Jargon RAIDRedundant Array of Independent (inexpensive) Disks Cloud ComputingAccessing computing power on remote computers via the Internet SLAService Level Agreement RedundancyDuplicated resources Fail-overAbility to automatically use a secondary resource when the primary one fails Disaster RecoveryAbility to get up and running again asap SaaS, IaaS, PaaSSoftware/Infrastructure/Platform as a Service Rental or leasingPaying repeated (smaller) sums over longer periods HostingProviding Internet connected servers for clients’ requirements BackupSaving your data on reliable media in case your servers fail
Losing your stuff Access to Cloud storage is no different to access to storage on your PC Risk of your in-house server crashing vs a cloud providers server crashing Impact of your in-house server crashing vs a cloud providers server crashing Level of technology: Yours vs Theirs
Will it save you money? Sometimes, yes, sometimes, no But it will prevent you from spending it all upfront You don’t necessarily pay less, but you pay different people for different things Balance Sheet vs P&L Make sure you think of everything – Will you be changing your software often? – Will your staffing levels fluctuate wildly?
Cloud in the real world Real life examples New ERP solution – 15 user system (£30,000) – Implementation consultancy (£30,000) – Server hardware (£9,000) Total 1 st year investment £69,000 Annual investment thereafter - £4500 – Software maintenance
Cloud in the real world Real life examples - new ERP solution Hosted/SaaS – Licences per year £667 p.m. (£8,000 p.a.) – Implementation consultancy (£30,000) – Server hardware £250 p.m. (£3,000 p.a.) Total 1 st year investment £41,000 Annual investment thereafter - £11,000
Cloud in the real world Real life examples – new ERP solution Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8 Conventional690004500 Cumulative Conventional69000735007800082500870009150096000 100500 Hosted/SaaS4100011000 Cumulative Hosted/SaaS410005200063000740008500096000107000 118000
Cloud in the real world Real life examples Office – Per user purchased (£220) – Per user per month Office 365 (£8.40) – Annual Office 365 charge (£100.80) If you keep your Office application for more than 2 years, the Cloud version is more expensive
Cloud in the real world Conclusions Cloud computing and SaaS has its place Like any other investment you must consider your situation carefully and decide what your requirements are, long-term as well as short- term Cloud computing is a new exciting world, but make sure you understand why you are jumping in before you do