The possibilities of cloud computing

In recent years, one of the IT developments touted to businesses of all sizes has been cloud computing, with promises that it can lower costs and increase flexibility.

IFAs may find benefits in these qualities, yet it is important they are aware of some of the key issues surrounding it.

While there is no strict definition, cloud computing is the provision of IT services through a hosted provider rather than local computers and servers.

Data and services can be accessed through an internet connection from any computer, as well as a range of other devices that have access to the web.

The main advantage of cloud computing is that it relegates the need to invest capital in software and hardware as this is taken care of by the provider.

Instead, most cloud solutions are provided on a pay-as-you-go basis, with monthly or annual fees the most common model for delivery.

For businesses with ambitions for growth, this can be particularly advantageous as increased capabilities can be sought as the need arises.

Client relationship management (CRM) and email, two tools that are essential to many IFAs, are readily available as cloud solutions.

Examples of such CRM solutions include those offered by Salesforce and SuperOffice, while organisations familiar with Microsoft Dynamics can opt for a hosted version of the service.

Outsourcery provides businesses with hosted Microsoft Exchange email and Dynamics CRM, as well as a number of other cloud solutions.

Piers Linney, the firm's CEO, says: "Even a modest email and document server setup, or upgrade, can cost over £5,000 today, an expensive up front investment that most SMEs could do without.

"By adopting the cloud computing model, IT becomes an operating expenditure cost."

Perhaps the most well-known suite of cloud solutions is Google Apps, which includes enterprise versions of Gmail, Docs and a number of other services.

Its main advantage is its low cost and anyone looking for an alternative to Microsoft Office without the advanced functionality will find it useful.

Security

Of course, there are reasons why every business has yet to flock to the cloud.

The main concern has always been surrounding security. While no computer can be considered 100% safe from cybercriminals, there have always been worries about the risk of storing data from many different individuals and companies in giant data centres.

One security breach could potentially put thousands of people at risk. Furthermore, any downtime by the cloud computing host could play havoc with any operations.

Justin Somaini, chief information security officer at Symantec, says: "Despite widespread interest in adopting cloud computing technologies, many organisations are ‘flying blind' with respect to making them secure, potentially putting their business operations, company data and customer information at risk."

There are also legal issues surrounding cloud services, especially considering who is responsible for data held on hosted servers.

A report on the technology by PricewaterhouseCoopers says: "Regulated industries such as financial services and healthcare have specific governance and compliance requirements.

"Businesses should assert their needs about data ownership and control while negotiating service level agreements with cloud vendors."

Moving ahead

Despite the concerns, cloud computing is gaining traction, with both the previous Government and the incumbent one recognising the cost-saving potential.

Anyone in doubt as to the future of cloud computing only need look to the comments of Microsoft bosses over the past few months.

Speaking at the University of Washington recently, Steve Ballmer, the company's CEO, said: "As I like to say at Microsoft, for the cloud we're all in."

He added that every part of Microsoft is looking at how cloud computing can be integrated into its offerings.

The power of Google has also helped to push forward the cloud computing movement, while the proliferation of mobile devices that always have an internet connection has made more people familiar with the concept.

The Android operating system in particular, available on handsets by HTC and Samsung, puts cloud computing at its core, while the iPad has provided a viable alternative to laptops for accessing services.

It is likely that, with more mobile devices being deployed and businesses increasingly looking to cut their IT costs, cloud computing will come to the fore. Small IFAs in particular may find that it will help them to get the latest IT capabilities without having to regularly invest in upgrades.

At the very least, cloud storage could be a consideration for IFAs wanting to make sure they do not lose important data in the case of a disaster.