
pits. This gives around 1.5 billion
samplesofdatafromeachraceand
these are monitored in the garage
while the car is on track, then
analysedafterwardsbysupercom-
puters back at the team’s factory.
Leading teams take around 20
engineers to races just to work on
telemetryread-outs,withafurther
30backatbaseworkingsimultane-
ously. In this environment, quick
transfer of data is crucial.
This is the reason why cloud
computing is starting to play a
major part in the world of F1, long
before the racing car even gets on
thetrack.RedBullRacinghaswon
boththedrivers’andconstructors’
world championships for the past
fouryears,andcloudcomputingis
playing an ever-increasing role in
the team’s quest for victory.
Its head of technical partner-
ships Alan Peasland explains: “At
Infiniti Red Bull Racing we have
a private on-premise cloud that
we use for a variety of simula-
tion and computing tasks. In the
design and development of the
car, we use our high-performance
computer (HPC) to run compu-
tational fluid dynamics (CFD)
simulations and finite element
analysis in order to support the
core design activities.”
This affects areas from the evalu-
ation of aerodynamic performance
totherefinementofthemechanical
properties of a design, such as its
strengthandfatiguelife.Mostofthe
computing power running within
RedBullRacing’sHPCisconsumed
in processing the hundreds of
simulations performed by CFD in
a typical week. Running parallel to
this,theHPCalsoanalysesthedata
produced as the team tests scale
modelsinitswindtunnel.
Toaccomplishthisithasthesup-
port of some of the world’s leading
techcompanies.Suppliersinclude
ȖȖ The cloud is transforming every
aspect of the business community.
Surveys of business owners con-
sistently conclude that the cloud
now plays a significant role in their
ability to compete and realise their
strategic goals. Security though,
continues to be a concern, but is
fast receding as a major barrier to
theadoptionofmorecloudservices.
Cyber attacks have been made
oncloud-basedservicesthatmany
enterprises have come to rely
upon. Twitter, Dropbox, LinkedIn
andGoogleDocshaveallhadtheir
securitycompromisedoverthelast
few years. The Heartbleed secu-
rity scare that impacted on many
cloud-based services was the last
to hit the headlines.
According to researchers at The
Verge, as much as one terabyte of
data per day is being stolen from
businesses, academic institutions,
the military and governments.
David Emm, senior security
researcher at Kaspersky Lab, says:
“Recently, trust in cloud storage
has been undermined somewhat
by the Snowden [NSA] leaks and
growing fears about privacy. I
think it’s too early to say whether
thiswillaffectthetake-upofcloud
services significantly. Although
it may well ensure that security
issues become a key part of the
negotiations between cloud pro-
viders and prospective clients.”
With Andy Barrow, technical
director at ANS commenting:
“Security concerns are often a
scapegoat used by IT teams who
are adverse to change, rather than
a legitimate concern. In reality,
working in the cloud means busi-
nesses can access a level of data
security that may be cost-prohibi-
tive to invest in themselves.”
Findings from the Cloud Indus-
try Forum (CIF) reveal busi-
nesses are pushing ahead with
cloud adoption despite security
concerns. “Around 69 per cent
of businesses express concerns
about security, yet the overall
cloud adoption rate has increased
rapidlyfrom48percentin2010to
69percentin2013,”saysCIFchief
executive Alex Hilton.
Asthecloudbecomesubiquitous,
business owners need to appreci-
ate that the perimeter of their
organisation’s security has shifted
fromtheiron-siteserversandinto
the cloud. In the brave new world
of cloud-supported business, a
fresh appreciation of security
is rapidly developing across the
entire business environment.
To ensure high levels of secu-
rity, businesses need to partner
with cloud service vendors that
can demonstrate they meet cur-
rent security standards, such as
ISO 27001, ISAE3402/SSAE16
and CSA STAR. Carrying out due
diligence when adopting cloud
services is vital to ensure robust
and reliable data security.
When cloud security is consid-
ered, it seems that experience
breeds confidence. As businesses
gainmoreknowledgeandseesecu-
rity concerns are being addressed,
securitybecomeslessofapressure
point to more cloud adoption.
“Overall, the security risks still
exist, but companies are willing to
acceptthemtomakesavingsandto
be more responsive to demands,”
says Dr Gerhard Knecht, head of
global security services and com-
pliance at Unisys. “Others delay
the large-scale implementation
until the first wave of security
breaches and remedial action has
Asbusinessesgainmoreknowledgeand
seesecurityconcernsarebeingaddressed,
securitybecomeslessofapressurepointto
morecloudadoption
Cloudcomputingisstartingtoplaya
majorpartintheworldofF1,longbefore
theracingcarevengetsonthetrack
IBM Platform Computing, Ansys,
iLight, ATT and Siemens PLM
who,accordingtoMrPeasland,“all
contribute to the overall solution
that takes us from initial concept
design, through simulation and
analysis, and into manufacture”.
All this takes place long before a
car turns a wheel on a track some-
times half way around the world
from Red Bull Racing’s Milton
Keynes base. Calculations done in
the cloud are key to making sure
everything runs smoothly.
“Performance on track will be
influenced not only by the new
components we send to each
race that help to tailor the car for
the specific circuit, but also how
quickly the car can be optimised
during the race weekend,” says
Mr Peasland. Information travels
in the other direction too. “Data
captured on-car during practice
sessionswillbetransferredbackto
the factory, by virtue of our ATT
Global EVPN Network, where it
will then be analysed by our team
of experts.”
Perhaps surprisingly, at the
moment cloud computing is little
used for processing data during
the race, and Red Bull Racing and
the other teams instead transport
heavy servers to each race.
Shareanddiscussonlineatraconteur.net
	 DATASECURITY
been taken care of. This is akin to
companies using the ‘never install
version 1.0 in your company’
approach.”
Ultimately the cloud services
that any business adopts must
instillhighlevelsofconfidenceand
trust,asRajinderTumber,security
consultant at Auriga, concludes.
“Customer trust is of paramount
importance to business owners.
Withouttrust,customerswillseek
business with a rival competitor.
Therefore, businesses need to
ensure they are using secure and
trustworthy cloud-based services
and platforms, as well as imple-
menting and embedding effective
securitypracticestobetterprotect
customer data,” he says.
There is little doubt that the
cloudscape offers massive value
and flexibility that all enterprises
can leverage. The cloud itself isn’t
necessarily inherently insecure. If
asensibleapproachtosecuritypol-
iciesistaken,cloud-basedservices
canbesecurelymanagedtodeliver
the benefits they clearly offer.
Security concerns will prevent
a wholesale move to the cloud for
some time yet, but the advantages
the cloud presents far outweigh
any security concerns.
Security specialist Graham Clu-
ley says it best when he observes
thatthecloudreallymeans“some-
body else’s computers”. In this
context, business owners consid-
ering the cloud and its security
should simply ask themselves if
they are comfortable placing their
data on these systems?
“We have our own software-
defined on-premise cloud,” he
says. “The main reason for doing
so is due to the sensitive nature
of the data being processed and
stored, and also the speed of
access to this data.
“Formula 1 is a high-paced,
time-restricted environment in
all areas of the business, so being
able to have real-time access to
largevolumesofdataiscrucialin
order to perform complex simu-
lationsduringraceweekendsthat
can ultimately deliver increased
performance on the track.”
However,MrPeaslandbelieves
cloud technologies are set
become more important in the
nearfuture.“Ascloudtechnology
advances and with the introduc-
tion of hybrid clouds that can
support our peaks in demand,
it’s highly likely that this will be
an area of development for the
team,” he says.
Bill Peters, chief information
officer of Caterham F1, says his
team is considering migrating
IT to the cloud. “We’re starting
to look at potentially having our
supercomputer capabilities as a
service that we buy, as opposed
to something we have in-house.
Similarly, if we could have reli-
able enough communications to
trackside, there’s no reason why
you couldn’t host all your track-
side systems in the cloud as well,
so you wouldn’t need to carry
thewholeITcircusfromtrackto
track,” he says.
It would also help to cut costs
and, in a sport where many
smallerteamsstruggletokeepup
with the larger outfits’ accelerat-
ing budgets, this could be a driv-
ingforcebehinditsproliferation.
Mr Peasland agrees that “cloud
computing, in the right environ-
ment and used in the correct
way, will most definitely be able
to offer cost-savings.” And that
isn’t the only way it will change
the sport.
He says: “As cloud technology
and services mature, it will not
only be areas such as CFD and
simulation that will benefit,
but all other business systems,
including telephony and com-
munications, design and devel-
opment. And it’s our innovation
partners, such as IBM Platform
Computing and ATT, who will
workwithustomoveusforwards
in this area.”
Formula1motorracing
teamsaredriving
computerdiagnosticsin
thecloud
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Raconteur cloud for business

  • 2. CLOUD FOR BUSINESS 03raconteur.net twitter: @raconteur ȖȖ Hopefully we are all now famil- iar with the benefits of the cloud. The lower capital expenditure, the joy of passing on the job of maintenance to someone else, the limitless scalability – these have been talked about so much it feels almost redundant to rehash them. So, what’s next with the cloud? What are we going to be talking about for the next five years? Here’s one debate generating a lot of noise: bespoke app devel- opment on the cloud. It’s in its infancy right now, but the way the cloud works means ordinary firms are going to be able to create their own applications. Apps for smartphones are already being made in large num- bers on the cloud. Using an online service such as Appery.io, you can drag and drop components via a browser to build your app. Add plug-insfromtheonlinecatalogue and hey presto, your app is ready to go. With nothing to download or install, it really is that easy. Adam Spearing, area vice-pres- ident of Salesforce.com, reckons this approach is about to trans- form the cloud. “A few years ago, app development was dominated by people who were typified by their extreme focus and deep expertise in code and systems. Frequently they had computer science training and tons of rig- orous study time to become an expert.Afterall,buildingappswas complex,” he says. “Fast forward to 2014 and every- thing you know about app devel- opment has changed. The cloud makes it easier than ever to create great applications, regardless of yourbackground.Anyonecantake ideasandturnthemintosolutions faster than ever before. Kids use Scratch and create interactive apps,whileLEGOMindstormsand Raspberry Pi are bringing them a ‘maker culture’ in engaging ways. “Businesspeople can create enterprise cloud apps without a professional programming back- ground, too, as sites such as Code- Academy make it easy for non- programmers to learn the logic of coding. And leading platform-as- a-servicesolutionsgiveemployees enough flexibility to build their own apps while ensuring they meet the governance needed by corporate IT.” Researchers at Gartner estimate that,withinthreeyears,25percent of large enterprises will have their own app stores. Cloud-based soft- ware vendor EvaluAgent already offers a workforce optimisation platformwhichis80percenthard- codedand20percenttweakable. EvaluAgent managing director Jamie Scott says: “Bespoke appli- cation development is possibly the most compelling reason for firms to move to the cloud, but many companies are not aware of this. Imagine a world where software can be customised to fit a company’s existing business processes as a standard part of the set-up process, without involving prohibitive charges. This is now already becoming a reality thanks to the cloud.” Another trend worth paying attention to is the rise of virtual- ised environments for graphically intensive applications. Histori- cally, if you wanted to run Photo- shoporAutoCAD,youneededtodo itonyourowncomputer.Willthat stay the same? Not according to Nvidia, one of the world’s leading makersofgraphicschipsandcards. Nvidiavice-presidentGregEstes says: “Previously, cloud offer- ings could not run graphics-rich programmes such as Autodesk’s AutoCAD and Adobe’s Creative Suite, but we are now seeing more and more companies moving their most 3D-intensive users to a virtual set-up. This allows accesstocriticalapplications,any- where, from any device, providing employees with more flexibility as well as eliminating the need for local cumbersome desktops.” This change could lead to con- sumers gaming on the cloud. Mr Estes forecasts: “It offers freedom fromconsoles,whereserviceoper- atorscanusethistechnologyasthe base for their on-demand gaming- as-a-service. This move will lead to a revolution in gaming across anydeviceofanyquality,beitaPC, Mac,tablet,smartphoneorTV.” Cost will remain a tricky area for thecloud.It’sstillannoyinglyhard to get a full picture on expendi- ture and return on investment. Service level agreements (SLAs) need clearing up too. According to Compuware, 79 per cent of IT professionals believe SLAs are sub-standard and 75 per cent say cloud-providers may be hiding problems, often using holes in the SLA to get away with it. Security will never stop being an issue for the cloud. And now we have regional legal issues to grap- ple with. Do you want the United States government to requisition your data? What about EU data- protection laws? It is revealing that BT now permits its cloud cus- tomers to locate their data in the country of their choice; and there are 16 to choose from. One last prediction? The good news stories will just keep com- ing. Such as the Royal Society for the Protection of Birds (RSPB), which switched in-house automa- tion processes over to a hosted system by Redwood Software. The cloud now handles the direct debits, gift-aid paperwork and donor tracking. Does it work? The RSPB’s data manager Andrew Oldham says: “As a charity, we want to focus our efforts on not-for-profit activity, so it makes a massive difference to us not having to worry about hardware, infrastructure or main- tenance costs. Automation has been monumental in boosting the charity’s productivity.” No matter how the cloud devel- ops, this is what matters. Bespokeappdevelopmentonthecloudissomethingnewthat forecasterspredicthasabrightfuture,writesCharlesOrton-Jones OVERVIEW NEWCLOUDONHORIZON ANDFORECASTISGOOD Businesspeoplecancreateenterprise cloudappswithoutaprofessional programmingbackground DISTRIBUTED IN STEPHEN ARMSTRONG Contributor to The Sunday Times, London Evening Standard, Monocle, Wallpaper* and GQ, he is also an occasional broadcaster on BBC Radio 4 and Radio 2. TOM BREWSTER Freelance journalist covering information security, whose work has appeared in The Guardian and WIRED, he was named BT Security Journalist of the Year in 2012 and 2013. DAVE HOWELL Freelance journalist, writer and micro publisher, he specialises in business and technology, and has written for a range of publications and websites. MIYA KNIGHTS Editor of Retail Technology magazine and website, she also writes and consults for a number of national and industry trade publications and analyst houses. JOHN LAMB Former editor of titles including Computer Weekly and Information Week, he publishes Ability magazine on technology for disabled people. CHARLES ORTON-JONES Former Professional Publishers Association Business Journalist of the Year, he was editor-at-large of LondonlovesBusiness.com and editor of EuroBusiness magazine. CAROLINE REID Sport and business writer, she was formerly on the staff of the official Formula 1 magazine. PUBLISHING MANAGER Michael Kershaw DESIGN, ILLUSTRATION, INFOGRAPHICS The Surgery MANAGING EDITOR Peter Archer PRODUCTION MANAGER Natalia Rosek COMMISSIONING EDITOR Charles Orton-Jones Althoughthispublicationisfundedthroughadvertisingand sponsorship,alleditorialiswithoutbiasandsponsoredfeaturesare clearlylabelled.Foranupcomingschedule,partnershipinquiriesor feedback,pleasecall+44(0)2034285230ore-mailinfo@raconteur.net RaconteurMediaisaleadingEuropeanpublisherofspecialinterest contentandresearch.Itcoversawiderangeoftopics,including business,finance,sustainability,lifestyleandthearts.Itsspecial reportsareexclusivelypublishedwithinTheTimes,TheSundayTimes andTheWeek.www.raconteur.net Theinformationcontainedinthispublicationhasbeenobtainedfrom sourcestheProprietorsbelievetobecorrect.However,nolegalliability canbeacceptedforanyerrors.Nopartofthispublicationmaybe reproducedwithoutthepriorconsentofthePublisher. ©RaconteurMedia Shareanddiscussonlineatraconteur.net CONTRIBUTORS IN ASSOCIATION DISTRIBUTION PARTNERS
  • 3. CLOUD FOR BUSINESS raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0504 FINANCE ȖȖ With internet-connected PC andmobiledevicesrunningcloud- based consumer software and services, such as e-mail and social networks,itiseasytoseewhycom- pany finance departments want to capitalise on the same cost-sav- ings,accessibilityandconvenience afforded their staff at home. However, this vital line of busi- ness has been comparatively slow to realise the benefits of cloud computing,comparedforexample to its sales, marketing or human resourcescounterparts,withtheir highlydistributedandincreasingly mobileworkforces.Aglobalsurvey of 2,041 business executives, com- missioned by Microsoft and con- ducted by 451 Research, confirms that 32 per cent of organisations now include a formal cloud com- puting plan as part of their overall IT and business strategy. A financial services sector study published by Oracle, Accenture and Longitude Research also reveals 68 per cent of 1,275 execu- tives are either planning to use a cloud-based financial accounting systemorarealreadydoingso.But they are only likely to subscribe or apply cloud-based software or services in selective situations. “Cloud is the single most dis- ruptive force in technology,” says Steve Cardell, president of enter- prise services and diversified industries at HCL Technologies, who runs the IT software and services provider’s enterprise applicationsoftwarepractice.“But I would also say that finance has beenatthebackofthebus.Andfor goodreason–theyhavealotmore legal and regulatory compliance considerations than some other parts of a business.” This cautious attitude is slowly beginning to change in response toemergingchallenges.Speed of deployment and lower capital costs, for example, are often the primary rea- son a finance department begins to evaluate what the cloud can offer. Hosted IT infrastructure services, for instance, are help- ing finance departments manage seasonal peaks in demand for computing power. “Budgeting and planning often need a huge amount of IT capac- ity,” says Mr Cardell. “In some cases, the month-end processes can cause IT-based systems to COUNTINGTHECOST OFBEINGCLOUDLESS Finance departments are playing catch-up in switching to cloud-based accounting systems, as Miya Knights discovers Machines inthecloud Page06 grind to a halt. So most build for the peak and don’t use that spare capacity the rest of the time or struggle to meet demand during peakperiods.”Wheredatagovern- ance and security is often written into service contracts, he adds, “cloud infrastructure can be most helpful for cost-effective opera- tional speed and agility”. The finance department also has a range of options when it comes to cloud-based software, includ- ing those developed for time and expense reporting, for example. “I call these input applications,” says Mr Cardell. “They are usually the first area of cloud-based finance software adoption.” Used by management and staff to provide finance with vitaloperationsdata,theseapplica- tions, which can often be accessed through a browser or mobile device, can streamline the gather- ing and dissemination of account- inginformationinreal-time. Mr Cardell highlights the core finance function itself as the place where cloud adoption has so far failed to keep pace with the rest of the business. “These applications tendtobehighlytransactionaland are therefore more liable to risk and regulation, such as payroll or statutory financial accounting packages,” he says. This is because enter- prise resource plan- ning(ERP)software has historically required signif- icant invest- ment and in-house manage- ment where “there are just not as many cloud prod- ucts on the market,” Mr Cardell says. Major vendors, such as Oracle and SAP, have introduced large enterprise cloud-based ERP offerings. But cloud-based vendors, including NetSuite and Salesforce, are also mak- ing headway in the mid- market. The finance department of Broadway Malyan made the move to cloud- based accounting soft- ware early. Anne Howard, head of UK finance for the international archi- tecture practice, says it has enabled more effec- tive resource planning, as well as cost-savings and improved productivity. “The business had already made a move into cloud with Google Apps a couple of years ago,” Ms Howard says. “So we were open to cloud solutions where finding a fit with ourglobalbusinessmadecost,flex- ibility and scalability paramount. It means we have no hardware costs and that the software is constantly upgraded. And we can expand access to the systems to ourpeopleanywhereintheworld.” She adds that, although security is a major consideration, cloud providers’ systems are often more securethanbusinesseswhosecore purpose is not IT related. Broadway Malyan migrated to Twinfield, integrating the provid- er’s online, cloud-based account- ing suite with the company’s existing customer relationship management system in 2012. Ms Howardsaysthecompanyworked with Twinfield to develop some specific local functionality, which included handling BACS (Bank- ers’ Automated Clearing Services) and cheque payments. But this was preferable to buying a larger enterprise package with “more functionality than we needed”, she says. “It’s just been so easy. We have better visibility of what’s happen- ing internationally, where before that would only happen when we physically visited each office to do an audit. And we can now spend the time saved on value-added areas rather than churning out the accounts.” This includes more business-facing analysis of opera- tions, to reveal the least and most efficient projects or most valuable clients, for example. “And we can run reports knowing the data is automaticallyrefreshed,”sheadds. MsHowardagreeswithMrCard- ellthatthemainopportunitycloud now offers is around reporting and analytics. “Different business functions can pull external data sourcesandunstructureddatainto cloud-based analytic platforms or tools,” he says. “You can run finance data through Power BI, for example, to produce tables and integrate this dynamically with a presentation, so that the content of the slides changes whenever the underlying data changes.” With benefits like these, it is easy to see why 47 per cent of organisations, surveyed by researchers at Gartner, plan to move their core ERP systems to the cloud within five years. Problemsfloatawayinthecloud Theadvantagesofworkinginthecloudarejust toogreattoignore,says Big Red Cloud sion2.0andnewlicencesareneeded, you’llbeopeningyourwalletyetagain. The cloud does away with all of that. A user can log-on via a web browser to have full and immediate access to the very latest version of their accounts software. It doesn’t matter which computer they use. It could be via a tablet. It could be on a PC in an internetcaféatNaritaairport,Japan. The cloud application provider takes charge of all hardware requirements so there are no serv- ers to buy and no visits from the man with the drill. The cloud provider handles and pays for all the ongoing nitty-gritty, such as upgrades, anti- virus and back-up. Costs associated with these activities simply evapo- rate. Oh, and no electricity bill spikes either – not your problem anymore asyouaren’trunningadatacentre. By moving to the cloud you’ll be benefiting from your partner’s technical expertise. They will have a large cohort of dedicated techni- cal staff, way in excess of what an individual firm could justify sus- taining. And cloud providers have access to lavish resources, such as Microsoft Azure’s platform. This is Microsoft’s datacentre offering, which leases mass-scale technical infrastructure to cloud hosts. Marc O’Dwyer, chief executive of BigRedCloud,whichbasesitscloud accounting service on Azure, says: “Microsoft has thrown millions at Azure. It offers incredible resilience, back-up and cost advantages. The power of Azure is now available at thefingertipsofsmallbusinesses.” Shouldyouraccountsbeinthecloud? At first glance this might seem unim- portant. What does it matter? Can’t the IT guys decide the technical stuff like this? Well, yes, they can. But the question of where to host your accountingsoftwareiscritical. Inadditiontothecostconsiderations, there is a long list of operational ben- efits to the cloud. When you start to graspthedifferencesbetweentheold- fashionedapproachofbuyingsoftware and installing it on your own equip- ment stored in your office, and the cloudapproachwherebyallyouneedis access to the internet, the advantages oughttogetyouprettyexcited. Let’s start with something basic, like capital expenditure. The old way of using software was to do every- thing in-house. This required firms to splash out on servers to run soft- ware.Thebillsquicklyaddedup. The software costs money. And you’ve got to fork out for an IT guy to install the software. He’ll need to maintainittoo.Upgradesandpatches must be applied. The data must be backed-up, which costs money. You’ll need to make sure your anti-virus systemisuptothejob. The expenditure doesn’t end there, as there are hidden nasties, like the cost of ethernet cabling, electricity bills andforkingoutforatechniciantodrill holes in your walls to accommodate your bulky kit. And there is possible downtimeduringupgrades.Butwhen the software maker launches ver- This means even the smallest firm can have the same technol- ogy at its disposal as the very larg- est. The cloud will change the way your firm works, for the better. There are game-changers. For example, accountants can use the cloud platform to access data in real-time. Mr O’Dwyer explains: “If you are not in the cloud there is a time-delay. Firms need to download their data to a file and then send that to the accountant. This is not a responsive way to work. But with the cloud, the accountant can look at the financial information at any time of day and always get the very latest picture. This means the accountant can take amoreactiverole. “They can use our business intelli- gencetoolstogiveadvancedinforma- tionondebtorsdays[howquicklycash is being collected from debtors] or to warnexecutivesthatcashcollectionis behind schedule and action needs to be taken. It changes the relationship between accountants, book-keepers and their clients. It is for this reason we offer free access to accountants andbook-keepers.” The same is true for business-own- ers as real-time information gives more accurate insight into the busi- ness, allowing for faster and more insightfuldecision-making. There are additional improve- ments, such as the ability to hot- desk in the office. Workers can use any machine to access accounts. Perhaps you are stuck at home with the kids or need to address an urgent issue when on holiday. With- out the cloud, you are reduced to using some sort of “remote login” third-party application or must wait for someone to download and e-mail you the files you need, which may be out of date by the time you get them. With the cloud you have instant access to everything. And the old system meant invoices couldn’tbeprocesseduntiltheaccount- antshaddonetheirwork.Withthecloud thereisnodelay.Ifnecessary,therecan be an ongoing conversation between multiple parties, all viewing the same accountsfrommultiplelocations. For fast-growing firms the cloud offers seamless – and limitless – expansion possibilities. You simply aren’t going to hit a point where your ITguyshakeshisheadandsays,“The server is full”. In the cloud, it is com- pletelyscalableandsimpletoaddten, a hundred or a thousand new staff to an application. With Big Red Cloud an unlimited number of users are allowed,fornoextrafee. Maybe though the biggest pay-off is mind-space. Business-owners need to focus on their core activities. They should not spend valuable time trying toboneuponhowadatacentreshould berunorwhethertheirsoftwareisup todate.Thecloudmeansyoucanforget aboutreamsofnigglingissuesforever. Pick the right cloud partner and you can take your business to new heights. Big Red Cloud founder Mr O’Dwyer says: “Big Red Cloud is simple to implement, works from the get-go and comes with full tel- ephone support. We’re here to help smart modern enterprises make better business decisions and set thefoundationforfuturegrowth.” Clarity of mind, lower costs, maxi- mum up-time, automated back-ups, anywhere-access, easy expansion, improved management control and greater security all come as standard in the cloud. It is pretty much impos- sible to achieve anything similar in- house. That is why there is so much excitement about the cloud. You’d be crazynottotakeadvantage. Formoreinformation,pleasecontact MarcO'Dwyer Tel:01619268822 Web:bigredcloud.co.uk E-mail:info@bigredcloud.com Thecloudmeansyoucanforget aboutreamsofniggling issuesforever THECLOUDAPPLICATION ON-PREMISE Largeup-frontcapital infrastructureandinstallation costs.Extrairregularpayments Generallyonelicenceper computerwithdatadownloads andmanuallydistributedfiles E-mail or physical back-up data exchange with risk of being out of synch Server, hardware and infrastructure required Manual, potential downtime and extra licence costs Often pay for separate licences In-house reliability, storage and back- up issues Extralicencesneeded Nocapitalexpendituretoget upandrunning.Regularand predictablepayments Real-timeinformationanywhere, anytimewithinternetconnection Real-time updating of a single data set by client and accountant No limits. Accommodates increasing volumes of data Automatic, with every user on the same version Included in subscription cost Major industry specialist delivers the required and secure computing power Potentiallyunlimited FINANCIAL USERS BUSINESS ACCESS ACCOUNTANT'S ACCESS SCALABILITY UPGRADES TECHNICAL SUPPORT PLATFORM SaaS CLOUD MODEL COMPAREIN-HOUSEANDTHECLOUD UPDATE RECORDS REAL-TIMECOLLABORATION ACCOUNTANT BUSINESSOWNER SIMPLEAND INTUITIVEINTERFACE SIMPLEAND INTUITIVEINTERFACE
  • 4. CLOUD FOR BUSINESS CLOUD FOR BUSINESS raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0706 INTERNETOFTHINGS ȖȖ Understanding the societal impact of computing and test- ing the possibilities of machines withhuman-likeintelligencehave always been passions of Sir Nigel Shadbolt. Yet he recognises the threats concomitant with trusting toomuchincode,eveniftheyseem like science fiction to some. It’s only been 12 months since Sir Nigel was knighted for his ser- vices to science and engineering, but his work stretches back 30 years. Over that time, through his psychology and computer science research, he’s seen the inexorable spread of the internet as a force for change and is now keeping a watchful eye on the so-called internet of things. This will see the spread of con- nected,automateddevices,largely operating on their own, suppos- edly for the benefit of the general public. They will be powered by cloud-based systems, again consisting of collections of highly- automated machines, spread across global data centres, with the ability to deal with massive fluxes of traffic – something the growing pool of connected things isexpectedtodeliver.Fortheaver- age home-user, this means being able to let computers decide how best to manage their energy use to save money or having their fridge send alerts when groceries have reached their use-by date. But Sir Nigel believes the most successful internet of things pro- jectswillinitiallybenefittheemer- gencyservicesandurbanplanning groups,astheycantakeadvantage of open data streams. He has been impressed by one initiative using avarietyofinformationsourcesto placeambulancesasclosetolikely incidents as possible and expects cities to get greener with more efficient energy usage thanks to automated controls. In a bid to further the benefits of the web for the common man, Sir Nigel and his team at the Uni- versity of Southampton, where he is a professor of artificial intel- ligence (AI) and head of the Web and Internet Science Group, are working on the study and practice of social machines (SOCIAM). The project will determine how to develop distributed, crowd- powered systems that have the potential for profound impact on individuals, businesses and gov- ernments. “We want to make that a routine way in which business is done,” he says. He also founded the Open Data Institute (ODI) with the forefa- ther of the world wide web, Sir Tim Berners-Lee. The purpose of the ODI is to encourage govern- ment and businesses to open up sourcesofdataforthepublicgood. Yet Sir Nigel believes this idea of openness needs promoting across other areas to ensure the inter- net continues to bring benefits to a wide audience, whether via web browsers, the cloud or con- nected “things”. Inparticular,ina“post-Snowden world” and one in which a handful of companies have massive power over the way the web works, he worries about excessive control over the internet. He frets about “intrusive and exclusive control by any agency”, whether a state agency, such as the US National Security Agency, or an organisa- tion on the scale of Facebook and Google. Despite the intrusions on privacysuchentitieshavebrought, Sir Nigel is still hopeful. “The thing that depresses me is when people just sit on their hands and say privacy is dead, get over it. It’s entirely in the hands of our soci- ety,” he says. His answer is to build account- ability into the internet, by having tracking working for the average user, rather than against them. “We’vegotmorecomputingpower than ever; some of it should be devotedtothisissueoftrackingfor ourbenefit,”headds.“Thewayyou can do that is doing what’s called ‘accountable computing’, where there’s a trace associated with the flowofdatainthesesystemsabout whereit’sbeen,whohashadaccess to it.” Those building the architecture of the internet also need to be wary of granting machines too much decision-making power through AI. “You have to keep asking yourself, if we keep grant- ing autonomy to these systems to takedecisionsonourbehalf,dowe understand the full range of their responsesandtheside-effectsthat might have? “Fundamentallywehavetoaskat everypointwherewe’redelegating decision-making authority, do we know how to take it back and do we understand the limits of that authority? That’s really crucial,” he says. While cloud systems have seen failures, for example when Goog- le’s Gmail goes down or Amazon Web Services hosting collapses causing websites to go dark, they stillworkmostofthetime.Aslong asmachinesarecodedresponsibly, these systems will continue to operate adequately, says Sir Nigel, and the same goes for other, more contentious technologies, such as weaponised military drones. “You have to put those rules of subservienceintothefundamental software systems,” he says. Sometimes the code giving machines their instructions does get out of control, so much so that humans cease to understand how they work. “We’ve got this very interestingareaofAIcalledgenetic algorithms where you essentially evolve programs,” Sir Nigel says. “Those programs can do things that you stare at as a designer for hours and hours to work out how it’s doing what it’s doing. “There’s a very good example in electronic design where they had a program to design oscil- lators and amplifiers, simple electronic circuits. They found some of these designs that the genetic algorithms had evolved and nobody could make any sense outofthem.Thesystemhadlearnt totakeadvantageofreallypeculiar impurities and facets of the hard- ware and the materials that you wouldneverdesignforasahuman designer. It’s fascinating, but it’s kind of spooky.” Yet fears of the fictional Skynet, of a world in which machines have taken over, are far-fetched. It should be remembered humans oftenmakefatalmistakes.Inmany cases, we should trust machines more than an individual with free will and capacity for error, Sir Nigel says. He concludes: “What we do know is that, in lots of routine kinds of automation, the error rates are much less than when you’vegothumanoperatorsthere. That’s just a sad fact. People make mistakes more often than our machines do.” Fundamentallywehavetoaskat everypointwherewe’redelegating decision-makingauthority Smartmachinescan savetimeandmoneyin thecloud PLACINGOURTRUST INTHEMACHINES A fridge that knows the use-by date of food and appliances which switch off to economise on electricity are just the start of an internet-like network of machines increasingly entrusted to make our decisions, writes Tom Brewster Brightenup business Page12 ȖȖ Examples of national and regional efforts to embrace the cloud can be found in the United States, Europe, Japan, China, Singapore, Taiwan, Thailand and many other countries and regions. In the private sector, adoption of cloud services is growing within thebankingindustry,manufactur- ing, healthcare and in many other largecorporations,aswellassmall and medium-sized businesses. Despitethesimplicityoftheidea of information and communica- tions technology services offered as a utility, on demand and pay- as-you-go, the cloud computing modelisbasedonacomplexchain of interactions between multiple parties, which operate in different countries and cross jurisdictions. The complexity and opacity that sometimes characterise the cloud “supply chain” have generated somebarrierstofasteradoptionof cloud computing, including: • Lackofclarityaroundthedefini- tionandattributionofresponsi- bilities and liabilities • Difficultiesachievingaccountabil- ityacrossthecloudsupplychain • Incoherent global, and some- timesregionalandnational,legal frameworkandcompliance Wre- gimes • Lack of transparency of some service providers or brokers, particularlyaroundsecurityand risk management • Difficulties in performing inter- nal and external due diligence • Lack of clarity in service level agreements (SLAs) • Lack of interoperability • Lackofawarenessandexpertise. A key underlying theme in all theseistheneedforassuranceand trustbetweencloudprovidersand customers, and generally within the overall ecosystem. Barriers can be removed. Gov- ernments, cloud service providers and customers should be working collaborativelytowardsincreasing the level of trust in the market. Tothisend,thedefinitionofsecu- ritycontrolandcertificationframe- works, SLAs, standardised contrac- tualterms,andtheuseofcontinuous monitoringarekeymeanstoprovide moretransparencyandgovernance tothecloudcustomer. The European Commission strat- egyforcloudcomputing,forinstance, isbasedonthreemainpillars: 1. Identification of suitable stand- ards and certification schemes 2. Definition of model terms for SLAs, and contractual terms and conditions 3. Definition of common requirements in public sector organisations, and use of public procurementasamarketandqual- ity stimulus. Similarapproachesarecurrently being adopted in the US and Asia- Pacificregion.Cloudprovidersare strivingtobecomemoretranspar- ent, especially when it comes to security and privacy. Cloud Security Alliance (CSA) STAR, a voluntary registry where cloud providers can publish the results of their security assess- ment – either self-assessment or third-party audit-based cer- tification – against the CSA best practices, namely Cloud Control Matrix, is a clear example of cloud providers’ willingness to maintain the trusted relationship they have with existing customers and to provide assurance to potential new ones that their service will be sufficiently secure. Assurance is provided by telling customers whicharethesecuritycontrolsand measures in place to manage risks to their infrastructures, services and data. The objective is to put the cus- tomer in a position to compare competing offerings against their requirements, to make informed decisions when choosing the ser- vicetheyneedandtobeableverify, duringtheservicedeliveryphase,if realitymatcheswhatwaspromised. These are certainly steps in the right direction and point to the creationofamarketwheresecurity is a market differentiator, where transparency is the general rule andobscuritytheexception.Cloud solution providers have business incentives to be transparent, to shareinformationwithregulators, enforcementauthorities,aswellas current and potential users, about their security practices. The most obvious business incentive is based on the simple logic that the customer is more likely to buy services only from those providers which provide enough information to effectively managetheirrisks.Inthisrespect, the example of an incident man- agement process is very illustra- tive; in fact a cloud customer necessarily needs information and co-operation from the cloud provider to be able to manage an incident properly. Policy-makers are playing their part by introducing a number of “soft” policy measures, as well as newbindingrulesontransparency and accountability. We have also seen a more proactive approach of somecloudsolutionproviderswho are voluntarily sharing relevant information with the general pub- lic. What is still missing, perhaps surprisingly, is a more active role of cloud service customers. Cloud Security Alliance is a not-for-profit organisation focus- ing on best practices, standards, research-provider certification and education in cloud computing security. CSA’s activities include the Open Certification Frame- work/STAR Certification, aware- ness and educational campaigns, conferences, seminars, summer schools, webinars, educational papers, guidelines for companies and government, and finally train- ing and professional certification through the CCSK (Certificate of CloudSecurityKnowledge). TRANSPARENCYAND ASSURANCEFOR ATRUSTEDCLOUD Shareanddiscussonlineatraconteur.net OPINION Cloudcomputingisbecomingamaturebusinessmodel, andmanycompaniesandgovernmentsaroundtheglobe areimplementingstrategiestoembracecloudservices,says DanieleCatteddu,managingdirector,Europe,theMiddle EastandAfrica,atCloudSecurityAlliance
