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Starbucks experiencing competitive advantage with the cloud

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As cloud becomes an increasingly prevalent enterprise technology, companies are responding to the real world advantages it offers to create new business models, enhance client relationships and incorporate employee and partner expertise into operational processes. During the recent IP Expo 2014, Starbucks Coffee’s EMEA IT director Robert Teagle discussed how the company is experiencing advantages and maintaining a competitive advantage through the use of cloud services, ComputerWeekly reported.

Starbucks has been employing a variety of cloud services for some time now, like utilizing cloud-based email solutions and tying client relationship management tools to data from their loyalty card program. This is because the cloud provides an effective way to deploy changes in business processes and find new ways to connect with clients, creating a more agile enterprise.

Organizations are also utilizing the cloud to create flexible assembly models, allowing them to integrate previous investments with current innovations and quickly transform their business models whenever necessary. In the case of Starbucks, the coffee chain’s point-of-sale systems’ data warehouse is integrated with a cloud infrastructure which has allowed the company to seamlessly migrate its existing warehouse into an expanded platform that offers insight through big data tools.

Many large organizations are finding advantages through use of hybrid cloud environments, which offer the ability to host automated services in a protected environment that is still easily accessible. This ensures the security and privacy of the information stored within the cloud while still providing flexibility and ease of use.

Cloud platforms drive enterprise innovation
During the expo, Teagle noted how one of the major benefits of the cloud is its ability to drive innovation.

“IT innovation has to be aligned with business goals and when we are trying to manage innovations, cloud IT certainly helps,” Teagle said.

He added that IT is able to respond more quickly to business needs through the flexibility and agility provided by the cloud.

Another major benefit of utilizing an enterprise cloud platform is that it allows companies to develop and experiment with new systems and processes in a safe environment. Starbucks has certainly taken advantage of this. Teagle said in his talk that enterprises can more effectively manage their innovations through experimentation and testing frequently before deployment.

“Being innovative really helps and all IT teams looking to drive their businesses forward bust start innovating,” Teagle said. “And cloud certainly helps in facilitating innovations.”

Companies find increased reliability, flexibility with desktop virtualization

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As bring-your-own-device policies and remote working have become increasingly popular and resource optimization has become more necessary, keeping enterprise IT current and efficient is growing more complex all the time. Between PCs and each employee's personal devices, upgrading the applications and operating systems on individual endpoints can consume time and resources that most companies just don't have. Luckily, desktop virtualization and remote application delivery have emerged as reliable alternatives to traditional network delivery.

As Tech Radar contributor David Howell noted, moving to a virtual desktop environment offers small- and medium-sized businesses dramatic gains in control, as well as being an effective way to future-proof IT systems. A recent study by VMware found that 90 percent of enterprise IT departments spend at least half of their time completing routine administrative tasks. SMBs that have implemented virtualization, however, reported experiencing an increase in productivity and 73 percent said they witnessed significant improvements in the amount of time spent completing administrative tasks.

When an office transitions to a virtual desktop environment, it means that the computers employees use have desktops delivered and controlled directly from a central server room. This offers centralized management of the office's desktops, since each one is virtualized and provided in an isolated state, creating a highly secure network environment. 

"Desktop, or endpoint, virtualization enables a centralized server to deliver and manage individual desktops remotely," according to Symantec. "While users enjoy full access to their systems, IT staff can provision, manage, upgrade, and patch them virtually, instead of physically. This also means that users can access files and applications on a central server. Companies might also opt for a hybrid scenario where users can access some applications through a central virtualized server and others through their local computers."

Enterprises see a variety of benefits with virtualization
Transitioning to a virtual environment and leaving behind traditionally installed OSs and applications enables businesses to be more flexible and agile, as virtual desktops can change in real time to reflect the work at hand while all being managed from a single, central location. Virtualization also allows companies to offer their employees more mobility, being able to access data and applications from the same work environment no matter where they are. Workers can easily connect to servers from multiple devices as all the necessary components are available at login.

Adopting desktop virtualization is also cost-effective and provides a high return on investment, as it offers a customized user experience that is more scalable and reliable than traditional options. Business continuity is improved with the use of desktop virtualization, with all data saved in an off-site data center that prevents lost, stolen or damaged devices from having a damaging impact on the organization's daily processes. At the same time virtualization makes for a logical addition to any enterprise disaster recovery plan, as desktop applications are being offered through an off-site server, so power outages or extreme weather won't affect business. Running operating systems and applications through a virtual machine increases enterprise security by allowing employees a safe way to access sensitive corporate information.

Cloud computing increases innovation, collaboration survey finds

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With all of the new technological advances that have affected business in recent years, the one that has had the biggest impact is probably cloud computing. The cloud has changed the way technology is viewed by companies, as it provides a simple, effective way to implement changes, engage with clients and spark innovations. Because the cloud is cost-effective and easy to deploy, it is now possible to experiment with technology, develop new products more quickly and distribute more widely and to a scale once out of reach for all but the biggest organizations.

A recent survey conducted by Oxford Economics surveyed 350 tech and business executives to find out what drove them toward adopting the cloud for their companies. Researchers found that 36 percent of respondents implemented a cloud platform because they found the technology to be critical to the innovation strategy of the enterprise.

“Cloud computing today is fundamentally altering business processes and changing the way organizations interact with clients, partners and employees,” read the report. “This transformation brings incredible opportunities, including the ability to build a real-time enterprise where interaction and innovation flourish.”

Collaboration flourishes in the cloud
One of the biggest benefits of the cloud is the ease with which it allows people to communicate and share. In fact, the survey found that 63 percent of executives believe use of the cloud is increasing collaboration among the business units of their companies. A recent development in the use of the cloud is the ability to connect records systems with engagement platforms to provide companies with the most creative and productive use of all of the data they collect. If each department can see the information that is being collected by everyone else, new ways to use that data can and will be found much quicker and be used more creatively than if data sets were kept separated by business unit.

In an article for Forbes, contributor Robert LeBlanc noted that this concept of information sharing is being put to use by El Corte Ingles, Europe’s largest department store. The retailer utilized the cloud to rapidly expand their online presence and currently employs the technology to monitor client preferences and buying habits to offer promotions and accurate pricing in real time.

For companies interested in implementing a similar initiative in their organizations, hybrid cloud environments are a reliable solution. Services can be automated in a hybrid platform and allow enterprises to see how they are being used and control them to better protect the security and privacy of the business.

Companies embracing cloud for increased flexibility, lower costs

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As technology becomes an increasingly important part of doing business, companies are realizing the benefits of the cloud. Utilizing cloud-based applications is a great way to enhance business operations by reducing costs, increasing flexibility and improving collaboration and productivity.

While traditional software can only be used by the device it was uploaded to, cloud applications can be accessed from any Internet-connected device. The accessible nature of the cloud makes it much more convenient for companies with employees who are frequently on the go or like to telecommute.

The cloud also allows organizations to break free from traditional software and the associated upgrades and high licensing fees for a more cost-effective option. Cloud applications work on a simpler subscription model, making it easier for enterprises to scale their service and pay only for what they really need. Small businesses can especially benefit from implementing a cloud infrastructure, as the lower costs and increased flexibility are ideal for companies with tighter budgets and smaller IT departments.

Another benefit of the cloud is an increase in collaboration between coworkers. The cloud’s ease-of-use and its ability to make documents and services available from anywhere with an Internet connection improves editing and sharing capabilities. Employees who might be miles away from one another physically can be on the same page virtually through the cloud, easily and effectively making edits to documents or changing presentations together over the Internet.

Companies of all sizes will also benefit from the cloud’s ability to serve as a disaster recovery center. Duplicate files can be easily stored in the cloud and kept offsite in case of an emergency at a much lower cost than employing a physical data center for disaster recovery services. Utilizing a cloud disaster recovery solution dramatically improves enterprise data security, ensuring critical information and systems won’t disappear because of a natural disaster. The cloud also increases protection from cyberattacks, as all data stored on the platform is encrypted to make it impossible for hackers to steal sensitive information.

