‘Cloud Computing’ is not as mysterious as it sounds. The term originates from a practice rather than the physical location. In early days, researchers, engineers, designer and developers used picture of cloud to represent internet while designing web applications. This metaphor has continued in the concept of this technology.
The 'Cloud' is a combination of hardware, storage, network, services and interfaces. The following picture which I found in the website http://www.greenit-monaco.com/en/cloud-computing.html , clearly shows the constituents of the cloud and the representation of the combination as cloud.
Before we go into its functions and offerings, I wanted to introduce the standard definition of 'Cloud Computing'. As a researcher, we always had to know the standard definition and I like the practice because it brings me at par with others in the field. NIST ( http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf ) defines 'Cloud Computing' as " Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction."
Now, let's get back to English. "Cloud Computing' offers computing as services. Users can access the "Cloud' through internet for mainly three different services namely software, infrastructure and storage that can be delivered individually or in combination to the user PC. Cloud has three main stacks (http://www.techno-pulse.com/2010/11/download-intro-cloud-computing-pdf.html):
- Infrastructure as a Service (IaaS): This is the base layer of the cloud that delivers servers, routers, hardware, firewalls, storage & other network equipments and enables users to configure their own virtual computer according to their application need. The Amazon EC2 can be used as an example.
- Platform as a Service (PaaS): This second layer of cloud delivers the platform that eliminates the need of downloading various softwares. Now SAP can be accesses through cloud without owning it.
- Software as a Service (SaaS): This is the outer most later of the cloud that, as the name suggests, delivers various softwares such as Microsoft Office to users on demand.
Here is an image for you that http://www.techno-pulse.com/ provided:
If you are a visual person and already cursing me for introducing confusing words, here is a video for you that explains the concept very well:
NIST (http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf ) lists five necessary characteristics of the cloud.
- On Demand Service
- Broad Network Access
- Resource Pooling
- Rapid Elasticity
- Measured Service
These characteristics in combination are proving to be very useful for companies in all sectors that use information and communication technology to support their main lines of businesses (http://www.ingrammicro.com/visitor/servicesdivision/cloudcomputingfordummies.pdf). In other words, if you are a business professional or business owner, should you be interested in cloud computing? Let's see.
You are a talented fashion designer and have just graduated from the " Parsons The New School for Design". But you do not want to work for somebody else and want to start your own boutique right after graduation. Now, to avoid the fixed cost, you want to start a virtual or online boutique that not only showcases the ready to wear dresses designed by you, but also enables buyers customize the dresses according to their body type, skin color and other characteristics. Its a great idea. You do not need to own a store and can eliminate a lot of employee cost and some other costs. But think about the capital expenditure that you would need to incur for your information and communication technology (ICT) need. You need ICT to interact with your customers, you suppliers and your delivery channels. If you want a global presence, which can be crucial to your success especially in the current era, the ICT expenditure very soon can become a hurdle for you to start your small business. Even if you manage to find the initial investment, as your business attracts more customers, the website will need more servers to accommodate increased demand without slowing down. But when the demand shrinks after the holiday season or due to a bad economy, the extra servers you bought or rented would just stay idle. Let us also not forget the others costs of extending the ICT infrastructure that includes consultation fee, maintenance fee and installation costs.
What can cloud computing do for you? It enables you to transform ICT expenditure from a fixed cost to a variable cost just like cost of raw materials or electricity. Because clouding computing services deliver softwares and applications, platform and infrastructure through internet to your PC, you would not need to build the ICT infrastructure in-house. You can rent the cloud services according to the demand and can turn it off when demand shrinks. You will be billed for the time and extent of services that you rented the cloud for. Think about your electricity provider. The meter runs when you are using the electric appliances and stops when you turn them off. Cloud service providers bill you similarly. The best part is, your ICT need can be fulfilled on demand instantly so that you can ensure customer satisfaction.
By using cloud computing, small businesses and star ups can now fulfill their ICT needs without incurring many associated fixed cost. Because cloud services can be delivered on-demand instantly, the small businesses can now achieve agility by being able to accommodate fluctuating demand. The competitive advantages that existing companies or first movers enjoyed so far because of their ICT capabilities, are now reduced to a great extent. Small companies and start ups can leverage cloud computing services to overcome the capital expenditure need to set up ICT infrastucture.
Here is a video that would help you understand the advantages of cloud computing:
As Steve Jobs put it, cloud computing demotes your PC to a mere device that is used to access the cloud that stores all your digital need. I will let you enjoy Jobs's master voice in the following video:
I hope I was able to explain the concept and potential advantages of cloud computing to the beginners like me. If you want to read further and want to keep up with the latest news on cloud computing, here are some links for you:
In my next post, I intend to get into the macro economic aspect of cloud computing. If you are a student like me and are currently exploring opportunities in emerging technology sectors, you will find cloud computing sector very exciting.
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