  • 5. raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0908 CLOUD FOR BUSINESS CLOUD FOR BUSINESS ȖȖ WhentwoHelpforHeroesweb- sites crashed under the weight of traffic following the murder of soldier Lee Rigby in the streets of London, the charity turned to the cloud to make sure it did not hap- pen again. “Before that I was a bit of a sceptic about the cloud,” admits Charles Bikhazi, head of IT devel- opment at Help for Heroes. “But the move was forced upon us by events – we needed to be able to handle these spikes in demand.” As cloud services move into the mainstream, companies ranging from the giant Coca-Cola down to the small, corner restaurant are looking to the web to deliver their information and communica- tions technology (ICT). Although most avoid Help for Heroes’ crash course in technology, many strug- gle to make informed decisions about the cloud. Marketing hype and the absence of reliable, independent analysis make it difficult for hard-pressed managers to understand an eco- system in which nearly every ICT function from servers and storage to application software and telecommunications has its cloud equivalent. Underlying the services is a bit- ter commercial struggle involving suppliers that only operate in the cloud and established firms jug- gling their cloud offerings with older products developed for use “on-premise”. The competition has led to keenerpricesforsomecloudprod- ucts, although comparing services iscomplicatedbythelargenumber ofsuppliersandthemanydifferent ways they have of presenting and charging for their wares. For example, providers are not abovemakingcloudbuyerspayfor resources that they do not need. Organisationsmaybeaskedtobuy extra disc storage and processor power in order to get the amount of main memory they require. “Many of these problems stem from[services]thatweredesigned aroundlegacyarchitectures,which is why we see such dramatic per- formance and cost differences among providers,” claims a study, from cloud company Profitbricks, called The Secret World of Cloud Integration-as-a -Service Pricing. The industry has created an alphabetsoupofjargontodescribe its technology. At the top floats Software-as-a-Service (SaaS), the longest established cloud service. In SaaS, software solutions and associated data are held centrally by one or more suppliers and can be accessed by their customers throughanyPCwithawebbrowser. Common business applications – e-mail, human resources man- agement, customer relationship managementandaccounting–are available as a service from well- known names such as Salesforce, Microsoft and Google. Instead of laying out for a single licence, customers pay monthly for each user, sometimes according to how muchtimeusersactuallyspendon the service. AlthoughSaaSisthelargestmar- ketforcloudcomputingatpresent, in the longer term Platform-as-a- Service(PaaS)islikelytobeamore important sector. PaaS is aimed at business man- agers who want to develop and adapt their own applications. Suppliers provide both the hard- ware and operating systems for running applications, and the tools for developing them. The tools are usually presented as an application stack. ECOSYSTEM Howthecloudworksandinteractswith othertechnologyasanIT“community”can beconfusing,unlessyoureadJohnLamb’s jargonbuster UNDERSTAND THECLOUD ECOSYSTEM LOOKINGBEHINDTHECLOUD Theindustryhascreatedan alphabetsoupofjargonto describeitstechnology TheadvantageofPaaSisitmakes itmucheasiertodevelopnewbusi- ness processes without involving IT experts. Off-the-shelf services enable managers to develop and adapt business applications with- out incurring high costs and long lead times. The business of loading up a server with systems, data and software, known as provisioning, is faster in the cloud. End-users areabletoselectandremovecloud services by themselves. Indeed, many services include software that adds additional resources automatically. Infrastructure-as-a-Service (IaaS) is the third main category of cloud service. It is aimed at organisations that want to reduce the amount of money they spend on buying,hostingandsupporting their computer servers. IaaS providers offer comput- ing power on a rental model that IT departments can access instead of buying their own serv- ers and running the risk of having too much or too little capac- ity. Organisations access virtual machinescreatedwithinsuppliers’ datacentres. A price war has already broken outbetweenmajorplayers,suchas Amazon Web Services, Microsoft Azure and Google Cloud. In April, Microsoft cut the price of renting virtualmachinesbyuptoathirdin order to match earlier reductions by Amazon. Not to be outdone, Google has followed suit. Recent tests of the performance of virtual servers on Amazon EC2, Google Compute Engine, and Microsoft Windows Azure, carried out by InfoWorld magazine, put Googleaheadintermsofspeedand cost, closely followed by Azure. But thatpeckingorderislikelytochange asthesuppliersjockeyforposition. Amazon and Google’s public cloud services have grown out of the huge server capacity the companies built up to run their own businesses. Microsoft on the other hand is a relative newcomer and has adopted a hybrid strategy with Azure mixing private and public cloud. There are growing pains. Some service providers suffered outages lastyear,butthatseemsunlikelyto dent the growth of a business that now sees Amazon installing more server capacity each day than its entire business required to run a decade ago. Few organisations of any size have moved their ICT entirely to the cloud; most manage a mixture of existing software and hardware on their premises together with new cloud services. They must also choose between buying public cloud services that are shared with other users and building their own private cloud. Many users opt for a hybrid approach, running a mixture of public and private cloud services. For example, Help for Heroes is keepingitsall-importantdatabase ofdonorsin-houseforthemoment and relies on its cloud supplier Rackspace to provide additional computing power when needed. However, in future Mr Bikhazi is looking to expand Help for Heroes’ use of the cloud. Projects include introducing cloud-based customer relationship manage- ment and adopting Microsoft’s Azure, which provides both IaaS and PaaS resources. Help for Heroes will also take advantage of the free access to Office365,theSaaS thatMicrosoft offers to not-for-profit organisa- tionstorune-mailandPowerPoint applications online. Managing a transition like this can be tricky. “Businesses can find themselvescobblingtogetherend- to-end processes as a result,” says Jez Back, cloud expert at manage- ment consultancy Deloitte UK. Recently, cloud brokers have set upshoptoaidtheprocess.Brokers combine technology, consulting and buying power. They act as middlemen between business users and cloud suppliers, putting together packages of services. Securityremainsoneofthehottest issuesforcloudusers.NationalSecu- rity Agency whistleblower Edward Snowden’s revelations about the extent of covert data gathering by security services in the United StatesandtheUKhaveundoubtedly affected corporate attitudes to the securityofcloudcomputing. Around two thirds of organisa- tions not currently using cloud feel the revelations have pre- vented them from moving their ICT into the cloud, according to the NSA After-shocks survey by the Japanese communications company NTT. Many are looking for reassur- ance about where their data will be stored in increasingly global networks of cloud datacentres. But looking ahead the cloud is likely to provide fewer shocks. It will become more transparent as suppliers fine tune their services and terms of business. Mean- while, customers will buy with a greater certainty of what they will be getting. Shareanddiscussonlineatraconteur.net CLOUD SERVICE MODELS NUMBEROFPROVIDERS DATABASE,WEBSERVER, DEVELOPMENT TOOLS... VIRTUAL MACHINES, SERVERS, STORAGE, NETWORK... THECLOUDPYRAMID CRM, E-MAIL, VIRTUAL DESKTOP, COMMUNICATION, GAMES... Software-as- a-Service Platform-as- a-Service Infrastructure- as-a-Service CLOUDCLIENTS-APPS,BROWSERS,MOBILES PUBLICCLOUDSERVICES,WORLDWIDE(US$M) Source: Gartner 2014 MOST POPULAR LEAST POPULAR WHICHSERVICESAREYOUUSINGINTHEPUBLICCLOUD ORTHEPUBLICPORTIONOFYOURHYBRIDCLOUD? 42% Collaborationsoftware 42% IaaS 39% Disasterrecovery 56% Cloudstorage 62% SaaS 23% Cloud-based networkmanagement 26% Businessintelligence 21% Security-as-a-Service 21% Hybridcloudintegration 13% Desktop-as-a-Service SaaS PaaS IaaS PUBLIC,PRIVATEORHYBRIDCLOUDSTORAGE? 35,777 2,492 22,374 3,604 9,208 132,605 49,060 5,045 38,720 7,199 25,117 214,313 53,553 5,957 45,503 8,718 32,802 253,436 20152013 Cloudbusinessprocess servicesTOTAL 2014 Cloudapplication infrastructureservicesTOTAL Cloudapplication servicesTOTAL 2016 Cloudmanagementand securityservices TOTAL 2017 Cloudsysteminfrastructure servicesTOTAL 2018 Publiccloud servicesTOTAL 58,843 6,912 52,911 10,136 41,826 293,918 THOUSANDS OF APPLICATIONS IN THE CLOUD FEW CLOUD PLATFORMS ELITE GROUP OF PROVIDERS SCALABILITY SECURITY PERFORMANCE RELIABILITY COST PUBLICCLOUD PRIVATECLOUD HYBRIDCLOUD Veryhigh Limited Veryhigh Good,butdependsonthesecurity measuresoftheserviceprovider Mostsecure,asallstorageis on-premise Verysecure;integrationoptionsadd anadditionallayerof security Medium;dependson internet connectivityandservice provider availability High,asallequipment ison-premise Mediumtohigh,ascached contentiskepton-premise,but alsodependsonconnectivityand service provider Verygood;pay-as-you-gomodel andnoneedforon-premise storage infrastructure Good,butrequireson-premise resources,suchasdatacentre space,electricityand cooling Improved,sinceitallowsmoving some storageresourcestoapay- as-you-gomodel Lowtomedium Verygood Good,asactivecontentiscached on-premise Source:TechTarget 2013 Source:Raconteur 40,207 3,330 27,321 4,643 13,341 157,776 44,555 4,143 32,646 5,830 18,585 184,537
  • 6. CLOUD FOR BUSINESS 11raconteur.net twitter: @raconteur10 raconteur.net twitter: @raconteur ȖȖ Over the past few years, more businesses have discovered the benefits of using the cloud to pro- vide elements of their IT infra- structure. Often the initial deci- sion will have been based around costefficienciesandtheattraction of not having to pay large upfront costs, but for many the cloud has also been a source of innovation that has helped to drive organisa- tionalgrowthorchangethewayin which they operate. One of the biggest advantages has been the ability to experiment with new offerings without hav- ing to commit to costly projects. “Many business leaders will tell you that true innovation is try- ing out different ideas and cloud computinghasbrokendownsome ofthetraditionalcostbarriersthat can prematurely halt this kind of trialanderror,”saysAndyBarrow, technical director at ANS. “If a small enterprise is develop- ing a smartphone application or website for particular territories, public cloud providers like Ama- zon or Google can be used to build apresenceandrolloutacampaign quickly, while only paying for the cloud provision that they need in each of those territories.” Othershavefoundmoreefficient ways of working on the back of being able to access information from almost anywhere, across a rangeofdevices.“Physicallocation no longer matters, so the best tal- ent can be sourced wherever they are to create unique, global teams basedonexpertise,”saysPeteBax- ter,vicepresidentatAutodeskUK. “The cloud is enabling businesses todowhattheycouldn’tdobefore.” The ability to access software through the cloud is also helping IT departments provide extra resources or functionality to busi- ness teams, without physical or geographicrestraints.“Cloudplat- forms are allowing thousands of point solutions to be developed by IT and the business alike,” says Steve Cardell, president of enterpriseservicesanddiversified industries at HCL Technologies. “Thisisahotbedofinnovationand creativity,bringingthepotentialto enrich every job role.” AGILITYANDINNOVATION CASESTUDY CASESTUDY TRACINGSUCCESSTOTHECLOUD GETTINGACAFFEINEBOOST Demand-generationmarketingagencyTrace- pointstartedupthreeyearsagoanddecidednot toownanyserverhardware,butinsteadtorely onthecloud. Thebusinesssawimmediatepracticalbenefits, particularlyaroundsharingfileswithclients andstaff,buthasalsousedthecloudtohelpit becomemoreinnovativeandresponsive,toboth itsownneedsandthoseofclients. CompanyfounderJamesCoxsaysthereallight- bulbmomentwaswhenthebusinessswitched fromatraditionalaccountancymodeltoacloud- basedpackage.