Not that long ago, if you were talking about clouds, chances were that it was either the British weather or the equally dour economic outlook that was under discussion. However, Drupa 2012 changed that. For out in Düsseldorf, a stream of manufacturers unveiled software systems that were based not in the hard drives or servers of the machines they controlled, but in the abstract and, well, nebulous body of cyberspace – something that has become known as ‘cloud computing’.
While the concept has been around for some time, the usefulness of cloud computing has become far more apparent recently, and it has worked its way into almost every aspect of our digital lives; from the email systems we use, to the software behind many of our daily transactions. Importantly, it has the potential to reduce the complexity and cost of back-office systems, and so its adoption by businesses of all types has grown exponentially.
However, it seems the printing industry is not embracing the cloud as much as it could or, perhaps, should.
The National Institute of Standards and Technology, part of the US Department of Commerce, apparently took 16 drafts to come up with a workable definition of cloud computing (see boxout, p46), but it can effectively be boiled down to a few straightforward concepts.
Essentially, the term refers to a model of computing that allows software, platforms and hardware to be accessed over the internet, scaled as required by the end-user, and managed by the provider – Google’s popular Gmail service is a good example of this. Google deals with the management of security, software updates, storage and so forth, while the user accesses the system via a web browser, removing the need for any client-side IT support. Other well-known cloud offerings include Microsoft’s Office 365 suite, Dropbox’s data storage service and customer relationship management (CRM) software from Salesforce.
Compelling arguments
These blue-chip businesses – as well as many other bespoke operators serving niche markets – offer cloud-based systems because the benefits are highly compelling to companies of all types: they are less expensive to run, need smaller capital investment and less ongoing management. Figures from IT analyst firm Gartner estimate the cloud computing market was worth $111bn in 2012, a rise of almost 20% on 2011, suggesting many firms have realised these benefits.
Print, though, is not as highly represented among these firms as perhaps it might be – although take-up is increasing. Recent research by the PODi organisation of 120 member companies from around the world found companies are now using the cloud for print-related activities such as file transfers (45%), web-to-print services (39%) and digital asset management (19%). Other uses such as email marketing (38%) and CRM (21%) software are also growing.
"We’re definitely seeing a trend towards adopting cloud computing," says Tony Hodgson, the director of PODi in the UK. "There’s no argument about the benefits of cloud computing with regard to cost savings, as you don’t need the capital investment for IT management and infrastructure tools that you did in the past."
One printer that is already on board is London-based firm City Digital. It specialises in printing for the finance and charity sectors and uses a system called Coreprint, from Cheltenham firm Vpress, to manage the approval and printing of clients’ work.
"We love the system," says Rob Hood, the firm’s IT director. "Everything can be managed from a single browser-based piece of software."
This ability to access the software on the web is one of the main benefits for the firm, especially when considered alongside more traditional methods, explains Hood.
"We’d have very big reservations about using a desk-based system now. It constrains you to local PCs, whereas working in the cloud means people can access information anywhere and we can show work to clients on a wide range of devices, such as the iPad," he says.
This ability to work anywhere is one of the main drivers of cloud uptake and in the PODi research it was cited as the number-one benefit for moving to cloud software and systems.
Jason Richards, managing director of printer Entwistle, says his firm has also benefitted since adopting cloud software, from web-to-print specialist RedTie because of these accessibility features.
"It really means you can future-proof your business as you can work from anywhere. In the past, if you had a break-in or something like that it could devastate your business. But with cloud-based systems, as long as you can get to a browser, you can run almost like business as usual," he says.
New business
What’s more, Richards says that since moving to the cloud a few years ago the firm has won new business as a result. "Because we can give clients access to a system they can use 24 hours a day, global businesses, say with offices in the US, Australia and India, can all be making edits, approving files and sending them to print whenever they want," he says.
RedTie itself, as you’d expect, is a keen advocate of the cloud and uses Google’s Gmail tool to run its own email systems. This helps the firm save costs and this is another key selling point touted by advocates of the cloud.
"The cost savings of operating in the cloud are a huge advantage and one that people understand straight away when compared to having hardware sat in local offices," explains managing director Jamie Thomson. "It essentially means you can outsource your IT department to specialists who manage the updates and installs, removes the need for the servers and you only pay for the software you use."
So far, then, it would seem moving to the cloud is a no-brainer and you may be ready to chuck your expensive server out the window. However, no technology is ever a panacea and there are others who are urge caution over the promise of cloud.
Issues around connectivity and security loom large when you consider moving to a system where your ability to work is dependent on the web. And your corporate data – often the crown jewels of a service-oriented firm – are stored out in the ether, rather than under your own lock and key.
This is a point raised by Paul Deane, managing director of Shuttleworth. The firm provides MIS and other print management software to a raft of firms, and has seen some customers show caution despite the buzz around cloud computing.
"Lots of systems will move to the cloud because there are benefits, but people have to recognise that any web-based application is utterly dependent on communication, so there is a business risk there," he says. "If you lose your broadband connection, you lose your business application and obviously some customers would not be happy with that, and that’s something we understand."
Steve Richardson, sales director of Optimus, also raises this point. He says some of his customers still prefer the peace of mind of having these systems on their own network.
"We have clients using our software across multiple sites with hundreds of users and their IT directors have said there’s no way they would consider using the cloud to support them in this," he explains.
These are not isolated concerns. The PODi survey saw 35% of respondents cite reliance on internet connectivity as one of the highest perceived risks with the use of cloud-based systems. However, those in the pro-cloud camp argue this has never been an issue.
