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2/18/2017 6CloudComputingChallengesBusinessesAreFacing

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6 Cloud Computing Challenges Businesses


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By Mona Lebied in Business Intelligence, Jan 13th 2017 enter search term

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Everywhere you turn these days the cloud is being talked about. This ambiguous term
seems to encompass almost everything about us. While the cloud is just a metaphor Designing Charts and Graphs: How
for the internet, cloud computing is what people are really talking about these days. to Choose the Right Data
Cloud computing is the delivery of hosted services over the internet, through a network Visualization Types
of remote servers. These remote servers are busy storing, managing, and processing Feb 7th 2017
data. Data visualization is drawing a picture
with your data instead of leaving it in a
spreadsheet or table. Technically, any
Exclusive Bonus Content: Download our free cloud computing tips! way you choose to do this counts, but
Check out these 6 challenges and how to face them. there are some charts that are way better
at telling a story.

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The capabilities and breadth of cloud computing are enormous. The IT industry broke it read more
into three categories to help better dene use cases.
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a) Software as a Service (SaaS) software is owned, delivered and managed remotely
by one or more providers. To start, Software-as-a-Service, or SaaS, is a popular way of
accessing and paying for software. Instead of installing software on your own servers, Tags / Categories
SaaS companies enable you to rent software thats hosted, this is typically the case for a
Business Intelligence (44)
monthly or yearly subscription fee. More and more CRM, marketing, nance, and
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business intelligence tools use SaaS technology, and even Adobes Creative Suite has
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adopted the model.
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b) Infrastructure as a Service (IaaS) compute resources, complemented by storage
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and networking capabilities are owned and hosted by providers and available to
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customers on-demand.
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c) Platform as a Service (PaaS) the broad collection of application infrastructure
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(middleware) services. These services include application platform, integration, business
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process management and database services.
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All of this is a deviation from traditional on-premise computing which is done via a local
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server or personal computer. These traditional methods are increasingly being left
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behind. In fact, IDGs recently published Enterprise Cloud Computing Survey (2016)
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found that by 2018 the typical IT department will have the majority of their apps and
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platforms (60%) residing in the cloud.
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In an effort to do everything from offer better in-store customer service to fully


leverage advances in manufacturing, companies from even most traditional and
change-resistant sectors are seeing the writing on the wall: Cloud technology strategies
cut cost and risk. Lalit Bhatt, Project Leader at Maruti Techlabs.

Though the opportunities are great, the cloud computing explosion hasnt come without
challenges. We discussed already some of these cloud computing challenges when
comparing cloud and on premise BI strategies. Now lets go over more of those
challenges organizations are facing, and how they are being addressed.

Current Cloud ComputingChallenges


In January 2016, RightScale conducted its fth annual State of the Cloud Survey on the
latest cloud computing trends. They questioned 1,060 technical professionals across a
broad cross-section of organizations about their adoption of cloud infrastructure. Their
ndings were insightful, especially in regards to current cloud computing challenges.
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2/18/2017 6CloudComputingChallengesBusinessesAreFacing

Below, we have expanded upon some of their ndings and provided additional cloud
computing problemsthat businesses may need to address.
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1. Lack of resources/expertise
For the longest time, security was the number one voiced cloud challenge. In
2016however, lack of resources/expertise inched ahead. Organizations are increasingly
placing more workloads in the cloud while cloud technologies continue to rapidly
advance. Due to these factors organizations are having a hard time keeping up with the
tools. Also, the need for expertise continues to grow. These challenges can be

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2/18/2017 6CloudComputingChallengesBusinessesAreFacing

minimized through additional training of IT and development staff. A strong CIO


championing cloud adoption also helps. As Cloud Engineer Drew Firment puts it:
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The success of cloud adoption and migrations comes down to your people
and the investments you make in a talent transformation program. Until
you focus on the #1 bottleneck to the ow of cloud adoption, improvements
made anywhere else are an illusion.

SME organizations may nd adding cloud specialists to their IT teams to be prohibitively


costly. Luckily, many common tasks performed by these specialists can be automated.
To this end companies are turning to DevOps tools, like Chef and Puppet, to perform
tasks like monitoring usage patterns of resources and automated backups at
predened time periods. These tools also help optimize the cloud for cost, governance,
and security.