“Althoughwewerequitequick atgettinginvoicesandexpensesacrosstothe accountants,itwouldtakefourorfiveweeksto getfinancialinformationbackintothebusiness,” saysMrCox.“Nowwecancloseourbooksfive daysaftertheendofthemonth,andveryquickly seewhichactivitiesareproducingthebest resultsandwhichneedsomeattention.” Thecloudmodelhasalsohelpedthecompany competewithmuchbiggeroperatorsbyenabling ittoaccessarangeofsoftwarepackagestooffer clients.“Thesebringtogetherdatasilos,inplaces suchasGoogleAnalytics,customerrelationship managementorsocialmediasoftware,andcon- nectitalltogether,”hesays.“Itwasalwaysmuch moredifficulttolinkupdifferentpartsofthebusi- nesswhenthingsweren’tinthecloud.” LikeMrMilligan,MrCoxattributesmuchofhis business’ssuccesstothiswayofworking.“We wearitasabadgeofhonourthatwehavenever lostaclientandwecouldn’thavegrownaswe havewithoutdeliveringatangibleimpacttotheir businesses,”hesays.“Wecouldn’thavedone thatwithoutthecloud.” ForAndyMilligan,founderofconsultancy firm CaffeinePartnershipandauthorof Brand ItLikeBeckham,thecloudhascome toepitomisetheinnovationhisbusiness stands for. “Whenwefirstsetup,wewantedtobean unconventionalconsultancysowelookedat whatwewoulddodifferently,”says Thecloudisenabling businessestodowhatthey couldn’tdobefore This ability is helping organisa- tions embrace trends, such as big data, modelling and simulation, and 3D animation, says Professor Sian Hope, chief executive of HPC Wales. She gives the example of architectural visualisation firm iCreate, which has used the pro- cessing power of supercomputers based in the cloud to improve details of its animations and reducetheamountoftimeitspent rendering them. “This increased quality, alongside faster produc- tion speeds, allows the company to compete more effectively in a globalmarket,takingonlargerand more ambitious projects, and pro- viding services to more customers thanpreviouslypossible,”shesays. But Chris Harding, director of interoperability at The Open Group, a vendor and technology- neutral IT consortium, also has a wordofwarning,despiteacknowl- edging the potential of the cloud as a source of innovation. “The advantages of being able to use resources as and when you need them, and paying only for what you use, often make the decision tousecloudfordevelopmentano- brainer,” says Dr Harding. “Buttheconsiderationsforlong- term operation of systems are very different and cloud is not always the best solution. Do not fall into the trap of relying on the specialfeaturesthatyourdevelop- ment cloud provides, so that it is impossible to move to an in-house or hosted platform, or even to anothercloudproviderthatmaybe more economic for your produc- tion system.” INNOVATIONISAS FREEASACLOUD Flexibilityofferedbycloudcomputing makesbusinessesmoreagileandableto innovatewithoutcostlycommitmentstoIT infrastructure,asNickMartindalereports MrMilligan.“Wethoughtnimblenesswasthe key,andtodothatweneededpeoplewhowere reallygoodatthinkingsmartlyandquickly.” Byenablinggenuinelyflexibleworking,the company’suseofthecloudhashelpedboth recruittherightkindofpeopleandcreatethe conditionsinwhichtheirnaturalinstinctscan flourish. “Ourclientstendtobeseniorleadersand ourpropositionisgivingthemexperienced businesspeoplewhowillhelpthemtogrow,” hesays.“Youcanonlydothatifyouhave expertpeople,andtheytypicallytendtobe self-startersanddon’twanttobemanagedina traditional way.” Morepractically,thecloudalsomeansstaffcan bebasedalloverthecountry,whichallowsthe growingconsultancytorespondquicklytonew projects.“Ifaclientasksifwecanstartwork tomorrowinBirmingham,Glasgoworeven overseas,wecansayyesbecausewe’llhave oneofourconsultantassociateswhodoesn’t livethatfaraway,”saysMrMilligan. Thecloudalsocreatesaculturewhere partneringwithotherorganisationsbecomes thenorm.“Theabilitytolinkupwithnimble networksallowsustocreateamuchbetter offering,”hesays.“Atrulyinnovativemindsetis naturallycollaborative.” sioned by Adapt, 75 per cent do not feel that their cloud provider really understands their business and one in four businesses does not expect their cloud provider to be meeting their business needs within the next 12months. The survey, conducted by Easy- Insites on behalf of Adapt in March 2014, comprised 102 respondents from commercial organisations with 200-plus employees in the UK. It discovered that cloud is cur- rently used to support a wide range of requirements. Some 60 per cent of businesses use it to manage diverse workloads from test and development to business-critical applications, with specific com- pliance and governance require- ments and varying infrastructure demands. With this diversity comes natural specialism – you wouldn’t put your low-priority workloads on an expensive extreme perfor- mance platform in the same way you wouldn’t buy a Ferrari to tow a caravan – it’s about fitness for pur- pose and the most efficient, appro- priate solutions for the objectives you need to achieve. What all businesses agree on is the need to drive maximum return from their existing investments and develop a future strategy that is both relevant and the right-fit. So can one provider do it all? Tellingly, some 62 per cent of businesses are already multi-sourcing and 53 per cent of respondents had learnt from experi- ence that a single provider could not meetalltheirneeds. Provider specialisms can help busi- nesses achieve more, faster. How- ever, managing a range of provid- ers requires considerable time and effort on the part of in-house teams, Three quarters of UK businesses are now officially “in the cloud” in one form or another. The universal, horizontal benefits of agility and utility are undeniable and compel- ling, but businesses still need to be able to translate these into enable- ment and competitive advantage to really get the most out of their cloud investments. Not all clouds are created equal, and depending on your drivers, desired outcomes and preferences, some will be a far better fit than others. But in a fragmented, rap- idly evolving provider market that features niche startups, traditional infrastructure providers, telcos and a technicolour array of differ- ent propositions and services, it is hard to be (and stay) well informed. It’s sometimes difficult to know where to go and how to map your changing requirements to individ- ual provider capabilities. Amismatchisevidentbetweenwhat UK businesses need versus what they actually get from their provid- ers. According to research commis- forcing investment at both a service management and supplier manage- ment level, and potentially missing out on economies of scale. The indi- vidual providers meanwhile inevi- tably have an incomplete view of the customer, so organisations are not aligned to support their overall long-termgrowthstrategy. Against this backdrop, the idea of working with a single overall pro- vider that manages these various relationships can be highly appeal- ing. Cloud brokers or aggregators match organisations with providers that can service their needs at a par- ticular point in time, or on a certain cost model. But because the broker/ aggregator is a tactical rather than strategic role, their ability to develop long-term relationships that evolve withcustomerdemandislow. Another option is the cloud inte- grator. Integrators are the advisory conduit between the business and what the complete provider land- scape can deliver. Unlike brokers and aggregators, who simply bundle ABOUTADAPT multi-provider services together to be consumed through one contract, integrators take the long-term part- nership view, comparing providers and clouds through the eyes of your business, and evaluating the poten- tial for specific commercial, opera- tional, technical and compliance gain. Cloud integrators are not cre- atedovernight–ittakesyearsofreal- world experience and significant investment in platforms, people and processestoreallydeliverresults. But the fundamental difference is that the integrator takes account- ability and responsibility for end- to-end service management, bringing together provider, legacy, customer-owned and public hyper- scaler solutions to achieve a set of goals or outcomes. This single pane, comprehensive view reduces complexity, and delivers more meaningful insight and intelligence back to businesses. The integrator approach empow- ers organisations to maximise their return on investment, and really capi- talise on the breadth of choice and options available, maintaining a per- manentlyoptimisedblendofservices, solutions and providers that repre- sent the best fit for delivering busi- ness outcomes for today and tomor- row’s aspirations. This is a marked difference from the traditional out- sourcing concept, under which cus- tomers tend to be locked into three or five-year cycles with little scope for flexandchangealongtheway. Crucially, it also releases in-house IT teams from managing those rela- tionships, freeing them to focus on getting new products to market more rapidlyanddeliveringreal-worldben- efitbacktothewiderbusiness. According to the research, almost half (48 per cent) of UK businesses expect to make big changes to their cloudplatformsinthenext12months. Ifyouareoneofthem,takethetimeto consider your options carefully. Keep- ing your teams focused on creating business value and outsourcing the effort, worry and uncertainty associ- ated with choosing, migrating to and managingmultiplecloudenvironments mightjustbetherightmoveforyou. Ifyou’dliketofindoutmoreabouthowa cloudintegratorstrategycouldhelpyour businessmakethemostofthecloud,visit www.adapt.com/extending-your-cloud Canoneproviderdoitall? The rise of the integrator model helps UK businesses make the most of the cloud, says Adapt's Tom Needs Outsourcingtheeffort,worry anduncertaintyassociated withchoosing,migratingto andmanagingmultiplecloud environmentsmightjustbethe rightmoveforyou “Inrecentyears,financialuncer- taintyhasforcedtacticaldecisions– it’snowallaboutgearingforgrowth again.Agoodcaseinpointwasacus- tomerwhohadbeenacquiredand leftwithcostlyout-of-supportlegacy infrastructureandarequirementto integratecomplexcoreHRandpay- rollsystems. “Ourexperiencemeantwewere abletotakeonmanagementofthe legacyand,collaboratingwiththe customer,designedcreativetrans- Adaptisanaward-winning,end-to- endmanagedservicesproviderand cloudintegrator.Wehelpcustomers makethetransitiontohighlysecure, scalable,enterprise-classITthat deliversreal-worldadvantage,ena- blingchangeandinnovation. formationplansthatexploitedamix ofpublicandprivatecloudservices, whilemovingtowardscomplete integrationwiththenewparent company’ssystems.Theresult–a fastertimetobenefitandasizable costreduction,puttingthemina strongpositiontogrowtheircom- binedmarketshare.” KevinLinsell Headofservicedevelopment Adapt Adaptservicesincreaseagility.Our integratedofferingspanstheentireIT infrastructurefromend-to-endman- agementandcloudservicesthroughto colocation,hostingandcomplexnet- workingsolutions.Formoreinforma- tion,visitwww.adapt.com INTEGRATEDCLOUDINCONTEXT ONECLOUDPROVIDERDOESNOTFITALL Useprivatecloud 65% Usepubliccloud 43% Usecommunitycloud 23% Useblendedhybridcloud 31% COMPANIESARETRYINGTOCREATETHERIGHTCLOUDMODELTOMATCHTHEIRNEEDS THEREISAMISMATCHBETWEEN WHATBUSINESSESREQUIRE VERSUSWHATTHEYACTUALLY GETFROMPROVIDERS OFUKBUSINESSESARE OFFICIALLYINTHECLOUD 75% USECLOUDFORBOTHBUSINESS- CRITICALANDGENERALPRODUCTION ACTIVITIES 60% AREUSINGMORETHANONE PROVIDER 62% AGREETHATONECLOUD PROVIDERCANNOTDOITALL 53% DONOTEXPECTTHEIRCLOUDPROVIDERTOBE MEETINGTHEIRBUSINESSNEEDSIN12MONTHS DONOTFEELTHATTHEIRCLOUDPROVIDER REALLYUNDERSTANDSTHEIRBUSINESS Tom Needs Chief commercial officer, Adapt
