The central theme of this White Paper is how to go beyond the initial capacity and utilization benefits described in Cloud Computing. IT capacity, as measured by storage, CPU cycles, network bandwidth, or workload memory capacity is an indicator of performance.
IT utilization, as measured by uptime availability and volume of usage is an indicator of activity and usability. The introduction of Cloud Computing as an option transforms cost of ownership and changes the dynamics of the provisioning cycle in a number of fundamental ways.
The speed and rate of change of cost reduction can be much faster using Cloud Computing than traditional investment and divestment of IT assets. The use of Cloud Computing to the user also potentially means a movement to a pay-as-you-go style billing model which can have different tariffs and contractual obligations compared to traditional IT ownership. The key issue is the ability to adopt and remove the service either at the point of use (to scale up and down) or to make choices to use new services or change service provider. There is a trade-off between the benefits of speed, cost, and Quality of Service (QoS) from a particular Cloud service provider and their ecosystem of services versus the flexibility and choice of alternative services and Cloud solutions. The cost of change in an ROI business case is less in Cloud Computing as the choice of selected Cloud services is more stable and more cost-effective than traditional ownership.
The cost of maintenance and modifications often represent a significant part of the asset lifecycle beyond initial provisioning.
The ability to a€?design and provision for runa€?, so that the choices of IT procurement are aligned with the best options and performance for long-term operation, has long been an ideal goal of business and IT. A key aspect of moving to Cloud Computing is the ability to select hardware, software, and services from defined design configurations to run in production. Cloud Computing can help an enterprise achieve the goal of a more cost-effective asseta€“management lifecycle process for the IT portfolio, to optimize both design and run-time performance.
While the capacity-utilization curve can reflect overall usage, this can be broken down to identify which assets need to be supported in this way and to rationalize, consolidate, and optimize the assets that need to perform for business goals. The key benefits to Cloud Computing ROI from a business case perspective are in the optimization of the total asset portfolio. Elastic provisioning to scale up and down to actual demand creates a new way for enterprises to scale their IT to enable business to expand. Organizations can review and develop business plans and then deploy infrastructure and services in a more rapid and proactive way. Customization and development, testing, and support can also been seen in a new light with the provision of IT services in a dynamic fashion targeted at business needs.
One of the core precepts of Cloud Computing is to avoid over-provisioning and under-provisioning. What makes Cloud Computing exciting is that the potential for business is not just the incremental change improvement but the disruptive transformational effect Cloud Computing can have from the possibilities of new business operating models. Cloud Computing enables business to pursue new and existing markets by rapid entry and exit of the products and services. Cloud Computing removes the need for additional infrastructure to test and enter markets for business (a key benefit feature particularly for small to medium size organizations). Cloud Computing has an impact on the margin through cost reduction and through economies of scale to make more use of the same resources.
The impact on a ROI business case is that an enterprise can make more money or better use of existing investments through Cloud Computing. There are many cases of companies large and small that can enter and develop service offerings through a a€?long taila€? (refer to the publication by Chris Anderson [7]) approach enabled by Cloud Computing infrastructure.
Traditional licensing associated with ownership, number of users, support, and maintenance costs and services are being challenged by the pay-as-you-go model found in on-demand Cloud Computing. Cloud Computing is more than restructuring software and hardware and support licenses into a kind of periodic rented or lease license. With either fixed usages volumes or variable functional usage, new innovative consumption models enabled by Cloud Computing allow businesses to consider using IT in a flexible and agile way. This can range from the a€?freemiuma€?, a€?contractlessa€? service that you use or pay by credit card and advertizing revenues or specific pre-allocated bands of services and software functionality over a defined period of use (see the discussion on the Financial Value Perspective of Moving from CAPEX to OPEX and Pay-as-you-go).
Cloud Computing can change the ownership process from buyer to seller in the sense that IT becomes a commodity purchase, and buyers focus on outcome-based performance and choices. The impact of dynamic provisioning on the Cloud Computing ROI business case is that the faA§ade of service management becomes more a€?digitala€?. This expectation is now translated via Cloud Computing into the business world, where online service catalogs, self service, and automated services are increasingly part of the consumer experience. The green sustainability issue is equally valid in Cloud Computing and seen by a number of industry observers as an argument that moving into a Cloud environment will help organizations improve their carbon footprint. This perhaps shifts the problem to the Cloud service providers as their industry potentially becomes a huge sink for electrical emissions from massive scale computing data center services. It is expected that this challenge will be met as technological and design improvements address the energy consumption growth patterns. A secondary effect, however, is the growth of more Cloud service users as the Cloud Computing paradigm takes off. The alignment of compliance is a wider issue that includes green and legislative issues facing organizations and specific industry sector policies. The impact on the ROI business case from using Cloud Computing services is directly relevant to sovereignty, security, and management of services risk containment. In recent years, Cloud technology has become more accessible to SMBs, but not quite as much at the level that it should be. 25% of business owners value their time so much that they would pay $500 for just one extra hour of the work day.
30% of business owners declare that keeping up with changes in technology is the biggest challenge they face right now. 71% of business owners claim that they’ve gone more mobile within the past two years. Given all these facts, don’t you think that a Cloud-based phone system will help your business become less time-consuming to run, give you that extra hour, and help you keep up with new technological advances? RingCentral – This company started offering Cloud-based PBX services recently, but has always been a trusted company for the PBX and telecommunications market. Miguel Leiva-Gomez is the owner of The Tech Guy, a blog that presents futuristic and current news about technology with a light touch of humor, catering to the average consumer and prospective investor.
In addition to the platform on which a cloud will be deployed, there are a variety of different applications of cloud.

SaaS allows applications to be used by customers over the internet to complete business processes. The PaaS is a platform that helps to deliver an environment where a user can use the clouds to develop new applications without the need to have the software or infrastructure purchased in-house. IaaS is using the cloud to supply the infrastructure that would normally have to be procured by a singular organization to run an organizations IT infrastructure. Sage 50 Accounting Africa edition is a full business management solution for Small and Medium Businesses.
OpenStack, an open-source software platform used to deliver cloud computing, continues to gain momentum as the basis for both private cloud in the enterprise and a network functions virtualisation (NFV) enabler.
MTN Business, in partnership with online accounting tool SMEasy, today announced the launch of an agile, fit for purpose business management and easy accounting solution for small business owners in Kenya – with other markets to follow.
Leading data protection focused distributor invites hyperconverged vendor to discuss disaster recovery and data protection. ProLabs, the leading global provider of network infrastructure and connectivity products, has announced the launch of a new range of multicode compatible optical transceivers.
Agron, one of the leading providers of fertiliser to South Africa’s agricultural sector, has implemented the Sage CRM solution from Sage Enterprise. Ecowize, one of South Africa’s leading hygiene and sanitation service providers, has improved productivity and efficiency by implementing the Sage 300 business management system.
It is my opinion that this anti-cloud rationalization is an example of a strong philosophical choice, rather than based on technology facts. One of the primary driving forces behind the birth of Cloud Computing was the difficulty companies had staying current on vendor releases, while avoiding customizations. American companies selling their cloud solutions that have their offerings deployed in data centers inside the United States have to overcome the fear of the USA Patriot Act and its impact on non-American corporations.
Integration should be another important factor in your evaluation of Cloud and On-Premise systems. When planning for your investment, we find that Cloud solutions have lower upfront investment costs with standard subscription agreements, which can vary from three to five years. The chart below provides a summary of the advantages and disadvantages of the delivery models we’ve discussed. Set your cloud vs on-premise delivery decision aside until the end, so that you can truly focus on your requirements and the product that best fits those needs, before debating how to deploy it.
About the Author: Mike MaiorinoMike Maiorino is the President and Founder of HRMS Solutions. With stronger information privacy and data protection laws coming into effect, businesses operating in Africa must think carefully about where and with which providers they host their cloud enterprise data and applications, says SEACOM. Although IoT is partly hype, security practitioners need to familiarise themselves with it, says Lutz Blaeser, MD of Intact Security. Hurricane Electric, the world’s largest IPv6-native Internet backbone, has continued its global expansion with the opening of its most recent Point of Presence (PoP) in South Africa.
