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Security concerns around the cloud are largely perceptions

05 November 2009 00:00 am , Sharad Sanghi, CEO and MD, Netmagic Solutions

In Its most recent foray, Netmagic Solutions - A managed IT services company - has launched cloud computing services for the Indian enterprises.

In its most recent foray, Netmagic solutions - a managed it services company - has launched cloud computing services for the Indian enterprises. Sharad Sanghi, CEO and MD, Netmagic solutions shares the issues concerning the cloud with the CTO forum. here are the excerpts:


Q:Netmagic Solutions has introduced cloud computing services in the Indian market, but there are a number of concerns attached to it. What are the key concerns that your clients come back with?

A: In the managed or hosting services space, cloud is the latest buzzword we get to hear. According to the recent IDC report, spending on IT cloud services will grow almost threefold, reaching $42 billion by 2012. More importantly,spending on cloud computing will accelerate throughout the forecast period, capturing 25 percent of IT spending growth in 2012 and nearly a third of growth the following year. It is creating new opportunities for suppliers, thereby fitting well in the definition of technology innovation.

I believe that cloud computing has different connotations to different people. We offer Infrastructure as a Service (IaaS) and Platform as a service (PaaS). Enterprises using our  services have certainly come back with a number of  concerns. One of  the key concerns is ‘application compatibility’. Most of  our customers do a PoC (Proof of  Concept) before taking production resources. Also, the hybrid architecture is an issue in cloud computing. Most customers are concerned about integration of  the cloud network with their physical networks.

Another area of doubt is technology readiness. It has been raised by a  few enterprises. They feel  that cloud computing is an evolving technology. Also, a lot more clarity is required on the legal front.


Q:So what is this legal issue in cloud computing all about?

A: In fact, a lot of things! A key legal challenge facing the service is misuse of the cloud resources. Maintaining control is the key to ensuring legal compliance. From a vendors’ perspective, the licensing models haven’t fully evolved yet, and there are challenges with regards to controls on measuring the usage and legal compliances.


Q:Suppose a security breach happens in the cloud, who should be held responsible?

A: There are two aspects of it. If a breach happens due to the negligence of the cloud service provider, then yes, we own the full responsibility. There can be a breach due to leaks in the client’s internal network, in which case the responsibility is not on us. We clearly define the service-level agreement (SLA) with the user enterprises and adhere to it –even in case of a breach.

Moreover, we ensure adherence to industry standards, and thus offer optimum security monitoring to detect any breaches. We also offer security services where we can detect and fix any such incidents.

The delivery of cloud services is based on the underlying hardware and software components, which are factually  third-party components. Netmagic Solutions does not have absolute control over these. While we take all steps to keep the infrastructure secured at all levels and proactively respond to incidents, we don’t compensate the customers for any downtime due to incidents beyond our control and outside of  SLA.


Q:Apparently, cloud computing isn’t cutting much ice with the SMBs?

A: Contrary to your observation, any company, irrespective of its size, can benefit from cloud computing. This technology solution makes sense for large enterprises, midsized companies, and SMBs. Based on the nature of their operations and size, companies will have different cloud computing requirements. We have successfully engaged customers across various verticals through services that are tailored to meet their requirements. Most of these services are vertical agnostic and can be deployed for various applications and platforms.

Based on our past experience, there is absolutely no substance in believing that cloud is an expensive proposition. However, we conduct a pre-deployment study so that the user is in the right frame of mind to decide as to what model he wants to adopt for his needs.


Q:Have there been issues around interoperability while using cloud infrastructure?

A: When we of fer our cloud services, interoperability becomes a non-issue, and the users have a seamless experience. However, given that this technology is still evolving, interoperability concerns could be there. Efforts are on to overcome those. Currently, there is little-to-no interoperability between various virtualisation platforms along with the service providers.


Q:A recent McKinsey report states that cloud computing is over-hyped and expensive. How do you defend this stand?

A: This may not be entirely true. Though I do not have the numbers, but through the right adoption of cloud computing, the key challenges of IT departments can be addressed easily. Cloud offers distinct commercial and operational advantages, which make it a technology to reckon with.

It offers zero capex (thus favoring start-ups), and also provides ready-to-use IT infrastructure. Also, a key advantage is reduction in opex. Since it is a managed platform, it helps in saving power costs.Immediate scalability, no long-term contracts, resources provisioned in real-time, various technical and operational advantages and pay-per-use model are some of  the other key advantages of cloud infrastructure.


Q:The security aspect of cloud computing is still suspect. What are vendors such as Amazon, Microsoft and IBM doing to address these concerns?

A: While a few cases may be genuine, security concerns around the cloud are largely perceptions. But we believe in taking all security measures possible for the cloud services we offer. For example, we have a comprehensive Network Attack Management service.We are one of  the few providers to offer such a service in India. We also do vulnerability assessment for our clients. Moreover, it is our desire to be on any industry forum that will standardise on security or even technology aspects of  cloud services.


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