The Cloud
The Cloud is a metaphor for the term “cloud computing”. One of the first web-based applications was SalesForce.com, starting in 1999, even before that there was Hotmail. With the advent of technologies such as AJAX and the launch of Gmail in 2005 (later followed by Google Apps) the concept of web-based applications has become more widespread.
If you have had any involvement in the IT world in 2009, you surely have seen offerings from major vendors, such as Amazon (EC2) and Microsoft (BPOS) touting cloud-based services. In 2010, service offerings will continue to grow and you are likely to run into in some form or another.
What is BPOS?
Our focus will be Microsoft’s Business Productivity Online Suite, or BPOS. It is their suite of hosted messaging and collaboration solutions.
Offerings
The suite includes the following functionality which is well known to the client/server environment, but now available as a service:
- Email -> Exchange Online
- Collaboration -> Office SharePoint Online
- Instant Messaging -> Office Communications Online
- Meetings -> Office Live Meeting
Why Should I Care?
Web-based applications have not displaced boxed software as the primary means for delivering functionality, however, for those entrusted with crafting IT strategy for business, it is a trend that cannot be ignored. Furthermore, Intel’s investment in the Atom processor platform, the increasing popularity of net books, and increasing power and functionality of PDA and smart phones should provide some clue that the concept is sure to grow, not fade away.
In addition, the possibility to lower the total cost of “ownership” through aggressive pricing and promotion to gain market share, guaranteed SLAs, and minimized management and maintenance are sure to garner of cost-conscious IT leaders.
Is BPOS For Me?
The advent of cloud computing, web-based applications and an ever demanding economic climate increase the need for flexibility and mobility. From these new needs come the concepts of the “desk-less worker” and “mobile sales force”.
No longer does productivity require us to be tethered to our desks and bound by the traditional physical boundaries of “brick and mortar”. Nowadays, our offices are the coffee shop down the street, the airport terminal, a home office, anywhere and everywhere we are needed.
The most obvious benefit to moving email, collaboration portals, instant messaging and conferencing to the cloud is in the reduced cost to manage infrastructure. This includes eliminating the need to purchase server hardware, agents, software licensing and FTEs required to ensure proper maintenance through patching, backups, monitoring and administration.
The pricing for BPOS breaks down as a monthly per user cost.
- Exchange Online -> $10/user/month
- SharePoint Online -> $7.25/user/month
- Office Communications Online -> $2.50/user/month
- Office Live Meeting -> $4.50/user/month
- Exchange Online Deskless Worker -> $2/user/month
- SharePoint Online Deskless Worker -> $2/user/month
- Deskless Worker Suite -> $3/user/month
The next time Microsoft releases a set of critical updates, wouldn’t it be nice to let someone else worry about coordinating downtime, testing and applying patches?
But there are also benefits beyond having servers live on someone else’s network. Spending less time to size, architect and deploy any or all of the above helps you roll out new functionality quicker.
Lastly, Microsoft is not bashful about touting its three nines (99.9%) uptime SLA and their cash-backed guarantee. Where most vendors mitigate issues stemming from outages with credit towards future service, Microsoft “puts its money where its mouth is” and pays you should they fail to meet their SLA.
Is BPOS Not For Me?
While it has many great benefits, BPOS, is not solution for all. The specifics of your environment will dictate whether it makes sense to consider it.
First, BPOS has a five (5) user license minimum, which for some very small business may not make sense because the unused user licenses may offset cost benefit.
Every company has some instance of a legacy or custom application that requires the typical client/server setup. So while quite “long in the tooth”, these applications may still provide a critical function to your business and may not allow for migrating to a cloud environment.
There is also a feeling that if it’s “in the cloud”, I don’t really “own” it. Reality is that if you read through the EULA (end user license agreement) the next time you install a Microsoft product, rather than just “clicking next”, you will see that you really don’t own that copy of Office 2007 Professional, you merely paid for the right to install it and use it. However, this may be an extremely minimal issue once the initial shock of realizing what the EULA states, and most companies would realize how little value there is in the traditional boxed software model.
In environments where cost constraints force open source, free software models to prevail the cost issue remains. If your company runs MDaemon because Microsoft Exchange is too expensive, chances are even the minimal per-user costs of Exchange on BPOS are still too high. Granted these situations are few and far between, but they are out there.
What Happens to IT After We Move to the Cloud?
Isn’t the cloud just another way to “outsource” my IT staff? In a way, yes. So what happens to my IT staff when I move services to BPOS? Think of BPOS as an opportunity to re-direct effort into other areas where BPOS cannot provide value; legacy applications, building content within SharePoint, BI, dashboards, reporting, end user training, planning and developing proactive plans for technology, and over getting out of “fire fighting” mode.
BPOS offers a great opportunity to reduce IT operational costs and provide better services. However, I will reiterate some key points about my earlier piece on outsourcing e-mail that similarly will ensure success with a BPOS deployment; 1) ensure that additional costs do not offset savings, 2) that visible change to end users is minimized and where unavoidable, training is prepared and 3) that where people resources are involved, management sees this as an opportunity to better utilize skills instead of simply lowering head count.