2. Security issues
Resource/expertise concerns slightly passed security cloud computing problems in
2016. We already mentioned the hot debate around data security in our BI trends for
2017, andsecurity has indeed been a primary, and valid, concern from the start of cloud
computing technology: you are unable to see the exact location where your data is
stored or being processed. Headlines highlighting data breaches, compromised
credentials and broken authentication, hacked interfaces and APIs, account hijacking
havent helped alleviate concerns. All of this makes trusting sensitive and proprietary
data to a third party hard to stomach for some. Luckily as cloud providers and users,
mature security capabilities are constantly improving. To ensure your organizations
privacy and security is intact, verify the SaaS provider has secure user identity
management, authentication and access control mechanisms in place. Also, check
whichdata security and privacy laws they are subject to.

While you are auditing a providers security and privacy laws, make sure to also conrm
the third biggest issue is taken care of: compliance. Your organization needs to be able
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2/18/2017 6CloudComputingChallengesBusinessesAreFacing

to comply with regulations and standards, no matter where your data is stored.
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Speaking of storage, also ensure the provider has strict data recovery policies in place.
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3. Cost management and containment
For the most part cloud computing can save businesses money. In the cloud, an
organization can easily ramp up its processing capabilities without making large
investments in new hardware. Businesses can instead access extra processing through
pay-as-you go models from public cloud providers. However, the on-demand and
scalable nature of cloud computing services makes it some times dicult to dene and
project quantities and costs. Luckily there are several ways to keep cloud costs in check
including.

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Check out these 6 challenges and how to face them.

4. Governance/Control
Proper IT governance should ensure IT assets are implemented and used according to
agreed-upon policies and procedures; ensure that these assets are properly controlled
and maintained; and ensure that these assets are supporting your organizations
strategy and business goals. In todays cloud based world, IT does not always have full
control over the provisioning, de-provisioning and operations of infrastructure. This has
increased the diculty for IT to provide the governance, compliance and risk
management required. To mitigate the various risks and uncertainties in transitioning to
the cloud, IT must adapt its traditional IT governance and control processes to include
the cloud. To this effect the role of central IT teams in cloud has been evolving over the
last few years. Along with business units, central IT is increasingly playing a role in
selecting, brokering, and governing cloud services. On top of this third party cloud
computing/management providers are progressively providing governance support and
best practices.
5. Performance
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5. Performance
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When a business moves to the cloud it becomes dependent on the service providers.
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This partnership often provides businesses with innovative technologies they wouldnt
otherwise be able to access. On the other hand the performance of the organizations
BI and other cloud based systems is also tied to the performance of the cloud provider
when it falters. When your provider is down, you are also down.

This isnt uncommon, over the past couple of years all the big cloud players have
experienced outages. Make sure your provider has the right processes in place and
that they will alert you if there is ever an issue.

For the data driven organization real time data is imperative. With an inherent lack of
control that comes with cloud computing, companies may run into real time monitoring
issues. Make sure your SaaS provider has real time monitoring policies in place to help
mitigate these issues.

6. Segmented usage and adoption


Most organizations did not have a robust cloud adoption strategy in place when they
started to move to the cloud. Instead, ad-hoc strategies sprouted, fueled by several
components. One of them was the speed of cloud adoption. Another one was the
staggered expiration of data centre contracts/equipment, which led to intermittent cloud
migration. Finally, there also were individual development teams using public cloud for
specic applications or projects. These bootstrap environments have fostered full
integration and maturation issues including:

Isolated cloud projects lacking shared standards


Ad hoc security congurations
Lack of cross-team shared resources and learnings

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2/18/2017 6CloudComputingChallengesBusinessesAreFacing

In fact, a recent survey by IDC of 6,159 executives found that just 3% of respondents
dene their cloud strategies as optimised. Luckily, centralized IT, strong governance
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get usage, adoption, COMPANY
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computing strategies inline.

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In the End the Cloud Still Wins


It is no secret, cloud computing is revolutionizing the IT industry. It is also shaking up the
business intelligence (BI) landscape, and well, pretty everything else it touches. As the
cloud adoption exponentially grows, businesses of all sizes are realizing the benets.
For startups and small to medium sized businesses (SMEs), that cant afford costly
server maintenance, but also may have to scale overnight, the benets are especially
great.

While cloud computing challenges do exist, if properly addressed these 6 issues dont
mean your IT roadmap has to remain anchored on-premise. Business intelligence (BI)
and cloud computing are an ideal match, as the rst oneprovides the right information
to the right people while the latteris an agile way to access BI applications. To make the
best out ofit, you should takea strategic iterative approach to implementation, explore
hybrid cloud solutions, involve business and IT teams, invest in a CIO, and choosethe
right BISaaS partner. All this will ensure that the benets of cloud business intelligence
will far outway thechallenges.

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