Links List 08.06.10

August 6th, 2010 by

The Army is stepping up its efforts in the data consolidation initiative with APC2 – the Army Private Cloud – aiming to reduce its number of data centers from 200 to less than 20. The private cloud environment is aimed at reducing costs and energy use while improving the Army’s cybersecurity posture and speed of innovation as well as a push for quick and flexible deployment of apps and increased uptime.

The DMTF (formerly known as the Distributed Management Task Force) that focuses on developing standards around cloud computing recently issued two documents: “Architecture for Managing Clouds” and “Use Cases and Interactions for Managing Clouds”. These documents will form the foundation of the DMTF’s ongoing cloud standards work. The documents were produced by DMTF’s Open Cloud Standards Incubator, formed in April 2009 to address the need for open management standards for cloud computing.

While healthcare is often seen as lagging when it comes to adopting new IT, it does not seem to be the case with the cloud. Accenture reports that healthcare organizations are looking toward cloud computing at nearly the same rates as other sectors:

–         32% of decision makers said they are using cloud applications (32% in manufacturing, 29% in education and 35% in retail)

–         73% are planning to move more applications to the cloud (75% in technology and government sectors)

Accenture sites cost savings, economies of scale and privacy (yes privacy) as the motivators, noting that cloud providers typically offer more robust security “than is available in-house. Cloud players’ livelihood is protecting data.” Dadong Wan, Accenture.

A new report this week from Forrester discusses the “coming upheaval in tech services” and the effect of the cloud and the rise new technology has on traditional service providers who rely on consulting and multi-year contracts. The report details how “The worst economic downturn in 70 years coupled with the technology change of cloud computing and software-as-a-service (SaaS) undermines the future validity of traditional IT services business models,” according to report authors John McCarthy and Pascal Matzke.  “While many service provider strategists recognize that some form of change is coming, it’s unclear how the disruption will play out or what the scale of the impact will be.”

IT consultants will have nothing to worry about though, even if the $450 billion market dips a bit in the coming years. CIOs can anticipate lower IT costs on as-a-service solutions for infrastructure and software,  but the analysts predict that costs will return-at a higher percentage, as CIOs come to rely more on the vendors for higher-value cloud services and support.

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