Business Adviser

What is cloud computing and is it right for you?

By Ken Cochrane
Partner, KPMG Enterprise, Ottawa

By Yvon Audette
Partner, KPMG Enterprise, Toronto

The public cloud is a range of computing services accessible on the Internet, that are hosted by providers who make these services available to many businesses and individuals on a pay-as-you-use basis. Cloud services offer the capacity for the users of the service to have access to increased computing power when their business cycles demand it without having to plan for this capacity in advance.

The cloud can offer your business real benefits including reduced capital investments in technology, a need for fewer technology staff, enhanced security and reduced potential for business interruptions.

You will hear terms such as Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), Private Clouds and Public Clouds. These are terms that you should be familiar with so that you are informed as you consider the potential of the Cloud for your organization.

Software as a Service, SaaS lets you to subscribe to a range of software services that are designed to support specific business processes and requirements. These include e-mail, office suites (word processing, spreadsheets) and more specialized services such as Client Relationship Management and Human Capital Management among others.

Platform as a Service, PaaS lets you leverage pre-build environments that allow you to configure existing application platforms and design custom applications for these platforms.

Infrastructure as a Service, IaaS lets you run your own software applications on a cloud provider’s infrastructure so that the servers and storage are managed for you and you need only maintain your own business applications.

A Public Cloud can be either SaaS, PaaS or IaaS that is available to many other clients and will generally be more cost competitive than a Private Cloud that is either Saas, PaaS or IaaS operated for only one client.

Many technology firms have provided cloud services for years. When you subscribe to e-mail through Google, Microsoft or your Telecom provider you are using e-mail (Software as a Service) on a Public Cloud.

KPMG has recently conducted global studies that show companies and governments around the world are beginning to adopt Cloud as a means of managing costs and improving performance of their systems. The cloud service seeing the highest adoption at this stage is Software as a Service, but Infrastructure as a Service, which requires more planning to adopt, is also gaining acceptance.

There are issues to be considered if you plan to adopt cloud services and KPMG’s advisers are equipped and ready to assist you.

Business Adviser is published by KPMG Enterprise™ specifically for owners and executives of private companies. KPMG Enterprise is a network of professionals devoted exclusively to helping business owners and entrepreneurs build value and grow thriving enterprises. kpmg.ca/enterprise.