The following Service Description covers the ITS NearCloud service offering. For a full description of our overarching Managed Services covering response time expectations, implementation/onboarding, how we provide support, limitations and client responsibilities please start here.

Overview

ITS NearCloud provides clients with comprehensive cloud service offerings to deliver infrastructure-as-a-service, data protection services, and software licensing options. ITS NearCloud is delivered as a multi-tenant offering from our enterprise class infrastructure, in our enterprise class datacenter, and managed 24×7 by ITS personnel.

Service	Description
Virtual Datacenter	Required for each NearCloud client. Provides a virtual firewall, network connectivity, and bandwidth for a client’s tenant.
Virtual Machines (VM)	NearCloud delivers Virtual Machines (VMs) from a catalog of ITS VM Templates that includes virtual CPU (vCPU) by core and Memory in GBs.
Primary Storage	NearCloud delivers enterprise class storage for each client tenant as a primary storage pool and then assigns storage to each VM in the tenant.
Data Protection Services	NearCloud provides clients with options for daily backup services and off-site archival backup copies to deliver data protection services.
Microsoft Licensing options	Each VM includes licensing for Windows Servers and NearCloud provides options for Microsoft SQL, RDS, and other licensing as a monthly service.
Migration Services	ITS provides clients with initial onboarding services to deploy the virtual environment along with services to migrate into NearCloud and out of NearCloud as billable engagements.

Below is an overview of each key feature with full details following:

Virtual Datacenter

Each NearCloud client is required to have a Virtual Datacenter which provides the tenant with network access, a virtual firewall, and blended internet bandwidth. In addition to the Virtual Datacenter, clients have options to deploy their primary connectivity into NearCloud as either a site-to-site VPN, ITS supported SD-WAN solution, a dedicated point-to-point circuit, or an extension of a client’s MPLS solution.

How It Works

ITS NearCloud delivers secure, isolated client environments within a shared multi-tenant cloud infrastructure. Each client tenant is architected to maintain strict data separation and security through advanced network segmentation techniques, including virtual LANs (vLANs), firewall policies, and role-based access controls.

By leveraging vLANs, we ensure that each client’s traffic is logically segmented, preventing unauthorized access or data leakage between tenants. This isolation is further reinforced with robust security policies, firewall policies to allow only the minimum necessary traffic, and monitoring tools that provide visibility and control across the environment.

Our infrastructure supports scalable, compliant, and resilient cloud services, enabling clients to benefit from the cost-efficiency and agility of shared resources without compromising on security or governance. Whether hosting applications, data, or hybrid workloads, each tenant is provisioned with a secure perimeter and tailored controls to meet their unique compliance and operational requirements.

1. Virtual Datacenter: Each client is provided with a virtual firewall, network access, and internet bandwidth from our multi-carrier blended internet.
2. Primary Connectivity: Each client will have a primary means of connectivity into the ITS NearCloud environment.
3. Optional Co-location: Clients may have need to co-locate physical equipment in our datacenter such as a router for primary connectivity, as an example. Clients with such need can complete our Request for Colocation form and submit for approval. Co-location services will incur an additional monthly fee depending on rack, power, and cooling requirements.

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Virtual Machines

ITS NearCloud provides clients with dozens of options for Virtual Machines ranging from 1 vCPU to 16 vCPU VMs. Each template also includes Memory (RAM) in multiple GB increments. Clients are provided with the ITS supported VM templates so they can align their VM needs to templates.

How It Works

VM templates are published by ITS for NearCloud and made available to clients. Clients can determine which VM template best meets their need. There may be times when clients will need to provision a VM template with more vCPU or Memory than desired or they may choose to have less.

Each VM template includes licensing to deploy a Microsoft supported version of Windows Server operating system. Clients that have requirements for Linux will need to provide and be responsible for their own licensing.

Frequently Asked Questions

1. 1. What if I can’t find an exact match for my VM size?
      Clients determine which VM template best matches their need. There may be times when clients will need to select a VM template that may have more or possibly less vCPU than desired. The same may be true with selecting a VM template for Memory. VMs can be adjusted later if performance doesn’t meet expectations.
   2. What if an existing VM template isn’t delivering the performance needed?
      If the performance of a VM after deployment doesn’t meet the client’s need, the VM template can be adjusted either up or down via a change request. A change to a VM template size will result in a billing change, either up or down depending on the change.
   3. What if I need to deploy a Linux operating system?
      ITS NearCloud VM templates includes licensing to deploy a Microsoft supported version of Windows Server. Any Linux requirements must be provided by the client and the client is responsible for any costs associated with Linux support.

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Primary Storage

ITS NearCloud storage is provided as dedicated virtual disks attached to VMs and that are sized according to the VMs needs in 100 GB increments. Virtual disks are provisioned on highly redundant enterprise storage with all data encrypted at-rest.

How It Works

Clients will need to determine how much primary storage is required for their environment. ITS can assist clients with determining how much is needed based on what the client has in place prior to migrating into NearCloud.

1. Storage for Operating System: Clients need to plan on reserving 200 GB of primary storage for the operating system. Please keep in mind, no storage is included in VM templates. All storage capacity requirements need to be factored into the storage pool sizing.
2. Storage for Applications and Data: In addition to the operating system, clients need to reserve primary storage to house the application and data. This will be determined on a VM-by-VM basis.
3. 80% Utilization: ITS NearCloud primary storage is priced with the requirement clients will maintain less than an 80% storage utilization rate. This means clients need to maintain 20% free space to ensure performance and to allow for growth.
4. Storage Increases: As primary storage needs change, storage can be added to the primary storage pool in 100 GB increments and then assigned VMs.