"We’ve had 100% uptime and not had any issues with the service," explains Richards of Entwhistle. "We can have 40 to 50 users accessing products, printing items, and making changes without issues. Plus if we need extra capacity it can be increased in the server centre."
This, though, also touches on that other key issue: security. Because data is stored remotely in server farms, possibly in numerous locations around the world, there’s a concern your data is not easily accessible, cannot be pinpointed immediately and could be subject to laws beyond your local jurisdiction (see boxout).
"People are very sensitive about having their business data stored without knowing exactly where it is," notes Deane. "Data leaks do take place and so you, as the business owner, have to be comfortable with your business-critical data floating around on the cloud."
Data security and integrity is especially important for printers in the direct mail market that are working with large volumes of information provided by customers. The business case for using the cloud in this instance may be very persuasive, with certain cost and accessibility benefits, but some argue that cloud computing doesn’t provide a high enough level of security of data to make DM viable.
"It’s difficult to see what benefits there would be for us in using the cloud for data storage," says David Wenn, head of digital services and group IT at GI Solutions. "Storage these days is very cheap and there’s a much greater awareness of the sensitivity of data that people are using for direct mail and so a greater emphasis on security and custody."
This is a point echoed by Alex Granat, the UK commercial director of print software reseller Transeomedia: "Data ownership is of vital importance in direct mail and so is a real concern. Keeping data secure and under your ownership, so you know where it is and who’s managing it, is key," he says.
However, as is often the case with the cloud, there is a counter argument. Screen Europe offers a cloud service called Screen Variable Front End designed for direct mail pieces. Vice-president of solutions and technology Tim Taylor claims offering this in the cloud actually improves security. "Because we are merging customer data with the PDF template without the complete database having to be uploaded, we are helping to remove some of those concerns," he says. "Only the advertiser has access to the customer data source and not the printer. The printer only receives a print-ready PDF."
Standard requirement
The need to address security concerns is not lost on the wider industry, though, and as such the internationally recognised ISO 27001 data protection standard is a must and is growing in recognition all the time.
Both on-premises software developers, such as GI Solutions, and those in the cloud, such as RedTie and even Google with its Business App suite of products, have made strides to achieve this accreditation and firms concerned by security should use this as a benchmark.
"ISO 27001 is meant to demonstrate that processes are in place to ensure a base level of information security," says Quocirca IT analyst Clive Longbottom. "It is a standard that mandates not only technical aspects of security, but also how the organisation and its management regard security as a whole. We would recommend anyone looking to a cloud provider looks for the ISO 27001 compliance mark".
Ultimately, though, debates around issues of security and connectivity will never disappear, no matter how prevalent the cloud becomes. The key, when it comes to print and the cloud then, is to consider the cloud under your own business strategies.
"The cloud is a viable option for any print firm if it can fulfil the criteria that is asked of any new investment – can it bring real benefits in terms of operational efficiency and flexibility?" says Gareth Parker, strategic marketing manager for production print at Ricoh UK. "Will it integrate with the systems already in place? Will it increase profitability? Will it help the business to provide its customers with a better service? If the answer is yes to all of the above then the cloud is right for the business."
Print’s slow start to cloud computing may well be a result of businesses in the sector asking themselves those questions and not coming up with consistent yeses. Nevertheless, those in the pro-cloud camp say that increasingly this will change.
"If I was starting up a print-related business today I would do as much as possible using cloud computing resources," says Hodgson from PODi. "My advice to anyone who is IT-oriented or a business leader, especially on the finance side, is to look at your strategy and see if there’s a cloud solution that can fit your needs."
While print and the cloud may be reluctant partners currently, the chances are that in the next few years the majority of print companies will be using the cloud in some capacity – if not for practical reasons, it will certainly be for cost reasons.
Key factors
Quocirca analyst Clive Longbottom’s gives PrintWeek his top five points to consider when assessing cloud computing technology:
1 Availability, business continuity and disaster recovery How is the cloud provider set up to ensure everything is available? How it is set up to deal with failure of components or sub-systems so the user sees little impact? And how is it set up to deal with a bigger failure where it may have to move function and data to another facility?
2 Performance What tools does the firm have in place to monitor and report on end-to-end performance and to optimise this so you receive a good experience?
3 Data integrity Does the provider come under any national laws on data access and if so what’s its stance on these? For example, US firms are subject to the Patriot Act which gives the government the right to access data at any time. Will the provider release data without the customer’s knowledge or will it hold things up so you can try and fight the request?
4 Corporate failure/merger/acquisitions What happens
if the company you use fails or becomes part of a company that you don’t want to deal with? Can you move your data to another provider? Or can you put a networked-attached storage device or similar in the facility to replicate the data from the provider’s facility to your own so you can pick up your storage asset and the data on it and use it elsewhere?
5 Security Make a list of your key security issues and consider how you would deal with them internally. Then you have a baseline to compare against a cloud provider. In general, it is unlikely that you will be able to match the majority of an external cloud provider’s security measures.
Terminology
The US National Institute of Standards and Technology defines cloud computing as follows:
Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (eg networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction."
Five requirements a real cloud service must provide
On-demand self-service Customers should be able to scale usage requirements whenever necessary without the need for human interaction with providers
Broad network access The service should be accessible across networks, ie the internet, on numerous devices such as smartphones, tablets or laptops
Resource pooling The service’s physical and virtual resources should be able to flexibly support multiple customers with different requirements
Rapid elasticity The system should be able to react almost instantly – ideally automatically – to any changes in usage levels from customers
Measured service The cloud provider should be able to measure the exact system usage from a customer, such as storage, user accounts and bandwidth, to provide transparency on billing and use requirements
For the complete definitions visit: http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf
