A PLATFORM THAT SHARES

Rightly so, many businesses worry about third-party providers managing and controlling their most precious corporate data, especially financial and personnel-related documentation and systems. And so, cloud hosting providers – those that promise to safely guard and deliver critical data at all times – should indeed be held to very high expectations for software, hardware, and infrastructure security.

As examined throughout this series, private cloud hosting providers – those that build unique and dedicated server environments on a client-by-client basis – deliver a wide range of security configurations to their clients. Many private cloud environments are very secure, to be sure, but just as many are not so robust. (Remember, remote servers sitting in your brother-in-law’s closet constitute a private cloud.) This is because private cloud providers do NOT deliver their security environment as a “platform” – one industry-leading template securely deployed to all users all the time (more about this below) – but instead they create unique installations in reaction to each individual client’s stated requirements, know-how, and budgets.

So, in private cloud environments, security certificates may be deployed differently from client to client. Different software packages, versions, and configurations are available, and a range of security hardware may be used. The result is the availability of varying security standards based upon each client’s expressed needs. This “lowest common denominator” approach means you may not be sure what you’re really buying from a private cloud provider when it comes to the security, until they build your cloud for you. Such case-by-case deployment is typically costly as well, because private cloud hosts CAN NOT share single security platform costs among all clients. Because unique security arrangements are built for each individual client, that client alone bears all the associated costs.

Conversely, public enterprise clouds are built to the highest security standards because they deliver their solutions as “platforms” to ALL cloud users simultaneously. In this way, every public enterprise cloud user gains the benefits of the very best performance, security, and delivery, because their cloud platform is the very same one available to thousands (and sometimes hundreds of thousands) of other users too. Simply put, when cloud delivery is platform based the requirements of a large “public” community ensure the very best levels of security are available to all.

It’s more than that, though.

The business model behind public enterprise cloud delivery demands the very best security, software, and infrastructure. Because enterprise cloud providers engineer and deliver their environments to support thousands of users, they must deploy the latest, most stable, and secure software on the market, and the very best security certificates. If they don’t, their entire customer base experiences the negative results. And, as enterprise cloud infrastructures must scale frequently and securely without interruption for current users as the client base grows – it’s not uncommon, for instance, for TBS to add hundreds of new users in a 48-hour span – public clouds must leverage the very best hardware to meet these growing demands.

And, as public cloud providers only charge users by “the drink” – meaning clients pay for just what they consume – small to mid-sized organizations reap tremendous value from accessing the security, reliability, and robustness of such enterprise systems.

To read more, visit our Resource Center at TBS-LLC.com.

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A brief description of TBS:

Minority-owned TBS is the largest provider of cloud hosting for Deltek software, and has provided Deltek software in an Enterprise Cloud Hosting environment for over five years to hundreds of customers with thousands of users across the globe. The TBS Cloud provides secured access round-the-clock from anywhere an Internet connection is available, including government sites. More than 70% of TBS’s clients are government contractors supporting federal agencies, so all TBS services are furnished within the continental U.S. by U.S. citizens.

Jay G. Ethridge – Principal, Technology and Business Solutions, LLC.

Jay Ethridge brings over 20 years of experience in technical, managerial, and executive information systems management, support and consulting services.

As TBS co-founder, Mr. Ethridge led the concept development and design of the hosting facility to support Deltek products. Mr. Ethridge’s experience in the Information Systems and Technology field is extensive and includes; designing and developing numerous technology systems, managing network application migration plans (Microsoft Exchange, Citrix, Deltek Costpoint®), vendor and budget management and project reporting.

Prior to co-founding TBS, Mr. Ethridge served as a Vice President for Information Systems where he was responsible for an $8 million Information Systems budget and management of 42 managers, engineers, and customer support personnel. Significant accomplishments included design, implementation and operation of a 55-site wide area network.

Joseph H. Jezior, CPA – Principal, Technology and Business Solutions, LLC.

Joe Jezior has over 22 years of experience in guiding organizations through financial design, compliance, allocations and project costing to support complex government contracting requirements.

As co-founder, Mr. Jezior led the development of TBS’s Partner Program and Partner services methodology. His leadership skills and experiences span business development, sales & marketing, strategic planning, P&L management, government contracting, professional services management, operations management, finance & administration and project management. Throughout his career, Mr. Jezior has developed executive-level relationships in diverse industries including information technology, aerospace & defense, and manufacturing.

Prior to co-founding TBS, Mr. Jezior spent 13 years with Deltek and ultimately served as the Vice President of Professional Services and Director of Implementation Services.

Mr. Jezior is a CPA and a member of the AICPA.

In our last white paper, we discussed the benefits of a public enterprise cloud versus a private cloud, and stated our belief that public clouds exemplify cloud computing in the best sense, and represent where the market is headed.  One very clear advantage that we see with public enterprise clouds is the fact that they bring about a true cost reduction for an organization, as opposed to a mere transfer of costs from your company to the one furnishing the external infrastructure, as is the case with private clouds.

Most cloud providers that deliver dedicated infrastructures offer nothing more than a cost transfer.  That is, they say they can run your hardware, applications and manage your people better than you can.  But if you’re dedicating equipment or resources to another company’s facilities, you’re still effectively paying for the same infrastructure you’d manage internally, plus now paying a margin (their profit).  The problem with private clouds is that users still have to buy, build, design and manage them, and maintain these liabilities, and therefore do not benefit from lower up-front costs and reduced exposure.

When it comes to cloud computing, cost reduction, not just the transfer of costs, is where real financial benefits are created.

Though many providers say their cloud offers a reduction in capital expenditures, or “cap ex,” a true public enterprise cloud provides much greater financial rewards.  Public enterprise cloud computing allows for real cost reduction, because it enables firms to divest themselves of these Capital Expenses—namely, purchasing servers and employing internal support—and move to an ongoing Operating Expense at a much reduced annual level. This becomes clear when you look at the total costs of any internally managed IT system, or private clouds where hardware, software, and personnel costs are still required.

In addition, internal installations require ongoing maintenance and software upgrades and patches on a frequent basis. And, from a compliance standpoint, typically additional independent IT support is required for SOX and other audits.

Though it is true that depending upon firm size not all of these components may be required for all internal IT systems and private clouds, on average the capital investment for such set-ups runs from $130,000 to $200,000.

Comparable public enterprise clouds may be accessed for as little as 10% of internal or private cloud cap ex. Cost reduction, indeed.

To read more, visit our Resource Center at TBS-LLC.com.

To download a pdf version of this whitepaper, click here TBS_Cloud_Whitepaper3.Valiant

DEFINING “THE CLOUD”

Cloud computing, simply defined, is any system run remotely through the Internet. Technically, any such system can be considered a cloud—even one run out of your brother-in-law’s basement. The “cloud” metaphor originates from the telephone infrastructure and symbolized how wired telephone networks were connected together. Today, the same metaphor symbolizes how computer networks are connected through wireless clouds.

Cloud computing is steadily and inexorably revolutionizing the IT marketplace. It is causing a fundamental shift in the role of IT, from an asset that companies own in the form of computers, software and related components to a service that they purchase from utility providers.

PRIVATE CLOUD VS. PUBLIC CLOUD

Some organizations have adopted “private” clouds that consolidate systems, but still keep files on their own dedicated file servers. This is done out of concern about data security, corporate governance or reliability. Since these systems are dedicated to a specific client, they cost the same—if not more—than internally run systems. The problem with private clouds is that users still have to buy, build and manage them, and therefore do not benefit from lower up-front capital costs and reduced hands-on management.

Private clouds aren’t really clouds in the truest sense of the term. Instead, it is more accurate to define them as hosted stand-alone software delivered over the Internet.

“Public” clouds, in contrast, exemplify true cloud computing in the best sense.  Resources are furnished on a self-service basis over the Internet, via web applications or web services, from an off-site third party provider who shares resources and costs.

PUBLIC ENTERPRISE CLOUDS

Enterprise-level public clouds offer multiple advantages. They provide a level of security and stability typically seen only at Fortune 500 companies, for any size company on a scalable, affordable basis. You simply pay for what you use. In addition, location becomes irrelevant. Employees of a firm using cloud computing can access critical information anytime, anywhere, via the Internet. Online access is available using secured access, encrypted data transmission, and secured facilities.

Public enterprise clouds are where the market is going, and represent a true paradigm shift in the industry. At TBS, we’re convinced that this is the right approach for clients, so we deliver a public cloud and provide applications as platforms, delivering frequent upgrades and improvements along the way. Costs are shared, because the environment and security model are shared.

To read more, visit our Resource Center at TBS-LLC.com.

OVERVIEW OF CLOUD COMPUTING

Cloud computing—defined as any system run at another site through the Internet—represents a major paradigm shift in the information technology market. The “cloud” metaphor comes from telephone infrastructure and symbolized how wired telephone networks were connected together. Today, the same metaphor symbolizes how computer networks are connected through wireless clouds.

The cloud offers significant advantages to organizations:

• Greater ROI with a lower investment in IT. The financial benefits of enterprise cloud computing are significant.

— Reducing capital liabilities on the organization’s balance sheet;

— Eliminating unexpected expenses for equipment failures and other events;

— Curbing labor costs, including consultants’ fees, salaries and ever-rising benefits;

— Providing an ongoing operating expense projected far into the future.

• Higher level of security. Enterprise clouds offer greater security and better compliance than most internal systems. Clouds feature online secured access; encrypted data transmission; secured facilities and compliance with rigorous SAS 70 Type II and MA 201 standards.

• Technology access. Employees of a firm using enterprise cloud computing can access critical information anytime, anywhere, via the Internet.

• Agility of IT systems to meet current needs NOW. With cloud computing you can flexibly adjust your IT system in response to business needs. Cloud computing moves with your business, instead of playing catch-up.

LEVERAGING ENTERPRISE CLOUD HOSTING FOR YOUR ORGANIZATION

As a hosting provider at TBS, we have followed the cloud hosting market carefully and believe it is rapidly moving to an enterprise cloud model for all cloud delivery. For example, Microsoft, IBM and Google have introduced cloud computing in an enterprise-wide environment where applications are securely delivered as platforms simultaneously to tens of thousands of users. This provides an unprecedented level of infrastructure and security for any size firm.

We believe that an “enterprise cloud” offers true value, far beyond that of outsourced IT or “servers in a closet.”

Switching to enterprise-wide cloud computing will bring a new discipline to your IT management. It will create an IT operating environment to support IT controls, compliance with regulatory issues and support of your audits—financial, SOX, etc.

By utilizing an enterprise cloud to support your accounting system, you can then take advantage of other additional services or platforms available through the cloud, without a big up-front investment. These include remote access during crunch time, year-end or inclement weather, and a cloud integration platform for outsourced services, human resources, banking, and business development, to name a few.

Remember: Not all clouds have a silver lining. Bob Anderson, Vice President for Research at Gartner, the world’s leading IT research company, has rightly identified the three great challenges of the cloud: Security, Integration, and Reporting.

Simply put, not all clouds—private, public, or enterprise—are created equally. As you consider the cloud for your operation, decide what you want, evaluate the cloud as a better way to manage your systems, then contact an enterprise cloud provider like TBS.

Download a PDF of the WHITEPAPER here