This document provides an overview of cloud computing and recommendations for adopting a private cloud solution from Loughtec. It defines cloud computing, discusses the benefits of scalability, cost savings, business agility, and disaster recovery. However, it also notes security, data privacy, and internet dependency as potential concerns. Loughtec's private cloud offering, using Ericom Webconnect virtual desktop software, allows clients to access applications remotely while keeping hardware on-premises. This provides control and reduces IT costs compared to traditional on-premise Exchange servers. Loughtec can also host Microsoft Exchange in the cloud, providing benefits like increased mailbox sizes and mobile email access.

1. Prepared for:
Omagh Enterprise Company
6th September 2011

2. Cloud Computing – A Strategy
Guide For Your Business

3. Background to Loughtec
Loughtec provide a range of IT products and services to commercial and
public sector organisation’s across Ireland – primarily in NW.
Loughtec are the IT experts for all of our clients – offering hardware,
software, technical support and consultancy services.
Trading for 6 years with approx 110 active customers.
The business has a team of highly skilled engineers with a number of
specialist skills.
Loughtec has special partnerships and alliances with some leading
suppliers in the IT sector and an exclusive agreement with Eircom.
Business is in a competitive market place but it has a number of USPs

4. What is the cloud?
“Cloud computing is an emerging approach to shared infrastructure in
which large pools of systems are linked together to provide IT
services.”
– IBM press release on “Blue Cloud”
• “…a hosted infrastructure model that delivers abstracted IT
resources over the Internet”
– Thomas Weisel Partners LLC from “Into the Clouds: Leveraging
Data Centers and the Road to Cloud Computing”
• “Cloud computing describes a systems architecture. Period. This
particular architecture assumes nothing about the physical location,
internal composition or ownership of its component parts.”
– James Urquhart blog post

5. Loughtec’s Definition of the Cloud
We like the Gartner definition which defines cloud
computing as
“a style of computing where massively scalable IT-
enabled capabilities are delivered ‘as a service’ to
external customers using Internet technologies.”

6. PUBLIC CLOUD VERSUS PRIVATE CLOUD
• In the normal cloud scenario organisations run application’s in a
data centre provided by a third party.
• The provider is responsible for providing the infrastructure, servers,
storage and networking necessary to ensure the availability and
scalability of the applications.
• A private cloud is a proprietary computing architecture, owned or
leased by a single organisation, which provides hosted services
behind a firewall to “customers” within the organisation.
• Private clouds will be the route chosen by many enterprises and
that there will be substantial investment in this area.

7. Reasons to Consider Adopting Cloud
Computing

8. Scalability
• Scalability is a key aspect of cloud computing.
• The platform can expand and contract automatically based on capacity needs –
known as elasticity.
• Cloud computing provides resources on-demand for many of the typical scaling
points that an organisation needs including servers, storage and networking.
• The on-demand nature of cloud computing means that as your demand grows (or
contracts) you can more easily match your capacity (and costs) to your demand.
• No need for over provision.
• Smaller companies are able to punch well above their weight in terms of the
technology they can access.

9. Cost Saving
• There are mixed views on this.
• McKinsey recently published a report claiming that there was no cost saving
to be had and that, on the contrary, it could work out more expensive.
• On the other hand, a report by Forrester emphasises the fact that use of
cloud computing matches cash flow to system benefits more appropriately
than the traditional model.
• Old way of doing things, a large investment is made early in the project
prior to system build out, and well before the business benefits.
• With cloud computing you move from a capital investment to an
operational expense.

10. How to calculate the real cost?
• Companies tend to home in on the cost of provisioning a server internally
(including software licences) and end up comparing that with the cost of a
cloud-based solution – that’s not correct.
• The problem with this type of costing is that it omits a whole range of costs that
are often not assigned to the internal server’s costs such as
 technical personnel necessary to keep system’s up and running.
 extra personnel necessary to manage server procurement.
 electric bills and capital expense investments for power and cooling.
 internal technical people to do assessments and trials of different hardware
offerings.
 procurement people to do the negotiating for hardware purchase
 internal and external costs for system design.
 contract and account people to keep track of all the various licenses, leases, etc.

11. Business Agility
• The speed at which new computing capacity can be requisitioned is a vital
element of cloud computing.
• Adding additional storage, network bandwidth, memory, computing power
etc can be done rapidly and often instantaneously.
• Cloud computing allows organisations to react more quickly to market
conditions and to scale up and down as needed.
• New applications can be quickly released with lower up-front costs.
• if you’re starting a new line of business, you can launch with a robust,
state-of-the-art infrastructure without tying up limited capital.

12. Built In Disaster Recovery
• The burden of managing technology is placed on the technology provider.
• Their responsibility to provide built-in data protection, fault tolerance, self-
healing and disaster recovery.
• Typical disaster recovery costs are estimated at twice the cost of the
infrastructure.
• With a cloud-based model, true disaster recovery is estimated to cost little more
than one times the costs, a significant saving.
• Because cloud service providers replicate their data, even the loss of one or
two data centres will not result in lost data.
• Now every business can put a plan in place to ensure they are able to continue
their business in the face of radical environment changes.

13. Device & Location Independence
• Cloud computing is already enabling greater device independence, greater
portability, and greater opportunities for interconnection and collaboration.
• With applications and data located in the cloud it becomes much easier to
enable users to access systems regardless of their location or what device they
are using.
• Teleworkers can be quickly brought online, remote offices can be quickly
connected, temporary teams can be easily set up on site, mobile access can be
easily enabled.
• With the growing use of smartphones, netbooks and other hand-held devices
there is also an increasing need for data access on the go.

14. BONUS REASON: It’s Greener!
• Most servers run significantly below capacity (real world estimates of server
utilisation in data centres range from 5% to 20%) yet they still consume
close to the same amount of power and require the same amount of
cooling as a full capacity machine.
• In a cloud computing environment resources are shared across applications
(and even customers) resulting in greater use of the resources for a similar
energy cost.
• With cloud computing virtual offices can be quickly set up. Employees can
easily work from home. Travelling salespeople can have all their data
available in any location without needing to visit the office. These are just
some of the other examples of how the carbon footprint can be reduced.

15. Reasons to Consider Avoiding Cloud
Computing

16. Security
• In nearly every survey that has been done about cloud computing the top
reason given for not adopting it is a concern over security.
• Putting your business-critical data in the hands of an external provider still
sends shivers down the spines of most business owners.
• In deciding on the trade-off some of the questions to consider are:
- What happens if the data stored or processed on a cloud machine gets
compromised?
- Will we know?
- If we do not know, how will we notify our customer’s?
- How will we know to improve our security?

17. Security
• One school of thought that says that holding your data in the cloud is not
much more insecure than having it on internal servers connected to the
Internet.
• Be realistic about the level of security you achieve inside your business, and
how that might compare to a cloud provider. It’s well known that more
than 70% of intellectual property breaches are a result of attacks made
inside the organisation.
• There is still some work to be done before more formalised standards are in
place. Organisations like the Cloud Security Alliance are at the forefront of
addressing these security worries.
• In the same way that some banks took longer than others to offer internet
banking facilities so it will be with cloud computing. Some organisations will
evaluate the risks and adopt cloud computing quickly.

18. Data Location & Privacy
• Data in a cloud computing environment has to exist on physical servers
somewhere in the world and the physical location of those servers is
important under many nations’ laws.
• This is especially important for companies that do business across national
boundaries, as different privacy and data management laws apply in
different countries.
• For example, the European Union places strict limits on what data can be
stored on its citizens and for how long. Many banking regulators also
require customers' financial data to stay in their home country. Many
compliance regulations require that data not be intermixed with other data,
such as on shared servers or databases.
• In another example, Canada is concerned about its public sector projects
being hosted on U.S.-based servers because under the U.S. Patriot Act, it
could be accessed by the U.S. government.

19. Data Location & Privacy
• Some of the larger cloud providers (e.g. Microsoft, Google) have recognised
this issue and are starting to allow customers to specify the location of their
data.
• What if you miss paying a bill, or decide not to pay a bill for various
reasons, like dissatisfaction with the service? Do you lose access to your
data?
• This is something that can be addressed at the contract stage to ensure
that the right safeguards are be put in place to prevent a provider from
withholding access to your data.

