Let us breathe, then, and draw in some of the new language this upheaval has brought into our revised realities.

Cloud Computing: Here, computer users share resources, business processes, applications and information as a utility service over a network. This shift takes an organization’s management of its own data from traditional software models to the Internet. Its existence traces back to large companies’ realization that their computing infrastructures weren’t exploiting their capacity consistently—in spite of a consistent cost.

Cloud Provider: An organization that makes a cloud-based infrastructure available to others to use and pay for.

Cloud Application: A software application that’s never installed on a local desktop computer, but is always available exclusively via the Internet.

Cloudware: The various bits of software that enable the provisioning, deployment, operation and management of applications in a cloud-computing environment.

Cloudburst: In its most negative sense, this term refers to a cloud-computing environment’s breakdown due to its inability to cope with a spike in demand, rendering the data it keeps inaccessible to their users. On a more positive note, the same word denotes the dynamic operation of whatever internally deployed software application works against just such a potential failure.

Vertical Cloud: A public cloud-computing infrastructure that’s designed to service the particular requirements of a single industry.

Hybrid Cloud: A combo of both private and public clouds, where users dip into one or the other, as needed.

External Cloud: A cloud-computing environment that’s outside the boundaries of a particular organization. It’s set up for use by select external parties, though not the general public.

Public Cloud: A cloud-computing infrastructure that’s open for use by anyone in the general public, including individuals and professional organizations.

Private Cloud: A cloud infrastructure that’s dedicated to the needs of a single organization for its exclusive usage.

Community Cloud: A cloud infrastructure that’s shared by multiple users (though not as many as share a public cloud) who possess common approaches to such issues as security, business continuity, privacy, availability and security.

Cloudstorming: Those instances in which multiple cloud environments are connected in a single, unified, virtual cloud. This is also referred to as a “cloud network.”

Cloud Portability The ability to easily move applications (and, often, their attendant parcels of data) across cloud-computing environments from discreet cloud providers, whether they be private or public clouds.

Cloud Enabler This term describes vendors who are not bona-fide cloud providers, but who facilitate users with the cloud-computing technology—along with its associated advantages—through such tools as cloudware.

Cloudwashing The arguably deceptive act of attaching the magical word “cloud” on existing products and services in order to capitalize on the spilloff effects of its power.

With more and more organizations opting to store their data on cloud computing systems rather than under their own roofs, outsourcing data centres are springing up like mushrooms to answer the demand. That development, say the folks at this Colorado-based thinktank, spins off into all kinds of good stuff, including savings in manpower, savings in money and—here’s where the world’s interests kick in—savings in energy. Indeed, say the analysts behind the research, this cloud business could help reduce the world’s energy costs by almost a third over the next decade.

First up, the stuff that lines the pockets.

Revenue from these proliferating data centres, predicts the new research, will inflate to a compound annual growth rate over the next decade of 29%. In hard numbers, that means a revenue climb from $46 billion in 2009 to $210.3 billion in 2015. More than that, says the report—titled “Cloud Computing Energy Efficiency”—new investments in the stuff will continue to spur greater efficiency for those dollars spent.

Indeed, Pike Research’s analysis suggests that, absent the cloud, only the very largest commercial or governmental organizations would have the capital and expertise required to achieve the same kind of efficiency at a comparable cost.

Green Shoots

But it’s the trending transformation of another kind of green, says Pike’s senior analyst Eric Woods, that’s even more impressive.

“Cloud computing revenue will grow strongly over the next decade,” Woods says. “But the reduction in energy consumption will be even more significant.”

Pike forecasts that, if the world continues along its current cloud-computing adoption curve, overall data centre energy consumption will be slashed by a dramatic 31% in the period between 2010 and 2020.

This news comes on the heels of other publicly stated initiatives that acknowledge the wasteful footprint of the globe’s infinite IT goings on. Facebook, for one, recently announced that it intends to make public the details of its data centres such that others might benefit from this massive operation’s evolving understanding of energy efficiency. According to the social media giant, the servers in its refurbished data house—which apparently took two years and tens of millions of dollars to complete—run 38% more efficiently, and 24% less expensively, than those in their comparable peers.

One Centre, Less Energy

Simply put, goes the report, clouds are better utilized and less expensive to operate than traditional, siloed data repositories are. The more disparate operations they take in under their generous eaves, the more efficiently is this channel of energy expended.

And all signs point to a continued drift in this direction. As increasingly more of the work that was conventionally performed in internal data centres is consigned to the cloud, the world’s basket of energy consumption, associated energy expenses and greenhouse gas emissions suffers ever fewer hands dipping into its bounty.

Consider, too, the very prickly subject of cloud security, heretofore much maligned for its apparently inherently contained contradiction but, in a recent show of enlightenment, perhaps rewritten as saviour rather than villain.

Big Picture Author

In this Wall Street Journal article, a big-picture pundit introduces the extraordinary idea that the cloud may in fact be the safest place to store our data, the deafening cries that have long argued the opposite notwithstanding.

The article’s author, John Bussey, submits that data consigned to the cloud actually enjoys an abundance of sophisticated security-enhancing features that an organization, particularly one in the small-to-mid-sized category, simply couldn’t access on its own.

“The sheer size of cloud businesses like Amazon.com’s Amazon Web Services,” the piece goes, “allows significantly more investment in security policing and countermeasures than almost any company, large or small, could afford themselves.”

Go Big to Stay Secure

More than that, Bussey points out, the average computer user is not as attentive to even the most routine security imperatives as he needs to be. But sign on with just a “plain-vanilla” cloud package provider and you automatically score security basics such as updated antivirus runs and as-needed software patch applications. Any upgrade from there improves your lot further with enhanced security features like data firewalls, high-end encryption and 24-hour tech support.

“Small and medium businesses are insane not to leverage the advantages of cloud computing,” Jim Reavis, of the industry group Cloud Security Alliance, told Bussey. “It ends up being almost in all cases a security upgrade, because they can’t otherwise afford the practices.”

A Lone Voice in the Wilderness

Of course, this voice in the wilderness is still powerfully eclipsed by the hue and cry of the status quo. And it’s a position endlessly reinforced by the studies that continue to pour in with findings that tell stories of organizations’ enduring wariness of the idea of entrusting their data with an off-site third party. And this is the scene even in spite of an ongoing flurry of initiatives undertaken by IT security vendors, cloud providers and industry evangelists themselves to redress this issue.

Still Talking to Ghosts

Just this week, a study unveiled at the V3 Virtual Cloud Summit in Great Britain reported that a full 87% of enterprises remain concerned about security in the cloud.

And some 72% of small (fewer than 100 employees), and 63% of mid-sized (100 to 999 employees) companies told technology research firm IDC, in 2008, that security was their most pressing concern when it came to the notion of transferring their operations to the cloud. That those numbers had contracted to 50% and 47%, respectively, when the same survey was conducted three years later, is a thundering step in the right direction.

Because revolution, after all, is a slow business. Remember how long it took to come around to that broccoli?

10 Things you need to know about PSOs

1. The global PSA software market will hit a staggering $7.63 billion by the year 2017, according to new research from Global Industry Analysts, Inc. The news is surprising, considering the hit this market took during the recent global economic dip, as those companies purchasing such products opted to hold back their purse in infrastructure-enhancing purchases.

2. The tide is turning on this front in a significant way. Indeed, PSA software suites are increasingly emerging as bona-fide recession-proofers for corporate IT department principals inside professional services organizations anxious not to suffer the same shortfalls again.

3. Professional Service Automation is enterprise software that’s particularly designed for companies engaged in the delivery of accounting, management consulting, engineering, and agency and PR services, among others. With it, companies enjoy increased productivity and efficiencies across their operations, along with a much-enhanced view of what’s actually going on within them.

4. Up until fairly recently, PSA was regarded in terms of its individual components only. But its usefulness increases manifold with recent developments that link the software’s various disparate modules in a way that reveals the full breadth of available integrated solutions.

5. Not surprisingly, the omnipresent Cloud hovers above this aspect of operational efficiency, too. As more and more companies adopt the off-site approach to their data-management efforts, the opportunity to bundle all of their corporate activities—from sales to service to finance—under a single umbrella is too appealing to pass by. It’s why a muscular movement is afoot to blend the worlds of CRM and PSA.

