How cloud computing can lower your costs and increase your security

Pervez Delawalla, President and CEO, Net2EZ

Cloud computing may invoke images of an abstract technological force floating in the atmosphere, but the term itself is misleading. The term originated because on technical diagrams, a cloud was drawn around any mixture of resources that made a particular application work, says Pervez Delawalla, president and CEO of Net2EZ.

“Cloud computing means so many different things to so many people, and there is a lot of confusion,” says Delawalla. “It’s cloudy out there in the cloud. An easier way to explain it is by using the utility computing concept. This resonates the most with people because they can compare to how they use gas or electricity as a utility, so now can you use computing power as a utility.”

Smart Business spoke with Delawalla about what cloud computing is and how to apply its advantages to your business.

How does cloud computing work?

You have to envision that the physical architecture itself is vast. Data centers all over the world house servers, and each server or set of servers is designated for a certain type of application or resource. Servers, routers, switches and security devices combine with network connectivity and an operating system to form the cloud. You could compare it to an electrical grid, in which power comes from substations and power generation points before electricity goes over wires to provide power to households or businesses.

Some examples of cloud computing include Apple products that back up data to their iCloud, and Microsoft products with which data is backed up on SkyDrive, Google Drive, or Dropbox. A business may approach a data center for complete automation of its infrastructure and take care of the software itself.

The data center is then responsible for ensuring that all of the hardware pieces are working in harmony with each other and have different versing capabilities within that physical layer.

What are the advantages of cloud computing?

A major advantage of cloud computing is time. As a startup business you can get up and running online reasonably quickly and with minimal investment because you are not buying servers, routing or switching equipment. Instead, you are plugging into a utility that doesn’t require any setup, that is already functioning, and you simply pay for it on a monthly basis.

Cloud computing also offers more versatility and capacity. For example, say your company has a new e-commerce site and a product becomes an overnight sensation. If your website is on a cloud computing platform, you can scale up and sustain a high volume of traffic without having a performance degradation for users of your site.

Cloud computing can also improve your ability to be agile and nimble because the monthly fee for service includes taking care of your hardware and resources. As a user of the cloud, you don’t need an army of IT personnel or consultants, freeing you up both financially and staffing-wise to concentrate on your target business.

Additionally, a minimal amount of software is installed on the personal computer or path, so instead of downloading the entire Microsoft Office suite, for example, you can sign up for Microsoft Office 365, which allows you to subscribe to the cloud-based service on a month-to-month basis to access all Microsoft Office products.

What is the difference between public and private cloud services?

On a public cloud, you don’t know where your data is stored or who has access to it, but you are able to increase your capacity more quickly. An example is Amazon Web Services, which hosts websites on hundreds of thousands of servers which allows users to increase capacity as needed.

A private cloud can be established for businesses that know their growth plans and that want extra security. The business can then control who has access to that data and knows that it is stored in a secure location.

How are security and privacy handled with cloud computing?

Security and privacy are the main reasons businesses are hesitant to go over to the cloud. However, with a private cloud, you manage your environment so closely that the security is as good as with conventional computing. Because of privacy issues, HIPAA-compliant and PCI-compliant credit card companies will always have to use private cloud services.

For extra security, you can do an automation deployment with a private cloud, but that will result in higher costs because you have dedicated resources just for your company. For data that isn’t as sensitive, a public cloud offers more versatility and nimbleness.

What should businesses think about when considering cloud computing?

Ask yourself exactly what it is you want out of the cloud. What are your needs and what do you want to accomplish? With so many different products, you have to ascertain what you will use it for. If you require word processing or Excel, you could use Google Drive, Microsoft Office 365 or Google App. For massive data storage needs, there’s or Amazon Web Services.

For private cloud service, you need to find a data center company to meet those requirements. Examine what the various companies are providing as their feature set for cloud computing, then choose which company best suits your business needs.

If your focus and expertise is not in IT, the more you can outsource to a cloud computing environment, the lower your costs will be for computing needs and data storage. Then your company can focus on its strengths, knowing that the rest is being taken care of up in the cloud.



Pervez Delawalla is president and CEO at Net2EZ. Reach him at (310) 426-6700 or [email protected]

Insights Technology is brought to you by Net2EZ