20. Internet Dependency, Performance & Latency
• A concern for many organisations is that cloud computing relies on the
availability, quality and performance of their internet connection.
• Dependency on an internet connection raises some key questions:
- What happens if we lose our internet connection?
- How long can we run our business?
• Organisations considering investing in cloud computing will certainly have
to factor in costs for improving the network infrastructure required to run
applications in the cloud.
• On the plus side, bandwidth continues to increase and approaches such as
dynamic caching, compression, pre-fetching and other related web-
acceleration technologies can result in major performance improvements
for end users, often exceeding 50%.

21. Availability & Service Levels
• One of the most common concerns regarding cloud computing is the
potential for down-time if the system isn't available for use.
• Every minute of down-time can not only affect revenue but can also cause
reputation damage.
• Few company IT infrastructures are as good as those run by major cloud
providers.
• Many companies thinking of adopting cloud computing will look to the
service-level agreements (SLAs) to give them some comfort about
availability. Surprisingly, some cloud providers don't even offer SLAs and
many others offer inadequate SLAs (in terms of guaranteed uptime.)
• But SLA doesn't necessarily assist in obtaining high quality uptime, but
provides the basis for conflict negotiation when things don't go well

22. Current Enterprise Applications Can't Be
Migrated Easily
• Moving an existing application to a cloud platform is not as easy as it might first
appear.
• Every cloud provider will have dissimilar infrastructure and different ways of
configuring that infrastructure. Its unlikely any will match your setup.
• In reality most organisations that adopt cloud computing will end up doing it with
new applications.
• So if you are thinking about a new system or system re-development the cloud will
be worth considering.
• Whilst the lack of a convenient migration path for existing applications might hinder
cloud computing adoption, in the longer term it is not going to be a permanent
barrier. As more vendors build applications for cloud deployment so will the uptake of
cloud computing grow.

23. Cloud Summary
• There is still a lot of hype surrounding Cloud Computing.
• This is a trend that is not going to go away.
• Gartner have said that “Cloud computing heralds an evolution of business
that is no less influential than e-business”. It does add though that “cloud
computing is very much an evolving concept that will take many years to
fully mature”.
• Loughtec believe the way forward is in a mix.

24. Loughtec’s Private Cloud Offering
• Remember in this “cloud scenario” you keep all the hardware on your side of the
firewall – you are in complete control.
• Loughtec use a product called Ericom Webconnect to deliver your applications
anywhere in the world or even on a local virtual desktop. We are the only
company on the Island that are qualified to sell and install the product. There are
7 million users worldwide and 15,000 here.
• What is a virtual desktop?
• A virtual desktop is an individual user's interface in a virtualized environment. The
virtualized desktop is stored on a remote server rather than locally.
• Desktop virtualization software separates the physical machine from the software
and presents an isolated operating system for users.

25. Ericom Webconnect how does it work?

26. Ericom Webconnect – The Portal

27. Ericom Webconnect – The User Interface

28. Microsoft Exchange – Traditional Approach
• Server and Software Onsite.
• You take care of the backs up and admin yourself.
• Mailbox size is very restrictive.
• Upgrades are due every few years for hardware and software.
• For a small business Exchange is too much of and overhead admin wise
and cost wise.
• Therefore they will opt for POP3 mail being pulled down to PC which is a
high risk strategy.
• Actions in Outlook are not synced from device to device.

29. Loughtec Putting Microsoft Exchange In The
Cloud

30. Microsoft Exchange In The Cloud – The Pros
Reduced IT infrastructure costs Exchange 2010
Instant deployment Massive 25GB per mailbox
Enhanced security Mobile email ‘push’ technology
No upgrades or repairs Shared calendars and contacts
Easy mailbox control  Public folders and subfolders
Instant scaleability  Redundant networks
Workforce mobility Award-winning Anti-Spam

31. Questions?

32. Prepared by:
Sean McDermott
Business Owner
6th September 2011