The East African Marine Systems (TEAMS) cable operators have issued an alert that users may experience downtime from 20th – 28th July .
BICS, recognised in the wholesale communications market as a top global voice carrier and the leading provider of mobile data services, has reports that its data roaming traffic is tripling year-on-year across its global network. Mauritius is the most tech savvy country in Sub-Saharan Africa, says David Bunei, GM: East Africa and Indian Ocean Islands at Cisco. They are just indicators of business activity that are not in themselves more valuable than lower operating cost. In Cloud Computing the buyer can move from a CAPEX to an OPEX model through purchasing the use of the service rather than having to own and manage the assets of that service.
These can include minimum usage periods and flexible pricing per usage profiling (see the discussion on the Financial Value Perspective of Moving from CAPEX to OPEX and Pay-as-you-go). The investment in data, knowledge, and infrastructure assets and software code now represent many lifeblood operations for businesses.
But, while technical trends such as OO, SOA, and Web 2.0 have brought functional improvements, the improvements in runtime infrastructure support have always been illusive. Cloud Computing in effect seeks to bridge the design-time and run-time divide and optimize service performance. Sellers can offer rapid provisioning services that sustain buyer needs for existing IT services, offer choices for innovation, and enable rapid introduction of new technology.
This is in addition to the opportunity for cost, revenue, and margin advantages of business services enabled by rapid deployment of Cloud services with low entry cost, and the potential to enter and exploit new markets. It enables enterprises to a€?land and expanda€? in markets with an infrastructure and service capacity that can grow with the business.
Existing and new markets can be attacked and entered through speculative and well-timed interventions to exploit and grow business performance.
It is targeting the end usage of the services at the point of real business need of the number and scope of users of the IT service (see the discussion on the Importance of a Business Perspective of the Cloud). With the emergence of Internet services, it is now commonplace in residential markets for services and products to be viewed and provisioned online.
The benefit to the economic and emission footprint from the use of shared services is expected to have an improved impact compared to leverage of existing assets. As the cost and emission footprint per Cloud service falls, more services per cost can be consumed. Cloud Computing domains cut across these complex issues and are directly affected by decision processes to adoption off-premise services. One of the biggest problems the majority of business owners have is managing their time while playing multiple separate roles.
There are companies that are trying to change this, and as they do, the amount of time juggling you have to do goes down significantly. You get to leverage their “Auto Attendant,” which directs people to different departments of your business, all of which can route to a mobile phone!
It so happens that this company also offers similar prices on their packages as eVoice does, with a bit of a twist. You must learn to be one with the Cloud and take the next step to making your business a well-oiled machine.
Miguel has been working with computers and gadgets for more than a decade, working together with people to help them solve their problems and breaking down complex concepts into simple bite-sized pieces that the average Joe can chew. The consumer will have control of the applications that are running on the cloud, but will not have control of the infrastructure that it is running on.

Included in the infrastructure are such things as servers, memory and storage that allow a customer to scale up or down as necessary. Companies look to us for our expertise to help them understand the significance of these delivery models and help determine which one is better suited for their organization. Using this strategy, IT could make a strong case that Cloud solutions have minimal impact on their internal resources, offer lower or almost zero maintenance requirements, and provide a richer application experience to the end users, which typically results in higher end-user adoption. Many IT Professionals believe that they can better secure their own data and avoid having to pay the recurring subscription fees every year. On-Premise customers have always struggled with trying to bend their business processes around the vendor’s application to avoid modifying source code.
With all of the recent controversy surrounding the National Security Agency (NSA) spying on foreign and domestic citizens, this fear has become more legitimate.
In order to gain maximum efficiency, both delivery models require a connection to 3rd party applications in which data needs to be shared. As an example, Workday is a SaaS provider which offers a suite of Cloud-based solutions, which they control. It is our opinion that the normal life cycle for businesses to replace their HRIS, Payroll or Talent Management technology solutions is seven to ten years. Remember that many vendors today offer both delivery options, so this might be a lesser issue than you think.
