Cloud computing is a broad term that includes three main categories of service. With the option of using private, public, or hybrid cloud-hosting services, the question is, which system should you choose? This whitepaper aims answer that question for you.

1. 1
Cloud Computing:
The Hybrid Model

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3. Contents
Welclome 4
Main Types of Cloud Computing Services 5
The Hybrid Cloud 7
The Case for Private Cloud-Hosting 9

4. 4
Welcome
S
mall and medium-size businesses (SMBs), though initially slow to
adopt cloud computing, have been making up for lost time. From a
worldwide market of $16.2 billion in 2008, spending on cloud services
grew 250% in four years to $42.3 billion in 2012, according to IDC.
Many SMBs are realizing the advantages of cloud-hosted services. For example,
cloud computing usually costs less than the same capacity would cost onsite.
It’s also more readily available to your team, more secure, backed-up remotely,
reducing the cost of hiring IT talent, and eliminating the need to install or update
software. Cloud services are easy to scale, too; you can purchase only the
services and storage you need.
Just like any other technology, cloud computing is not devoid of areas of concern.
Data stored in the cloud is subject to unauthorized access, not only while it is
in the cloud, but also coming from and going to the cloud. There have been
some spectacular examples of crashes in cloud computing already; fixing those
problems is outside of your control. There are many unsettled questions as to
who may legally access data stored in the cloud. When cloud storage provider
Mega Upload was shut down for data piracy by government authorities in 2013, a
lot of legitimate users of that service lost access to their files.

5. 5
Main Types of Cloud
Computing Services
Cloud computing is a broad term that includes three main categories of service:
1. Software-as-a-Service (SaaS). Applications are available over a network
-- typically the Internet -- often on a subscription basis. They’re hosted by
a service provider or a vendor. Examples include iCloud, iTunes, iWork,
Amazon Web Services, Dropbox, Evernote, Google Apps, Salesforce,
QuickBooks Online, etc.
2. Platform-as-a-Service (PaaS). The provider supplies the networks,
servers, storage, and other services, and the customer creates the
software using tools and libraries from the provider, along with custom
apps, databases, and other services -- all integrated into one platform.
Examples include AppScale, Google App Engine, and Windows Azure.
With Software-as-a-Service (SaaS) Applications are
available over a network -- typically the Internet -- often
on a subscription basis.

6. 6
3. Infrastructure-as-a-Service (IaaS).The service provides servers,
hardware, firewalls, storage, and various networking components. Payment
is typically on per-user basis. The service provider owns the equipment,
maintains it, and operates it. Examples include Amazon EC2, Rackspace
OpenStack Cloud, HP Public Cloud, SoftLayer CloudLayer Computing.
With the option of using private, public, or hybrid cloud-hosting services, the
question is, which system should you choose?
With the option of using private, public, or hybrid
cloud-hosting services, the question is, which system
should you choose?

7. 7
The Hybrid Cloud
I
ncreasingly, businesses are relying on hybrid cloud solutions to ease
dependency on third party services. Hybrid cloud hosting is well suited for
companies that need to protect sensitive data and proprietary information.
Hybrid combines the capabilities of an onsite cloud infrastructure with
benefits of remote systems administration.
The main advantages of hybrid cloud solutions are related to cost and on-
demand flexibility. Some companies use a hybrid cloud to expand onsite
capabilities and then only go to the cloud when there’s excess demand. That
way, the company only pays for extra capacity when needed. In a reverse hybrid,
companies can use the cloud for their everyday computing needs and tap in-
house resources to cover peak needs.
Some companies use a hybrid cloud to expand
onsite capabilities and then only go to the cloud
when there’s excess demand.

8. 8
There are challenges with hybrid clouds. Implementing a seamless integration
of company resources with the service provider’s can be tricky, since you’re
splitting the infrastructure between two locations. Also, there are unique security
concerns involving data-sharing and communication between hybrid locations.
A 2013 technology adoption profile created by Forrester for Cisco Systems
showed that about half of the U.S. and European IT decision-makers surveyed
said their companies currently use IaaS. Forrester expects that number to grow
significantly. In 2013, the Gartner Group predicted a compound annual growth
rate of 42% for IaaS in the next five years.
According to Forrester, the companies that have implemented a hybrid cloud
strategy (or plan to) want consistent security policies for their data centers
and their cloud service provider. Those may include installing firewalls, using
encryption, and creating uniform policies for operations.
Companies that have implemented a hybrid cloud
strategy (or plan to) want consistent security policies
for their data centers and their cloud service provider.

9. 9
The case for private
cloud-hosting
F
orrester’s hardware-related IT study and survey concerning budget and
trends, “Forrsights Hardware Survey, Q3 2012,” showed that, among
the SMBs and enterprise companies with two or more employees in
Europe and the U.S., 46% are prioritizing investments in private clouds in
2013. According to the survey, more than 25% said they prefer to rent one,
and more than half plan to build a private cloud in their data center.
Hosted private clouds have several benefits, including:
1. Easy reach and connectivity.
2. Enabling “future hybrid scenarios.”
3. Licensing and compliancy requirements are easier to meet.
4. Possibility of outsourcing cloud setup and management.
Whatever strategy you decide to implement, you should consider the many
benefits of hybrid cloud computing for your business

10. 10
SOURCES:
Source: “Forrsights Hardware Survey Q3 2012,” Forrester, September 2012
Source: “Hosted Private Cloud, Q1 2013,” Forrester, February 2013
Source: “Hosted Private Cloud Wave Complete But No Leaders Identified,” Lauren Nelson’s Blog,
Forrester.com, 02/13/13
Source: “Cloud: New ways of consuming applications,”YouTube
Source: “Enterprises Seek The Benefits Of Hybrid Cloud, And Work To Overcome The Challenges,” Cisco.
com, January 2013
Source: “20 Top Cloud Services for Small Businesses,” PCMag, 12/11/12
Source: “CloudSigma CEO Talks Hybrid Hosting,” Web Host Industry Review, 09/09/13