Hybrid cloud ideal for enterprise use
For companies interested in implementing a cloud environment, a hybrid cloud is a good option to consider. Hybrid clouds offer organizations a mix of private and public infrastructures, making it possible to utilize the best of both platforms. Applications can be run on a public platform while critical services and data can be stored privately to add an extra level of security. Hybrid clouds also offer service scalability, making it easier to meet business demands. When traffic is slow, companies can focus on the more critical platform and increase service on the secondary cloud when demand picks up.

Using colocation in the era of the cloud

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Colocation facilities have long been vital resources for organizations that require high-performing data centers but prefer to entrust infrastructure management to a third-party provider. In addition to sparing IT departments the headaches of maintaining servers, switches and other equipment, colocation produces tangible benefits such as:

  • Redundant power supplies: Individual endpoint failures or even natural disasters won’t compromise uptime.
  • Streamlined IT costs: Colocation removes many of IT’s considerable expenditures on equipment and personnel
  • Cutting-edge performance: A colo facility typically has access to best of breed IP services and equipment, more often than not enabling better speed and reliability than the client could achieve strictly in-house.

Accordingly, in North America, the colocation and managed hosting services market is primed for strong expansion. TechNavio recently projected that it would increase at a 13.6 percent compound annual growth rate from 2013 to 2018.

Reduction of capital and operating expenditures is expected to be a key driver of colocation uptake. But what is colocation’s place in an IT landscape increasingly dominated by cloud services?

Finding the right colocation provider in the era of cloud computing
Cloud computing has fundamentally changed IT by giving developers, testers and operations teams access to unprecedented amounts of on-demand resources. Organizations have more options than ever for scaling their businesses, and the cloud has already enabled the success of blockbluster services such as Netflix and Instagram.

Colocation can play an important part as companies modernize their infrastructure and take advantage of remote infrastructure. Many IT departments are in the midst of migrating some on-premises systems to the cloud, creating mixed environments known as hybrid clouds. Colocation providers can step to the plate and supply the security, flexibility and know-how needed for evolving IT for the cloud age.

To that end, buyers should look for experienced managed services providers adept at handling a variety of infrastructure. Although colocation has been around since before the cloud entered the mainstream, cutting-edge offerings may offer a level of usability on par with public cloud, via top-flight service management.

“[C]olocation providers need to offer more than just remote hands,” wrote Keao Caindec, chief marketing officer at 365 Data Centers, for Data Center Knowledge. “They need to offer basic managed services such as firewall management, server management, backup and recovery services as well as other managed IT operations services for the dedicated infrastructure of each client.”

Unified communications solutions rapidly replacing legacy phone systems

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Unified communications solutions are displacing legacy technologies with such speed that some industry observers have begun thinking about the end of the phone number. Facebook’s landmark $19 billion acquisition of WhatsApp – an ad-free mobile messaging service that relies on the user’s screen name rather than a phone number – underscored the rapid ascent of alternatives to the aging SMS/circuit-switched telephony infrastructure.

Chat apps overtake SMS, showing changing face of consumer and business communications
Last year, E.U. Commission vice president Neelie Kroes announced that OTT chat apps had overtaken SMS for worldwide messaging volume. While SMS likely isn’t going away just yet, much of the value in communications has certainly moved from basic services to richer platforms that make the most of high-speed data connections and provide amenities beyond text messaging and voice calling.

Consumer options such as Skype and LINE have become famous for video conferencing and stickers, respectively. Similarly, business-grade offerings often distinguish themselves by including data sharing and email services in addition to text and voice. Organizations across many verticals, including healthcare and education, have put UC to work as they modernize their IT operations. A managed services provider can help navigate the common obstacles that companies face as they move to

“Many of the benefits of unified communications center on internal productivity improvements, or the facilitation of collaborative working,” Liam Ward-Proud wrote for City A.M. “But [small and midsize businesses]  also face the challenge of managing numerous client contact points, and a total communications strategy can help ensure a consistent client experience is delivered.”

University of Washington remakes IT department with UC
Universities have been at the forefront of UC adoption as they adjust to the rapidly evolving communications habits of students. Take the University of Washington, which began planning its move from a legacy phone system to UC as far back as 2010, according to EdTech.

