Sharing resources in the Cloud

16th November 2011

With the advent of Cloud Computing, businesses are able to pool resources, and form partnerships with other companies in the Cloud much more readily than they would have been able to do ten years ago. Indeed, ecosystems are forming across all verticals and across businesses of all sizes because storing data and applications in the "ether" makes it far easier for others to access that information for themselves. Furthermore, pooling resources in the Cloud could mean that two companies agree to share the cost of a virtualised server, resulting in reduced capital expenditure for both.

Despite the benefits that sharing resources in the Cloud can undoubtedly bring, many businesses are seemingly reluctant to step forward and collaborate with others, and arguably with good reason. In such a volatile and fast-moving market, companies are constantly trying to better each other to retain their competitive edge, so of course they might be wary of revealing all their secrets by collaborating with others through the cloud.

But sharing resources in the Cloud does not mean laying all your cards on the table, plain for all to see. Instead, it is a case of considering what information could be readily shared in the cloud, and to the benefit of the company, and which cards should really be held close to your chest. Once you have asserted what is business critical and differentiating, and what is not, you should at least be considering pooling resources in the Cloud with others, and below are some reasons why.

Welcome to the "Cloud village" – a one-stop-shop for all your business requirements

Collaborating in the Cloud and cross-trading with other businesses means that Cloud service providers come to be seen as "hosting centre providers" whereby they facilitate a "Cloud village". Here, customers can use whichever "amenities" they need to use. For instance, payroll providers, HR providers, accountancy software providers, legal software providing, and imaging and scanning providers may all share the same public Cloud environment, working in partnership with one another, and thus providing their collectively larger customer base with a one-stop shop service.

Greater expertise

Such a collaborative approach to service works in both the customer and supplier's favour. Indeed, for the customer, it's convenience: they only have to come to one location to get all of the services that they require. For the supplier, it is gaining additional expertise in business areas that may previously have been foreign to them. A publishing house may suddenly be able to offer its customer base web design services through its own web design partner, or a hosting provider may suddenly be able to deliver payroll and HR expertise, or legal advice. Such additional expertise in new areas opens up the business proposition to a greater customer base and thus generates additional revenue streams for the company, so why wouldn't they at least consider the idea?

Increased connectivity speeds

The Cloud computing industry heavily relies on speed of internet connections, but where data centres are already using large fibre optic cables, and multiple networks of such cables, customers are able to rapidly and securely access their data. Indeed, such is the sophistication of fibre optic cable technology that companies pooling resources to share their infrastructure with others are able to access their data at speeds only previously available to FTSE 100 companies.

Economies of scale

Collaboration in the Cloud also brings economy of scale: rather than each organisation having to store their own data on in-house servers, they can store their data and application on shared servers which are located in a virtualised environment, resulting in reduced capital outlay, and a saving on the amount on ongoing hardware, equipment and facilities maintenance required for all parties.

Innovation – retain your position ahead of the curve

Ironically, whilst companies have been put off from pooling resources in the Cloud with others due to a fear that their competitive edge may be lost, sharing information can actually result in bigger, better and brighter ideas. With increasing levels of connectivity between the

computer systems of several different businesses, more and more sophisticated applications can be generated. Connecting a vast number of different systems at a local area network speed over a wide area network is the future of Cloud computing, and will fundamentally change the way that the IT industry works in the future.

Inter-company relationships are today far more practical than they were ten years ago, thanks to the advent of Cloud computing and the ability to readily pool resources. Companies are rightfully wary of taking such a collaborative approach to business, due to their determination to remain ahead of competitors in terms of the propositions they bring to market. Yet Cloud computing has made it so easy for organisations to share infrastructure, reduce expenditure, yet gain expertise and cutting-edge technology, to bring something bigger and better to the table. Indeed, it is those companies that embrace this new way of doing business that will truly realise the potential that such innovation can bring.