Everyone is talking about
Web 2.0 and Cloud Computing… Well, according to Wikipedia: Web 2.0 can be commonly
associated with web applications that facilitate interactive information
sharing, interoperability, user-centered design, and collaboration on the World
Wide Web. Examples of Web 2.0 include web-based communities, hosted services,
web applications, social-networking sites, video-sharing sites, wikis, blogs,
mashups, and folksonomies. A Web 2.0 site allows its users to interact with
other users or to change website content, in contrast to non-interactive
websites where users are limited to the passive viewing of information that is
provided to them.
Everyone has a slightly
different take on what cloud computing is and what it means. I will try to
explain the overall scope of the term and then we will dive into the many
different aspects of it.
The definition according
to Wikipedia accurately describes the premise for this book:
“Cloud computing services
often provide common business applications online that are accessed from a web
browser, while the software and data are stored on the servers.
The term cloud is used as
a metaphor for the Internet.
Users need not have
knowledge of, expertise in, or control over the technology infrastructure in
the "cloud" that supports them.”
Will cloud computing take over the world? Probably not, but it is definitely changing the way many
people run their business and their life.
Cloud computing can range
from storing and sharing documents on the web (i.e., using Google or Zoho Docs)
to running your entire company operations via a remote data center.
There are many advantages
of cloud computing. Let’s face it, life is hectic, and running a business
requires that you wear many hats. Cloud
computing helps you save money and time!
Easy Implementation – Gone are the days when
you have to purchase software, get the right amount of licenses and manually
load it onto every computer in your home and/or office. Also, you no longer
need to invent the wheel or purchase something and then later regret it (many
applications are free or offer a trial period so you can make sure it meets
your every need).
Accessibility – Today, most of us have
a PC, a smart phone, an iPod, maybe even a Kindle Reader. Utilizing web apps
let you run your business and/or access your documents, pictures or
applications from a variety of different sources in a variety of different ways.
Scalability – Many businesses start
out small and continue grow, or that’s the hope anyway. When you start out, you can buy the
application that supports 1-5 people, when you hire 5 more, you can upgrade it then,
and not before. You no longer have to buy the big server, in the anticipation
that your company is going to grow. You can wait and purchase more space when
the time comes.
Computer Resources are minimal and performance is improved - There is no longer a need to buy top of the line
computers with robust hard-drives to handle the high tech programs that require
a lot of memory and disk space to run. Your computer will now run faster and
more efficiently, as it won’t be bogged down with lots of software and files.
IT costs are eliminated and/or internal resources are freed
up – There is no longer a need to hire IT
professionals to install or upgrade your software applications.
Software costs are reduced or eliminated - Instead of purchasing high priced software, there are
many free (that’s right, FREE) or low cost alternatives.
Microsoft Office ($229+) 4 Google Docs (Free) +
Gmail (Free)
Adobe Acrobat ($299+) 4 Google Docs (Free)
and/or Primo PDF (Free)
Software updates and upgrades are automatic - Having to upgrade software can be costly, but is often
necessary. Have you ever had someone send you a Microsoft document in a higher
version that you couldn’t open? What about when you decide to upgrade your
computer and your old software no longer works! When the software or application
is web-based, updates happen automatically and are available immediately (and most
often for absolutely no charge!)
Unlimited storage capacity - In
the cloud, there is an unlimited amount of resources available to store and
back up your data. You no longer have to upgrade your computer or hard-drive,
you no longer have to purchase external backup drives that take up space and
power for additional storage.
Automatic Back-Up –If you store your data
in the cloud, you no longer have to back it up manually. I do; however
recommend that you have multiple (preferably automatic) backup systems in
place. Big companies are much more reliable than your external hard drive, but
servers do go down and your data might become inaccessible at an inopportune
time. Some web applications (Google, Zoho and Remember the Milk to name a few) offer an alternative safety
measure, such as Google Gears.
Collaboration is easy!
Multiple users can collaborate easily on documents and projects. No more
emailing documents back and forth, not knowing what’s been added or changed.
It’s a must have for many businesses!
It’s GREEN-ER - Just think about the packaging for all of the software and
hardware that you’ve purchased in the past (now think of the amount purchased
by companies all over the world). Also,
if you own and run your own server, think of the electricity you will save! Many
of the companies in the cloud have the means and the money to ensure the
servers that are housing your data on are top of the line and energy efficient.
How much money can I save?
Let’s take a look.
IT Services – The average annual
salary of an IT employee is $65,000. Utilizing web-based software, you can
eliminate the need for an IT professional.
Savings = $65,000/year
Phone Service – To purchase and setup
an Analog phone system, you will pay an average of $40,000. If you choose to
set up your phone system via VOIP, you will only pay about $15,000 for the
initial setup and the service.
Savings = $25,000/year
Software – Let’s take Microsoft
Small Business Software as an example. If you have 50 employees you can most
likely get the bulk-pricing rate of $379 per license for a total of $18,950.
Additionally, you will need to use someone’s time to install the software on each
PC and you will need to pay for upgrades (usually every year or two). With open
source software, such as Google Docs or OpenOffice, you will have to pay
NOTHING, it’s free!
Savings = $18,950/year
Backup – If you choose tape backup
to back up your data, it can cost up to $3,000, as you will need to purchase
the tapes and use an off-site rotation service. With online backup, you can pay
as little as $70 per year or less (for 50GB of storage).
Savings = $2,930/year
Fax – If you choose to setup
an analog fax line, purchase the supplies and the machine, it will cost you
approximately $1,200. A year of e-faxing is only about $250.
Savings = $950/year
So, based on this example
(50 employees) you can save $110K+ over the course of a year!
The biggest risk is that
you are willingly handing over your data to a third party. Security is one
critical issue that you need to consider before moving your business to the
cloud. This can be frightening, as it should be, but there are definitely more
benefits than risks.
Now, I don’t want to
scare you, as I am a huge supporter of cloud services; however, everyone should
be aware of the risks – But remember, there is risk even if you don’t move your
business online.
There are still quite a
few people who won’t order anything online because they don’t want their
information compromised. What they don’t realize is that if they have a
checking account or a credit card, they are already at risk. Also, most often
when you call in an order, the nice person on the other end of the line is
simply keying your data into the computer for you!
There are scanners that
pick up cell phone conversations, so a prying ear can easily record your
information, if they happen to catch you ordering something over the phone
while they’re listening. All banks store their information on computer systems,
which many people have access to. Computer hackers, or bank employees can
compromise your information (even though you “never purchased” anything
online). Take for example the case of the Rocky Mountain Gmail mistake. On August
12th 2009, an employee at Rocky Mountain Bank inadvertently sent an email
containing names, addresses, Social Security numbers, and loan information of
more than 1,300 customers to a random Gmail address ON ACCIDENT! Luckily, no
harm was done, but this is an example of the risks (even if you, personally,
aren’t running your business online).
Most providers take
security very seriously. Data is often encrypted and security threats are
reacted to and corrected directly by the provider, before it even becomes a
problem. Google claims that they can protect your data better than you can, and
I truly believe that, but you still need to be cautious!
Another important factor
you should consider is the fact that you have less privacy in the cloud.
According to the NY Times, the Federal Government has the right to demand some
details of your online activities from service providers - and they are not
required to tell you about it. There have been thousands of these requests lodged since the Patriot’s Act
was passed.
Honestly, I don’t believe
the government is (or is even interested in) reading your emails; however, you
should be aware that if they do so desire, they can.
As discussed above, there
is more risk in someone (and not the government) illegally getting access to
your data stored in the cloud. You have to be aware of the risks and do your
part in protecting yourself and your business. Become familiar with the risks and how you can avoid them.
Use strong passwords – Some
sites force you to create strong passwords that have multi-case/character
passwords, but even if they don’t, it’s in your best interest to do so.
WEAK PASSWORD: 123456
STRONG PASSWORD: yepe8u2U
Be familiar with Phishing!
Phishing is the
criminally fraudulent process of attempting to acquire sensitive information
such as usernames, passwords and credit card details by masquerading as a
trustworthy entity in an electronic communication.
In English, this means
that bad people create emails that look like they are from someone that you
know and trust. For example, If you ever
get an email from PayPal or your bank asking you to sign-in to your account
and/or enter your password – DON’T DO IT! DELETE THE EMAIL! These folks are
good at what they do and can make the email look legitimate (and exactly like
the source).
If you are unsure – you
should immediately delete the email and access the site (either PayPal or your
bank directly through your web browser, or better yet, call them). DO NOT CLICK
ON OR FOLLOW THE LINK IN THE EMAIL.
Please note that any
reputable company (PayPal, eBay, your bank, etc.) will NEVER ask you for any of
the following personal information:
ü Credit and debit card numbers
ü Bank account numbers
ü Driver's license numbers
ü Email addresses
ü Passwords
ü Your full name
If you get an email (no
matter who it appears to be from) and they are asking for this type of information
– Please, for your own safety, never give out this information!
Keyloggers – Keylogging or Keystroke logging is the practice of tracking (or logging) the keys
struck on a keyboard, typically in a covert manner so that the person using the
keyboard is unaware that their actions are being monitored. There are numerous
keylogging methods, ranging from hardware and software-based to electromagnetic
and acoustic analysis. It is highly suggested that you become familiar with
keylogging and how you can reduce your risks.
o Anti-spyware applications are able to detect keyloggers and
quarantine, disable or cleanse them.
o Firewalls - Enabling a firewall does not stop keyloggers per
se, but can prevent the remote installation of key logging software, and
possibly prevent transmission of the logged material over the internet if
properly configured.
o It is very important
to have a legitimate anti-virus and anti-spyware program installed on your
computer. This will help you avoid most risks and allow you to run your life
and your business on the web safely and securely.
Educate Your “Team”
Today, it is common to
collaborate (share documents and web spaces) which means you must also rely on
your team(s) to be aware of the risks and to take precautions. For example,
let’s say you share your confidential Google document with 10 other people. All
it takes is one person to create a weak password or make a crucial mistake. If
it’s your document (and your concern), than it’s your responsibility to educate
them and require them to take the necessary precautions!