Frequently Asked Questions

1. Why do I need to keep disk utilization at 80% or less?
   Keeping storage allocations for virtual machines (VMs) and servers at around 80% utilization is a best practice rooted in performance, reliability, and operational flexibility. Operating systems and applications often require temporary space for caching, paging, and swap files. Without sufficient free space, these operations slow down or fail.
2. Should I expect any downtime to adjust storage capacity?
   In most cases storage capacity can be expanded without any downtime, but with certain configurations there will be some brief downtime. Reducing storage on a virtual machine will need to be coordinated and you should expect some downtime to shut down and restart the server.

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Data Protection Services

ITS NearCloud provides clients with multiple data protection services to safeguard data with multiple copies. These services include backup services and off-site copy services for longer, archival data protection.

How It Works

1. Daily backup services are available for an additional monthly charge. Backups are taken once per day and can be kept for up to 60 days in the primary data center. Charges are based on the number of virtual machines being protected along with the backup storage pool capacity necessary to retain the backup copies requested by the client.
2. Off-site backup copies can be sent to an alternate datacenter for off-site data protection and longer archival backup copies.
3. In select ITS NearCloud datacenters, primary storage can be replicated to a second storage array, in an off-site data center to provide a second, off-site copy of data. The geo-redundant copy of data is available at an additional monthly cost.

Frequently Asked Questions

1. Since backup copies are off-site, does that mean recovery off-site is also included?
   No. Off-site backup copies ensure backup copies are protected in the event the backup storage device fails. It does protect a business in the event of a complete data center disaster. Disaster recovery services are a separately charged service and includes virtual machine reservations, virtual datacenter reservations so connectivity is pre-staged, and the development of disaster recovery runbooks.
2. Since the storage is replicated off-site, do we really need backup services, too?
   ITS NearCloud offers multiple data protection solutions because each one of them protects a clients data for various use cases. Storage replication is a great means to have off-site data copies but it doesn’t protect if data is deleted in error, for example, as that deletion is also replicated. Backup copies provide the ability to perform file level restores. Archival copies provide longer term retentions for compliance and regulatory purposes.

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Microsoft Licensing

Clients in the ITS NearCloud can pay for many Microsoft licensing monthly via Service Provider licensing. Examples of these licenses include:

• Windows Server licensing which ITS includes with each VM template.
• SQL licensing for Standard and Enterprise Editions is available in 2-core packs with a minimum of 4 cores per instance.
• Subscriber Access Licenses (SALs) including:
  • Remote Desktop Services (RDS) – allows users to remotely access desktops or applications hosted on ITS NearCloud servers. Each user needs a license.
  • Microsoft Office (Standard or Pro Plus) – provides each user access to Microsoft Office apps like Word, Excel, and Outlook. Each user accessing Office needs a license.
  • SharePoint Server – used for collaboration and document management. Each user who accesses SharePoint needs a license.
  • Exchange Server – Provides email and calendaring services. Each user accessing Exchange needs a license.

All pricing is subject to change based upon Microsoft changes. All licensing requirements are based upon Microsoft requirements and as they change ITS will modify our requirements also.

How It Works

ITS NearCloud uses Microsoft’s SPLA program to license the software we host for our clients. This means clients don’t need to purchase their own Microsoft licenses. Instead, ITS provides access to the software on a monthly subscription basis. Clients are only billed for what they use, and ITS handles all the licensing and compliance with Microsoft.

Frequently Asked Questions

1. How is SPLA different than Microsoft 365 Subscriptions?
   SPLA is for hosted services provided by ITS, the MSP. Microsoft 365 is a cloud subscription directly from Microsoft. SPLA lets us license software like Windows Server, SQL Server, and Office for use in our data center.
2. What happens if changes to the environment occur throughout the month?
   SPLA is billed based on the highest number of users or resources used during the month. If you add users, they’ll be included in the next billing cycle.
3. Can I use SPLA licenses on my own servers?
   No, SPLA licenses are only valid for software hosted and managed by ITS. They can’t be transferred to a client’s on-premises servers.
4. Is SPLA licensing compliant with Microsoft?
   Yes, ITS reports usage monthly to Microsoft through our authorized SPLA reseller. We also ensure compliance through regular audits and tracking.

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Migration Services

Migration into our cloud is a tailored engagement based on a client’s specific environment, applications, and business requirements. ITS treats this as a billable project because it involves planning, engineering, testing, and execution to ensure a smooth transition. The scope and cost depend on factors like data volume, application complexity, and integration needs.

How It Works

A migration project into the ITS NearCloud generally follows a project that includes the following steps:

• Discovery & Planning: Assess current infrastructure and dependencies.
• Migration Execution: Data transfer, VM conversion, reconfiguration.
• Validation & Cutover: Testing, performance checks, and go-live support.
• Optional Add-ons: Application modernization, operating system upgrades, security hardening, etc.

Frequently Asked Questions

1. If in the future a client wants to migrate out of NearCloud, can they use their backup copies for migration?
   Due to Microsoft SPLA licensing, the virtual machines ITS hosts include Microsoft software licensed under our agreement with Microsoft. These licenses are tied to our infrastructure and cannot be transferred or exported. As a result, we cannot provide VM backup copies for migration out of our cloud, since they contain SPLA-licensed software and keys that are not portable or transferable.
2. What should be my expectation for how we would offboard out of NearCloud if needed sometime in the future?
   ITS can offer migration services that help clients rebuild their environment elsewhere using their own licenses, which keeps things compliant and professional. These migration services are treated as a billable engagement.

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