6. A recent study conducted by consulting firm Service Performance Insight demonstrates that Salesforce CRM users who shift their interests to the Cloud are rewarded for the choice with higher bid-to-win ratios, greater average revenues per project and deal pipelines that are vastly superior to those of their less forward-thinking counterparts

7. The Service Performance Insight research also shows that PSOs simply cannot realize all the powers of their CRM systems unless they’re well integrated with their PSAs.

8. An integrated CRM-PSA application offers users the ability to track the gamut of their business activity—from fingers-crossed leads through in-the-bag deals—on a single platform, with a single interface, employing a single data repository.

9. By amalgamating their CRM and PSA platforms into one, goes the news, professional services firms benefit from larger project backlogs, improved executive visibility, better success with winning bids, higher billable utilization, an enhanced percentage of billable employees, more revenue from new clients and a greater proportion of projects that are completed on time.

10. Just the same, another burst of research from the same organization, this exploring the challenges of Salesforce CRM customers in the professional services industry, reveals that precious few of them have taken the steps to see through such a profitable integration. The news, still in the pipeline, is clearly yet to be fully put into profitable play.

Are a new set of cloud standards starting to form?

So it is with the developing shape of cloud computing. Definition is starting to emerge in the skies with the establishment of a set of standards seeking to best facilitate its adoption. Will they eliminate the confusion that currently shrouds the stuff? It’s a subject that’s scored a whack of attention from folks anxious to corral usability within manageable parameters. We take a look at some of the organizations trying to set the tone for this game changer.

Cloud Standards Customer Council.

This end-user advocacy group claims ownership of more than 100 members. It exists to complement existing cloud standards efforts. It seeks the production of a core set of client-driven requirements that lower the barriers for widespread cloud adoption by prioritizing key interoperability issues, including cloud management, reference architecture and hybrid clouds. It also hopes, with its existence, to facilitate the exchange of real-world stories that might provide illumination and insight into the practical application of this complicated new beast. A “resource hub” on the council’s website offers case studies in which users might find a useful reflection of themselves. The site also provides a compilation of industry news stories on the cloud, and cloud-based webcasts and podcasts can be accessed here. Notable members: Citigroup, Deere & Co., Costco Wholesale, North Carolina State University.

Open Data Center Alliance.

This Intel-backed standards organization was formed last year. Principles claim the membership represents more than $100 billion in annual IT spending power. This organization is behind the recent development of eight discreet “usage models,” designed to help IT managers in negotiations with cloud providers through the provision of various standardized templates. Indeed, this independent IT consortium is dedicated to having these usage models in widespread application in order to best help newcomers comprehensively appreciate the expected delivery of identified customer requirements based on open, industry-standard and multivendor solutions. Notable members: BMW, Marriott International, Shell and Deutsche Bank.

Cloud Security Alliance.

This not-for-profit, member-driven organization is committed to promoting the best practices for security assurance provision within cloud computing. Led by a broad coalition of industry practitioners, corporations and associations, the alliance is also keen to provide education on this subject for new users struggling with its dimensions. Its site helpfully lists upcoming events, such as the Cloud Security Alliance Conference 2011 (in Orlando, November 16 and 17). A blog features entries with such titles as, “Pass the Buck: Who’s Responsible for Security in the Cloud?” and “Understanding Best-in-Class Cloud Security Measures and How to Evaluate Providers.” It also provides a highly useful forum for the dissemination of the latest news, research developments and educational opportunities. Notable members: Coca-Cola, eBay, Reed Elsevier.

So as we move into the new paradigm keep an eye out for these cloud players; who knows, they may set the standards your organization has to meet.

So Canada Post employees have gone on strike. Having failed to reach a deal with the crown corporation, the postal union workers have elected to walk off the job in a revolving series of walkouts that began midnight Thursday in Winnipeg.

Big fat, hairy deal.

Without meaning to sound cavalier, the fact of the matter is that the reality of a postal strike in 2011 is a far cry from the reality of a postal strike in, say, 1991. Back then, such an event would have been cause for genuine concern, as a whole host of integral business functions would grind to an unavoidable halt.

