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• Are your competitors in the cloud? • We’ve been here before – this is
Then your business is doomed if you nothing new
don’t follow suit!
1
On 1st February 2011 NIST announced that a revised draft definition was available for comment.
moderate detail over two pages. Inevitably, there are supporters and detractors of
this definition.
The most useful and enduring information from the NIST definition is captured in
the very first paragraph:
‘Cloud computing is still an evolving paradigm. Its definitions, use
cases, underlying technologies, issues, risks, and benefits will be
refined in a spirited debate by the public and private sectors. These
definitions, attributes, and characteristics will evolve and change over
time.’
There’s the nugget: ‘Cloud computing is still an evolving paradigm.’ So to get a
handle on what this looks like today, let’s fast forward to 2011 and reverse-engineer a
definition based upon what we see vendors offering and the underpinning technology
that they are using.
At the most generic level, ‘Cloud computing’ is information processing undertaken
using cloud services accessed via the Internet. What do we mean by ‘cloud services’?
There are different models, as we’ll see below, however they have some common
characteristics:
• Cloud services are not dependent upon the computing device used by the
customer or where that device is located.
• Cloud services are ‘multi-tenanted’, serving a number of users simultaneously
from shared resources.
• Cloud services are highly scalable to meet the peaks and troughs of processing
demand.
• Cloud services support rapid self-service provisioning and configuration (i.e.
buying additional services) and usage monitoring.
• Most cloud services charge the customer based upon a resource utilisation
model (though a minority offer a subscription model).
This utility business model for cloud services is covered in more detail in ‘What is
driving the development of the cloud?’
Although the term ‘cloud computing’ is quite recent, elements of the concept have
been around for a number of years: Timesharing and virtual machines have
identifiable origins in the mainframe era in the 1960s. The concept of ‘the network is
the computer’ was first coined by Sun Microsystems in 1982. Grid computing, in use
by the scientific community since the early 1990s, has been widely deployed in
financial services, particularly in securities and trading operations. Even the on-
demand business model dates back to the late 1990s, when it was delivered by
organisations known as application service providers, or ASPs. All of this adds to the
conviction of the ‘cloud changes nothing’ camp.
However, it is the innovative configuration and application of techniques and
technologies that have evolved from these earlier systems that make up the current
cloud service ecosystem. In the next section we will compare the traditional
enterprise solutions with the cloud service models offered today and offer some
examples that you may be familiar with.
The traditional enterprise IT stack model is a useful reference. The different types of
cloud services that have evolved to date generally map as equivalents on this model.
These services range from ‘bare metal’ infrastructure provision through to
comprehensive services supporting specific business processes.
At the infrastructure level, many organisations have already started to source raw
computing resources (processing capability, network bandwidth and storage) from
external providers on an on-demand basis. In many cases, these resources are
currently used to augment rather than replace existing in-house infrastructure.
Unlike traditional hosting services which provide dedicated hardware to each
customer, infrastructure cloud service providers implement capacity monitoring and
virtualisation technology to dynamically expand or contract the allocation of
resources from a vast shared pool to accommodate fluctuating demand from
different user organisations. Amazon’s Elastic Compute Cloud and VMware’s vCloud
are prime examples.
At the software application level, the initial wave of cloud-based services fell broadly
into the areas of customer relationship management, human resource, and financial
management. Later service developments have introduced desktop productivity
tools including word processing, spreadsheets, e-mail and Web conferencing.
Application clouds currently span all major enterprise solution areas, from
procurement to enterprise resource planning and content management.
These applications run on the third-party infrastructure. User organisations
subscribe to these services based on the number of users or seats. Since these
services are available via standard browsers, they support device-independence and
At the business process level the cloud based solutions are also known as business
process utilities or platform-based business process outsourcing (BPO).
Occasionally, they are referred to as ‘Process-as-a-Service (PraaS). They offer an
Internet-enabled, externally provisioned service for managing an entire business
process such as claims processing, expense management or procurement.
Unlike traditional BPO, which requires the service provider to take over an existing
software installation, the process cloud uses a common, one-to-many platform to
automate highly standardised processes. It differs from application clouds in that it
provides end-to-end process support; this covers not just software but also processes
supported by people, such as contact centres. These processes are typically priced on
a per-transaction rather than per-seat basis. Examples include PayPal (consumer
micro payments), the ebay sales process environment, ADP Employease payroll
service, and Amex-Concur business expense management.
In conclusion
Cloud computing is a very flexible concept for delivering computational power.
Potential organisational application and benefits are wide-ranging. For example:
Web services are being widely adopted, allowing easy publishing, access and
integration of application functionalities and infrastructure capabilities from
different organisations. For instance, the entire Amazon cloud is accessible through
Web services.
Rich Internet Applications (RIAs) – for example, AJAX, Flash/Flex, OpenLaszlo –
support desktop-like client-side functionality within a browser including: