article what every executive should know about cloud computing by Yehuda Cagen

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What Every Executive Should Ask About Cloud Computing Preparation & Implementation
By Yehuda Cagen, Director of Client Services, Xvand Technology Corporation

If you’ve spent any time on the Internet or conduct business with those who do, you’ve likely heard about cloud computing. Perhaps you’ve heard about it from an associate or an IT provider trying to sell you their cloud-based offerings.

While cloud computing implementation has certainly become more prevalent in small and mid-size organizations, executives should be cautioned against moving to the cloud based solely on its recent popularity.

When researching cloud computing providers, make sure the vendor has offerings compatible with your organization’s specific needs and objectives. Be sure to weigh the “importance” and “fit” of cloud benefits.

Here are a few benefits to Cloud Computing you may consider:

Performance/functionality
Pricing model/length of contract
Backup/recovery
Security/privacy
Data access capabilities
Availability/uptime
Personalization/Integration capabilities
Support responsiveness
Speed of implementation

Once you’ve established your business objectives, the next step is to establish if moving to the cloud is less or more expensive than your current IT spend. You want to consider more than the “sticker price” of your computer components, like servers, desktops and laptops.

Unfortunately, in our experience in working with small and mid-size organizations, we’ve discovered the following IT-related costs absent from many cost sheets:

Management time discussing IT
Recurrent capital costs
Hardware break-fix
Software updates/maintenance
Employee salary/benefits
Electrical utilities
Consulting services/training
Office space/rent
Travel expenses

Now that you’ve established your cost savings, you need to find a provider your organization can trust. At the bare minimum, you should evaluate prospective cloud computing providers based on the “Three P’s – Protection, Performance and Price.”

Protection:

Use the following steps to validate the security-levels of the cloud provider:

IT Certifications – Is the provider certified by known third-party entities?
Legislative compliance – Even if you’re not a public company, it’s good to know that the provider’s infrastructure meets the regulatory standards of third-party auditors
Security sensitive clients – Another sure sign of a credible provider is a current list of long-tenured (two or three years) security-sensitive clients

Performance:

To ensure the cloud service performs at the agreed-upon levels, firmly establish performance levels with the vendor in a service level agreement that includes metrics used to monitor & enforce performance, and request a guarantee in the event the provider doesn’t meet the agreed-upon performance levels.

Pricing:

Many cloud providers base their fees on usage, so make sure you can establish an clear, non-technical cost structure you’re comfortable with. A good provider should help you forecast your future needs. To avoid, being “nickled-and-dimed” after you’ve signed a contract, ask the provider “What’s not included?” A per-user monthly cost is the preferred method to help you accurately forecast your costs.

Questions Every Executive Should Be Asking:

Disaster recovery is also a common impetus for moving to the cloud. If you’re just looking for a “net” or an offsite data backup for your organization, here are a few questions to ask your disaster recovery or business continuity vendor:

What’s the recovery interval? How long will it take to get back to business as usual?
Who’s responsible for restoring data? You or the backup provider?
Do you document your backup process?
How often should I test my plan using your backup service?
What are your staffing levels in an emergency?

Generally, there are five key questions every small and mid-size organization should ask their internal IT department or outsourced IT consultant.

1. What is your recovery interval?
2. Who’s responsible for problem determination?
3. How/will my applications work compatibly?
4. What is the average support response time?
5. What is the per-employee cost?

If your cloud provider or internal staff fails to deliver answers to the above questions, you may want to consider finding someone who can.

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Yehuda Cagen is the Director of Client Services for Xvand Technology Corporation, provider of IsUtility®, a pioneer of utility and cloud computing computer services for small and midsized businesses, backed by nearly two decades of research and proven client implementation.