Business Impact of Postal Strike Minimal at Best

Today, the net impact of such an event is considerably less worrisome. Indeed, the loudest buzz around this development might just be a sense of relief with the break from junk mail Canadians will enjoy for the next week or two.

In the information age, the participation of Canada Post in a company’s various fiduciary responsibilities is negligible. Sophisticated, on-the-ball corporate players long ago instituted systems whereby their invoices and statements are delivered by e-mail, their bills are paid electronically, their payroll is deposited directly. These business folks’ interactions with the antiquated likes of stamps, envelopes and post offices are minimal, at best.

Granted, the Canadian corporate landscape is not so advanced on this front as is Europe’s. European corporations have been treading more progressive paths for some time.

Indeed, they laugh at the very notion of a chequebook overseas, and express sincere confusion about the need to have cheque-printing as a core function in an ERP system. Everything is performed via electronic funds transfer (EFT) across the pond, and the B2B environment that has long propagated this reality is better for it.

Payment Means Continue to Progress

Here in Canada, we’re getting there. At 360, a handful of our customers pay us via EFT. For the rest, who continue to wrestle with the old-fashioned burden of having to print, sign, stuff and mail cheques, progress is theirs for the taking. Because the fact is that a better, more efficient way to do things perches on their doorsteps, awaiting the corporate epiphanies that will eventually lead an entire population of managers to reach for them.

And the simple truth is that, if your ERP system doesn’t have the ability to e-mail invoices and statements? Then, well, it’s time to get yourself a new ERP system, like Microsoft Dynamics GP or Microsoft Dynamics NAV. (And if you’re currently running GP or NAV and are not e-mailing your invoices, give us a call and we’ll get you straightened away.)

At 360, we’re in the business of automating every last function of the corporate existence that we can. And if it takes a nationwide postal strike to alert our fellow citizens to the alternatives available to them, so be it. Certainly its appearance on the scene has prompted my own attention to this subject internally: I’d better instruct our accounting department to modify the company’s “electronic” invoices so that they advise customers that they can still pay via credit card or EFT.

A recent article in industry trade journal CRM Buyer got us thinking. In it, the author tackles the surprisingly complicated subject of CRM systems. He wisely argues in favour of a comprehensive approach that acknowledges the importance of treating this business essential with kid gloves.

We couldn’t agree more.

The decision-making process that provides the steep and rocky path to CRM certainty is rife with potential for error. Its careful navigation is critical to success because, notes the article intro, “The errors you make early on will reverberate through the entire lifecycle of the CRM application.”

To help readers avoid such a fate, the blog offers “3 early errors that can kill CRM in the cradle.”

Being dishonest about what’s not working.

Sometimes, says the article, ego and fear inhibit business owners from being straight about the lay of their lands. They would sooner lay claim to a well-oiled machine than pause to highlight the cogs holding them back. But such rose-coloured glasses do nobody any favours.

“Honesty at the start of the project is critical,” the piece points out. “If your team is unable to handle this, or if the process causes too much internal tension, then look to a third party who can help you get to the painful truth.”

Enter 360 and its IT Health Check

Here, your business is the subject of a wide-ranging appraisal that:

• identifies areas of risk;
• recognizes inefficiencies;
• provides a benchmark of industry best practices.

The report we produce amounts to a thorough snapshot of your IT infrastructure, offering details on its every aspect, from power protection to disaster recovery.

Rushing to a technology solution.

Before barreling into an expensive purchase, a company needs to first evaluate how it actually works — its processes, and how its people use them. Only with these data in hand can you reliably understand what software might address your problems — and solve them.

360’s Needs Analysis recognizes the need for every company to make clever choices with respect to which technology will best serve their business interests and requirements, present and future. And this kind of stuff, remember, is unique to every firm. Recognizing that the stakes are high and the risks considerable, 360 can step in and help an organization determine what CRM solution makes the most sense for its very individual needs.

Failing to lock down your own goals.

“The initial phases of examining your business should result in a list of goals” that provide business owners with something to aim for, says the story. Getting them wrong, no surprise, could prove fatal.

The massive undertaking that is the signing-on of a new CRM system is a scary, exciting thing. If the whole notion overwhelms you, as this piece sagely mentions, you’re human. But help is at hand.

Bring on the kid gloves.