The Business Cloud: Hype versus Reality

The Business Cloud: Hype versus Reality

There is no doubt that cloud and mobile computing models are driving technology adoption as well as changing the landscape of how consumers and businesses purchase and use IT.  Accompanying any great shift – which in this case is fueled not simply by cloud technologies but by social computing – are the purveyors of propaganda and hype.  Cloud computing and social media won’t make you popular, is not always safe or free, and it doesn’t whiten your teeth. What it can do is help businesses increase agility, collect and use information better and reduce the cost of change. There are many benefits to be achieved with cloud computing models, yet many providers continue to play on the hype rather taking the more difficult road of communicating how their solution actually solves real business problems.

Gartner research tracks this type of activity, producing reports offering assessments of the “maturity, business benefit and future direction of over 1,900 technologies”.  In the Gartner 2011 Hype Cycle Special Report, entries were grouped into 76 different “Hype Cycles”, revealing the similar patterns of “over-enthusiasm, disillusionment, and eventual realism” that comes with every new technology or innovation.  Hoping to provide guidance business IT decision makers, the report intends to inform businesses about when they should consider adopting technologies or IT models in order maximize the value of the approach.

Yet the market is bursting with definitions for “cloud computing”, and services providers offer their wares with varying levels of service and capability.  It’s really difficult to compare one private cloud solution to another, as they are all seemingly offering the same value proposition described in the same language – and none of it really describing what the solution is, how the business takes the greatest advantage of it, and what disruption can be expected along the way. Layer on top of that confusion a big heap of expectation, and the belief that cloud computing technologies are somehow different from “real” on-premise systems in that they are not subject to the same potential for breakage, failure, or unexpected cost.

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For example, even though Amazon may use the term “elastic”, cloud computing does not automatically create a stretchy and eternally-dynamic resource that can grow without end.   There are still limitations and costs associated with growth.

There is also a great deal of hype around applications and their performance in cloud environments.  When a piece of software is poorly designed and crashes frequently on a local computer or network, it is just as likely that the application will perform poorly in the cloud. It’s simply a reality of software that even great products that are designed to run exactly the way they are being run don’t have a guarantee that nothing will ever go wrong. With cloud computing models, however, there may be a service provider working in the background to manage the systems and keep things running.  You simply might not notice the failures and hiccups as much, but they are still there.

And not all cloud services mean everyone is sharing servers and infrastructure.  While the term cloud generally applies to multiple scaled systems, it doesn’t mean that everyone shares everything and benefits from tremendous levels of redundancy and fault tolerance. In most cases, a solution described as a “private” cloud means that the service has been customized for the unique needs of the organization, and that there are resources of certain types allocated exclusively to the use of that customer. On the other hand, a private cloud may mean that the system elements are all contained within the business infrastructure, providing “cloud” type of services but being delivered from company resources.  There are a wide variety of ways to describe these configurations and approaches, and quite a bit of inconsistency in use of terminology.

The best thing for a business owner to do now is to just ignore the term “cloud” and simply consider how the business might leverage resources from service providers to gain more IT capability at reduced costs, and how outsourcing certain technology needs allows a greater focus on internal innovation and improvement.  Centralized management, improved security, disaster recovery, and increased mobility are all benefits to be realized with the right business cloud implementation.  Just because it is to be an outsourced solution does not mean that the business organization should not still architect and understand the solution they will depend on.  If this level of participation and understanding is not in place, the solution is unlikely to deliver the resulting benefits expected and hoped for.

Outsourced IT service, remote access and server-based computing aren’t new concepts.  It still requires using common sense and reasoning when considering any change in business technology and the innovative application of IT in a business – this cannot be outsourced.  When it comes to cloud computing… to put it bluntly, just avoid the hype and stay away from unrealistic marketing and sales messaging.  If it sounds too good to be true… it probably is.  Technology hasn’t come that far.

Joanie Mann Bunny FeetMake Sense?

J

Migrating Business Data to the Cloud

Migrating Business Data to the Cloud

When businesses elect to have their desktop applications hosted in the cloud with a hosting service provider, they are also electing to have their data hosted with the provider.  This point is not always obvious to non-technical users and those unfamiliar with the hosted application concept.  Many business owners have adopted an online or hosted application solution and then realized after-the-fact that their data was no longer present on their computer.  At least, no current data was present, and it was quite a surprise the day they wanted some information but could not get it because they were not connected to the Internet at the time.  An important thing to remember, and the essential factor in measuring risk associated with use of cloud services and hosted solutions, is that adopting online applications in almost any form means that the data associated with (and possibly even data remotely associated with) the application will also migrate to the cloud.

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Migrating on-premises servers – and the applications and data residing on them – to the cloud makes sense for many businesses.  Particularly as network and internet threats increase in number and as system vulnerabilities are more frequently introduced with remote and mobile access technologies, cloud solutions can significantly assist a business in mitigating the risks of being connected.  Yet business owners and IT managers must be diligent in terms of understanding the measures their service providers take to protect and preserve as confidential the customer’s business data.  And it becomes more than essential that any and all tools or services implemented be part of a strictly controlled information management and data protection plan.

