Monday 22 September 2014

Interview: Key considerations for enterprises in adopting a cloud strategy

Interview: Key considerations for enterprises in adopting a cloud strategy

Many companies, when adopting a cloud strategy for the first time, need to ensure they are maximising their investment both now and for the future, as well as avoiding any potential pitfalls. Enterprise mobility expert Tangoe recently launched an independent Cloud Advisory Service to guide enterprises through this process. And Russ Loignon, Vice President of Cloud Consulting, has answered our questions on best practice in cloud adoption.


TechRadar Pro: What are the key considerations enterprises have to bear in mind when finalising a cloud strategy?


Russ Loignon: First of all you need to consider what you're implementing – Infrastructure as a Service (IaaS) is of course cloud computing, but Software as a Service (SaaS) and 'anything as a service' is also part of the cloud. When clients are assessing their cloud strategy, it is first crucial that they consider which of these elements they are going to implementIaaS or SaaS.


If your cloud strategy fits in the Infrastructure as a Service box, there are also four additional considerations to take into account.


Firstly, knowing what equipment is already available in the business – what are the overall historical elements you're dealing with? What networks are in place today? After this you need to determine what applications you want to implement in the network and whether it can support them.


Secondly, what is the existing estate of your enterprise: your datacentre space and who is your provider or partner? How does your existing estate integrate into the cloud environment? Can they support the applications you need?


Thirdly, there's the overall mobility of your enterprise. This is essential to your strategy as cloud applications will be accessed over many mobile devices, from laptops, to tablets, to smartphones, and high user experience is extremely important to determine the success of the application.


Finally, there is a horizontal factor that underpins all of the considerations above – the existing security of your enterprise. The importance of this cannot be underestimated. Security will have to be incorporated into every stage of the implementation as cloud applications will most likely be tied to databases with access to sensitive or customer data. This means you will need to extend existing security strategies to encompass an overall network security system – across mobile and static devices.


TRP: What are the pitfalls that enterprise should be aware of when choosing a cloud services provider?


RL: The first potential pitfall is whether the cloud service provider is fit for purpose and right for you.


For example, if the partner is a pure public solution provider does their infrastructure meet the requirements for that particular application? There can be key differences between a native player and a public provider in the way that they support cloud applications.


In a shared cloud provider the access is only through interface connectivity and often with a shared port. This can lead to concerns about data privacy and control as a shared platform also doesn't have the same partition as a hybrid or private offering. Meanwhile you can expect enterprise-focused providers such as IBM, Macquarie and Cisco to take a little more rigour around cloud security.


It's therefore important to know what your provider's focus is, and that it is consistent with your own, as this will effect considerations such as delivery mechanisms in the future.


TRP: What advice would you give enterprises on how to get the best possible price for their cloud services?


RL: At the moment enterprises are in a rather fortunate position. Cloud infrastructures are becoming commodities so the current pricing trend due to influence from the likes of Google, Amazon, and Microsoft is downwards – causing tremendous pressure for providers to lower prices.


Amazon has lowered its storage costs 46 times in the past six years – the last reduction at the end of March was by 30% – leaving Google and Microsoft to follow suit within days, and the price pressure continues.


It may seem that public pricing wouldn't necessarily affect enterprise-focused providers such as Terramark and IBM, but in fact the reverse is true. However, the key for businesses is to be aware that contractual agreements are the key to securing lower pricing models. In the cloud world, cheap does not always mean good. Therefore, proper alignment of the right cloud element to support your business needs coupled with market awareness will deliver the best cost structure.


TRP: What additional steps should enterprises take to ensure they are maximising their cloud investments?


RL: One challenge that our customers often face is low adoption rates.


Apps that do well on cloud are usually led from the top down – the management team must lead by example, and also encourage employee adoption. There are often deemed to be good returns on IP telephony applications such Lync in Office 365. However, these applications can often look good on paper, but if there is not enough pressure or encouragement from leadership, adoption will be slow and the investment will not pay for itself.


An example of this is when Telepresence launched – there was a lot of hype about the benefits of ad-hoc meetings and reduced travel costs. However uptake did not progress at the speed that was expected and it never quite lived up to its initial hype. It wasn't until PC camera and small screens emerged that we saw a more favourable uptick.


TRP: How can an enterprise make sure that their cloud investment is suitable both now and for years to come?


RL: This is an important question, because if you read industry insight you will know that technology is changing dramatically, even in cloud services. In the next year we can expect to see developments with the quantum computer taking place and the Internet of Everything will continue to evolve at a dramatic rate.


The changes in the industry can be seen even from the use of language these days. For example, Computer as a Service used to be known as 'CaaS' – now this stands for 'Car as a Service', using a car as an actual CPU, or a storage device!


Therefore, in investment terms it's important to have an architectural plan that is documented and agreed upon to ensure you are prepared for any developments as they arise. Cloud has to fit into the overall strategy – otherwise there will be too many different parties whose opinions will not fit in with the wider business objectives and goals. You can either come up with this documented roadmap yourself, or partner with someone to do so. This kind of planning takes time, resources, and people.


However, the lack of an overarching cloud strategy can damage the business and end up costing more. For example, when procurement departments make decisions purely on price that do not echo the strategy, it becomes much more costly in the long run.


TRP: What are the internal skillsets required to help enterprises through this transition?


RL: Clients need the resources to articulate, plan and manage cloud application integration. However not all businesses possess these resources internally. The most powerful, but most underestimated, resource that a customer brings is knowledge of their own business – the goals, objectives, known obstacles, motivations, success indicators, task 'owners', and departmental idiosyncrasies in the way they work.


If this is not possessed internally, then relying on a partner that can help articulate the pathway with you is critical to understand where the endgame is and how to get there. Don't be afraid to find partners or third parties that can do that. Any kind of professional services can be hugely helpful to help you with this transition, and will often be the difference between success and failure.


About Russ Loignon


Russ Loignon is Vice President of Cloud Consulting at Tangoe. He has more than 20 years of telecommunications industry experience. Previous to Tangoe he was at AT&T for 16 years, most recently as lead market development manager in the Advance Solutions Organisation, where he focused on creating business-related cloud offerings aimed at mobility, healthcare, sourcing and 'as a service' solutions.
















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