Episode Transcript
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SPEAKER_01 (00:08):
Welcome to the
Technology Translator.
I'm Vic.
Every episode we break downtechnology, cybersecurity, and
AI into plain English forAustralian business leaders.
Welcome to the podcast.
(00:29):
Hello everyone and welcome backto another episode of the
Technology Translator, where wetake business technology, strip
away the jargon, and make itmake sense.
Now, for the next couple ofepisodes, I'm actually going to
take us right back to basics.
We're going to talk about someof the fundamental pieces of
business technology that sitbehind everything we use every
(00:50):
single day.
And today we are starting withservers and cloud.
Because here's the thing (00:55):
if
you're an end user in a
business, you probably don'tthink about any of this.
You start a new job, someonegives you a laptop, you might
get a mouse, keyboard, a coupleof monitors, maybe a headset,
someone gives you a username,password, maybe a couple of
them, and says, Alright, off yougo, you're good.
And from your perspective, youare.
(01:17):
You open your laptop, you canlog in, you open Outlook, you
access your CRM.
Someone says, Oh, that documentthat you need is in the F drive.
Cool, you open File Explorer,click on F drive, and there it
is.
Or someone says, hey, that'sactually in SharePoint, so you
open SharePoint, there it is.
You don't necessarily stop andthink, where is that file
(01:39):
actually coming from?
You just assume that F drive issomehow part of your computer.
You open an application and itworks.
You log into a web page and yourinformation disappears.
There's this entire technologyenvironment sitting behind what
you're actually doing though.
And as an end user, you don'tneed to know about it.
You just need it to work.
(02:00):
But here's where things actuallyend up changing.
If you're a business owner, amanager, an executive, or
someone responsible for makingdecisions about technology,
someone is eventually going toask you to spend money on this
stuff, and potentially a lot ofmoney.
Someone's going to tell you thatyour servers need replacing.
(02:23):
Someone's going to recommendmoving an application to the
cloud.
Someone's going to show you anAzure bill.
Someone's going to start talkingabout storage, compute, virtual
machines, infrastructure, ormigrating workloads.
And suddenly you're being askedto approve an investment in
technology that you've neveractually seen and potentially
don't completely understand.
(02:44):
And depending on the size ofyour organization, we're not
necessarily talking about just afew thousand dollars.
Cloud infrastructure spendingfor larger organizations can run
into hundreds of thousands oreven millions of dollars every
single month.
And so I think if you're goingto be sitting at a table making
decisions about that, you shouldat least understand what you're
(03:07):
buying.
And personally, I didn't.
I actually had no idea thisstuff even existed when I first
started working in technology.
I remember eventually findingmyself working around cloud
infrastructure and havingconversations with technical
people and thinking, what onearth are these people talking
about?
Why is there a giant box sittingin the corner of the office?
(03:29):
And why does everyone care aboutthis room that's absolutely
freezing?
What does that box do?
Because from my perspective, Icould open the CRM and it
worked.
I clicked on the F drive and myfiles appeared.
I opened an application and itworked.
If I was in the office, I couldplug my computer in and things
worked.
If I was at home, I had to loginto a VPN.
(03:50):
And you know what?
I never questioned any of it.
But suddenly I realized there isan entire layer of business
technology that most of us neversee.
And so that's what we're goingto translate today.
What is a server?
What does it actually do?
What is cloud?
Why did businesses start movingfrom one to the other?
(04:11):
What are the costs?
What are the securityimplications?
And what should you actuallyneed to understand when somebody
starts asking you to make adecision about any of this?
And I think the easiest way tounderstand all of this is to
actually go backwards.
Because servers weren't inventedjust because someone thought
businesses need a big, expensivecomputer sitting in a freezing
(04:32):
room.
They solved a problem.
So let's go back before servers.
Actually, let's even go backbefore computers.
So imagine you're running abusiness 40 or 50 years ago.
How do you store thatinformation?
Paper.
Customer records, you've gotinvoices, files, payroll,
contracts, purchase orders,accounting records, everything's
(04:55):
written down.
You've got notebooks, you've gotledgers, you've got diaries,
folders, and eventually you'vegot filing cabinets.
Lots and lots of filingcabinets.
And honestly, it works.
If I need the Smith customerfile, I go to the filing
cabinet, find Smith, pull outthe folder, and I've got all the
information I need.
(05:16):
But there's an obvious problem.
Only one person can really havethat folder at a time.
If someone takes it home, no oneelse has it.
If someone puts it back in thewrong place, good luck.
And sharing information betweenpeople is slow.
Then computers came along andsuddenly businesses go, this is
incredible.
(05:36):
We can type documents, we cancreate spreadsheets, we can run
accounting software, we canstore customer information
digitally.
We're getting rid of all thispaper.
Fantastic.
Except we've accidentallycreated another problem.
Because now everyone has theirown computer.
Sarah has a customer spreadsheeton her computer.
(05:57):
John has the finance informationon his.
Someone else has payroll.
And someone else has the latestversion of the proposal.
We've made everyone individuallymuch more productive, but we've
also created a whole heap oflittle information silos.
It's basically the digitalversion of giving every employee
their own filing cabinet andthen putting a lock on it.
(06:19):
So businesses need anothersolution.
They need a way to keep thebenefits of computers while
bringing all that informationback together.
And that is where the servercomes in.
So we've got all theseindividual computers, we've made
everyone more productive, we'vecreated these information silos,
(06:39):
and then we've got servers.
Now, here's something I actuallyquite like about the word
server.
It's one of those raretechnology terms that actually
tells you what it does.
A server serves things to othercomputers.
That's it.
Now, when you hear the wordserver, you may immediately
(07:01):
picture one of those big boxes,flashing lights, fans running,
cables everywhere, sittinginside a freezing cold room.
And yes, that absolutely can bea server, but a server is really
just a computer, just a muchmore powerful computer than the
laptop sitting on your desk.
It's designed differently.
It's generally built to run 24hours a day.
(07:24):
It will likely havesignificantly more memory, more
processing power, more storage.
It may have multiple hard drivesand redundancy built into it.
So if one component fails, thewhole thing doesn't necessarily
fall over.
But fundamentally, it's still acomputer.
The big difference is what it'sthere to do.
Your laptop is primarily thereto serve you.
(07:47):
A server is there to serve lotsof people.
So instead of Sarah having herfiles on Sarah's computer, John
having his on his computer, wecan centralize them.
And this is where we starttalking about things like local
storage.
So what does local storageactually mean?
Let's go back to the filingcabinet example.
(08:09):
Instead of giving every employeetheir own filing cabinet, we
create one central archive room.
Everyone puts their informationin there, everyone knows how to
find it and where to find it.
And most importantly, we're notrelying on Sarah being at work
today because the file we needisn't sitting on actual Sarah's
laptop.
It's sitting centrally.
And that's effectively whatbusinesses are doing with
(08:31):
servers.
And that's why if you've workedin an office environment for a
while, you're probably seeingthings like F drive, G drive, S
drive, maybe projects, finance,company files, whatever your
business happens to call them.
Now, here's the important bit.
When you're sitting at thelaptop and you click on that
F-drive, that information maynot actually be on your laptop
(08:54):
at all.
Your laptop is basically saying,Hey server, can you show me
what's in F drive?
And the server says, Yep, orpotentially no.
Because servers also helpbusiness control who was allowed
to say what.
Maybe everybody can access thegeneral company folder, but only
finance can access payroll, onlyHR can access employee records,
(09:15):
etc.
So suddenly we've actuallysolved two problems.
We've centralized theinformation and we've started
controlling access to it.
And then the other thing that weI didn't really understand when
I first started learning aboutinfrastructure is I thought that
servers would just basically behard drives.
Put files on them, people accessfiles, done.
(09:38):
But servers can actually do alot more than that.
They can run applications, hostdatabases, manage users, manage
permissions, they can helpauthenticate who you are when
you log in.
They can run accounting systems,CRM, payroll, and manufacturing
applications, websites, allsorts of things.
(09:59):
So when I used to sit at mycomputer, open a CRM, and think,
oh cool, here's all the customerinformation.
I wasn't thinking about wherethat information was coming
from.
Maybe there was a databasesitting on a server somewhere.
My computer was just asking forthe information and displaying
it to me.
And that's why servers becamesuch a critical part of business
technology.
They weren't just storage.
(10:20):
For many businesses, they becamethe central engine room behind
almost everything that staffwere actually doing.
But then we've got anotherproblem.
This all works beautifully whileyou're sitting inside the
office.
Your laptop is connected to thebusiness network, you plugged it
in, the server is connected tothe business network, and
everyone's happy.
(10:41):
But what when you go home ortravel interstate?
Or if you're in sales like me,who is constantly on the road,
your server's still sitting backin the office.
And this is where that term VPNbecame important.
VPN stands for virtual privatenetwork.
And we're going to talk aboutthis more in the next episode
(11:02):
when we get into networking andfirewalls.
But today, think of a VPNcreating a secure tunnel back to
your office.
You're sitting at home, but yourcomputer can securely connect
back to the business network andaccess things almost as if
you're actually sittingphysically in the office.
Your server hasn't goneanywhere, you're just reaching
back to it.
And for a very long time, thatwas basically how business
(11:24):
technology worked.
But owning servers came withbaggage.
And here's where we need to talkabout the physical side of all
of this.
Because if you're going to own aserver, you need to know where
you're going to put it.
And these aren't necessarilylittle boxes that you could just
chuck underneath someone's deskand forget about.
As businesses get larger, theymight have racks of servers.
(11:47):
And servers generate a lot ofheat.
So now you need cooling, youneed electricity, now you need
power.
And what happens if the powergoes out?
Maybe you need backup power.
What happens if a hard drivefails?
You need redundancy.
What happens if the serveritself fails?
You need backups.
You need networking equipment,you need physical security.
(12:09):
You need someone actuallymaintaining all of this.
Suddenly, owning the technologyisn't just about buying the
actual technology.
You're maintaining anenvironment around it.
And this is why businesses builtserver rooms.
And this actually brings me to abit of a conversation I had
about a decade ago that hasalways stuck in my mind.
It's been around 2016.
(12:31):
I was doing a lot of sales onthe road at the time, and I met
with an IT manager from a localcouncil.
They were building a brand newcouncil building.
And we got talking a bit aboutwhat they're doing with their
technology.
And he said something along thelines of, yeah, well, we're
actually moving a lot of thisstuff to cloud.
Great.
And then he goes, but I've gotone problem.
I'm thinking, okay, what's theproblem?
(12:52):
He explained that they'd startedplanning this new building years
earlier, as councils have atendency of doing.
And as part of the design, he'dplanned this amazing server
room.
It was huge, heaps of rackspace, dedicated aircon, power,
everything they could possiblyneed.
They'd have room to expand.
They'd plan for the future.
Except the future changed.
(13:13):
Because by the time they weregetting into this new building,
they'd started moving to cloud.
And suddenly he didn't need thisenormous enormous server room
anymore.
So he'd essentially designhimself this absolutely
beautiful, very expensive, verycold room in the basement.
I remember sitting therethinking, well, that's actually
(13:35):
quite fascinating, but becausetechnology had changed quickly
enough, it affected the designof the physical building.
And that was probably one of thefirst times I really started
thinking about the fact thattechnology infrastructure and
physical infrastructure hadhistorically been very
connected.
Businesses needed offices,partly because their people
(13:56):
worked there, but theirtechnology lived there too.
Their phone systems lived there,their servers lived there, their
network lived there, their fileslived there.
You couldn't just pickeverything up and work from
somewhere else.
Whereas today, you can start abusiness without having any
almost any physical technologyinfrastructure at all.
You can have 20 people sittingin 20 different houses.
(14:17):
You just give them laptops, givethem internet, give them the
right access to cloud services,and you have a business.
And that's a massive change.
So let's go into what actuallymade that possible.
And it's the our favorite thingin our lives, the internet.
The internet literally just gotgood enough.
(14:38):
Think about the internet 20 or30 years ago.
Slow, unreliable, and definitelynot something you'd necessarily
want for your entire businessdepending on every second of
every day.
If the server is sitting 20meters away from you inside your
office, accessing informationcould be relatively
straightforward.