The institution began by overhauling its infrastructure, installing fresh switches to support a network that could handle converged voice and data. Since its systems served more than 22,000 users, upgrades were made in phases over the course of a few years, with medical call centers and campus public safety among the first to receive access to the new platforms.

The university’s UC systems grew to encompass voice, voicemail, chat and video conferencing. Down the road, it has its eye on video-as-a-service and additional cloud-based functionality. Indeed one of the underlying value propositions of UC is that it creates a clear pathway toward cloud computing. Many UC components can be hosted and managed by a third-party, freeing users from having to tend to their own infrastructure. Functionality can also be changed and scaled depending on demand.

In the University of Washington’s case, the rollout of UC is facilitating creation of hybrid cloud. Hybrid setups typically involve:

  • Some infrastructure that is managed in-house, often for reasons such as security, compliance, control and performance.
  • Other applications and resources – for computing, networking and storage – that are piped in from an external provider.
  • APIs and mechanisms for determining what gets run where and when. For example, a workload that is running internally but requires more capacity can be shifted to public cloud infrastructure.

For the university, some assets will be kept on-premises while software is increasingly shifted to the cloud for greater availability.

“Right now, people can use the features in Microsoft Lync, such as chat, voice, video and conference sharing, on a peer-to-peer basis,” Roland Rivera, director network strategy and telecommunications for the university, told EdTech. “Our goal is to provide these capabilities campus-wide. As the technology evolves, we plan to keep the [session initiation protocol] core in-house, but migrate applications to software-as-a-service cloud solutions as those become available.”

Developing a strategic view is essential in the cloud storage era

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The business world is moving toward what may soon be an all-cloud computing deployment model, a recent IT World Canada article noted. But as companies are increasingly prompted to shift their resources to colocation hosting and cloud storage solutions, they also must make sure to do so with a strategic vision. Although the cloud can offer valuable solutions to existing problems, IT departments will still want to rely on a range of specific technologies based on application needs.

"[P]ublic procurement processes will almost inevitably lead to more than one type of cloud being used which, for many reasons, is probably preferable but also more complex," IT World Canada contributor Don Sheppard wrote.

Getting into the cloud is often seen as such a key imperative for businesses that there is less consideration about the best way to do so, ITBusinessEdge contributor Arthur Cole explained. A lack of planning can hold back a cloud implementation from offering maximum benefit. In many cases, companies have multiple departments attempting separate moves to the cloud, which can limit the technology's inherent agility and integration benefits.

For some organizations, the public cloud may not be the ideal solution, and a custom virtualization deployment may make more sense, the article noted. To determine the best form of cloud storage for an individual business, it can be advantageous to work with a managed services provider to develop a custom plan. More often than not, a hybrid cloud offering that gives organizations the security and control advantages of on-premises solutions and the scalability and flexibility of the cloud will be the ideal route to take.

Disaster-recovery-as-a-service market emphasizes changing priorities

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Disaster recovery, once a relative afterthought or nonentity in business planning, is now a central consideration. Advanced threats and high-profile data breaches have helped to convince organizations that it's time to stop dragging their feet and start taking disaster recovery more seriously. The rapid rise of the market for disaster-recovery-as-a-service highlights an important shift in priorities.

According to TechNavio, the global market for DRaaS is expected to rise at a compound annual growth rate of 54.6 percent between 2014 and 2018. Demand for hybrid and cloud-based disaster recovery has driven investment, especially in small- and medium-sized businesses that have found a "flying under the radar" approach by virtue of their size is no longer a viable approach to avoiding the consequences of information security compromises.

Larger organizations have also realized that IT departments are generally unable to maintain complete oversight and disaster recovery protection amid data deluges and rapid network expansion. To cite one sector, the banking industry has begun to invest heavily in the cloud to relieve the amount of resources it has to spend on application updates, software patches and IT infrastructure, according to Bank Systems & Technology.

The report did note that relying too much on a generic cloud solution or paying insufficient attention to backup data could diminish the effectiveness of DRaaS investment. A company is better served by using a multi-service provider that focuses on customization, specificity and addressing pain points. This way, it can avoid any data integrity or governance issues stemming from a lackluster vendor.