What is meant by the term Cloud Computing? The word cloud is used here as a metaphor for the internet. Cloud Computing refers to computer services provided over the internet. These services fall into three categories: Infrastructure as a service, Platform as a service, and Software as a service.
Let’s define what these are:
Infrastructure as a service refers to information technology hardware, meaning the servers and the buildings needed to keep them in.
Platform as a service refers to custom software development: programmers who develop applications for businesses.
Software as a service refers to the use and deployment of standard software over the internet.
Companies use cloud computing as way of managing information technology costs. It is cheaper for them for them to pay for the use of the technology that they need, as they need it than for them to pay ahead of time for the hardware or software that will handle their projected needs. Cloud computing is made possible by high speed access to the internet and browser standardization.
You are probably using forms cloud computing yourself without knowing about it. If you have a Web site, you are renting space and using Web server software on a computer somewhere on the internet, or cloud. If you have email, you are using two more servers and software applications to enable you to send and to receive email. Search engines such as Google, Yahoo and Bing are a form of software as a service. The actual search for information takes place on a remote server, then the results of the search are sent to your computer for you to view. YouTube is a cloud application. Intuit now offers the option for customers to run QuickBooks on their servers, through a Web browser. They will also store your Quickbooks files for you. Online banking, airline reservations, restaurant reservations, even FaceBook and Twitter are all forms of Cloud Computing.
Businesses are using cloud computing on a much larger scale. Some of us have heard about Google’s server farms that they use to power their searches. It does not matter to Google where those server farms are. They are “out in the cloud,” available as needed, over the internet. Proctor and Gamble and General Electric both use cloud computing from third party vendors. IBM and Amazon are providers of cloud computing resources.
Amazon’s cloud computing business is called Amazon Elastic Compute Cloud, or Amazon EC2. They have so many servers that they rent them to anyone who needs them. Take a look at the Amazon EC2 Web site if you are interested in learning more about providers of cloud computing infrastructure. (2:11)
Why would a business want to use cloud computing? Information Technology as a service is attractive to businesses for a number of reasons. First lets talk about servers. Companies use servers to run accounting software, database software and many types of software that is specific to their business. Servers are expensive and require highly trained support people 24 hours a day. The buildings that house servers are expensive, and the energy needed to run them and cool them is expensive. They also need to be upgraded and replaced fairly often. Typically a business needs the full capacity of their servers for only small amounts of time throughout the day. All these problems can be addressed with cloud computing. A business can arrange through cloud computing to have access to servers dynamically as it needs them, and pay only for the capacity it actually uses. With cloud computing the fixed costs for support technicians disappear, as well as fixed costs for buildings and energy. With cloud computing, technology costs will go up or down depending on the needs of the business. There also is no need to raise capital to buy information technology, and no fixed assets to depreciate for tax purposes. Instead information technology becomes a business expense, which is tied to production and therefore easily trackable. It also becomes tax-deductable, as an expense related to it’s actual time of use.
Similar benefits apply to platform development as a service. Programmers can be used as needed, and not paid for their down time. The size of the team can respond dynamically to the work load, with the business paying only for the resources used.
Software as a service has benefits to business similar to those of platform as a service and infrastructure as a service. The cost of software becomes related to its actual use, and not a fixed expanse at startup. In addition IT managers do not have to try to predict how many licenses are needed in a corporate environment, potentially wasting money on excess capacity, or limiting capacity by purchasing too few licenses. With software as a service, the software is paid for only when it is used.
As an example, think about an architect’s office. Architects typically use expensive CAD/CAM software, like AutoCad. With a subscription to a company providing AutoCad as a service over the internet, the office can scale up or down the number of computers available for AutoCad based on their work load. This allows them to easily link their expenses to their billings. The architect also saves money that previously would have been wasted on excess capacity when the work load slows down.
Cloud computing has the effect of lowering the requirements for the capabilities of the computers in the office. If a company’s applications and data are stored on servers off-site, then it will not need as much hard drive space for its local computers. If a company’s applications run on off-site computers, it’s local computers do not need to be as powerful. Lower cost computers, like netbooks then become a viable, low-cost option as office computers. In addition, all the resources available to a worker at the office are available anywhere that worker can get a computer with access to the internet. The office becomes completely portable.
By contrast, the importance of a company’s network increases. With cloud computing the network is now being used for your computer services, so it must be fast and robust. 100 megbits per second, or 100 base-T is a minimum, and 1000 mega bits per second or 1000 base-T is better. Wireless networks should be upgraded to the latest 802.11n spec for enough throughput to handle cloud computing. High speed internet access is also a requirement.
Google is deeply involved with cloud computing. Google Aps is a cloud product they offer for programmers. Google Ap Engine is a service that allows developers to write applications and provides them with up t0 500 megs of space to store them on Google’s hardware. More capability is available for a fee.
Google offers Google Docs for those of us who are not programmers but are interested in learning about how cloud computing can be used on a personal level. Google Docs is a suite of programs similar to Microsoft Office, including a word processor, a spreadsheet program, a presentation program and a Web form builder. The biggest difference between Google Docs and Microsoft Office is that Google Docs is free. As a cloud application, it does not run on your local machine but on Google’s servers, and Google will store all you documents for you. You need a Gmail account to access Google Docs. (6:30)
Cloud computing has the potential to change we use computers. Currently we are seeing just the beginnings of a new way to use information technology. Over time, many more options for hardware and software as services will become available for individuals.
If cloud computing becomes widespread, businesses will need less support for servers and software, as this will happen locally, where the machines actually are. But business will need to keep their networks in top condition and up to date, for the best performance with cloud computing. Your client whose business might benefit from cloud computing will want to talk to me because they will want a local technician who can advise them on when and how to take advantage of Information Technology as a service, and who understands how all the services work together to power their business. Connect us in a three way email and I will take it from there.