Instead, the NGO will depend on servers that are located in places not known to the organization. And instead of relying on softwares like Office, it will jump to another service platform that can manage multiple financial accounts simultaneously, update list of clients automatically on every workstation in all its branches, and share every file with a click of mouse not only among employees in Nepal but in 16 other Asian countries where it has set up bases.[break]
Wonder what the organization is doing? They are dumping traditional IT infrastructure for cloud computing, becoming one of the pioneers to use this service at enterprise level in Nepal.
So what is cloud computing?
To give a quick 101, the cloud basically denotes the Internet. So everything done on the Internet, including software usage and storage of data, is known as cloud computing.
If you are using Gmail or Flickr you are already using cloud services, since you are depending on the Internet to store your e-mails and photos as against your computer’s hard drive.
Google Docs is another example of cloud service platform, on which everything, from creating to storing documents, is done on the Internet.
Whereas in the case of Microsoft Word, you are using the software installed on your computer or phones, and the documents that you create have to be stored in the computer’s hard drive, cell phone memory or in servers somewhere.
Service platforms like Gmail, Flickr and Google Docs, however, fall under the public cloud domain, as they are not highly protected.
Enterprises that are more concerned about security can opt for private cloud, as this model allows data from different sources to sit in one place while ensuring isolation of every cluster of data parked by individual business units. Those who want a mix of both can go for hybrid cloud. And this is what the Asia Foundation has opted for.
Once the Foundation starts using the cloud, it will deploy all applications it uses on the Internet. It is similar to what Gmail and Google Docs are doing, except that applications put up by the NGO won’t be available to those who do not have access to its network.
This practice of putting up everything on the Internet offers the NGO flexibility to update applications without reaching out to each and every computer in branches located in 17 countries.
In other words, the organization will perform these tasks centrally in a similar manner Gmail and Facebook do while giving fresh looks to their portals.
The facility of deploying applications and storing data in a central location also offers the organization leverage to remove servers located in different branches throughout Asia.
“This will slash the company’s expenditure in days to come,” an official who set up the cloud infrastructure for the Asia Foundation told Republica on condition of anonymity.
It is said a company that is buying IT services spends around 60 percent of IT spending on hardware, whether on purchase of the equipment or support.
“On top of this, companies also have to spend on maintenance and software upgrade at every branch whereas in a cloud-based model, you don’t have to make those expenditures as everything can be done centrally,” the official said.
The biggest advantage is that the NGO’s employees can now access whatever data is stored from any place in the world where Internet connection is available.
“The beauty of cloud computing is that it offers flexibility to users as they do not have to sit in front of office computer to gain access to data or information,” Rajan Raj Pant, chief of Controller at Office of Controller of Certification, told Republica.
“On top of that, it also reduces capital and operating expenditures of companies, as companies do not have to worry about investing money on servers or IT infrastructure, and hiring people to manage them.”
This is the reason why many companies in the Asia-Pacific are fast switching over to cloud-based solutions, with the continent’s share in the global cloud market expected to reach 18.8 percent in 2016 from 16 percent of 2011.
As cloud penetration increases, Ovum, a research company, said revenue from public cloud services alone will touch US$12 billion by 2016 in the Asia Pacific – a five-fold increase from that of 2011.
Nepal may not be making significant contribution in the revenue generated by the sector, as most of the enterprises in the country are still expected to rely on its rudimentary IT infrastructure till that time.
This is because many corporate houses are still unaware of the cloud-based IT system. But even those that are knowledgeable about its benefits hesitate to shift their base because of unreliable bandwidth connection.
“While using cloud-based services, network speeds are most crucial as the user should be able to retrieve data from any location, whether it be home or on the streets,” Kishor Pant, first vice president of Computer Association of Nepal, said. He, however, expressed hope telecom companies and internet service providers will upgrade their networks in the days to come, “as demand for these services increases in a few years time”.
There are also hopes changes may gradually take place as usage of computing on smartphones and tablets increase.
Everyone is aware that gadgets like iPhones and Blackberries are more than simple phones. On these devices, people check mails, visit favourite social networking sites, look for directions, check weather reports, watch videos or simply tune in to an Internet radio station.
These activities may play little role in promoting cloud computing at enterprise level but these practices are gradually shifting people from computers to other more handy devices. And because of this change in consumer behavior, many companies in Asia and worldwide are also trying to adapt to the changing landscape.
In November 2009, for instance, South Korea’s top steelmaker, POSCO, distributed 1,200 smartphones to employees serving in sales and customer support departments to implement the new mobile office system.
This allowed them to use their mobile phones to carry out activities like processing shipping orders or checking shipping costs and other orders, providing flexible working conditions and remote access to corporate data and other office material.
Now, eight out of 10 CEOs in South Korea believe the business environment will gradually shift to virtual office environment in three years, according to a Samsung Economic Research Institute survey.
This will increase the market size of mobile office systems in South Korea to $5.28 billion by 2014 from $2.5 billion in 2008, giving a significant boost to cloud computing.
It may take years for Nepal to adopt such practices, but in an era where technology transfer takes place in a rapid manner we cannot completely rule out such changes to occur in days to come.
Remember, how Nepal switched to the mobile infrastructure bypassing the landline telephony? Similar changes can happen but for this telecom companies need to introduce affordable and reliable data packages.
One of the ways of moving ahead would be to offer pre-paid data packages comprising e-mail like Gmail and social networking services like Facebook on pre-paid phones as well at affordable rates.
Currently, mobile companies in the country may be dithering from making such a move fearing loss of revenue from text messaging services or gridlock on its network, but they should not only think of making quick bucks and focus on refurbishing their infrastructure.
This practice will encourage more people to use their smartphones to check mails or update Facebok status ultimately raising their dependence on mobile devices.
This may be the first step toward promoting cloud computing in the country.
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