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SaaS Software as a Service, allows a customer accesses a software application in an environment where the hardware,
infrastructure and basic
application are already fully set up and ready to run.
PaaS Platform as a Service, is an environment that allows
customers to develop and then run their own software. Usually with a limited base of
programming languages and often a proprietary set up.
IaaS Infrastructure as a Service, is similar to PaaS but allows customers to run any programs or at least supports a great range. This is considered the most basic service as the vendor only supports your hardware experience and they will not support anything to do with software. It is marketed as a substitute to placing applications in an otherwise expensive corporate server room.
DaaS Data as a Service, is a specialised version of IaaS in that deals with Databases only, leaving all application work to the customer. DaaS providers can more easily handle large scales of data that might be beyond most of their customers.
White Paper on Cloud Computing
Cloud computing enables convenient internet access to
a shared resource of computing elements (e.g.
networks, servers, storage, applications, and services);
these can be rapidly made available or released with
nominal customer or provider effort.
The 4 main areas of Cloud are:
Our business is to support your business
Pros and Cons of Cloud
Like any outsourced model, the positives of cloud
computing centre on shared use of expensive
resources like Database Administrators (DBA), server
licenses, user licenses and security experts.
Furthermore, the people and the infrastructure are
likely to be of better or certainly more even quality
than you would find in house.
Pros of Cloud
Low Cost of Entry – with most systems there are several large up front costs that you have to pay before you even start. Buying hardware, hiring a support team, plus the set up and cross testing of the hardware and the basic platform.
Scalability – most systems are bought and specified against a 5-‐ year plan, which means that the system will be oversized in the first years of operation when cash flows are likely to be at their tightest. A Cloud set up allows you to start small and build up.
Pay Per Use – As the system is commoditized, you are paying for it like a utility and can match payments to your business cycle i.e., IT becomes a variable and not a fixed cost.
Security – In the days of hackers using attack kits easily available on the Internet, perhaps your data is best held with a large organization that has access to the latest specialist security options. Most hackers exploit gaps left by poor hardware administration. Specialized IT
organizations will be better positioned to avoid or proactively spot and close these gaps. Some Cloud services providers put a lot of effort into data separation and security, others don’t. (See Cons).
Try before you buy – With most Cloud
solutions, it will be easy to pilot the software in a limited function, to ensure it is fit for purpose.
Rapid Deployment – Due to the nature of the industry, there is significant pressure on Cloud providers to ensure software is easy to use and can be implemented quickly. However, this will not be 100% in all cases. Access – You will be able to use a Cloud system from anywhere your users have Internet access.
“The Cloud helped us improve our speed to market”
Cons of Cloud
• Security – Your data is on the Internet and not a private intranet. While most intranets are eventually linked to the Internet, the traffic between systems is internal. That would not be totally true of Cloud systems and your traffic to and from the provider would have to be secure. (See Pros)
• Performance – you are tied not just to the performance of the Cloud system, but also your local ISP and your corporate pipe to the Internet.
• Availability – Again you are multiplying the risks, as you have to factor the up times of
the Cloud system, the ISP and your own local network access infrastructure. However this still might be better than an in house approach, which will still have strings of dependencies. • Maintenance Windows – For global systems, maintenance windows might not suit your
working hours.
• Integration – It will be hard to integrate with your other systems and with customers and suppliers – what Integration Points (APIs) do they have; do you have?
• Customization -‐ Getting SaaS software customized might be difficult as the software is a shared platform and upgrades might take 12 months or more.
• Vendor lock in – A potential problem for all IT systems, but the added problem with cloud services is that the software that best fits your business might not run on the platform or infrastructure of your cloud provider. You might then be forced to take second best.
“Cloud computing has the potential to offer organisations dramatic operational efficiency and
cost savings, but when improperly managed it can have disastrous
Food for Thought
.
If you are looking at secondary or non-‐operational systems then Cloud is an easy choice: It is cheaper to set up and run
Some of the key potential risks with Cloud such as performance and availability become less important The try before you buy and the rapid deployment model means that you can spend much less management time on the business decisions related to this class of system. This is because before Cloud, even a secondary system was a significant investment and would require similar care and attention in due diligence. Now you can try the solution in a limited environment with little investment and role it out if the system proves itself; if not, you would switch it off like any other utility.
If you are looking at primary or operational systems, (i.e. that run your core business), then the decision to use Cloud based technology needs careful consideration; this is mainly due to the loss of control that you have over an externally controlled system. However it should be noted that many of the weaknesses of Cloud can be found in traditionally self hosted IT systems; for example,
performance issues although technically under your control are often found commonly found in corporate hosted systems; as are issues with vendor lock in and customisation.
About EBI Consultancy
Since its formation in 2009, EBI has been successfully assisting clients throughout Asia Pacific, Europe and the Middle East and across numerous industries. Supported by our industry-‐leading knowledge, extensive operational, commercial experience and practical approach EBI provides high quality commercial, management and supply chain consulting services combined with technology, interim & training services.
At EBI Consultancy we help our clients improve their company's shareholder value, improve their operating cycle, shift from fixed to variable costs and improve their supply chain operations and network. We believe that when you run a business, it is like driving a car. You have to look forward through the windscreen 70% of the time and only look in your rear-‐view mirror 30% of the time. That is why having the right tools and information is key to your running your business and making the right business decisions. Having the right technology approach can help you optimize your processes, save you cost and help you make better decisions.
We practice what we preach and see our customers as long term partners. To ensure customers get the best person for the job, EBI has developed an extensive up-‐to-‐date Global Practitioner Database of 700+ managers from within the commercial and supply chain industry, who are available as interim project managers as and when required. So no matter what industry experience or expertise you require, EBI has the person to assist you available right away.
Need assistance today? Contact us at [email protected] or call us on +65 9114 9211
EBI Consultancy
Corporate Head Office 8 Eu Tong Sen Street, #14-94 The Central,
Singapore 059818 T: +65 9114 9211 E: [email protected]
