seeing through the clouds

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SEEING THROUGH THE CLOUDS @AtlasCloud www.atlascloud.c o.uk @Brewindolphin www.brewin.co .uk @NEChamber www.necc.co. uk

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"Cloud" is one of THE technology buzzwords at the moment, but what is the cloud and how can businesses benefit from cloud computing? In this presentation we take a look at how IT has evolved over the past decades and how its role in business has changed. We also explain what the cloud is and discuss its business benefits.

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Page 1: Seeing Through The Clouds

SEEING THROUGH THE CLOUDS

@AtlasCloud www.atlascloud.co.uk

@Brewindolphin www.brewin.co.uk @NEChamber www.necc.co.uk

Page 2: Seeing Through The Clouds

Thomas Watson, then chairman of IBM, is said to have made this famous statement in 1943.

Little did he know…

“I think there is a world market for maybe five computers.”- Thomas Watson, Chairman of IBM, 1943

Page 3: Seeing Through The Clouds

…that a decade later, IBM would create the IBM 650 magnetic drum calculator, the first mass-produced computer, selling 450 units in one year.

IBM 6501954

Page 4: Seeing Through The Clouds

More than a decade after IBM, Hewlett-Packard entered the general purpose computer business in 1966 with its HP 2116, offering a computational power formerly found only in much larger computers.HP 2116

1966

Page 5: Seeing Through The Clouds

Another decade later, the Apple II became an instant success when released in 1977. Apple was the first to have a "windows" type graphical interface and the computer mouse.

The Apple II symbolises the beginning of the first mass market of desktop computers.

APPLE II1977

Page 6: Seeing Through The Clouds

In the mid 80’s, Microsoft launched Microsoft Windows. Four years later, Microsoft Word was introduced.

1985

Page 7: Seeing Through The Clouds

In 1991, Sir Tim Berners-Lee invented the WWW, arguably one of the most disruptive innovations of all time.

With the launch of Windows 95 four years later, Microsoft also introduced the first version of its Internet Explorer.

WORLD WIDE WEBSIR TIM BERNERS-LEE

1991

Page 8: Seeing Through The Clouds

In 1998, another ground-breaking innovation was launched: the Google search engine.

Page 9: Seeing Through The Clouds

A year later, a business called Salesforce.com pioneered the SaaS (Software as a Service) market by offering its services on the internet. This is a very early example of the cloud and revolutionary seeing as the term didn’t even exist at the time.

1999

Page 10: Seeing Through The Clouds

In the years 2007 to 2010, the world saw the rise of mobile devices, which transformed the way we are working today.

iPHONE 1ST GEN ANDROID 1.0 iPAD 1ST GEN

2007 - 2010

Page 11: Seeing Through The Clouds

In 2011, both Microsoft and Apple launched cloud products – Office 365 and the iCloud, which made the technology better accessible to consumers.

2011MS OFFICE 365 APPLE iCLOUD

Page 12: Seeing Through The Clouds

In 2013, the Worldwide Public Cloud Services Market was worth £78bn, an increase of 18.5% from 2012.

£78BN WORLDWIDE PUBLIC CLOUD SERVICES MARKET2013

Page 13: Seeing Through The Clouds

In 2014, global Cloud spending is estimated to reach £103.8bn, up 20% from 2013. This shows that the world is adapting to the cloud and is discovering new ways of working and improving business operations.

£103.8BN ESTIMATED GLOBAL CLOUD SPENDING2014

Page 14: Seeing Through The Clouds

Simply put, the cloud is a model for delivering IT services over the internet through web-based tools and applications.

This way of sourcing IT opens up completely new ways of doing business for companies, such as remote and agile working.

WHAT IS THE CLOUD AND HOW IS IT TRANSFORMING YOUR BUSINESS?

Page 15: Seeing Through The Clouds

With IT rapidly evolving, data security is becoming a serious issue for businesses.

Nowadays, news about data breaches and consumer data being stolen seem to pop up every other week, such as the JP Morgan Chase case or the celebrity iCloud hacks.

DATA SECURITY IN THE NEWS

Page 16: Seeing Through The Clouds

JP Morgan Chase is the victim of the most recent IT security breach as hackers broke into the business’ internal, non-cloud IT system and gained access to 83 million client account data. The company is not ISO 27001 (security) certified and client logins only require a password which increases the risk of a hacking attack.

This and other cases such as Adobe and Target show that businesses are struggling to keep their IT systems secure, especially when trying to patch up existing, old infrastructure.

JP MORGAN CHASE DATA HACK

Page 17: Seeing Through The Clouds

A majority of IT security breaches happen in-house, with a study showing that 31% of the worst security breaches are caused by inadvertent human error within a company, with an additional 20% being down to purposeful actions by staff to undermine the security of data.

