Cloud computing for business.

Cloud computing provides a way for your business to manage your computing resources online. The term has evolved over recent years, and can be used to describe the use of a third party for your storage and computing needs.

The ‘cloud’ refers to the internet, and operating ‘in the cloud’ describes the way you store and access your data through an internet connection.

Cloud computing allows businesses to access their information virtually, creating a flexible and global way of accessing your data any place, any time.

This guide will help you to understand cloud computing, and the different ways you could use cloud computing in your business.

What is cloud computing.

The internet is changing the way we conduct business and interact as a society. Traditionally, hardware and software is fully contained on a user’s computer. This means that you access your data and programs exclusively within your own computer.

Cloud computing allows you to access your data and programs outside of your own computing environment. Rather than storing your data and software on your personal computer or server, it is stored in ‘the cloud’. This could include applications, databases, email and file services.

A common analogy to describe cloud computing is renting versus buying. Essentially, you rent capacity (server space or access to software) from a cloud service provider, and connect over the internet. Instead of buying your own IT requirements, you are renting from a service provider, paying for only the resources you use.

Cloud computing has 4 models in terms of different access and security options. Before you move your data into the cloud, you will need to consider which model works best for your business and data needs.

Private cloud

A private cloud is where the services and infrastructure are maintained and managed by you or a third party. This option reduces the potential security and control risks, and will suit you if your data and applications are a core part of your business and you need a higher degree of security or have sensitive data requirements.

Community cloud

A community cloud exists where several organisations share access to a private cloud, with similar security considerations. For example, a series of franchises have their own public clouds, but they are hosted remotely in a private environment.

Public cloud

A public cloud is where the services are stored off-site and accessed over the internet. The storage is managed by an external organisation such as Google or Microsoft. This service offers the greatest level of flexibility and cost saving; however, it is more vulnerable than private clouds.

Hybrid cloud

A hybrid cloud model takes advantages of both public and private cloud services. By spreading your options across different cloud models, you gain the benefits of each model.

For example, you could use a public cloud for your emails to save on large storage costs, while keeping your highly sensitive data safe and secure behind your firewall in a private cloud.

How cloud computing works

There are 3 main types of cloud computing service models available, commonly known as:

• Software as a Service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS).

Depending on your needs, your business could use one of these service models, or a mixture of the 3.

Software as a Service (SaaS)

SaaS is the most common form of cloud computing for small businesses. You can access internet-hosted software applications using a browser, rather than traditional applications stored on your own computer or server. The software application host is responsible for controlling and maintaining the application, including software updates and settings. You, as a user, have limited control over the application and configuration settings.

A typical example of a SaaS is a web-based mail service or customer relationship management system.

Infrastructure as a Service (IaaS)

IaaS typically means buying or renting your computer power and disk space from an external service provider. This option allows you access through a private network or over the internet. The service provider maintains the physical computer hardware including CPU processing, memory, data storage and network connectivity.

Examples of an IaaS include Amazon EC2, Rackspace and Windows Azure.

Platform as a Service (PaaS)

PaaS can be described as a crossover of both SaaS and IaaS. Essentially you rent the hardware, operating systems, storage and network capacity that IaaS provides, as well as the software servers and application environments. PaaS offers you more control over the technical aspects of your computing setup and the ability to customise to suit your needs.

Benefits of cloud computing

Cloud computing offers your business many benefits. It allows you to set up what is essentially a virtual office to give you the flexibility of connecting to your business anywhere, any time. With the growing number of web-enabled devices used in today’s business environment (e.g. smartphones, tablets), access to your data is even easier.

There are many benefits to moving your business to the cloud:

Reduced IT costs

Moving to cloud computing may reduce the cost of managing and maintaining your IT systems. Rather than purchasing expensive systems and equipment for your business, you can reduce your costs by using the resources of your cloud computing service provider. You may be able to reduce your operating costs because:

• the cost of system upgrades, new hardware and software may be included in your contract
• you no longer need to pay wages for expert staff
• your energy consumption costs may be reduced
• there are fewer time delays.

Scalability

Your business can scale up or scale down your operation and storage needs quickly to suit your situation, allowing flexibility as your needs change. Rather than purchasing and installing expensive upgrades yourself, your cloud computer service provider can handle this for you. Using the cloud frees up your time so you can get on with running your business.

Business continuity

Protecting your data and systems is an important part of business continuity planning. Whether you experience a natural disaster, power failure or other crisis, having your data stored in the cloud ensures it is backed up and protected in a secure and safe location. Being able to access your data again quickly allows you to conduct business as usual, minimising any downtime and loss of productivity.

Collaboration efficiency

Collaboration in a cloud environment gives your business the ability to communicate and share more easily outside of the traditional methods. If you are working on a project across different locations, you could use cloud computing to give employees, contractors and third parties access to the same files. You could also choose a cloud computing model that makes it easy for you to share your records with your advisers (e.g. a quick and secure way to share accounting records with your accountant or financial adviser).

Flexibility of work practices

Cloud computing allows employees to be more flexible in their work practices. For example, you have the ability to access data from home, on holiday, or via the commute to and from work (providing you have an internet connection). If you need access to your data while you are off-site, you can connect to your virtual office, quickly and easily.

Access to automatic updates

Access to automatic updates for your IT requirements may be included in your service fee. Depending on your cloud computing service provider, your system will regularly be updated with the latest technology. This could include up-to-date versions of software, as well as upgrades to servers and computer processing power.

Risks of cloud computing

Before considering cloud computing technology, it is important to understand the risks involved when moving your business into the cloud. You should carry out a risk assessment process before any control is handed over to a service provider.

The Australian Government has published a comprehensive guide on cloud computing security considerations. Although this is aimed at government agencies, the guidelines and information are relevant to businesses.

You should consider the following issues:

Privacy agreement and service level agreement

You will need to have suitable agreements in place with your service providers before services commence. This will safeguard you against certain risks and also outline the responsibilities of each party in the form of a service level agreement (SLA). You should read the SLA and ensure that you understand what you are agreeing to before you sign. Make sure that you understand the responsibilities of the service provider, as well as your own obligations.

Security and data protection

You must consider how your data will be stored and secured when outsourcing to a third party. This should be outlined in the agreement with your service provider, and must address mitigations to governance and security risks. It must cover who has access to the data and the security measures in place to protect your data.

Location of data

Cloud computing service providers are often located outside Australia. Before committing, you should investigate where your data is being stored and which privacy and security laws will apply to the data.

Legislation and regulation

You will need to be aware of Australian legislative and regulatory requirements when storing personal data (e.g. the Privacy Act 1988 and the Archives Act 1983 (Cwlth) will apply). If the data is being stored outside of Australia (e.g. if your business uses an overseas service provider), you will also need to be aware of the legislation and regulation requirements in that geographic location. We at Yardtech do not store personal information online. All our billing and customer contact information is stored on off line systems.