Timing Is Everything

Timing also seems to be in play when we talk about cloud computing. This whole cloud thing is eerily familiar: the ability to have computing power on demand and use computing services like a utility. A little less than a decade ago, the likes of HP and IBM were talking about on-demand and utility computing. Then there was grid computing. Universities and others could leverage the power of your desktop to create supercomputers that could be used to help with compute-intensive transactions such as genome mapping. Cloud computing is sort of based on the same concept. Instead of "renting" your desktop, you rent the servers and SANs from the likes of Google and Amazon.

Now back to timing. While we have all heard different monikers for similar concepts over the years, small and midsize businesses may be finally ready (or even asking) for cloud services. The reason is that cloud has already infiltrated our personal lives. I use Shutterfly to house and share my photos. It serves as cloud storage for me. I use a cloud service to back up my personal system at home as well as to protect it. I use applications such as online banking for my finances, and I shop online. Just before I wrote this column, I used Kayak to get some great airline fares. Over the past decade the kinks have been worked out and people feel pretty comfortable with the power of the Web.

The same holds true for small and midsize businesses. They may be purchasing online, using a SaaS business application and the like. In these uncertain times, they are still looking to trim expenses.

Cloud offers them the opportunity to cut infrastructure costs and free them of capital expenditures. From a user perspective, being able to pay for storage space based on current needs is compelling. Cloud has proven to be invaluable in applications such as development environments as well.

So the big question won't be when -- but how -- to partner with the right cloud providers and build your business and margins around cloud services. As part of your vetting process you should get the answers you need when it comes to security and data privacy. What measures are in place for authentication and access control? Is encryption being used and how are the keys managed? What about reliability? Some others things to consider include regulatory issues, where the data is being housed and how a customer's compliance mandates could be affected.

And, of course, what is in it for you? What should you look for when it comes to a cloud computing partner? How can you get up and running quickly? How can cloud fit into your services offerings? Cloud vendors are quickly understanding that small and midsize businesses are finally ready for cloud/on-demand computing/utility computing -- whatever you'd like to call it -- and you are the linchpin to their success.

E-MAIL EC Editorial Director Kelley Damore at [email protected].