Greg McCulloch, MD Interxion UK looks at reducing the cost of the Cloud

Cloud computing is becoming increasingly popular and is being adopted worldwide, with predictions from IDC1 that spending on cloud services is set to increase from $16.2bn (2008) to a $42bn industry by 2012. However, with this growth in demand comes the difficult task of ensuring successful and secure implementation. To build infrastructure with reliable and robust connectivity to support the cloud is complex and costly and as more companies face tighter budgets during the recession how can they overcome these barriers?

The increasing popularity of cloud computing could indeed be part due to the economic crisis, as many businesses are forced to cut costs and investigate new and innovative IT solutions that can be scaled as their organisation grows. The cloud is set to transform the way businesses utilise technology and many are keen to take advantage of the cost- and time-savings associated with it; according to some analysts business applications hosted in the cloud can be made three to five times less expensive.
As investments in IT projects dip, now is the ideal time for businesses to explore this new technology to save money and resources by removing the reliance on proprietary software and realising all their computing needs on a pay-per-use basis via an Internet connection.

Whether public or private, all clouds share the same enablers; pay-per-use software; virtualisation and automation; broadband networks; and large, robust data centres. Within the large data centre, reliable connectivity with low latency is crucial. Any amount of downtime as a result of inefficient network capability and/or bandwidth is unacceptable, as businesses and individuals need to access information instantaneously.

A large carrier-neutral data centre is the perfect environment for the cloud to thrive as it provides the opportunity to scale according to demand, as well as providing the necessary power, connectivity, and secure processes and procedures needed to ensure reliable performance and 24/7/365 availability. It also provides significant economies of scale, which helps keep costs to a minimum at this critical stage in the development of the first wave of cloud services.

Many companies are finding that their on-site data centres, internal networks, and IT infrastructure are not up to scratch for the task of implementing cloud computing successfully. They are finding it difficult to ensure that the required criteria, such as data centre capacity, connectivity and security, are in place within their organisations. As a result, many organisations’ best choice is to outsource their infrastructure requirements.

If the decision to outsource is made, it’s crucial to find the right organisation to partner. The critical criteria for selecting a successful cloud computing partner includes:

1. Limitless Scalability
Bandwidth and processing power need to be instantly available for surges in demand. If over-provisioning, a company is prepared for peaks in demand but at the same time they accept under-utilisation. If under-provisioning, they suffer either lost revenue, lost customers, or both. Outsourcing critical delivery systems to a large data centre removes the risk of running out of capacity.

2. Physical and Virtual Security
The Ethernet-based cloud is not immune to data loss and security is crucial. Larger facilities excel in both physical and data security, with multiple security layers and fail-safes, and back-up and recovery systems that protect against data loss.

3. High-density Power
High-density power availability enables cloud service providers to deploy the very latest and most efficient equipment while minimising the space required and, therefore, the cost to the business.

4. Broad Connectivity Choices
As the computer ‘becomes’ the network, connectivity becomes synonymous with processing power. Maximum bandwidths and multiple connectivity options will drive uptake of the pay-per-use model, and a carrier-neutral data centre can provide the widest possible range of connectivity options.

5. Capex
…and perhaps most importantly in today’s troubled economic times… Keeping CAPEX down

To finance the build and maintenance of this quality of infrastructure is, in today’s economic climate, almost an impossibility and many companies with in-house data centres will find it increasingly difficult to raise capital to facilitate expansion or upgrades. As budgets are increasingly tightened, many IT projects are being put on hold.  Outsourcing to a data centre provider moves this capital expenditure to a recurring operational expenditure and reduces overall expenditure. Leveraging this model is an indispensable advantage to any business concerned with cutting costs in the current economic climate.

Ultimately, the value of an outsourced data centre is critically tied to its connectivity. Multiple carriers in one facility ensures flexibility of network and a high level of resilience; if one network fails, customers can fail over to another. Many in-house data centres simply aren’t reliable enough to host the cloud without disruption or downtime.

The benefits of working with a carrier neutral data centre are based around this connectivity, coupled with low latency, and professional network management. Security, power, cooling and infrastructure issues are all expertly managed and taken out of the hands of the business.

Allowing the company to focus on it’s core business, the outsourced data centre is not only helping to decrease infrastructure and man-hour costs, it is also enabling the increase of productivity and efficiency within the organisation. The business should be able to secure the best deal, drive down costs and improve efficiencies, as well as ensure secure, reliable connectivity, without losing control of its data.

And carrier-neutral data centres, as a critical enabler for the cloud’s broadband connectivity and infrastructure needs, are creating the ideal environment in which cloud computing offerings can grow and prosper.

1 Worldwide IT Cloud Services Spending 2008-12. IDC, Oct 2008