Is cloud computing smart business?

In these economic times, companies are being forced to tighten their belts. But does that also mean compromising on the newest and most powerful IT? Not with cloud computing. This fascinating form of IT delivery not only cuts costs – it actually improves the delivery of services and enables innovations only dreamed of in the past.

In these economic times, companies are being forced to tighten their belts. But does that also mean compromising on the newest and most powerful IT? Not with cloud computing. This fascinating form of IT delivery not only cuts costs - it actually improves the delivery of services and enables innovations only dreamed of in the past.

Cloud computing is an Internet connected service that consists of server and storage capacity, including bandwidth, security, OS and standard databases of applications. This technology offers a way to support business processes with the right IT solutions - while taking away most of the operational responsibilities of the traditional IT approach.

Pay as you go

"Cloud computing provides different benefits at the same time," said Jos Vermaere, IBM Systems Architect. "Cost-reduction is an important driver for the model. Pricing for cloud computing can be very simple: You pay as you go."

While cloud computing may be the ideal solution for achieving predictable, transparent IT costs, it means more than cost-reduction alone. "Cloud computing is also a way to improve service levels and reduce IT risk," said Vermaere.

"The fact that IT has become part of almost every business process does not necessarily mean that every business considers itself to be an IT company. Cloud computing offers a way to support business processes with the right IT solutions - while taking away most of the operational responsibilities from the traditional IT approach."

On-demand, secure capacity

Demand for cloud computing is growing - fast. Always on the forefront of new developments, IBM launched its utility-based provider, iTricity, in 2008. Today, its European Cloud Computing Center has already delivered the first clouds to clients, based on IBM's Blue Cloud technology.

IBM Blue Cloud is a series of cloud computing services that allows corporate data centers to operate more like the Internet. Computing is offered across a distributed, globally accessible fabric of resources, rather than on local machines.

These technologies enable computing resources to be dynamically provisioned and shared, to achieve significant economies of scale. This strong service management platform results in near zero incremental management costs when more IT resources are added to the cloud.

So the center's clients enjoy the benefits of on-demand and secure capacity - with 24/7 monitoring. Their clouds can be put to use for long-term operations, or short-term projects. This, and the fact that clouds can be made compliant to specific trade regulations, means that companies are ensured of the quality they required - and the flexibility of use they desire.

Choose the right service

Flexibility is precisely what cloud computing is all about. "There is so much variety in the actual use of the cloud," said Etienne Verbinnen, IBM Channel Solutions Manager. "Some companies only need 'Infrastructure as a Service'. This is computing capacity or storage capacity, which uses storage clouds as a low-cost backup facility.

"Others use the cloud for platform services, otherwise known as 'Platform as a Service. This allows for the development and deployment of applications," he said.

"And of course, the end-user applications can also be made available through the 'Software as a Service' model, with the provider offering the complete application package, including security, Service Level Agreement and more."

Building a strong strategy

The number of choices associated with cloud requires a solid business case for moving to a cloud delivery or consumption model. There is no one-size-fits-all approach.

"Some companies prefer a private cloud," said Thomas Standaert, IBM HPC & Business Development Leader. "The public cloud, however, remains the most common and recognized form of cloud computing. Hybrid models are also in use - be it a mix between traditional and cloud computing, or private and public cloud computing."

With all so much flexibility and so many options, IBM advises companies to begin by building a strong strategy and business case. After all, cloud computing affects all dimensions of an enterprise - from business strategy and operating models, to technology integration and organizational transformation. So it requires a solid business design and implementation roadmap.

Organizations may feel a bit of resistance to rethinking and challenging their current business models. But there is no need to face this challenge alone. IBM has a complete cloud consulting portfolio, designed especially to help businesses decrease costs and achieve the type of innovation that will make a real and lasting difference.

IBM Smart Business cloud solutions

Whether you choose to use clouds privately - behind your firewall - or opt for the IBM Blue Cloud, IBM's secure workload solutions provide superior service management and new choices for deployment.

Immediate benefits can be realized with Business Storage Clouds that manage massive information demands while reducing costs. However, the first step for many companies would be development and testing behind corporate firewalls. Others head straight to the cloud with IBM LotusLive™ tools, including file sharing, web conferencing and instant messaging-all through web browsers.

Regardless of the direction your company moves, one thing is clear. Cloud computing is in the air - and is the most important change in IT on the horizon. Find out more about cloud computing, and how IBM is helping this phenomenon to shower businesses with benefits at www.ibm.com/cloudcomputing. And discover the silver lining of cloud computing.