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While not always the case, often there was more than one
computer system, or server, per major application. This setup
was expensive because of the capital costs of the computer
hardware, and the labor costs of the resident wizards and high
priests who kept it all running. But it was worth it. These
systems raised overall productivity and helped maintain
competitive advantage. Not long ago, someone noticed that of
all their computer systems, only a few were relatively busy at
any given moment in time. Most were idle, waiting for the next
transaction to come in. The bottom line was there was a lot of
wasted resources.
It was just the smart thing to do. Along comes some clever
entrepreneurs who build enormous datacenters filled with
generalized computer hardware and offer to rent out portions
of this infrastructure so that their customers can run their
virtualized applications there instead of on their own
hardware. And with that, The Cloud is born.
This type of cloud computing is called infrastructure as as
Service or IaaS. There are other types of clouds out there as
well. For example, some cloud providers offer up not the
infrastructure to run applications, but the complete
application environment themselves. This is known as Software
as a Service - or SaaS Either way, moving the cost of having
applications run expensive company owned hardware capital
assets, to a model where the cost is a recurring operating
cost, is very attractive to most organizations.
Thank you for your time. And please remember to take quiz that
follows this lesson.