Where applications are simply interfaces and logic; the value for a business is in the data used by the applications – data containing information about the company, how and with whom it does business, and how it makes money.  It is critical that the business consider how and where users need access to applications and data, so that any cloud deployment does not wind up hindering productivity rather than facilitating it to a greater level.  It is when the user becomes disenfranchised, unable to perform their work due to lack of access to information or tools, that “shadow IT” deployments appear, and data sharing solutions are introduced outside of the governance of management or IT.

The vast number of offerings for hosting applications and managing business data in the cloud makes finding and implementing the right business solutions a complicated and often frustrating process.  Even large providers that specialize in delivering from a menu of business cloud solutions often forget that their target customers may not be particularly tech-savvy, and will fail to recognize the nuances in service delivery or protection that could make big differences to the business down the line – like in the case of a system failure or outage.

Among the keys to a successful cloud solution deployment, particularly when critical and frequently used applications and data are to be migrated off-premises, is a thorough understanding of how users currently work with the tools provided, ensuring that processes and utilization can be fully adapted to the new IT model.

As long as users are able to retain their productivity and efficiency, and when improvements in workflows and information access become additional benefits, the security and protection of the business data is more likely, as users will feel less compelled to find alternative and less secure means for making the business data available from the cloud.  You may want to migrate your business data to the cloud, but you don’t want your data to migrate further than you can reach.

Joanie Mann Bunny FeetMake Sense?

J

Why Accounting in the Cloud?

Why Accounting in the Cloud?

Business owners and managers need to keep close control of their financial data.  They need to know where they stand at all times, and having information available to make business decisions is essential.  When the financial information is in the office but the owner isn’t, how can wise decisions be made without access to supporting data?  They can’t, and that’s a problem.  The solution is simple: work in the cloud.

A cloud computing model properly applied to accounting and bookkeeping systems helps businesses of any size keep their financial data and accounting applications in a safe a secure environment, yet accessible to those who need it.  By locating the business applications and data in a protected central location, access to programs and data sets can be provided to authorized users regardless of location or computing platform.  For a small business owner, this means that working from home or on vacation can be as productive as working in the office.  In larger businesses, cloud-based accounting means the accounting department, CFO and financial advisers might all access the same financial records and applications no matter where they work from.

Cloud computing and hosted application models applied to accounting and bookkeeping represent a viable option for managing, securing and providing access to critical financial information.  Businesses outsourcing their accounting or bookkeeping work find that cloud based approaches offer workflow and process efficiencies to help get the necessary information in the hands of those who need it, quickly and efficiently.

Keeping accounting and bookkeeping systems safe yet available, providing business decision makers with the flexibility of accessing their financial data from anywhere and at any time is a highly valuable service. Accounting and finance professionals can act as the trusted adviser to their clients, providing important business insight and information, with guidance in developing cloud computing and online accounting approaches being among the benefits the firm offers.   Working closer with clients allows professionals to produce better, more accurate and insightful results.   Cloud computing models remove distance barriers and allow professionals and their clients to work more collaboratively with applications and data than ever before.

Many firms are just recently discovering the relationship between technology adoption and business competitiveness.  Those that embrace new computing paradigms gain the ability to meet client requirements in innovative, efficient and timely ways while those that do not adopt these new models continue to struggle, unable to communicate value and differentiation in their service offerings.

There are some recognized truths in business, and one is that is isn’t what you know but who you know.  Another truth, an understanding that is just now being fully recognized, is that it’s not what you do, but how you do it that matters.  Accounting and bookkeeping for business is absolutely an area where cloud computing and the wise application of technology and service can improve cost efficiency, accuracy and turnaround times, allowing the firm to provide a higher level of service to clients.  Accounting in the cloud is a technology-enabled approach which propels the firm into an entirely new range of capabilities and potential service offerings, reaching higher levels of performance and profitability.

Joanie Mann Bunny FeetMake Sense?

J

Efficiency and Value with Cloud Accounting

For some accounting professionals, the problem is finding a way to provide services that are valuable to the client, and doing it in a way that makes it profitable for the provider.  Outsourced and online accounting models are the answer, employing innovative tools in the practice and with clients: tools and resources necessary to get more informed and run the business better.

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With online accounting solutions the firm is able to increase profitability with the range of services offered, often adding clients and work without hiring more personnel.  Online solutions allow professionals and their clients to work from anywhere at any time, providing both with the freedom to focus on core business capabilities (and lifestyle).

Reducing the requirement for sophisticated on-premises technology may mean providing everyone with the ease of use and security of server-based computing models, which is among the benefits of a cloud IT approach.  Centralizing and managing applications, protecting valuable data resources, and streamlining business processes are among the benefits to be achieved with an outsourced, managed application hosting solution.  Businesses who outsource their IT management often realize an increased capacity to do business simply by leveraging the cloud to make the current working models more efficient and effective.

Leveraging mobility and real time access is also about increasing the overall range of opportunity to deliver value.  Contractors, employees and clients all find improvements in getting the information they need when it matters, and the firm finds a greater agility in meeting client demands and expanding service offerings.

