Girish Sharma The three most essential benefits of a Virtual Private Cloud (VPC) How many times have you heard service providers saying that they are a perfect fit for the cloud business because they are already providing the network? What do they mean? How does your business benefit? Is network a critical component of your application or is it just a redundant item on the list? Let me answer these queries by explaining the three most important benefits of Virtual Private Clouds.
Transcript
Girish Sharma
The three most essential benefits of a Virtual Private Cloud (VPC)
How many times have you heard service providers saying that they are a perfect fit for the cloud business
because they are already providing the network? What do they mean? How does your business
benefit? Is network a critical component of your application or is it just a redundant item on the list?
Let me answer these queries by explaining the three most important benefits of Virtual Private Clouds.
Before we get down to explaining the benefits of a VPC, let me define
what a VPC is in the first place. VPCs are similar to public clouds yet
somewhat different – they can be defined as a private cloud infrastructure
provided within a public cloud. The resources are owned and operated
by the cloud provider. However, unlike public clouds, that are Internet
reachable, Virtual Private Clouds are Intranet reachable. So they look and
feel like a part of a company’s MPLS-based internal Wide Area Network.
Coming down to benefits, the three most essential benefits of a VPC are:
Bandwidth Efficiency
Take a look at the figures below, do you spot the difference? Yes, in the figure on the
left, the traffic that is destined for the cloud is being sent via the company data center or
is being looped through the company data center. This leads to wastage of bandwidth,
router, switch and firewall capacity. Your company will end up paying twice for bandwidth.
How? - By paying for the primary WAN connection and then for the Internet. Not to
mention network sizing – the very basis of a cloud is access to on demand resources. In
this case your network must always be sized for peak traffic. How is that efficient?
Cloud Bandwidth Efficiency
The figure on the right hand side shows a Virtual Private Cloud set up. With the second
set up, the bandwidth required to reach the cloud will be billed for on-demand and users
will be able to take the shortest and a cost effective route to the application.
Forrester predicts the public cloud market will peak in 2014 and “then enter a
period of significant commoditization, price deterioration, and margin pressure.”
While the public cloud market declines, the VPC infrastructure services market
will continue to grow, from US$2.54 billion in 2012 to US$21.04 billion in 2020.
This sustained growth will largely be attributed to the “enterprise-nature” of VPC
services, including higher levels of security, privacy, and control not offered by
public cloud solutions, and not easily commoditized.
Security
Traffic to and from the Virtual Private Cloud stays within the corporate firewall without
crossing the Internet. With routing policies companies can also specify which users are
allowed to reach the Cloud resources and which are not.
With public clouds, encryption technology will be required to help secure the transmission
across the Internet. Although encryption is generally secure it is still one more thing
that needs to be managed by Corporate IT and it needs to be configured correctly.
Furthermore, corporate IT will have no way to prevent users from attempting to access
the Cloud resources.
Application Performance
Congestion in the Internet can disrupt or slow down your application traffic. Even if you
have sized your network for peak times, inbound congestion could hamper application
performance and make applications run slow. The point of congestion is shown in the
above figure.
With Virtual Private Cloud, the cloud resources are routed through the corporate MPLS
based WAN. Thus, traffic with a high priority can be marked and delivered accordingly.
A Word For Service Providers
The cloud service market is going to go through a sea change with significant market
shifts in the coming years; hence, the cloud computing service providers must look at
expanding their service offering through introduction of Virtual Private Clouds (VPC).
They should look at crafting their VPC offering to meet the following criterion:
õ Emphasize “enterprise-strength” services with comprehensive security capabilities
õ Appropriately differentiate service levels and value-added services that go above and beyond basic compute capabilities
õ Accentuate the ability to provide true end-to-end cloud computing infrastructure and networking services, all covered by service level agreements (SLAs) from a single service provider (for example, covering not only cloud computing infrastructure availability, but network availability as well)
õ Properly balance service prices between the desire to be competitive and the desire to capture price premiums
õ Target the right customers and workloads
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Netmagic, a wholly-owned subsidiary of NTT Communications, is India’s leading Managed Hosting and Multi-Cloud Hybrid IT solution provider with 9 carrier-neutral, state-of-the-art hyperscale and high-density data centers, and serving more than 2000 enterprises globally. Headquartered in Mumbai, Netmagic also delivers Remote Infrastructure Management (RIM) services to various Enterprise customers globally including NTT Communication’s customers across Americas, Europe and Asia-Pacific region. The Company was the first in India to launch services – Cloud Computing, Managed Security, Disaster Recovery-as-a-Service (DRaaS) and Software-Defined Storage. NTT Communications and Netmagic have been ranked 3rd and 5th respectively in Asia among the top global data center operators by Cloudscene in their Q1 & Q2 2017 Leaderboard reports. This effectively makes Netmagic #1 data center service provider in India. Netmagic has been recognized with 3 awards at the CIO Choice Award 2018 and Frost & Sullivan India ICT Awards 2018.
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