Businesses turn to cloud computing to cut IT costs

There’s a new headache for the modern business manager: data safety. And so the IT department is getting the attention it deserves when it comes to budgeting and operations.

And because this function is coming at an increased cost, especially on security of information and data, companies are beginning to look at cloud computing to cut costs.

Cloud computing involves provision of scalable and often virtualised resources as a service over the internet.

In cloud computing, data is stored on third-party hardware housed in data centres operated by IT firms as users run the application. “Many of us already use cloud computing on a regular basis for accessing services like web-based email,” says Moses Kemibaro, the managing director of Dotsavvy Ltd, a local IT company.

IT experts and service providers these days recommend cloud computing as a cheaper way of managing digital technologies. Although the trend globally is moving most IT operations to the cloud, take-up locally has been slow.

“The beauty about the cloud is that services are accessed directly via a web browser and there is hardly ever any need to install software on your computer or server,” Mr Kemibaro said.

“An organisation does not need to invest in its own servers and applications and can use free or subscription based cloud services, thereby saving lots of time and money.”

East African businesses are just realising the power of cloud computing and service providers are fighting to get a share of this emerging market.

Enterprises looking to outsource infrastructure to cloud computing providers face a bewildering number of choices including Internet Solutions, IBM, HP and ReliaCloud.

“Even through bandwidth capacity has been enhanced in East Africa in the last one year, businesses are also looking for a platform they can save costs on or at least pay according to how they use it,” says Mr Loren Bosch of Internet Solutions East Africa. Bandwidth used to be a major factor in cloud computing in Kenya, but since three cables went live last year last, internet connectivity has improved via fibre and WIMAX, which has changed the stage for internet-based computing.

Use-based payment
With no additional infrastructure investment needed and no extra personnel, Mr Bosch says it is ideal for companies seeking to save costs. For data centre operators, payment is based on a fee per user who is given a mail box.

“Business owners are able to measure the IT spend as it is consumption based,” says Mr Bosch.

Besides saving costs, the biggest attraction is the ability of users to access data from anywhere via the web. With enhanced speed and safety, cloud computing will allow employees across all company branches to access their entire workstation on the internet, which makes it easier for them to be located remotely.

Technology company HP recently upgraded its cloud computing infrastructure by partnering with VMware to allow its clients faster access.

According to Ken Mbwaya, Managing Director Hewlett Packard (HP) East Africa, “the new solution will help its customers to better control and manage the physical and virtual aspects of cloud infrastructure”.

The company said its agreement with VMware will deliver a new virtualisation service, reference architectures and IT services to help customers accelerate cloud computing deployment.

Most cloud-based services are located in international markets such as Europe and the US, and experts say there is a need to build a local cloud, which would further reduce the costs especially for small firms.

The Kenyan government is setting up a second data centre that would support local storage capacity by private players. Information and Communication Permanent Secretary Bitange Ndemo says storage space has been the missing link between enhanced connectivity and increased content.