The cost of a serious IT security breach can cost a business a lot of money, which is why it is so important to set up a secure infrastructure and have adequate policies in place.

COST OF IT SECURITY BREACHINFORMATION SECURITY BREACHES SURVEY 2014 (UK)

£65,000 - £115,000< 50 employees

£600,000 - £1.5 million> 250 employees

Page 18: Seeing Through The Clouds

In a recent iCloud hacking spree, over 200 pictures of celebrities were made public, which led many to doubt the security of the cloud.

Hackers obtained passwords and the answers to security questions for the accounts - something which is relatively easy if a person is in the public eye. In general, passwords are becoming increasingly insecure and there is a trend towards Multi-Factor Authentication which is used for online banking logins.

CELEBRITY iCLOUD HACKS

Page 19: Seeing Through The Clouds

IT security is so important and can be compromised and put at risk if a company lacks the necessary expertise.

In earlier days, people were used to source their own water and electricity with the help of wells and generators. Nowadays,…

IT AS A UTILITY

Page 20: Seeing Through The Clouds

…all they have to do is turn on the tap to get water or use power plugs to source electricity.

Similarly, IT is shifting from being provided in-house (“generated” by a company itself) to being accessible through the internet by an IT provider, whenever and wherever it is needed.

Businesses need to break their emotional connection to assets and accept that once a system is broken or outdated, it can’t be fully repaired.

IT AS A UTILITY

Page 21: Seeing Through The Clouds

Seeing as the first iPhone was only launched in 2007, users are very open to mobile and especially smartphone adoption only a few years later.

With mobile phones, consumers are now used to benefits that are the same in cloud computing, such as pay as you go monthly pricing and flexibly adding and removing apps as required.

MOBILE ADOPTION IS GROWING AT 130% YEAR ON YEAR. BY THE END OF THE YEAR IT BECOMES A £1 BILLION MEDIUM ON ITS OWN, WITH PENETRATION

DUE TO BE 75% OF TOTAL POPULATION. Internet Advertising Bureau 2013 (UK)

Page 22: Seeing Through The Clouds

The IT evolution can be compared to the one of mobile phones.

Traditional IT is similar to an old Nokia phone, with limited options available and restricted mobility, whereas cloud IT can be compared to a smartphone with a wide range of functions, apps and pay-as-you-go phone contracts.

Imagine having to tackle today’s connected world with an old Nokia phone; why would you try to do it with your IT system?

IT EVOLUTION

TRADITIONAL IT CLOUD IT

Page 23: Seeing Through The Clouds

Despite its growth and it being one of the biggest tech buzzwords in the last couple of years, many misconceptions about the cloud still remain.

For example, in a recent study by Citrix, 51% of respondents said they believe stormy weather can interfere with cloud computing. [which is not the case]

CLOUD MISCONCEPTIONSCITRIX STUDY, 2012

51%think stormy weather interferes

with cloud computing

Page 24: Seeing Through The Clouds

When asked what the cloud is, only 16% knew what they were talking about.

CLOUD MISCONCEPTIONSCITRIX STUDY, 2012

16%a computer

network to store, access and share

data

Page 25: Seeing Through The Clouds

Almost twice as many respondents however think it’s either an actual cloud (specifically a “fluffy white thing”), the sky or something related to the weather.

Some others, when asked about the cloud, associate it with pillows, heaven, drugs, movies, innovation and relaxation.

This shows that the cloud is still only a very vague concept to most people.

CLOUD MISCONCEPTIONSCITRIX STUDY, 2012

29%a fluffy white

thingthe sky

weather related

16%a computer

network to store, access and share

data

pillow relaxed

heaven

drugs

Page 26: Seeing Through The Clouds

Not only the question “what is the cloud” poses a problem; misconceptions about the cloud itself and its functions further hinder adoption.

it’s not secure

you can’t work

offline

connectivity means it

won’t work

it’s still new

technology

it’s out of my

control

it’s expensive

CLOUD MISCONCEPTIONS

Page 27: Seeing Through The Clouds

In light of recent celebrity photo leaks, lots of people are under the impression that the cloud is not secure.

On the contrary, the cloud is more secure than an on-site IT solution as it offers data encryption and Multi-Factor Authentication logins and is not liable to human errors or office disasters. It is almost impossible for hackers to hack into the cloud – in the case of the celebrity photo leaks, they guessed passwords and security questions correctly.

it’s not secure

CLOUD MISCONCEPTIONS

you can’t work

offline

connectivity means it

won’t work

it’s still new

technology

it’s out of my

control

it’s expensive

Page 28: Seeing Through The Clouds

There are multiple options available for working offline whilst using a cloud service. For example, files can be modified offline and will be automatically updated once the user is back in the cloud.

you can’t work

offline

CLOUD MISCONCEPTIONS

connectivity means it

won’t work

it’s still new

technology

it’s out of my

control

it’s expensive

it’s not secure

Page 29: Seeing Through The Clouds

Internet connections are constantly being improved, and cities like Newcastle are actively working on optimising the connectivity network.

CLOUD MISCONCEPTIONS

it’s not secure

you can’t work

offline

it’s still new

technology

it’s out of my

control

it’s expensive

connectivity means it

won’t work

Page 30: Seeing Through The Clouds

Looking back at how rapidly IT has evolved and changed over the years, the cloud can’t really be called a new technology any more.

For example, Salesforce have been offering their software over the internet for 15 years now.

it’s still new

technology

CLOUD MISCONCEPTIONS

it’s not secure

you can’t work

offline

connectivity means it

won’t work

it’s out of my

control

it’s expensive

Page 31: Seeing Through The Clouds

A business utilising a cloud solution still has the same ownership rights and control over its data than with an on-site solution.

What’s more, the cloud supplier supports the business as they take IT responsibilities off a business; a lack of expertise in IT can put any business at risk.

it’s out of my

control

CLOUD MISCONCEPTIONS

it’s not secure

you can’t work

offline

connectivity means it

won’t work

it’s still new

technology

it’s expensive

Page 32: Seeing Through The Clouds

Most cloud providers offer pay as you go pricing, meaning that a business only pays for what it actually uses.

it’s expensive

CLOUD MISCONCEPTIONS

it’s not secure

you can’t work

offline

connectivity means it

won’t work

it’s still new

technology

it’s out of my

control

Page 33: Seeing Through The Clouds

Nowadays, businesses still face IT problems that should be in the past and which can be addressed and resolved by adopting a cloud computing strategy.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

complex inflexibledata

backupsdisasterrecovery

security

Page 34: Seeing Through The Clouds

The cost, time and effort involved in constantly updating software across the entire business is astonishing and can be minimised.

With a cloud solution, all software updates are done automatically by the supplier, with no need for the business itself to get involved. This ensures standardisation for all users, up-to-date security and that no time and money is wasted.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

complex inflexibledata

backupsdisasterrecovery

securitysoftwareupdates

Page 35: Seeing Through The Clouds

Businesses, especially ones that are growing steadily and operate multiple sites, face complex IT infrastructures.

By moving to the cloud, all the business needs for its employees are internet enabled devices – no complex infrastructure or costly servers.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

inflexibledata

backupsdisasterrecovery

securitycomplex

Page 36: Seeing Through The Clouds

Traditional IT solutions can be very inflexible, to the point where taking on a new employee can pose a problem or moving offices would turn into a nightmare.

A cloud-based infrastructure provides businesses with lots of flexibility and scalability, easily dealing with seasonal staff fluctuations, rapid growth and office moves.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

complexdata

backupsdisasterrecovery

securityinflexible

Page 37: Seeing Through The Clouds

Businesses rely on their data, but what happens if a server breaks? How often should data be backed up? Where should the backups be stored?

Most cloud providers automatically back up clients’ data on a daily basis and store it in multiple data centres. This way, a business will never lose any of its data.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

complex inflexibledisasterrecovery

securitydatabackups

Page 38: Seeing Through The Clouds

Imagine your office caught fire – how would it impact your business? When would you be able to resume working? Would you still be able to run the business?

With a cloud solution, all employees could easily log on to their desktops from home, with little to no time lost, and continue working as usual.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

complex inflexibledata

backupssecuritydisaster

recovery

Page 39: Seeing Through The Clouds

Security is probably one of the biggest issues for businesses nowadays. Keeping software up-to-date, trusting employees with sensitive data and on-site servers and arranging for the right policies to be in place can be daunting.

The cloud can take this worry away by always providing up-to-date software and encrypting data and emails as well as offering the options of utilising Multi-Factor Authentication logins and locked USB slots.

IT PROBLEMSTHAT SHOULD BE IN THE PAST

softwareupdates

complex inflexibledata

backupsdisasterrecovery

security

Page 40: Seeing Through The Clouds

You shouldn’t have to waste time thinking about how each business decision would impact your IT or if it would even be feasible.

On the contrary, IT should enable you to sell, serve and deliver your products and services to your customers in the best way possible, not hinder you or slow you down. By moving to the cloud, all aspects of IT are taken care of, meaning you can focus on making your customers happy.

SO WHY DO IT…?

SELL – SERVE – DELIVERBETTER

Page 41: Seeing Through The Clouds

Besides solving existing IT problems, the cloud also offers additional benefits to users. In the Citrix study, participants pointed out the benefits the cloud has, like working from anywhere (40%), keeping embarrassing videos off of their personal hard drive (25%) and sharing information with people they’d rather not interact with in person (35%).

CLOUD BENEFITSCITRIX STUDY, 2012

40%work from anywhere

Page 42: Seeing Through The Clouds

Bring Your Own Device (BYOD) can be very beneficial for businesses as employees can use their own devices (laptops, tablets,…) for work so the company does not have to provide a dedicated PC or laptop.

With the right cloud solution in place, employees can use their devices to easily and securely access their entire desktop (i.e. all their data, apps and email) without having to install work-specific software or transferring data beforehand.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 43: Seeing Through The Clouds

As already mentioned, the cloud is incredibly scalable. Users can be added or removed quickly depending on business demand and the same goes for applications.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 44: Seeing Through The Clouds

Remote working is closely connected to BYOD and is one of the biggest benefits the cloud provides. Users only need an internet enabled device and an internet connection to access their entire work desktop with applications, email and data, no matter whether they are working from home, on the go or in another country.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 45: Seeing Through The Clouds

Also closely linked to BYOD is the fact that the cloud is device agnostic, meaning that no devices with special functions or requirements are needed to access users’ desktops and all their apps, email and data.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 46: Seeing Through The Clouds

As mentioned, the cloud is more secure than an on-site IT solution, especially when it comes to BYOD and remote working. Furthermore, data is stored in secure data centres rather than in a server room within an office where it is liable to human errors and damage.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 47: Seeing Through The Clouds

By moving to the cloud, businesses need not worry about outdated software and servers as they are automatically updated and refreshed by the cloud provider.

This is the new way of utilising IT and will become even more significant in the years to come.

BYOD scalableremote access

device agnostic

securefuture proof

CLOUD BENEFITS

Page 48: Seeing Through The Clouds

With the help of the cloud, BYOD and remote working, businesses can maximise their mobility, work more flexibly and shorten response times.

SMBs WHO HAVE EMBRACED MOBILITY HAVE GENERATED 40% HIGHER REVENUE GROWTH IN THE LAST 12 MONTHS

COMPARED TO THOSE WHO DID NOT.MICROSOFT 2011

Page 49: Seeing Through The Clouds

The cloud is a fantastic opportunity for companies to break out of the IT cycle.

Rather than spending a lot of money on a new server, hardware and license updates every couple of years, businesses can opt for a pay-per-user-per-month cloud solution.

Cloud computing can also substitute hiring a new IT manager or having to create a disaster recovery and business continuity strategy.

BREAKING OUT OF THE IT CYCLE

NEWSERVER

HARDWAREREFRESH

LICENSEUPDATES

DISASTERRECOVERY

NEW/NEED ITMANAGER

Page 50: Seeing Through The Clouds

The cloud can be a benefit for companies who are undergoing key business changes.

When moving office, be it due to expansion or downsizing, all the business needs in the new location is an internet connection and internet enabled devices. No need to move servers and lots of hardware or having to set up everyone’s PC.

KEY BUSINESS CHANGESMOVING OFFICE

Page 51: Seeing Through The Clouds

Operating multiple offices can be daunting and complex; making IT work across all locations is easier said than done, and businesses face issues regarding compatibility, data storage and backups as well as cooperation.

With a cloud solution, working together on files from different locations is not a problem, data is kept and backed up automatically in secure data centres and applications and licenses can easily be standardised.

KEY BUSINESS CHANGESMULTI-SITE OPERATIONS

Page 52: Seeing Through The Clouds

Acquiring and merging with another business can be a major headache for a company, as trying to merge different IT systems into one can take up a lot of time and money.

With a cloud based IT infrastructure, standardisation and adding new users is really easy, there is no need to worry about data storage and backups and IT security is automatically provided throughout the new business.

KEY BUSINESS CHANGESMERGERS AND ACQUISITIONS

Page 53: Seeing Through The Clouds

Most cloud IT providers offer a pay-per-user-per-month pricing model which breaks down the cost of IT into monthly payments rather than using up capital for large upfront investments.

Although the cloud is often cheaper than a traditional IT solution, this is not always the case. However, it offers additional benefits for businesses such as a shift from CAPEX to OPEX and IT cost prediction and planning which traditional IT solutions can’t provide.

WHAT ABOUT THE MONEY?

Page 54: Seeing Through The Clouds

On average, companies who move to the cloud save a minimum of 20% on their overall IT spend.

By removing servers and hardware with high energy consumption, businesses can also reduce their energy cost by 70%.

Furthermore, companies benefit from air conditioning cost savings of up to 95%.

WHAT ABOUT THE MONEY?

MINIMUM 20%COST SAVING ON OVERALL IT SPEND

70%REDUCTION IN ENERGY COST

95%REDUCTION IN AIR CONDITIONING COST

Page 55: Seeing Through The Clouds

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction.”- Bill Gates, 1996