Cloud computing and online accounting solutions have proven the viability of anytime, anywhere working models, and professional accounting practices of all sizes and orientations are realizing the benefits of working closer with their clients by applying them to the engagement.

Cloud accounting is really about improving the profitability of the accounting practice while delivering higher levels of service to the client.  The movement of information from one place to another; translating data from one form to another – these are the processes representing the cost and inefficiency in the practice, and are specific areas where a collaborative, online approach may introduce new service efficiency and value.

jmbunnyfeet

Make Sense?

J

It is worth noting that “cloud accounting” and online accounting models do not necessarily require the use of a SaaS solution.  QuickBooks Online, Xero, Freshbooks – these are new small business offerings that exist purely on the web.  QuickBooks desktop editions can be “cloudy”, too, when they’re hosted by an authorized QuickBooks hosting provider.  The point is not necessarily to use web software, but to approach IT management and systems from an outsourced perspective, allowing for centralized management and administration and delivering secure remote and mobile access.  The systems should facilitate the working model, not force it.

Security and Users: Change is the Only Constant

Security and Users: Change is the Only Constant

Managing user accounts and access to business IT assets is challenging, particularly as cloud and social computing models introduce new wrinkles in security and identity management. Information has become “mobile” along with the users accessing it, yet management of user behavior is even more complicated that trying to manage a digital resource.

If you look at the history of security breaches, you’ll find that many of them started with a user making a mistake – like losing a laptop or clicking on a phishing email, downloading bad software, or forgetting to report an employee termination to the IT dept – something which inadvertently created a vulnerability that could be exploited.  It’s tough to stop breaches because there are so many possible ways for them to happen.

If most security breaches start with a user mistake, then IT departments have their hands full because users aren’t static, unchanging objects to monitor and manage.  Users change, sometimes a lot.  It is this constant change which undermines the ability for some IT departments to meet the demand to adequately secure company information systems and data. Now is the time to take control of user security and identity management, creating automation and controls to protect business assets in a constantly evolving environment.

It is not simply employee turnover that challenges security management.  Certainly, IT departments have been dealing with user account creation and termination for a long time.  And sure, users have sometimes been promoted and demoted, resulting in the requirement for IT to increase or perhaps decrease access to information and applications.  These are normal and expected activities for a business IT department.  Unfortunately, IT often doesn’t hear about the user’s change in status.  An account isn’t disabled, access isn’t restricted, and the system is left vulnerable.

Just to pile on, think about what happens when a user is more than just a single system user.  It may be manageable when where a single identity and set of credentials governs their access to applications and information.  But the proliferation of web-based services and SaaS solutions has made it commonplace for users to have multiple applications and services available to them, each with their own approaches to identity management.

For even a small business IT department, the security of all of these access points and applications must be managed and monitored – no small task when the department may not even be aware that the solution is in use.  It is not unusual for file sharing, data sync, or other applications to be implemented in businesses without the knowledge or participation of the IT department.  Actually, many services attract users due to their simplicity and ease of use, leveraging the fact that they can be deployed without the “assistance” of IT.

Users are becoming increasingly mobile, accessing information and applications from public and private locations while using any number of possible mobile devices.  Vulnerabilities which may exist in public networks and the increased potential for device loss or theft are high on the list of concerns of IT departments managing remote and mobile user access.  Mobility is driving many changes in how information technology and access to systems is provided to users, and it is changing user demands for what they should be able to easily accomplish while being mobile.

Businesses need to recognize that their continued existence may rely on keeping their information systems and assets safe and secure.  Disaster recovery and business continuity applies not only to loss of physical systems, but also to losses of various forms due to data breach. The disaster recovery and continuity plan (you have one, right?) should not only address situations after they happen; planning by definition is proactive.  It is not enough to have a plan to recover from loss or failure; the business must actively engage in activities which will prevent loss and reduce vulnerability. 

Part of this plan necessarily centers on managing users and user identities, ensuring that the company knows about all access or user accounts involved and employs strict processes and guidelines for making sure they are constantly up to date and have the authority to do what they’re trying to do.  In short, the plan must also be a plan for change, providing change management processes to guide the business as the evolution of information technology and the dynamics of user interaction continue to change.

jmbunnyfeetMake Sense?

J

read more about IT Security and Engaging users to reduce vulnerability

read more about Mobility and the Cloud, Managing BYOD and securing company resources

Happy Holidays from CooperMann

Ninjabread cookies in the kitchen, an appearance by the Christmas Elk, and Minty Fresh (fresh cat, not canned) looking for Frangos all clearly indicate that the holiday season is here.  2013 has been an eventful year – some would say it was “fraught with peril” while others see opportunity in change. It’s all a matter of perspective – pursuing goals and taking action rather than resting on ones’ laurels and trying to wait it out.  This cloud stuff isn’t going away.

With technology and social computing adoption increasing at almost alarming rates, I can’t wait to see how 2014 goes!  This certainly isn’t a time for the tech-timid, as it appears as though the nerds and geeks do rule the world (aren’t we all a little nerdly, really?).

I hope you and yours have a wonderful season.

jmbunnyfeetCheers

J

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Read the Best of CooperMann.com from 2013