  • 7. CLOUD FOR BUSINESS CLOUD FOR BUSINESS 13raconteur.net twitter: @raconteur12 raconteur.net twitter: @raconteur OPINION Perceptionofthe cloudisshiftingtothe bestwayofmoving companiesintothenew ageofdigitalbusiness CLOUDFOR DIGITALBUSINESS GregorPetri,Gartnerresearch director,looksintothecloudand thenewageofdigitalbusiness 33 Movefrombeing anITbuilder toaservicebroker COMMERCIALFEATURE The modern chief information officer needs to focus attention on finding new ways to add value to the business, says Dave Allen, NetApp vice president for Northern Europe, the Middle East and Africa, and general manager for UK Ireland Thethingsthatcreaterealvalue aretheapplicationswhichpower yourbusinessortheproductsyour businesscreates modityareas,youcanmakedecisions about how to deal with them. Do you have them delivered to you as a cloud service? Or do you build shared infra- structures that are highly efficient and automated to reduce the costs of running them? Typically this is a dis- cussion focused on operational excel- lence and legislative requirements, ratherthantechnology. The opportunity for CIOs to add value and competitive differen- tiation to the business increases exponentially as investment shifts from commodity IT to business value IT and new opportunities. According to Gartner, 63 per cent of IT budget is spent running cur- rent IT infrastructure, 21 per cent on meeting the natural growth in application performance require- ments and data, but only 16 per cent on new opportunities, where there is the potential to create the most value. This is the challenge for a modern CIO: how do you maintain opera- tional excellence while increasing investment on ways to add busi- ness value and exploit your unique data? How do you move from being abuilderofITtoabrokerofservice? NetApp creates innovative prod- ucts, storage systems and software that help customers around the world store, manage, protect and retain one of their most precious corporateassets–theirdata. For more information visit www.netapp.com /uk The IT market is changing faster than ever. Industry trends, includ- ing cloud, big data, mobile, flash and the software-defined datacen- tre, mean this will only acceler- ate. The landscape is changing for chief information officers (CIOs) as workloads are becoming more dis- tributed and hybrid cloud becomes reality. So, given this complexity, what should CIOs and the rest of us in IT be discussing and thinking about? Where should you be look- ing to save money and where to invest your time? The things that create real value are the applications which power your business or the products your business creates. With more focus here it’s amazing how much addi- tional value IT can add through aggressive application of tech- nology innovation. An example is accelerating test and development by enabling developers to instantly create database copies. The focus should be providing high levels of automation and self-service. Companies are constantly look- ing to exploit data and informa- tion, whether it’s social media feeds, such as the Twitter Firehose which streams 500,000,000 tweets directly to you every day, new ana- lytics tools, such as Hadoop, to mine vast quantities of information for trends and patterns or develop- ing BYOD (bring your own device) strategies to better enable your mobile workforce. For example, NetApp IT recently deployed a Hadoop solution, which has reduced queries on 24 billion records from four weeks to less than 10.5 hours, accelerating the compa- ny’s ability to respond to customers’ needs.Itenabledapreviouslyimpos- sible query on 240 billion records in less than 18 hours, further enhanc- ing its proactive service capabilities. A survey by Vanson Bourne shows that 69 per cent of C-level executives cite technology as one of the main reasons why business decisions are notbeingmadequicklyenough. The things IT has to do to sup- port the business are necessary and time consuming, but typically add little value. Ask yourself the question, “If I started today from scratch, what would IT do and not do?” Once you’ve identified these com- ȖȖ For a while, business leader- ship considered cloud comput- ing merely as a smarter way to do IT – with smarter most often meaning faster, better and, espe- cially, cheaper. The part about the cloud being faster is certainly true. Many a company finds their IT depart- ment is able to respond sig- nificantly faster to their needs by using cloud services. And if not, they gain speed by going rogue, simply bypassing their IT depart- ment and going straight to the cloud themselves. Cheaper is a different question. Eventhoughcloudproviders,such as Amazon Web Services, Micro- soft Azure and Google Compute Engine, continue to lower their infrastructureserviceprices,many companies find that the cost of infrastructure is only a very small partoftheirtotalITcost.Sotheuse ofthecloudisnotnecessarilymak- ingoverallITsignificantlycheaper. In response, perception of the cloud phenomenon is shifting from merely a smarter way to facilitate “business as usual” to the best way of moving companies intothenewageofdigitalbusiness. Digital has taken the business communitybystorm.Afterdecades of IT lingering at the bottom of the annual chief executive top ten pri- oritylistandcostreductionbecom- ingthemostdiscussedaspectofIT in boardrooms across the world, the idea of gaining competitive advantagethroughdigitalcapabili- tiesisbackwithavengeance. Granted, new imaginative capabilities, such as 3D printing, smarterdecisionsthroughbigdata analysisandthepotentialofreach- ing out directly to millions of con- sumersthroughsocialnetworking technologies, did more good to the momentum of digital than IT departments finding ways to run their existing enterprise resource planning system “in memory” or “on Amazon”. Thismadesomearguethatdigital business should not reside under the current chief of information processing and indeed we are see- ing the new role of a chief digital officer or CDO emerge in many organisations. Some old-school chief information officers (CIOs) may worry that these fast-moving CDOs have the same devastating impact on IT’s role as that other type of CDO, collateralised debt obligation,hadonfinancialmarkets inthewakeofthesub-primecrisis. Other CIOs cannot wait to embrace the role themselves to get back into making a real differ- encebyusingthecloudtorunwhat could be described as “software- defined business”. Over time, digital business will make digital resources as impor- tant to companies as today’s most mentioned critical success factor –humanresourcesorHR.Andjust asbusinessesdidnotconcededay- to-day control over their human capital to a corporate staff depart- ment, neither should we expect them to do so with digital. Already we see lines of busi- ness taking a more active role in defining their digital future. For example, by bringing architects anddevelopersbackintotheirline organisation.Thatwouldmeanthe emergence of “rogue” or “citizen” ITisnotapassingfad,butasignof times to come. To manage this change, corpo- rate IT will need to eschew its traditional service provider role for a brokering role, similar to the roleofcentralHRincorporations, to provide the crucial governance, complianceandbusinesscontinu- ity still needed in the ever-faster moving digital economy. Advertsforcloudcomputingareusuallyaboutasexcitingasthoseforanewmicrowave oven.Youcanheatfoodupquicker,saysone;noupdatestoinstallandnobig capitalexpenditure,saystheother.Thesedaysweallknowthere’smoretolifethan microwavedfood.Andthesameistrueforthebenefitsofthecloud.Fiveyearsagothe internetwaslikethehighstreetwithcompaniessellingtoconsumers.Nowit’scentral toalmosteverycompany’sbusiness,connectingthemwithsuppliers,employees, customersandpartners.StephenArmstronghasourtoptenwaysthecloudhelps businesseswithsomeshop-freshexamples… TOPTIPS CLOUDCANBRIGHTEN UPYOURBUSINESS TEN WAYS JohnWinsor,chiefinnovationofficerat HavasandchiefexecutiveatVictors Spoils(VS),saysthecloudisrestruc- turingtheadagencymodel.VSuses aglobalteamoffreelancerspaidper job.XeniosThrasyvoulou,founder andchiefexecutiveofPeoplePerHour, arguesthatcrowdsourcingtalentis thefutureforflexiblefirms.Theonline marketplaceletssmallfirmsadvertise projects;freelancersrespond. 04DIFFERENT WAYS TO EMPLOY 06SHARING INFORMATION NewhamUniversityHospital NHSTrustservesapopulation ofsome240,000inEastLondon. Theadventoftablets,smart- phones,wi-fiandthecloudmeans doctorsandnursescanaccess datainstantlywherevertheyare. DavidBolton,directorofpublic sectormarketdevelopmentfor QlikTech,saysthecompany’s softwarespeedsupproductionof reportsandsharesinformationvia an online dashboard. Lockingallsuppliersintoyour supplychainallowsafreeflowof information,measurement,and costandinventorycontrol,says DebraHofman,vicepresidentof supplychainresearchatresearch giantGartner.Thecompany predictsthatby201660percentof banksworldwidewillprocessthe majorityoftheirtransactionsin the cloud. 01SUPPLY CHAIN “Usuallyitiseasytodeploywherever youwant,”saysRobKeenan,headof UKportfoliomanagementatSiemens EnterpriseCommunications.London agencyJamesParkAssociates designsfirst-classseatsforairopera- tors,includingSingaporeAirlines, andusesthecloudtoenableitsAsian andLondonofficestocollaborateon design,thuseffectivelyoperatinga 24-hourworkingday. 07WORKING FASTER SalessoftwarehotshotSalesforce measureshowinfluentialemployees areonthecompany’scloud-based internalsocialnetworkChatter.Chief executiveMarcBenioffinvitesthe company’stop20influencerstothe quarterlyoff-siteretreatwithtopexec- utives.“Weestimatewehave25 per centfewermeetings,26percentless e-mailandaccessto39percentmore informationusingChattertocommu- nicateandcollaborateinternally,”the companysays. 09COLLABORATION Manylargeserversrunatlessthan 30percentcapacity,accordingto PeterZonneveld,co-founderandchief executiveofGreenclouds.The com- panybuyssurpluscomputingpower fromthosewithtoomuchandsellsto thosewithatemporaryneed.InBrazil, startupAudioMonitorlinkstothe country’sradiostations,viathecloud, andpromptsartistswhentheirtunes areplayedtomaximiseroyalties. 03NEW BUSINESS MODELS“Forbusinessfacingachangingmar- ketandclientneeds,thecloudbrings incredibleresponsiveness,”says JacquelineDavey,IBMvicepresident, cloud.Thecompanyhelpedonline gamedeveloperMojang,ofMinecraft fame,spinupitscloudpresencefor itsnewBattlefield4game.“Using thecloudallowedustoaddanextra 25,000playersinjustfourhours,” Ms Davey says. 02MARKET RESPONSIVENESS Thecloud’sreal-timedatarecord- ingandresponseallowsTPVision, ajointventureofHongKong-based TPVTechnologyandTVmanufacturer PhilipsElectronics,tomeasureview- ers’habitsandfine-tuneprogramming suggestionsforPhilipsSmartTVcus- tomers.Thecompanycanpersonalise programmesuggestionsaspeople viewandtargetadvertswiththepreci- sionofasearchengine. 08DATA GATHERING Cloud-basedsoftwarecompany CallidusCloudhasdeveloped MySalesGame,pioneeringthe gamificationofsales.MySalesGame setslevelsandmissionsintoa company’scustomerrelationship managementsoftware,suchas salesstaffadoptingbestpractice, reachingmilestonesandhitting targets.Thosefinishingamission oralevelgetrewardsfrompeer recognitiononsocialcollaboration platformsoraperk. 05NEW WAYS TO MOTIVATE GreeneMotionistheEuropean Union’scontinent-widebidto promotetheuseofelectriccars. Thesystemhastolink43coun- tries,allownewcomersonstream, enableanyGPSdevicetoconnect tothesystemandmapelectriccar rechargingdocksacrossEurope. “Thiswouldhavebeencompletely impossiblebeforethecloud,” saysJacquelineDavey,IBMvice president,cloud.“Usingthecloud, however,thesystemcangrowas largeasitneeds.” 10SCALABILITY