But as internet connectionsbecame faster and more reliable
(15:02):
and readily more available,businesses start asking a pretty
logical question.
Why does the server actuallyneed to be in my building?
If I can connect to anothercomputer across the internet
quickly and securely, why am Ipaying for the room?
The cooling, electricity,hardware, maintenance.
Why don't I just get someoneelse to do that?
(15:22):
And that's where cloud reallystarted to make sense.
So what actually is cloud?
Cloud's one of those words thatsounds far more exciting than
what it actually is, becausecloud is still servers.
There isn't some magicalfloating computer in the sky.
There are physical servers,there are data centers, there
are cables, hard drives, networkequipment.
(15:45):
There is absolutely enormousbuildings full of this stuff.
The difference is it's just notyours.
Instead of buying a server andputting it inside your office,
you're using infrastructureowned by somebody else.
Maybe that's Microsoft Azure,maybe it's Amazon Web Services,
maybe Google Cloud, maybeanother provider.
(16:06):
But fundamentally, you're usingsomeone else's computing
infrastructure.
And because we've got goodinternet connectivity, you can
access it from almost anywhere.
So cloud didn't actually makeservers disappear.
It just changed where they wereand who owns them.
So is cloud better?
And this is where we get to thequestion that people do
(16:28):
inevitably ask.
Should we have servers?
Should we be cloud?
And I don't think that'sactually the right question.
The better question is what arethe trade-offs?
Because there are advantages anddisadvantages to both, and every
business is different.
So let's actually talk throughthem.
Let's start with money.
This is probably the firstconversation most businesses
(16:50):
leaders are going to have.
How much is this going to costme?
And there is a misconceptionthat cloud is automatically
cheaper.
It's not.
It can be, but it isn'tautomatically.
Let's use a vehicle analogy.
You can go and buy a companycar, a large upfront expense,
you own the asset.
And then you've got maintenance.
(17:11):
Service, tires, regro, repairs.
Eventually you will need toreplace it.
Or you can always release thevehicle.
Now you're paying regularly, andlook, maybe that is a lot easier
for your cash flow.
Maybe the maintenance ispackaged differently.
Maybe replacing it is actuallyeasier.
But just because you're payingmonthly doesn't automatically
(17:32):
mean you spent less money afterfive years.
Servers and cloud have a similardistinction.
When you buy a physical server,you have a large upfront capital
expense.
You buy the hardware.
Then you've got the ongoing costof actually maintaining it.
Eventually, it will reach end oflife.
And that's another term worthunderstanding.
(17:53):
And end of life does not meanit's about to explode.
It might still work perfectlywell.
But what it means is that thehardware or software is getting
to an age where the manufacturermay no longer support it.
The security updates might stop.
Replacement parts, you may beturning to eBay to find.
The operating system might notactually receive updates
(18:15):
anymore.
And eventually, keeping it doesbecome a big business risk.
So every few years you arepotentially looking at another
significant investment.
Cloud does change that modelbecause instead of buying the
infrastructure, you'reeffectively renting access to
it.
And that turns a very largecapital expense into an ongoing
(18:36):
operational expense.
And for a lot of businesses,that is very attractive.
But the one catch is that themeter does keep running.
And cloud costs are not juststorage.
And cloud bills can become very,very confusing.
Because you may be paying forprocessing power, memory,
(18:57):
storage, networking, datatransfer, backups, monitoring,
security services, disasterrecovery, different levels of
availability, support.
There may be reservations, theremay be certain savings plans,
but only on certain elements andcertain aspects.
And depending on what you'rerunning, the numbers can become
(19:17):
quite substantial.
I have seen Azure environmentswhere the spend is something
senior executives absolutelyneed visibility over because
we're not talking a hundredbucks a month.
We're talking thousands ormillions every single month in
technology spend.
And I'm not saying thatbusinesses shouldn't be using
cloud, but sometimes businessesare getting to the stage where
(19:41):
no one's actually gone back andasked, are we still using
everything we're paying for?
Have we overprovisionedsomething?
Are we paying for computingpower that we don't actually
need?
And cloud optimization hasactually become its own
discipline where ultimatelyconsultants will come in to go,
hey, let's just audit yourenvironment and figure out are
you actually using what you'repaying for?
