Cloud Applications: Finding the Perfect Cloud

Generally, there are 3 types of cloud offerings-Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and Infrastructure-as-a-Service (IaaS). We can get on to a debate regarding what is more important-platform, infrastructure, or applications. While applications are devised to be used by people, infrastructures and platforms are designed to be used by applications. Applications provide more specific, higher level service, and it resolves a more targeted problem.

While a platform/infrastructure offers general, relatively low-level service and resolves a broader problem faced by many different applications. Therefore of these the most sought-after service by enterprises is SaaS, also known as cloud applications.

There are lots of cloud solutions available in the industry, but enterprises ought to warily choose enterprise applications and the cloud provider for smooth and secured functioning of cloud applications. Let us look at the key requirements/things that enterprise should be wary of while selecting enterprise cloud applications.

SMBs & Cloud Apps

Alpna Doshi, chief information officer, Reliance Communications states, “The 3 main factors driving companies toward the cloud are: Efficiency (both operational and capital), simplicity (of operations), and agility“. These are quite well-researched and very compelling to almost everyone. But as the market matures, it will come to realize a set of business-related factors that may eventually outweigh these. Once enterprises have true cloud-enabled IT-one that's not a ball-and-chain to the lines-of-business-leadership will realize that IT can become a business driver and enabler“. Once IT is as nimble as any other part of the business, it will be viewed as a key competitive weapon by many, and that will become the driving factor to the cloud.”, Doshi adds.

Small enterprises use business core applications like enterprise resource planning (ERP), customer relationship management (CRM), salesforce, etc. Large enterprises usually use low cloud applications due to no proper regulation on data privacy and security around it. They are not going for core business applications, but they usually go for peripheral applications or support applications. Similarly, Rajeev Batra, CIO, MTS India says, “Businesses are eager to convert capex into an opex model. Commercially, the cloud is working out well for them. Businesses can get access to high-end applications which otherwise would be expensive. For SMEs managing an IT infrastructure or getting the IT skills is a task.

Cloud Applications

Cloud applications, or popularly known as SaaS applications, run completely on cloud/servers at an internet-accessible service provider. Cloud apps have been broadly divided into 2-packaged applications and custom applications. Packaged applications are primarily off-the-shelf business software products such as SAP, Oracle application, or Microsoft Dynamics. Customized applications increasingly expose their functionality through services and they become part of the on-premise application platform. Therefore it involves a large investment in custom software. SaaS reduces the need for heavy, upfront capex investments, making return on an investment a lot easier to measure and quantify. It offers operational expenses-tax advantages and user will have the advantage of turning on or off as required.

Organization can focus on the topline and reduction in capex. To achieve this, they are trying to take services for non-core applications through cloud service providers. “IT has already jumped on the SaaS realizing that it is easier to use a SaaS application than to build and support a custom application in-house. With the increasing usage of Android, BlackBerry, iPhone, etc, there is a need for SaaS for applications and I strongly feel that more cloud apps will develop,” asserts Doshi.

App Selection—Key Components

Following factors are very significant while selecting an application:

• Integration: An application loses its flavor if it doesn't talk to at least one of its fellow applications. Thus connecting applications is crucial and enterprises ought to demand cloud providers to offer an integration platform and tools, a strong partner ecosystem, and assistance for pain-free integrations. Cloud applications should be built from the ground up to lower the cost, time, and risk of integrating them with the existing on-premise and on-demand applications.
• Service-level Agreements: Arriving at and following apt Service Level Agreements (SLAs) is one of the critical requirements while going in for enterprise applications. Generally, SLAs drive the architectural and technological decisions. Batra says, “In stringent SLAs cost ascends heavily. Enterprises ought to see if they are getting much higher applications. They should only keep what is required for business other than overdoing it, because there is a huge cost associated with it. Organizations may go for 9/6 or 12/6 type of models rather than 24/7.”
• Control and Visibility: Cloud applications should allow enterprises to have complete control of the organization's data, even though it is located off premise. Nothing should hinder the ability to import, export, purge, and archive data to and from the application without having to first contact the SaaS vendor.
• Data Center and Security: A cloud application provider should guarantee security and data privacy at no additional cost. That includes physical, network, application, and data-level security, as well as full back-up and disaster recovery. Annie Mathew, head, alliances, RIM India advises, “It is prudent for enterprises to know where the data is lying, who else can access it. Enterprises should be well aware of the cloud architecture and they should know the service provider well. Trust and brand plays a key role in data security.”
• Sustainable IT Infrastructure: The provider should maintain a high-performance IT infrastructure, which includes the data centers and databases, operating systems, networks, and storage systems, which used to run cloud applications and manage customer data. John Landau, SVP, technology and service evolution, Tata Communications explains, “Providing an immediate and an instant access to applications anytime, anywhere, while lowering TCO and increasing efficiency and productivity at the same time, makes this new paradigm an obvious choice for CIOs and IT directors the world over.”
• No Hidden Cost: Enterprises should ensure that there are no surprise costs with cloud applications. Implementation costs should be predictable, a subscription based pricing should have no hidden fees, and no investments should be required for hardware and software license fees.

Prominent Enterprise Cloud Apps

Industry consensus that most prominent and ruling enterprise cloud applications in India are:

• Web Serving: Moving web servers, management and analytic tools to the cloud is also at the top of the priority list. Cloud-hosted web infrastructure and software offer cost savings across the board. Reductions in maintenance costs, the predictability of subscription models, and rapid deployment are key benefits to the enterprise.
• Cloud Back-up: Cloud back-up companies like Asigra are banking on enterprises moving disaster recovery and back-up to the cloud. In addition, IDC says that although 87% of businesses are concerned with cloud security, 60% are still considering moving back-up off-site to the cloud.
• Personal Application for Productivity: Applications targeted at increasing employee productivity and facilitating more rapid reporting of business processes are also on the target for 55% of respondents in the survey. Hosted mobile applications through carriers and mobile software providers as well as document-editing applications like Quickoffice are also expected to gain traction.
• Business Applications: Moving efficiency and compliance apps like CRM, ERP, human resources, and financial and accounting solutions to the cloud limits the upfront investment and costly integration required for in-house deployments.
• Collaborative Applications: Businesses have been moving their email and PIM to managed service providers (MSPs) for a while, but IDC says that 67% of survey respondents believe collaboration applications such as email, chat, conferencing, and collaborative file sharing solutions such as SharePoint are a great fit for the cloud because they reduce costs in the short term. Also games and social interactions apps would get introduced.

If big software ISPs, application providers, cloud providers, and telcos come together, they can provide a compelling offering to the end-customers. And also drive higher cloud adoption in India.