Cloud Computing: Should We All Jump In?

I am writing from a Layman's point of view and some of the things that I write about about my apprehensions are related also to things that I may not fully understand.

Cloud computing.  In the Philippines, everybody seems to be jumping into the Bandwagon.  Even giant SAP with their very very expensive ERP solutions is now offering their version of Cloud computing.  Even this ASUS netbook that I am using to type this blog is offering free storage and some simple applications thru their ASUS web tools and Vibe.

Rather than purchase the ERP solution and pay a service fee every month, a Netsuite user told me you just have to pay for an Installation fee (which is much smaller than outright purchase) and a subscription fee while you are using it.  He claims the savings over outright purchase can be substantial.

Along comes this article I read on the Bloomberg Businessweek " Cyber War has Begun" which seems to heighten the fear of hacking.  Previously, hackers were individuals but as what has been happening quite recently, there are now nation state-backed hacking as in the case of Google and the case of the disabling of Iran's nuclear program using a Stuxnet worm.  In this case, it is suspected that either Israel or the USA had a hand in it.

To hit something closer to home, the same Bloomberg Businessweek article made mention of researchers in Rutgers University who managed to hack into a car's computer systems via its wireless tire monitoring system.  The car's ECU controls the brakes, steering etc and it maybe possible to send a command to let the car (and its occupants) crash itself into a wall. Scary!

Of course, the other side of the argument is this:  would you not rather ENTRUST ALL YOUR BUSINESS DATA TO GOOGLE who has the Billions to spend on Computer security as compared to your own business's limited resources??  But then again, it is because google is so big that makes them a target for millions of individual and nation-state-run hacks!


Knowing all of these, would it be safe to store all your data and application programs in someone else's servers located in a country other than your country?

If the application is not stored with you (hey, you did not purchase it, remember?), how do you expect to run your back-ups if the software application provider gets hacked?



By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below:

Cloud Computing: What is It and How Safe?

Cloud computing courtesy of NetSuite

In Manila, the past few weeks  I have noticed Net Suite touting the advantages of Cloud Computing as allowing one to lower its computing costs and more recently, Net Suite One World which would allow a company operating in different countries to pool all their data into one file using one currency rate.

Microsoft Live Platform Cloud Service  (courtesy of Microsoft)

Wikipedia explains this as such:

Cloud computing refers to the use and access of multiple server-based computational resources via a digital network ( WAN, Internet connection using the World Wide Web, etc.). Cloud users may access the server resources using a computer, netbook, pad computer, smart phone, or other device. In cloud computing, applications are provided and managed by the cloud server and data is also stored remotely in the cloud configuration. Users do not download and install applications on their own device or computer; all processing and storage is maintained by the cloud server. The on-line services may be offered from a cloud provider or by a private organization.
 
My comments on cloud computing:

If you would purchase a traditional ERP Solution (Enterprise Resource Planning), you would have to

1.  Pay an Upfront fee (which can run from P5 Million up)

2.  A Licensing Fee per workstation

3.  An Annual Fee for  Usage

In the case of a Cloud-based ERP, you would pay

1.  An Installation Fee (to be done by the software implementor) which is about P500,0000

2.  Annual Usage much lower than traditional ERP providers as the ERP software is not stored in your server.

Note the devices that can access your database (courtesy of Microsoft)

From a layman's point of view, I am concerned of the following:

1.  Since both my data and software application is stored in a server in another country (worse if that same software provider is just leasing storage space from another party like Amazon.com which leases out its excess memory storage capacity, what happens if a terrorist (like Osama Jr) decides to Nuke Amazon's server farm?

2.  What if my internet connection goes down as in the case of the time when an earthquake hit Taiwan and damaged the submarine cable connecting the Philippines with the International gateway of say MCI-Sprint in the USA thereby severing all internet connections to the Philippines?  Also, if my Internet Service Provider, my link to the International Gateway, suffers a stoppage in their operation, I also might not have access and I do not think you can easily switch ISPs at that instant.  With all my data stored in another country and with no access to it, my business could stop.


3.  Also stated on Wikipedia is that Cloud computing will allow me or my staff access to our data by using any device (Ipad, smartphone, netbook or laptop) that can connect to any web browser.  Unlike being hard-wired to a network protected by an industrial strength Security software, these mobile devices are not as secure.  Is it possible that a hacker can get my passwords from my smartphone and access all my data himself? Wow nightmare!!!!

INTERNET DOWN. How can I type 1,000 sales invoices? Where is the stock? Which one? (courtesy of creativekinesiology.com)

Imagine if my company's whole Warehouse Management System is Cloudbased and for some reason, the PLDT DSL or T1 line went down or slowed down to a crawl (which is a fairly common occurrence in the Philippines), then these might happen:

1.  Cannot nvoice our customers' sales orders;

2.  Cannot locate the stock in our 3-hectare 10-meter high 7-level Racking system with 9,000 pallet locations;

3.  If we can find the stock, my warehouseman will not know what lot number/production date to issue;

4.  Or, My boss loses his Nokia while entertaining a client in a restaurant and there is now a risk of unauthorized access to our entire database.


I will appreciate if somebody out there is more knowledgeable about cloud computing and offer to comment or correct my perceptions.

By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below:

WMS or Warehouse Managment System: The lowly Customer Code

We see them every where.  In Utility billings, we see them as Account No.  In purchases from suppliers we call them Vendor or supplier code.  But no matter what you call them, Customer Code is always present in any Computerized or Manual Inventory document and system.

courtesy of rightideas-brightideas.blogspot.com

For companies starting out on their computerization of their Inventory or Billing System, they sometimes let the Software Reseller (who does not know a thing about your business except to sell his software product at all cost) do the thinking and implementation of a Customer Coding System BUT THIS IS THE WRONG THING TO DO.

You who has to live with the Inventory System forever, should get involved or at least, have a senior officer of your company get involve.  Why?

       A Customer Code should be able to tell you a story.  Ex A customer comes to you with a complaint about a certain new Discount Scheme that your company implemented.  You do not have any access to your laptop or you do not have remote access to your computer database.  The only thing you have is your Sales Invoice that is now being shown by your customer.  Who should you call?


Just looking at the code, the first prefix might tell what division the product falls, the second prefix should tell what product category or which District Sales Manager it falls under.  And the third prefix could tell whether the customer is paying Regular price or enjoying already some discounts.  With that, you could now give a call to the DSM and either ask him what that new Discount Scheme is all about or have your customer talk to the DSM, in which case your customer will be impressed.


Having a well-thought out Customer code can reap wonders for your Marketing Dept as they can do Data Mining by mixing-matching different parameters (or fields of a record) to sort according to say ethical pharmaceutical products for a given geographical location or sorting customers per sales manager per product, and so forth.  It will allow you to do demographic stats (on a limited basis as when a code includers gender and age group) for purposes of cross-selling products by different divisions.

By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below: