Monthly Archives: February 2022

Compared to the previous generation, todays generation of startups are increasingly cloud-centric. The previous generation of dotcoms had to suffer the economics and complexities of deploying, managing, and scaling their own servers, networks, and data centers.

In contrast, todays generation grew up in the just-in-time, pay-for-what-you-need, and scale-up-on-demand world that is cloud native.

Also see: Why the Future of Computing is at the Edge

But over the last two years, businesses have largely opted for edge-enabled, serverless infrastructures. This means there are no servers to manage; no locations to spin up; and most importantly, no cloud computing contracts to analyze.

With edge-enabled, serverless infrastructures, businesses can benefit from faster and more stable API performance and a decreased need in infrastructure support and annual spend.

As a software practitioner for more than two decades, I have been through more paradigm shifts in computing than I can count. But I can confidently say this: The future of computing for an entire generation of companies will be edge-native, and the traditional cloud is the platform that will lose.

Also see: Top Edge Computing Companies

One of the main problems with paradigm shifts is that there are so many new technologies that emerge in the early stages. The same has been true for edge computing, with numerous companies offering edge-compute solutions that run on new infrastructures, telecommunications providers, and even cloud-computing companies.

When we talk about edge computing companies, were describing the ability to run code at the network edgespecifically the content delivery network (CDN) providers.

CDNs have been around since the beginning of the Internet. The major players (Akamai, Limelight, Cloudflare, Verizon Edgecast, and Fastly) have been helping customers ensure content is delivered quickly to customers by ensuring a large distributed global cache of servers.

In the old model, these providers simply stored data for companies, ensuring that as customers visited websites or downloaded software, the response times were fast because the server itself had the content as close to the customer as possible.

Also see: Will Edge Computing Devour the Cloud?

One change is that these server resources and the content delivery network itself are now programmable. This allows companies to move core API services off of centralized cloud servers and onto the existing globally distributed networks that the CDNs operate.

With edge solutions, companies that could only run servers in limited locations now have the ability to run APIs at a much larger scale, increasing user response speeds and the companys global footprint.

The second major change is how the code itself is deployed. With cloud computing, youre renting a server and running your code on it. With edge computing, you simply deploy your code to the platform, and the code is automatically run on the nearest server across the regions.

This idea, called serverless compute, is also offered by the cloud providers (AWS Lambda, Google Cloud functions, and Azure Functions). But with the edge platforms, these functions now run across a global fleet of servers with zero management overhead.

Changes in the technology landscape are dictated by the economics they offer, not just the innovation behind the product.

When cloud computing came to market, the economic advantage was instantly obvious. Cloud computing gives users the ability to swap high upfront investments in their own server and network infrastructures for zero upfront. They use on-demand leases of compute power that can be paid with a credit card. The adoption was driven by economics, not the technology.

With edge computing, we are seeing similar economic staying power. Cloud-computing companies buy server and data center infrastructure in bulk to support resales as capacity. Edge platforms, like CDNs, are using edge computing to drive additional value on existing infrastructure, which in turn lowers the cost required to provide compute services to customers.

CDNs are fundamentally simple servers: They hold copies of data (storage/memory), they look up requests for said data (CPU), and then return the data to the user (network). There are also a number of free CPU cycles available throughout the day, as most retrieve and transmit actions require less CPU power than running a full database engine.

With serverless models, CDN providers are able to further monetize their existing capacity, allowing for meaningful economic impacts downstream.

As companies expand globally, cloud-based bandwidth costs will only increase, whereas such costs are not even a factor in edge-native pricing. In addition, edge-native solutions dramatically lower management costs (no servers to monitor), scale rapidly at a global level (code runs near users automatically), and simplify billing.

For startups looking to offer low-cost solutions on a global scale, the simplicity and economics of the edge-native model is compelling. As the next generation of startups comes of age, we expect to see many adopt a cloud-free model.

Weve seen the future of the cloudand it lives on the edge. For businesses, this is a faster, more scalable, and dramatically cheaper solution to modern computing needs.

Also see: Why Cloud Means Cloud Native

About the Author:

Jake Loveless, CEO, Edgemesh

See the article here:

Why Edge Computing Will Overtake the Cloud | eWEEK - eWeek

Stakeholders and executives of financial organisations remain on the fence about whether the advantages of cloud computing outweigh the potential risks of trusting sensitive information to remote servers. With the current demands on banks IT infrastructure and front-, middle-, and back-office staff, and the implementation of Basel IV pushed forward to January 1, 2023, this year may be a good time to transition ever-growing IT infrastructure to the cloud.

Cloud computing is becoming increasingly attractive toand indispensable forfinancial organisations. The cloud has the potential to completely change the financial services landscape. Banks can take advantage of cloud technologies to improve their entire risk management systems and to access fast, high-end technologies on an as-needed basis. As a result of switching to cloud computing, many services can be delivered with reduced up-front capital outlay and IT expenses.

The current state of cloud computing allows financial organisations to access any modern core banking system offering without any loss in cost-effectiveness. This not only enables banks to save costs, but also increases data processing speed and improves the quality of the financial services they provide.

Despite possible initial hurdles in implementing cloud technologies, such as security risks, reliability issues, and problems with business continuity planning, the extra flexibility and scalability provided by the cloud far outweigh the negative aspects. If an organisation can ensure effective corporate governance and security by performing vigorous endpoint management and IT policy management, the cloud will provide many security benefits.

Some IT professionals still overlook the fact data can be more secure in the cloud than in a physical data center. They continue to see data which has been stored in the cloud as a vulnerable asset, raising security, privacy, and compliance concerns.

It is true some engineers are so focused on getting to the cloud they do not initially put the time into setting up security, governance, and auditing. In the best-case scenario, the organisation only has a permissions nightmare to deal with, even though incorporating proper governance will still be a painful and expensive process. In the worst case, neglecting security in a rush to the cloud can result in a data breach or the deletion of all of IaC (Infrastructure as Code to automate cloud resource deployments) and backups.

The cloud is very different from a traditional data center, and banks need to approach their data management differently as a result. Otherwise, the cloud could end up being an extra expensive data center should financial firms choose to throw their legacy technology into it.

Cloud computing has the resources to ensure high levels of security and prevent data breaches, but it is imperative an organisation implement vigorous endpoint management and IT policy management to gain the maximum benefit.

Unlike traditional data centers, which typically rely on physical defenses to prevent unauthorized access to data, public clouds, such as Amazon Web Service or Microsofts Azure, allow server-side 256-bit encryption to protect files. These files remain encrypted when they are transferred within the network or saved to cloud storage.

Data objects sent to the cloud server by the client/user are also deduplicated and compressed. In this case, if a third party were to gain access to the data, they would be forced not only to decrypt the objects without the AES (Advanced Encryption Standard) 256-bit encryption key, but also to uncompress and reassemble them into readable files.

When high-performance access to a file is required, the cloud infrastructure can be modified accordingly by deploying virtual or physical cache servers. As with traditional file servers and NAS (Network-Attached Storage) devices, these servers cache only the active files needed for local, high-speed access, thus reducing storage needs and costs.

Cloud storage data and metadata are encrypted and unavailable in their at-rest format, so a cache server is required to access them. This server, in turn, provides its own additional security, such as closed unused protocol ports, no open back-end access, additional encryption between the client and the directory server, and self-encrypting drives.

The same reliable authentication procedures and access tools as in an on-premises data center can be used for cloud deployments. For instance, access to remote data can be provided though standard file sharing protocols such as SMB (Server Message Block) 1, 2, and 3 or NFS (Near-Field Communication) v3 and v4, in exactly the same way as if traditional file servers or NAS (Network-Attached Storage) devices were used.

Additionally, AD (Active Directory) permissions, which are controlled by the banks system administrator, manage data access. An authenticated user can access only the data that is visible to them, and the rest of the data is protected through group- or user-specific policies. Moreover, the support of Active Directory trust relationships allows the creation of logical links and the application of policies between users and domains within the system.

The cloud easily surpasses the capabilities of traditional data storage when it comes to the protection of data against accidental or intentional mistakes and system failures which would otherwise lead to data corruptions.

Writing data to cloud storage is done using a WORM (Write Once Read Many) model, in which new data is always appended (added to the existing one) and never replaced or overwritten. The system creates snapshots of data at assigned intervals in order to be able to instantly recover any set of data in case any server-side or related problems occur.

Third party regulations and certifications ensure data is secure. All public clouds, such as AWS, Azure, or GCP, are required to go through extensive third-party certifications, e.g., HIPAA, HITECH, Soc2, PCI, and ITAR, to ensure all data is properly protected.

Consequently, they meet important audit and compliance requirements. Should a financial institution transfer its data to the cloud, it will meet all these requirements automatically. Should a financial institution transfer its data to the cloud, it will meet all these requirements automatically.

In the past, many data and file security solutions (such as firewalls and antivirus software only supported traditional NAS (Network-Attached Storage) software to detect and stop cyber threats. Today, the same integration capabilities are available when using cloud-based file storage.

Cloud solutions now allow high levels of flexibility when it comes to integration. This provides banks with the ability to find and isolate sensitive data, visualise data access, adopt and manage a least privilege access model, and streamline compliance activities.

