System integrator and outsourcing supplier,
Capgemini, will be providing a cloud computing service using
Elastic Cloud Computing (EC2) from Amazon, a strategy which
could help businesses kick-start new IT projects for a small
initial outlay. Other providers of outsourcing and systems
integration services are likely to follow Capgemini's lead with
cloud computing as part of their services.
The service, which is being provided by Capgemini's Cloud
Computing Center of Excellence, will offer business users Microsoft
Sharepoint, Oracle ERP and application development and testing in
the cloud.
Capgemini plans to use the Amazon service to offer its
outsourcing clients a lower cost approach to pilot projects and IT
projects, according to Andrew Gough, SaaS business development
manager at Capgemini. "Every business has a project that never
surfaces because 80% of an IT budget goes on maintenance.
"For a minimal investment [using cloud computing] it is possible
to prove the business case for an IT project, without the need to
buy expensive hardware and software licences."
Neil Macehiter, research director at analyst MWD Advisors, says,
"Capgemini is taking the role of a traditional systems integrator,
providing a link between the business customer and Amazon. Cloud
computing has a steep learning curve. Businesses need to understand
how software lifecycle management works in the cloud." This is
where Capgemini, as a system integrator, can help, according to
Macehiter, due to its centre of excellence which provides cloud
computing expertise.
"We want to allow our clients to invest in new areas of
technology at lower cost. At the moment we are looking at what is
possible. We know we can offer Microsoft Sharepoint, Oracle and
application development in the [Amazon] cloud," says Capgemini
vice-president Richard Payling.
Other traditional outsourcing suppliers are likely to offer
similar cloud services. Richard Hannah, managing director of
EquaTerra IT practice for Europe and Asia Pacific, says, "I expect
Hewlett-Packard/EDS, IBM, Microsoft and even ERP Software suppliers
such as SAP to be active in [the cloud]."
For business users, Hannah says the upside of outsourcing
suppliers selling cloud-based services is much lower costs and a
straightforward operating model. "The downside may be a loss of
control over your IT services and a perception of potential
security issues," he warns
Businesses will be reluctant to store private data in clouds
operated in US datacentres, as they risk falling foul of data
protection regulations. Chris Coulter, a partner at law firm
Morrison & Foerster, says an agreement for data protection
called Safe Harbour does exist between the EU and the US, but some
businesses may regard US data protection laws as insufficient to
meet the security principles of the UK Data Protection Act.
So initially, the service will be available only in the US, but
Amazon is expected to complete its European datacentres in 2009,
which should satisfy users who are concerned with storing personal
data in US-based datacentres.