Software as a Service (SaaS)

Software as a Service, another great term to describe cloud computing/services. The article referenced below is by Esther Shein  and was published in Computer World. I believe it provides some great examples of how small and medium sized businesses can use online backup solutions such as Carbonite and others to secure their vital business data. Here is a short extract and even though he didn’t pick Carbonite this time, maybe he will consider us when our small business solution is released sometime in 2009.

A data storage crash is the last thing a collision-repair shop needs to worry about. So when John Sweigart realized that the software he was using to manage his business was no longer compatible with the way he was backing up data, he knew it was time for a different option.

The Body Shop, has hundreds of records, including images that are kept on file for appraisers and insurers for at least a year. “It’s tons of information, and we’ve had occasions where the server’s crashed and we lost data,” says Sweigart, principal of The Body Shop. “We have paper files, but we still have to go back and re-create the electronic files.”

Since his business has multiple pieces of software to back up and no internal IT staff, Sweigart decided to outsource what had become a headache. He chose Verio, a software-as-a-service (SaaS) backup provider. For US$29 per location per month, The Body Shop has automatic backup of all its disk drives and servers every night.

Before switching to SaaS backup, each Body Shop location kept tapes on hand that an employee had to back up and take home at night. “It turned into such a comprehensive process, and you had to make sure it was done right every night and that someone was actually taking [the tape],” says Sweigart. “We had an incredible sense of paranoia doing all this extra work, and we needed a better option.”

Data backup continues to be a challenge — at small and midsize businesses in particular — because it requires a multifaceted infrastructure of backup software, networks, servers, disk arrays and tape systems. Many companies have trouble completing backups in the allotted time, and a significant number of backups fail or complete with errors. Often, companies don’t protect machines at remote locations because of the hassle, so there are gaps in backup coverage.

Because of issues like these, more companies are turning to SaaS backup providers, which support and maintain a variety of applications over the Internet without requiring their clients to invest in any servers or install any software on-site.

“Companies are feeling more comfortable with the concept of buying services out of the cloud,” notes Carl Howe, an analyst at Yankee Group Research. “I think there’s a perception that if it’s good enough for Google, it’s good enough for me.”

Banking 2.0

A few months ago I wrote a post on personal finance tools. Earlier today I found a great blog that provides a review on all of the key tools in the market place, what they are offering, and where these type of services are heading.

Here is a short extract:

Banking 2.0 is still very much an emerging technology trend. Yet with the young generation of digital natives now entering the workforce and starting their careers, you can be sure that they will have an impact on this space. They will expect their banks to support not only online banking but also other online money management tools such as these. This is not a generation that’s known for their brand loyalty, so you can bet that they will be all too happy to change banks if they decide they want to use one of these services and their bank isn’t supported.

Banking 2.0 represents only one aspect of the growing trend that is cloud computing. Just as other desktop software is being threatened by new online apps, desktop financial management software is threatened as well. These banking sites go up against expensive and unwieldy desktop software while offering their services for free and finding you savings. In our current economy, that activity gives banking 2.0 the potential to go mainstream fast.

Read the whole article at ReadWriteWeb

More Clouds

Hasn’t cloud computing been in the media lately. Its only Tuesday and already I have seen over 3 articles on the topic and heard one interview.

1. CRN (4/8/2008) The Editors letter reads ‘Is Cloud computing here to stay’
2. CRN also interviewed EMC’s Chuck Hollis on the future of cloud computing.
3. BRW daily updates Cloud Computing
4. The Age Cloud computing may ‘threaten’ privacy

Just to summarise what these 4 articles say:

• They have defined it several times so we should all now know what it now means.
• They said it is going to be huge in a few years.
• There are privacy and security risks when you place any information on the internet.
• Chuck told us that its acceptance will take time and investment. Before anyone uses a cloud service they must trust the provider. It will touch us personally before it touches us professionally eg iphone. He also noted some political restrictions on its deployment internationally. In five years time it will be a standard service offering.

Cloud Computing and I?

I thought I would start a few posts on Cloud Computing and how it impacts the everyday PC user. Why, well because I think over the next 5 years it will change the way we use our PCs.

Defined as:
Cloud computing literally means Internet (‘Cloud’) based development and use of computer technology (‘Computing’). It is a style of computing where IT-related capabilities are provided “as a service” using Internet technologies to multiple external customers. It allows users to access technology-enabled services without knowledge of, expertise with, or control over the technology infrastructure that supports them. See Wikipedia

Have you seen it? You will have experienced it if you use an MSN Hotmail email account or a Google Gmail account. Traditionally software including email software eg Outlook and Lotus Notes are sold as applications that you install and control through your desktop. Cloud computing equivalents, provide you with the same/similar functionality but you don’t install them, you simply login to a website and access your account and the application. You don’t have to worry about hosting them nor about where the information you save is stored. The provider of the service looks after all of that for you.

A detailed article about Cloud Computing and how it is changing the business world can be found at IT News. Quoted within the article

Gartner predicts that by 2012, 80 percent of Fortune 1000 enterprises will be paying for some cloud computing services, and 30 percent will be paying for cloud computing infrastructure services.

Why would a company or even a home PC user even consider a cloud computer solution? Mainly price and functionality that may not be available elsewhere. A good example is MS Office. If you really wanted to use these tools and you didn’t want to fork out the $190+ for it (Home/Student Edition), you could access Google Docs for free. I can only assume functionality is similar. It even lets you export the file so that you can then use it with other applications. Another good reason to use these ‘cloud’ services is because you can access the application and files from anywhere.

When travelling, you can pop into an internet kiosk and send your emails. Same thing with Google Docs and Spreadsheets you can work on a file at work and then access the same file at home. Very convenient.

Cloud computing also extends itself to backing up your PC. Traditionally, back-up is performed either via an external/internal hard drive, via CD/DVDs or via a Memory Stick. All of the methods work, but they are time consuming, can be difficult to manage, are prone to failure and can be expensive.

Cloud computing has revolutionised backing up your home PC. Why? Well, it’s quick, it’s simple, it does it all for you and its cheap. The way it works is that once you have installed the application, it begins reviewing your hard drive for folders and files and marks them as pending back-up. It then begins to copy and transfer them over the internet (securely) to the remote centre, where it securely stores them for you. As you continue to use your computer, it identifies the changes as well as new files and transfers them to your online backup account. You don’t have to remind it to do this. It just does it!

The clear benefit for this type of solution is that its automatic and because your data is stored online there is no hardware/clutter to worry about. Many services such as Carbonite offer unlimited back-up. So no matter how many pictures of the grandchildren you have, you can store them all online. Its also cheap. Carbonite retails for $59.95, that is security for 16c per day. Not much to pay for, for the security of some of your most prized possessions.

So what is the drawback. In Australia, cloud computing is still relatively new (beyond email systems). The Australian PC user needs to begin to trust the provider of the service before they place their most valued possessions with them. Services such as Carbonite that are global, and that invest millions in their warehousing facilities are in it for the long haul. They are also profitable businesses.

Once we get over the trust factor, well then, these cloud type services can be a gold mine for many people. Why not give them a try, it won’t cost you anything.