Moreover, it allows unstructured data to be securely stored by financial institutions in public or on-premises cloud storage, where the cache server, as an extra layer of protection, processes the actively used data whenever high-performance access is required.

Working with on-premises deployment creates a false sense of security because of the perception the network itself is protected by a physical boundary. However, only the most sensitive networks operate in an air-gap mode without any outside access. Of course, providing remote access opens systems up to certain cybersecurity risks, but in the cloud, there is also less risk of misconfiguration, and all those risks are more easily mitigated by using standard security infrastructure and features, and standard security audit tools.

While cybersecurity risks exist in both on-premises and cloud environments, cloud systems are better protected than on-premises or data center deployments. It is notable many of the recent major hacks occurred in on-premises networks or hybrid environments rather than in purely cloud-based systems.

An optimally running cloud solution reduces cybersecurity risks through the use of a standard set of cloud services and technologies, which present less penetration risk than non-standard on-premises or hybrid networks.

Banking risk management functions will receive tangible benefits from cloud computing, but leaders of banks risk departments still face significant challenges when migrating to the cloud. With the increased number of cloud adoptions in finance, the importance of day one security, governance, and auditing should not be downplayed by a financial organizations management. Failing to take these factors seriously will undoubtedly lead to the disruption of business operations and could damage the organisations reputation owing to financial and legal issues.

To prevent disasters and secure a banks data in the cloud more effectively, they should set up multiple layers of security. For large banks and other financial organisations, it is better to set up risk management functions with a private cloud provider. Small- and medium-sized businesses, on the other hand, would benefit from taking advantage of the public cloud service providers in order to grow their business and connect data securely. For highly secure operations, it is better to use a private cloud. If you use a public cloud for the upper layer of your organisations operations, a hybrid cloud solution might also be a good option.

Moreover, hosting a cloud storage system in your own data center within a security perimeter can be just as efficient for your organisation. Private cloud solutions deployed in a private data center possess all the benefits of public clouds, including 256-bit encryption, compression, deduplication, and modular building blocks that can scale at a comparatively low cost.

By partnering with CompatibL, financial institutions can ensure they are always in control of their sensitive corporate and private information, and are compliant with the current and upcoming regulatory capital requirements.

See the article here:

Will the security benefits of cloud computing outweigh its risks in 2022? - Bobsguide

Enterprise IT spending on public cloud computing, within addressable market segments, will overtake spending on traditional IT in 2025, according to Gartner analysts.

Gartners cloud shift research includes only those enterprise IT categories that can transition to cloud, within the application software, infrastructure software, business process services and system infrastructure markets.

The analysts find that by 2025, 51% of IT spending in these four categories will have shifted from traditional solutions to the public cloud, compared to 41% in 2022.

Almost two-thirds (65.9%) of spending on application software will be directed toward cloud technologies in 2025, up from 57.7% in 2022.

Gartner research vice president Michael Warrilow says, The shift to the cloud has only accelerated over the past two years due to COVID-19, as organisations responded to a new business and social dynamic."

He says, "Technology and service providers that fail to adapt to the pace of cloud shift face increasing risk of becoming obsolete or, at best, being relegated to low-growth markets.

According to Gartner, in 2022, traditional offerings will constitute 58.7% of the addressable revenue but growth in traditional markets will be much lower than cloud.

Demand for integration capabilities, agile work processes and composable architecture will drive continued shift to the cloud, as long-term digital transformation and modernisation initiatives are brought forward to 2022.

Technology product managers should use the cloud shift as measure of market opportunity. In 2022, more than $1.3 trillion in enterprise IT spending is at stake from the shift to cloud, growing to almost $1.8 trillion in 2025, according to Gartner.

Ongoing disruption to IT markets by cloud will be amplified by the introduction of new technologies, including distributed cloud. Many will further blur the lines between traditional and cloud offerings, the analysts state.

Enterprise adoption of distributed cloud has the potential to further accelerate cloud shift because it brings public cloud services into domains that have primarily been non-cloud, expanding the addressable market.

Organisations are evaluating it because of its ability to meet location-specific requirements, such as data sovereignty, low-latency and network bandwidth.

To capitalise on the shift to cloud, Gartner recommends technology and services providers target segments where the shift is occurring most aggressively, in addition to seeking new high-growth cloud opportunities.

For example, infrastructure-related segments have a lower level of cloud penetration and are expected to grow faster than segments such as enterprise applications that are already highly penetrated. Providers should also target specific personas, adoption profiles and use cases with go-to-market initiatives.

Gartners research on cloud shift provides a high-level view of the market impact of cloud computing by measuring the ratio of enterprise IT spending on public cloud services compared with traditional (non-cloud) for a given set of market segments.

See the rest here:

Public cloud computing spend to overtake traditional IT - IT Brief Australia