  • 8. CLOUD FOR BUSINESS CLOUD FOR BUSINESS 15raconteur.net twitter: @raconteur14 raconteur.net twitter: @raconteur The complexity and volume of data generated by sophisticated racing cars means cloud computing could soon be in pole position for Formula 1, writes Caroline Reid Asenterprisesofallsizescontinuetoadopt cloud-basedservices,DaveHowellasksis securitystilla major concern? SKY’STHELIMITFOR F1ANDTHECLOUD ACLOUDOF INSECURITY? FORMULA1 ȖȖ When millions of dollars are spenttogainameretenthofasec- ond advantage, it’s little surprise that Formula 1 teams are looking to high-tech solutions, such as cloud computing, for the future direction of the sport. Competing in F1 is a costly busi- ness. The leading teams spend more than $400 million each to propel two cars around a track for a few hours 19 times a year. Every teammustdesignandbuilditsown chassisand,withonly2.5secondsa lapseparatingthechampionsfrom the losers, getting the technologi- cal advantage is crucial. The most visible components may be the sponsor-covered chas- sis and wheels, but it’s what the eye can’t see that makes the cars so costly. Incorporating on-board computing power in an F1 car presents its own challenges and increases costs. To make sure the bodywork is as slender and aerodynamic as pos- sible, all the wiring, electronics and cooling systems must be packed in a tight space around the engine – more difficult than it sounds when there’s 1.25km of wiring and up to 150on-boardsensorstobeinstalled. Each sensor gives readings up to 1,000 times per second and data is sent wirelessly from the car to the pits. This gives around 1.5 billion samplesofdatafromeachraceand these are monitored in the garage while the car is on track, then analysedafterwardsbysupercom- puters back at the team’s factory. Leading teams take around 20 engineers to races just to work on telemetryread-outs,withafurther 30backatbaseworkingsimultane- ously. In this environment, quick transfer of data is crucial. This is the reason why cloud computing is starting to play a major part in the world of F1, long before the racing car even gets on thetrack.RedBullRacinghaswon boththedrivers’andconstructors’ world championships for the past fouryears,andcloudcomputingis playing an ever-increasing role in the team’s quest for victory. Its head of technical partner- ships Alan Peasland explains: “At Infiniti Red Bull Racing we have a private on-premise cloud that we use for a variety of simula- tion and computing tasks. In the design and development of the car, we use our high-performance computer (HPC) to run compu- tational fluid dynamics (CFD) simulations and finite element analysis in order to support the core design activities.” This affects areas from the evalu- ation of aerodynamic performance totherefinementofthemechanical properties of a design, such as its strengthandfatiguelife.Mostofthe computing power running within RedBullRacing’sHPCisconsumed in processing the hundreds of simulations performed by CFD in a typical week. Running parallel to this,theHPCalsoanalysesthedata produced as the team tests scale modelsinitswindtunnel. Toaccomplishthisithasthesup- port of some of the world’s leading techcompanies.Suppliersinclude ȖȖ The cloud is transforming every aspect of the business community. Surveys of business owners con- sistently conclude that the cloud now plays a significant role in their ability to compete and realise their strategic goals. Security though, continues to be a concern, but is fast receding as a major barrier to theadoptionofmorecloudservices. Cyber attacks have been made oncloud-basedservicesthatmany enterprises have come to rely upon. Twitter, Dropbox, LinkedIn andGoogleDocshaveallhadtheir securitycompromisedoverthelast few years. The Heartbleed secu- rity scare that impacted on many cloud-based services was the last to hit the headlines. According to researchers at The Verge, as much as one terabyte of data per day is being stolen from businesses, academic institutions, the military and governments. David Emm, senior security researcher at Kaspersky Lab, says: “Recently, trust in cloud storage has been undermined somewhat by the Snowden [NSA] leaks and growing fears about privacy. I think it’s too early to say whether thiswillaffectthetake-upofcloud services significantly. Although it may well ensure that security issues become a key part of the negotiations between cloud pro- viders and prospective clients.” With Andy Barrow, technical director at ANS commenting: “Security concerns are often a scapegoat used by IT teams who are adverse to change, rather than a legitimate concern. In reality, working in the cloud means busi- nesses can access a level of data security that may be cost-prohibi- tive to invest in themselves.” Findings from the Cloud Indus- try Forum (CIF) reveal busi- nesses are pushing ahead with cloud adoption despite security concerns. “Around 69 per cent of businesses express concerns about security, yet the overall cloud adoption rate has increased rapidlyfrom48percentin2010to 69percentin2013,”saysCIFchief executive Alex Hilton. Asthecloudbecomesubiquitous, business owners need to appreci- ate that the perimeter of their organisation’s security has shifted fromtheiron-siteserversandinto the cloud. In the brave new world of cloud-supported business, a fresh appreciation of security is rapidly developing across the entire business environment. To ensure high levels of secu- rity, businesses need to partner with cloud service vendors that can demonstrate they meet cur- rent security standards, such as ISO 27001, ISAE3402/SSAE16 and CSA STAR. Carrying out due diligence when adopting cloud services is vital to ensure robust and reliable data security. When cloud security is consid- ered, it seems that experience breeds confidence. As businesses gainmoreknowledgeandseesecu- rity concerns are being addressed, securitybecomeslessofapressure point to more cloud adoption. “Overall, the security risks still exist, but companies are willing to acceptthemtomakesavingsandto be more responsive to demands,” says Dr Gerhard Knecht, head of global security services and com- pliance at Unisys. “Others delay the large-scale implementation until the first wave of security breaches and remedial action has Asbusinessesgainmoreknowledgeand seesecurityconcernsarebeingaddressed, securitybecomeslessofapressurepointto morecloudadoption Cloudcomputingisstartingtoplaya majorpartintheworldofF1,longbefore theracingcarevengetsonthetrack IBM Platform Computing, Ansys, iLight, ATT and Siemens PLM who,accordingtoMrPeasland,“all contribute to the overall solution that takes us from initial concept design, through simulation and analysis, and into manufacture”. All this takes place long before a car turns a wheel on a track some- times half way around the world from Red Bull Racing’s Milton Keynes base. Calculations done in the cloud are key to making sure everything runs smoothly. “Performance on track will be influenced not only by the new components we send to each race that help to tailor the car for the specific circuit, but also how quickly the car can be optimised during the race weekend,” says Mr Peasland. Information travels in the other direction too. “Data captured on-car during practice sessionswillbetransferredbackto the factory, by virtue of our ATT Global EVPN Network, where it will then be analysed by our team of experts.” Perhaps surprisingly, at the moment cloud computing is little used for processing data during the race, and Red Bull Racing and the other teams instead transport heavy servers to each race. Shareanddiscussonlineatraconteur.net DATASECURITY been taken care of. This is akin to companies using the ‘never install version 1.0 in your company’ approach.” Ultimately the cloud services that any business adopts must instillhighlevelsofconfidenceand trust,asRajinderTumber,security consultant at Auriga, concludes. “Customer trust is of paramount importance to business owners. Withouttrust,customerswillseek business with a rival competitor. Therefore, businesses need to ensure they are using secure and trustworthy cloud-based services and platforms, as well as imple- menting and embedding effective securitypracticestobetterprotect customer data,” he says. There is little doubt that the cloudscape offers massive value and flexibility that all enterprises can leverage. The cloud itself isn’t necessarily inherently insecure. If asensibleapproachtosecuritypol- iciesistaken,cloud-basedservices canbesecurelymanagedtodeliver the benefits they clearly offer. Security concerns will prevent a wholesale move to the cloud for some time yet, but the advantages the cloud presents far outweigh any security concerns. Security specialist Graham Clu- ley says it best when he observes thatthecloudreallymeans“some- body else’s computers”. In this context, business owners consid- ering the cloud and its security should simply ask themselves if they are comfortable placing their data on these systems? “We have our own software- defined on-premise cloud,” he says. “The main reason for doing so is due to the sensitive nature of the data being processed and stored, and also the speed of access to this data. “Formula 1 is a high-paced, time-restricted environment in all areas of the business, so being able to have real-time access to largevolumesofdataiscrucialin order to perform complex simu- lationsduringraceweekendsthat can ultimately deliver increased performance on the track.” However,MrPeaslandbelieves cloud technologies are set become more important in the nearfuture.“Ascloudtechnology advances and with the introduc- tion of hybrid clouds that can support our peaks in demand, it’s highly likely that this will be an area of development for the team,” he says. Bill Peters, chief information officer of Caterham F1, says his team is considering migrating IT to the cloud. “We’re starting to look at potentially having our supercomputer capabilities as a service that we buy, as opposed to something we have in-house. Similarly, if we could have reli- able enough communications to trackside, there’s no reason why you couldn’t host all your track- side systems in the cloud as well, so you wouldn’t need to carry thewholeITcircusfromtrackto track,” he says. It would also help to cut costs and, in a sport where many smallerteamsstruggletokeepup with the larger outfits’ accelerat- ing budgets, this could be a driv- ingforcebehinditsproliferation. Mr Peasland agrees that “cloud computing, in the right environ- ment and used in the correct way, will most definitely be able to offer cost-savings.” And that isn’t the only way it will change the sport. He says: “As cloud technology and services mature, it will not only be areas such as CFD and simulation that will benefit, but all other business systems, including telephony and com- munications, design and devel- opment. And it’s our innovation partners, such as IBM Platform Computing and ATT, who will workwithustomoveusforwards in this area.” Formula1motorracing teamsaredriving computerdiagnosticsin thecloud