Network latency does not stop cloud computing

Reading] AIG Edison decided to adopt the cloud transplant program, and started working with the new core application platform of Salesforce.com in San Francisco last January. Now, the system can serve AIG Edison millions of customers, more than 3,000 company employees and more than 15,000 insurance dealers and brokers.

In this case, Futami says, the company faces two options-replacing all the old apps or porting them to the cloud and running the managed software. More decision making trade-offs, companies tend to adopt the latter scenario.

It takes a long 30 months to replace all of the old application platforms within AIG's Edison company, and it only takes 10 months for the company to migrate to the Salesforce.com INC platform. The study also shows that the cost of using cloud computing solutions is only one-third of the cost of other costs.

Futami said that for AIG Edison Managers, completing the project as soon as possible is a key factor in weighing decisions, "Upgrading the system is critical to improving customer service levels."

At first, there was a dilemma over whether to implement a cloud migration through Salesforce.com managed services, as the data center's hosting software was stored in the United States, 5000 miles away from AIG's Edison headquarters in Tokyo. Geographic distance issues tend to cause network delays, and it is also easy for policymakers to be concerned about some of the legal and regulatory issues involved in the project.

However, AIG Edison decided to adopt the cloud transplant program and started working with the new core application platform of Salesforce.com in San Francisco last January. Now, the system can serve AIG Edison millions of customers, more than 3,000 company employees and more than 15,000 insurance dealers and brokers. The hosted application platform can handle complex projects such as generating insurance quotes and evaluating insurance requirements.

He also said that at the outset of the decision, another important question was whether the new cloud-based system could provide the performance level of the AIG Edison Legacy System.

In addition, the company's successful implementation of the cloud is also inextricably linked to the involvement of Appirio, a company based in San Francisco dedicated to helping companies build cloud platforms that can help project designers set new systems with the same response speed as traditional platforms.

Network latency, especially for businesses that provide all kinds of network services globally, will be a challenge. Rules are always dominant, but network latency does not seem to affect the extension and application of SaaS services.

For example, a fleetmatics company in Dublin, which specialises in hosting GPS services, has a system platform that is placed in Ireland but is fully capable of meeting the fast-growing US positioning market needs. At present, the company has benefited 68 million of dollars.

Mitchell also said it believes there is no problem with European SaaS providers serving U.S. customers. As part of the global disaster preparedness model and the development of new markets, the Fleetmatics company has set up a new Denver data center. In addition, the company began testing network latency from Dublin and the United States to India.

Last fall, Salesforce.com announced a plan to build a data center in Japan in the second half of the year. The company's spokesman Joseph Schmidt said Japan was the fastest-growing country in the Salesforce market. After the establishment of the data center in Japan, "our customers will enjoy a quick access experience as if they were at home." ”

AIG Edison found that, depending on the speed of the connection and the amount of data, the connection between the United States and Japan produced a different network latency, in general, sending and receiving 32KB of data would take 132 milliseconds. By contrast, it takes only 52 milliseconds to send and receive data of the same size within Japan.

Based on the overall customer environment of Appirio and AIG Edison, it includes a set of virtual desktop systems that can provide 300 to 400 milliseconds for salespeople to use.

This delay rate is implemented on the basis of optimization and adjustment. Most of AIG's work was to send massive amounts of data to the Salesforce data center, where most of the company's Edison information was stored. In addition, the optimized system can conduct four of data queries at the same time, rather than the traditional single single query.

"If the application is able to do this, the number of round-trip databases will be significantly reduced," "The delay is no longer a big problem," Runaware Inc. CTO Andy Poulter said. Runaware is a provider of various types of SaaS based

And cloud services companies, including online software testing services. The company's data centers are located in Sweden and Miami, while service customers come from all over the world.

For AIG Edison, the decision to work with cloud service providers faces security challenges.

"It may be difficult for some people to accept the fact that important data is being transplanted abroad," said Jason Park, general manager of Appirio company Japan.

But Salesforce's physical and logical combination of data for proper storage and protection can also reduce management concerns about security issues. AIG Edison found Salesforce "excellent in terms of reliability and uptime, and it also provides a powerful security service." "said Park.

As AIG Edison was Prudential Financial Inc last month, Futami decided to leave. But his decision to cloud-transplant is becoming more common: the US public cloud computing market will grow by 24% to $176 this year, according to IDC.

Phil Garland, a partner from PwC consulting, said that whether or not the network latency was being criticized depended largely on user expectations, tolerance, and related business types.

"It actually depends on the level of performance you can accept," Garland says. "If the company's business is far from the data center, it will have an impact on performance." ”

"But service providers generally take a number of ways to narrow the gap between actual and expected performance," Garland added, "Good design can reduce the problem of high network latency environmental problems-at least to a certain extent." ”

Garland goes on to say that the user's acceptance of network latency is not static, depending on the function and importance of the data. But as global customers continue to expand and companies take the practice of consolidating data centers, this issue becomes increasingly important. "It is a good moment to discuss this issue." ”

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