His 24 years of dedication to  the HR technology profession, with a proven track record of results and recognition, has earned him a reputation for being a subject matter expert regarding HRMS software and SaaS solutions. The app was activated in January 2016 and has almost 400 businesses registered on it and at least 5,000 downloads.  Read MoreFives alive!
There are, however, business metrics that translate the indicators of the capacity-utilization curve to direct and indirect benefits to the business, as illustrated in Figure 5. And hosting corporate and personal data and knowledge on the Cloud can make customers of Cloud services dependent on the providers. Patches and upgrades or new technology are in theory invisible to the end user of the service as they are included as part of the automatic asset management features.
As more advanced services emerge (the term a€?multiplicitya€? a€“ see [8] a€“ is now starting to emerge as large workload and cost-sensitive processing is moved to the Cloud and multiple processing made possible) then so can a€?usage creepa€? occur as the consumption rates further increase the usage of Cloud Computing services.
By the way, customers who call a business and are met with an auto-receptionist often have a higher opinion of the business’ seriousness than those who are met with an immediate answer by the owner of the company. The other benefit of having the software managed in one location is that the patches and updates only need to be done once, eliminating the time consuming need to conduct software updates on every machine. The infrastructure can than be used by customers to run their own software with only the amount of resources that are needed at a given moment in time. There is really no right or wrong answer since both of these models are viable, but knowing which is right for your company and its impact to your organization is critical.
A counter argument could be made that cloud vendors potentially increase the risk of exposing their employee data to a potential cyber attack (i.e. I believe that this to be true for some organizations and why a substantial segment of the mid-market continues to purchase On-Premise solutions; but for many, the growing trend favors adopting cloud based solutions.
When these business processes are part of a company’s culture, Executive sponsors for projects and system deployments find it easier to have the vendor customize the system to avoid the pain of trying to adjust company culture. Salesforce is a PaaS provider that allows 3rd party providers to build their unique application on their platform.
Capitalization of assets generally has a positive effect on a company’s balance sheet.
Their biggest plan costs $29.95 a month and gives you 5 extensions with 1000 monthly minutes. In the past, companies would often have to purchase a huge infrastructure to support a periodic spike in the need for resources, leaving the servers and networks idle for much of the remaining time.
Target), increases the complexity of integrating their existing applications (cloud to cloud data centers or cloud to on-premise), and increases the total cost of ownership by executing annual subscriptions agreements. As the years tick by, businesses find they have developed a laundry list of customizations and source code changes, which now puts the IT team in a difficult position to stay current with vendor releases for compliance, features and technology enhancements. These integrations are typically at risk when a system is in sync with another system and then a new version or feature is released.
This allows the customer to pick and choose a single application or several applications, from different vendors without the concern of having to integrate all these systems. He is a member of the Northern Virginia Chapter of SHRM (Society of Human Resource Management) and completed his certification as a PHR (Professional in Human Resources) in December, 2002. With IaaS, resources will not be wasted, because only what is needed at a given moment is utilized. Microsoft Office 365 Small Business Premium offers hosted Lync, SharePoint and Exchange Server. We continue to find that a substantial segment of mid-market businesses do not want their data residing with a Cloud vendor, regardless of how secure that hosting facility may be or what any SSAE-16* report says. The application and support maintenance burden that is placed on an IT team becomes more difficult as the system is modified and the vendor produces major and minor releases.
Both On-Premise and Cloud solutions would potentially be at risk to ensure that the integration remains in sync.
This was a key decision factor for us."T-Systems' cloud computing service met this requirement, enabling us to improve on efficiencies, service levels - all at lower cost. The customers to the cloud service have control over the operating systems and applications, but don’t manage the cloud infrastructure. There are other variations on the Office 365 option, and these can be adapted by the channel to suit the markets. Cloud vendors that have built their solution on multi-tenant platforms have eliminated many of the challenges that On-Premise customers experience.
The majority of the company's business process transactions are run on SAP that in turn simplifies the integration process with T-Systems cloud offering.The project will commence immediately with a planning phase estimated to take one month followed by the implementation phase which will take three months to complete.
It is this very essence of the Patriot Act that tends to push some CIO’s outside the United States to strongly consider either On-Premise solutions or Cloud providers within their own country since this potential intrusion of privacy is real.

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