(20:03):
And do you need to be payingthat much?
Cloud does give you enormousflexibility, but flexibility
without that ongoing managementcan become very, very expensive.
Then we get to the other massiveassumption of security.
Cloud must be more secure.
Again, maybe, but notautomatically.
(20:23):
Cloud providers do offerphenomenal security, physical
security, redundancies,monitoring, huge teams of
specialists.
But they don't magically secureeverything inside the platform.
There is a concept in cloudcalled the shared responsibility
model.
And the easiest way I canactually explain this is to go
back to property.
Imagine you rent an apartment.
(20:45):
The building manager isresponsible for the lift and all
the common areas.
They're responsible formaintaining the building itself.
But if you leave your apartmentdoor wide open, that's not the
building manager's fault ifsomeone just walks in and steals
your stuff.
Cloud works similarly.
Microsoft or Amazon or whoeveryou're using may be responsible
for securing the underlyinginfrastructure, but you're still
(21:08):
responsible for things like whohas access, what permissions
they have, how things areactually protected, whether
you're using multi-factorauthentication.
Security doesn't disappear whenyou move to cloud.
The responsibilities simplychange.
Reliability and resilience isalso something where cloud can
have a massive advantage.
(21:29):
Imagine trying to recreate whata major data center has with
inside your own office.
The multiple power supplies,backup generators, network
connections, the guards allaround, physical security, the
fire suppression systems,redundant hardware, 24 7
monitoring, teams of engineers.
Could you build it?
(21:50):
Sure.
If you've got enough money.
Cloud does give businessesaccess to.
To infrastructure that wouldpreviously have been incredibly
expensive for them to buildthemselves.
But there is another side tothat.
You now really have to careabout your internet.
And look, we're very lucky atthe moment that internet seems
(22:13):
to be a very readily availablething, and it very rarely does
go down.
But you have to ask thatquestion.
What if it does go down?
If my payment platform, forexample, is based on a server
that is internet reliable, andthat server no longer is working
very well, that's where you'llsee things like MasterCard or
Visa just all of a sudden notwork for an afternoon.
(22:36):
What we're trying to say is it'snot a negative against cloud,
but it is there a trade-offright there.
You remove one dependency andyou're also potentially creating
another one right there.
Scalability.
A huge advantage of cloud isdefinitely the scalability
element.
So imagine you own a physicalserver and your business
suddenly grows significantly.
(22:57):
You might need more storage,more memory, more processing.
So now you're out there buyingmore hardware.
With cloud, it can be as simpleas just clicking the button.
You need more storage?
Click, increase.
Need more processing power,click, increase it again.
Need to scale back down becausethings got quiet all of a
sudden, potentially, you can dothat too.
(23:19):
But again, remember what I saidabout cost.
Being able to increase resourceseasily also means it's very,
very easy to increase your bill.
One other term that I do want tothrow in here, if you are
talking about servers, isvirtualization, and you will
eventually hear it.
Virtual machines, VMs,potentially names like VMware or
(23:41):
Hyper-V.
What does it actually mean?
Imagine you bought one enormoushouse, but rather than having
one family living in it, youdivide it into separate
apartments, different people,different locks, different
things happening inside.
But physically it's still allthe same building.
That's essentially what you cando with physical servers.
You just segment it into onerunning a finance system,
(24:04):
another one running anotherapplication, another one might
do something completelydifferent.
But underneath, they are sharingthe physical hardware.
And when cloud environments usevirtualization extensively, so
someone might say we needanother server, and it doesn't
actually necessarily mean thatsomeone's ordering another big
black box.
It may just be simply creatinganother virtual machine.
(24:28):
So here's the funny thing.
After all this talk aboutservers and cloud, most
businesses are not relyingpurely on one or the other.
They're usually somewhere in themiddle, what we call a hybrid
environment.
Maybe there might be an oldmanufacturing system that only
works on that one older serverthat you keep in your offices.
(24:49):
But you did move to cloud andyou've got Microsoft 365 and you
use SharePoint internally.
That's a hybrid model.
And technology isn't aboutpicking a team.
You're not either team server orteam cloud.
However, there are someorganizations who do pride
themselves on being completelycloud remote-based
organizations.
It's more so about deciding whatmakes sense for your workload,
(25:11):
the business, the risk, and thebudget.
If you want a purely remoteworkforce, then going cloud
makes a lot of sense.
If you are in the middle ofnowhere, have very limited
internet connectivity, and youhave a team who mainly works
inside an office environment,say a distributor, manufacturer,
etc.
SPEAKER_00 (25:42):
Having an on-premise
server may actually make sense
for you.
SPEAKER_01 (25:47):
So it's deciding
what makes sense for your
workload, the risk, and yourbudgets as well.
Now, one thing you have toremember is always backups.
Cloud does not automaticallymean backup.
There are completely differentthings.
Like my analogy of the apartmentbuilding before.
If you rent an apartment, youwould be responsible for having
(26:11):
your own contents insurance.
Yes, the apartment buildingwould have their own insurance.
So say a storm happened and thebuilding blew down or got
severely damaged.
Yes, they would have their ownredundancies.
Similar mentality when it comesto cloud storage.
Yes, they have redundancies.
So say, for example, somethingbad happened to that full
(26:34):
environment, they then are ableto go, look, don't worry, we
have got a copy of your datasomewhere.
It may not be in that samefacility, it might be in a
different state, it may also bein a different country, but they
do have backups themselves.
What you don't have, however, isif somebody accidentally deletes
(26:54):
something, if ransomware hips,if data becomes corrupted, you
need to know what happens next.
You need to know how oftenthings are actually backed up,
where are those backups, howlong we retain it.
Because even though the overallcloud provider may have those
backups, they may not have themas quickly as you need them to
(27:17):
actually repair your business.
So ultimately, what shouldbusiness leaders actually be
asking?
You don't need to understandevery Azure service.
It's not your job.
However, you do need to askintelligent questions.
Why are we doing this?
Why cloud?
Why on-prem?
What are the alternatives?
(27:38):
What are the upfront costs andwhat are the ongoing costs?
What does this actually looklike over the next five years,
for example?
What's included?
What's not included?
Does it scale?
How are we securing it?
How are we backing it up?
Where is our data stored?
Is it actually being sent toChina?
What happens if the systemfails?
(27:58):
And what happens if we want toleave?
How do we get our informationback?
They aren't technical questions,but they are real business
questions.
And you need to understandenough about how to make good
decisions.
You don't necessarily need toknow how to actually build the
technology.
So let's bring all this back uptogether.
We started with paper, hadfiling cabinets, notebooks,
(28:21):
ledgers, everything physical.
Computers came along,individuals became productive,
but suddenly our information wassitting in silos.
Servers helped centralize it.
They gave businesses sharedstorage, shared applications,
centralized access.
And over time, they became theengine rooms.
(28:42):
The internet erupted, and cloudwas born because cloud allowed
businesses to use someone else'sinfrastructure instead.
And that gave us flexibility andscalability, access from almost
anywhere, and access toinfrastructure that many
businesses could never justifybuilding themselves.
But it's also changed the waythat we pay, it changed our
(29:03):
dependencies, it changed oursecurity responsibilities, and
it created an entirely new setof things businesses need to
manage.
Cloud isn't automaticallybetter, and servers aren't
automatically outdatedtechnology.
But you do need to understandwhere technology is going,
understand the business problem,understand the trade-offs, and
(29:25):
then make the decision.
And hopefully someone says, ornext time someone says, we need
to replace a server or we shouldmigrate this workload into
Azure, you're not sitting therethinking, what on earth are
these people talking about?
Next episode, we're going todelve into networks and
firewalls.
Mostly looking at if all thisinformation is flying backwards
(29:46):
and forwards, how does thatactually work?
And also, most importantly, whatare we allowing in and what are
we keeping out?
Until then, thanks for listeningto the Technology Translator.
Thanks for joining the episode.
If you do want to follow me onInstagram at all, you can find
(30:09):
me under the TechnologyTranslator.
If you would like to email me,Vic at the Technology
Translator.au.
And I guess I wouldn't be doingthis properly if I didn't say if
you like what you hear, hit thefollow button.
There will be more of theseepisodes coming up.