Sunday, April 8, 2012

Critical Notes on Cloud Computing

This would be my third and final post on the introduction of cloud computing. In previous two posts, I introduced the basic concepts and technologies associated with cloud computing, various advantages of cloud computing and micro and macro economic impacts that cloud computing can potentially generate. Now let us analyze this technology critically to find out some of the disadvantages and other critical issues associated with cloud computing and the whether providers can overcome such issues in the future.

Recently Amazon's EC2 faced outage in its Virginia data center that affected more than 70 clients including Reddit, Quora and New York Times ((http://money.cnn.com/2011/04/22/technology/amazon_ec2_cloud_outage/index.htm). Amazon links many of its data centers together to protect customers from an isolated failures. Such a strategy should ensure a downtime of 4.4 hours. But the recent outage has lasted for 36 hours. Amazon explained that a 'networking event' caused many of Amazon's storage volumes to create self back-ups. Amazon's storage capacity was reduced in the process, which in turn, prevented clients from accessing the cloud. The details of Amazon's explanation can be found in the website http://aws.amazon.com/message/65648/.
Here is a picture that summarizes the basic infrastructure of Amazon's cloud services that I found  here: http://www.computescotland.com/network-online-power-outages-4231.php
This outage problem gives rise to a critical issue associated with cloud computing- Reliability. After reading my first two posts, you must have wondered with so much potential, why usage of cloud computing is not so wide spread yet. Here are some of the expert's opinion against cloud computing:

  • Richard Stallman, founder of Free Software Foundation, thinks that users should not give away their information to a third party.
  • Larry Ellison, Founder of Oracle Corporation, thinks adoption of cloud computing is 'fashion driven'. You can listen to him in the following video:

As Forbes points out (http://www.forbes.com/sites/tomgillis/2011/05/24/criticism-abounds-but-cloud-computing-is-here-to-stay/), the benefits of cloud computing is overwhelmingly more than the cost associated with the risk of cloud computing. Some isolated incidents such as the one with Amazon's EC2 is not intentional and inherent. Emerging technologies always face problem in the beginning because its new and untested. But over time and with increased usage such problems are usually detected and solved. 

Let me conclude this post by discussing why cloud computing could emerge as a marketable technology now, even though the concept of cloud computing existed since the 1960s. It has to do with emergence of supporting technologies and customer readiness. First of all, companies in all industry sectors uses information and communication technologies (ICT) either as their main business or to support their main lines of businesses. Growing dependence on ICT makes ICT expenditure a significant cost driver. Now companies are interested in cloud computing because of its potential as an ICT cost reducer. Increasing usage of smartphones and tablets increases demand of cloud computing among individual users as well. Thus there are enough demand in the market for cloud computing. Secondly, the success of cloud computing depends on several supporting technologies. Realization of high storage capacity with smaller sized chips, availability of high speed internet all over the world and power of virtualization enable cloud computing to be a sustainable and successful technology in this current era. 

My next series of posts will be about the particular benefits of cloud computing relevant to a specific industry. I will start with the business model of cloud computing service providers and later will move on to various user industries such as Financial Services, Communication, Internet Content Providers, Social Media and Healthcare.

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