• Embracing cloud computing solutions is becoming increasingly paramount(vital)

for organizations looking to drive their business forward over the coming years,
with the roles of CTOs and CIOs having to evolve in step.
• Even though “digital transformation” continues to be the big buzzword of the
moment, with coverage of artificial intelligence (AI), machine learning (ML),
and virtual and augmented reality (VR and AR) increasing as each day ticks by,
cloud transformation remains current – even if it has slipped from the full glare of
the limelight in the popular online press.
• Behind the scenes, however, cloud computing is still a hot topic. In fact, it’s no
longer a question of whether or not a company will undergo a cloud
transformation. Rather, questions about precisely what services and operations
should be shifted into the cloud, how much will they cost, how much will they
save the business, and how quickly can it all happen, are dominating the
conversation.
• But where has the cloud computing revolution come from?
• What are its origins,
• where are we today, and where’s it going next?
• Let’s consider the history and evolution of cloud computing that has
brought us up to the present, and examine the trends that will impact
the future.
A Brief History of Cloud Computing
• But the truth is that concepts of the cloud have existed for many,
many years, and in fact can be traced as far back as the 1950s with
mainframe computing.
• In those early days, mainframe computers were huge machines, and
very, very expensive – too expensive to buy and maintain one for
every single employee.
• And of course, not every single employee needed access to one at all
times like they do today.
A Brief History of Cloud Computing
• As such, most organizations would purchase just one or two
machines, and then implement “time-sharing” schedules which
enabled multiple users to access the central mainframe computer
from connected stations.
• These stations were known as “dumb terminals”, and provided no
processing power of their own.
• Even so, this type of shared computational power is the basic,
underlying premise of cloud computing, and where it all began.
A Brief History of Cloud Computing
• In the mid-1960s, a major advancement in cloud computing came
when American computer scientist J.C.R. Licklider conceptualized an
interconnected system of computers.
• In 1963, DARPA (the Defense Advanced Research Projects Agency),
presented MIT with $2 million for Project MAC. The funding included
a requirement MIT develop technology allowing for a “computer to be
used by two or more people, simultaneously.”
• In this case, one of those gigantic, archaic computers using reels of
magnetic tape for memory and was the precursor to what has now
become collectively known as Cloud Computing.
• It acted as a primitive Cloud with two or three people accessing it.
• The word “Virtualization” was used to describe this situation, though
the word’s meaning later expanded.
• In 1969, “Lick”, as he is often known, helped develop a very primitive
version of the Internet, known as the Advanced Research Projects
Agency Network (ARPANET).
• ARPANET was the first network that allowed digital sources to be
shared among computers that were not in the same physical location.
• JCR, or “Lick” was both a psychologist and a computer scientist, and
promoted a vision called the “Intergalactic Computer Network,” in
which everyone on the planet would be interconnected by way of
computers, and able to access information from anywhere. (What
could such an unrealistic, impossible-to-pay-for, fantasy of the future
look like?) The Intergalactic Computer Network, otherwise known as
the Internet, is necessary for access to the Cloud.
• Lick’s vision was also for a world where everyone would be
interconnected by way of computers and able to access information
from anywhere. Sound familiar? Of course it does – it’s the Internet
as we know it, and a necessity for accessing all the benefits that the
cloud realizes.
A Brief History of Cloud Computing
• Over the decades that followed, many further advancements in cloud technology
came into being.
• In 1972, for example, IBM released an operating system (OS) called the Virtual
Machine (VM) operating system.
• Virtualization describes a virtual computer that acts just like a real one, with a
fully-operational OS.
• The meaning of Virtualization began shifting in the 1970s, and now describes the
creation of a virtual machine, that acts like a real computer, with a fully functional
operating system. The concept of Virtualization has evolved with the Internet, as
businesses began offering “virtual” private networks as a rentable service
• The concept evolved with the Internet, and businesses began offering “virtual”
private networks as a rentable service, eventually leading to the development of
the modern cloud computing infrastructure in the 1990
• The Late 1990s
• In its early stages, the Cloud was used to express the empty space between the end user and the provider. In 1997, Professor Ramnath Chellapa of Emory University defined Cloud Computing as the new “computing
paradigm, where the boundaries of computing will be determined by economic rationale, rather than technical limits alone.” This somewhat ponderous description rings true in describing the Cloud’s evolution.
• The Cloud gained popularity as companies gained a better understanding of its services and usefulness. In 1999, Salesforce became a popular example of using Cloud Computing successfully. They used it to pioneer the
idea of using the Internet to deliver software programs to the end users. The program (or application) could be accessed and downloaded by anyone with Internet access. Businesses could purchase the software in an
on-demand, cost-effective manner, without leaving the office.
• The Early 2000s
• In 2002, Amazon introduced its web-based retail services. It was the first major business to think of using only 10% of their capacity (which was commonplace at the time) as a problem to be solved. The Cloud
Computing Infrastructure Model gave them the flexibility to use their computer’s capacity much more efficiently. Soon after, other large organizations followed their example.
• In 2006, Amazon launched Amazon Web Services, which offers online services to other websites, or clients. One of Amazon Web Services’ sites, called Amazon Mechanical Turk, provides a variety of Cloud-based
services including storage, computation and “human intelligence.” Another of Amazon Web Services’ sites is the Elastic Compute Cloud (EC2), allowing individuals to rent virtual computers and use their own programs
and applications.
• In the same year, Google launched the Google Docs services. Google Docs was originally based on two separate products, Google Spreadsheets and Writely. Google purchased Writely, which offers renters the ability to
save documents, edit documents, and transfer them into blogging systems. (These documents are compatible with Microsoft Word.) Google Spreadsheets (acquired from 2Web Technologies, in 2005) is an Internet-
based program allowing users to develop, update, and edit spreadsheets, and to share the data online. An Ajax-based program is used, which is compatible with Microsoft Excel. The spreadsheets can be saved in an
HTML format.
• In 2007, IBM, Google, and several universities joined forces to develop a server farm for research projects needing both fast processors and huge data sets. The University of Washington was the first to sign up and use
resources provided by IBM and Google. Carnegie Mellon University, MIT, Stanford University, the University of Maryland, and the University of California at Berkeley, quickly followed suit. The universities immediately
realized computer experiments can be done faster and for less money, if IBM and Google were supporting their research. Since much of the research was focused on problems IBM and Google had interests in, they
also benefitted from the arrangement. 2007 was also the year when Netflix launched it’s streaming video service, using the Cloud, and provided support for the practice of “binge-watching.”
• Eucalyptus offered the first AWS API compatible platform, which was used for distributing private Clouds, in 2008. In the same year, NASA’s OpenNebula provided the first open-source software for deploying Private
and Hybrid Clouds. Many of its most innovative features focused on the needs of major businesses.
• In 2011, IBM introduced the IBM SmartCloud framework, in support of Smarter Planet (a cultural thinking project). Then, Apple launched the ICloud, which focuses on storing more personal information (photos, music,
videos, etc.). Also, during this year, Microsoft began advertising the Cloud on television, making the general public aware of its ability to store photos, or video, with easy access.
• Oracle introduced the Oracle Cloud in 2012, offering the three basics for business, IaaS (Infrastructure-as-a-Service), PaaS (Platform-as-a-Service), and SAAS (Software-as-a-Service).
• What to Expect
• A customer using a Public Cloud service can have three basic expectations. First, customers rent the services, instead of purchasing hardware and software to accomplish the same goal. Second, the vendor is
responsible for all the administration, maintenance, capacity planning, backups, and troubleshooting. And finally, for many business projects, it is simply faster and easier to use the Cloud. It comes with huge amounts
of storage, the ability to handle multiple projects, and more availability to a variety of users, simultaneously.
• There are essentially two kinds of Public Clouds. One serves individuals for personal use, and one serves businesses. Cloud Computing storage for personal use allows easy access and file sharing. Data stored on the
Cloud, such as photographs and music, can be shared with friends using a smart phone or a friends laptop, while protecting personal data from loss and damage. The services offered by the business Cloud are quite
different, and fall into three basic categories of service:
• IaaS (Infrastructure-as-a-Service) deals with raw computing capacity. IaaS is the most basic service, and provides a server, or servers, in the cloud, along with storage. IaaS customers are often tech companies that
typically have a great deal of IT expertise. The goal is to have access to computing power, without the responsibilities of installation or maintenance.
• PaaS (Platform-as-a-Service) supports writing software for computer systems that need it. This Cloud-based service lets businesses write software for integrating existing applications, or develop custom applications.
PaaS environments are equipped with software development technologies, such as .NET, Python, Ruby on Rails, and Java. When the code is finished, the service provider will host it, making it available to other internet
users. Currently, PaaS is the smallest part of the Cloud Computing market, and has been used by businesses wanting to outsource part of their infrastructure.
• SAAS (Software-as-a-Service) provides software. This part of the Cloud is the largest and most developed. It is a program, or a suite of applications, available within the Cloud, rather than a computer’s hard drive.
• Security
• By 2014, Cloud Computing had developed its basic features, and security had become the primary focus. Cloud security has become a fast-growing service, because of its importance to customers. Cloud security has
advanced significantly in the last two years, and now provides protection comparable to traditional IT security systems. This includes the protection of critical information from accidental deletion, theft, and data
leakage. Having said that, security is, and may always be, the primary concern of most Cloud users.
• Private Clouds
• Currently, businesses can develop a Private Cloud system, designed for their particular needs. These Private Clouds store, and can share, sensitive data. Staff “can” also use, Public Clouds, or a combination of the two,
called a Hybrid Cloud. Much of the modern business consumer market relies on Cloud services. Private Cloud Computing is currently used for email, to log-in on online gaming platforms, and for Facebook.
• These Private Clouds are basically data centers, using many of the basic Cloud technologies. Private Clouds offer all the advantages of a Public Cloud, but have the advantage of controlling security and privacy concerns.
The situation, however, leads to a bit of a dilemma.
• Over time, Public Cloud Computing companies, who are intensely competitive, will expand their scalability and lower prices. Many Private Cloud owners will probably not be able to keep up, after having invested a
small fortune in their own system. One must also add to the equation the Amazon Web Services “Cloud outage,” causing client websites to become inaccessible, or difficult to work with, for several hours. It must also
be understood a Private Cloud could suffer the same kind of problem, quite possibly with a longer outage.
• Also in this decade, telecommunications companies began
offering virtualized private networks, which had the same service
quality as their dedicated point-to-point data connections at a
reduced cost.
• Instead of building out physical infrastructure to allow for more users
to have their own connections, telecommunications companies were
now able to provide users with shared access to the same physical
infrastructure.
• In 1997, professor Ramnath Chellappa was the first to use the term
“cloud computing.” Then, in 1999, Salesforce.com became the first
site to deliver applications and software over the Internet.
• Amazon stepped in, in 2002, with "Web Services" (AWS) providing an
advanced system of cloud services from storage to computation.
• And in 2006, Amazon introduced the Elastic Compute cloud (EC2) as a
commercial web service.
• The EC2 let small companies rent computers on which they could run their
own computer applications.
• Salesforce.com expanded its efforts in 2007, with Force.com. The
developer-based platform let companies build and run all of their business
apps and website through the cloud
• In the same year, Google launched its Google Docs services, allowing users
to save, edit and transfer documents in the cloud.
• In 2007, IBM, Google, and several universities joined forces to develop a
server farm for research projects. It was also the year that Netflix launched
its video streaming service, using the cloud to stream movies and other
video content into the homes and onto the computers of thousands (and
eventually millions) of subscribers worldwide.
• But it wasn't until 2008, when Google and Microsoft entered the playing
field, that cloud use really became a widespread effort to bring the
technology mainstream. The Google App Engine brought low-cost
computing and storage services, popularizing the concept; by 2009, Google
Apps allowed people to store documents within the cloud. Microsoft
followed suit with Windows Azure, solidifying the cloud as a market that
the tech giants would be expanding and competing in.
• Salesforce.com continued its growth in 2010 with Database.com —
again made for developers — and the cloud allowed computing
services to be used on any device or platform in any programming
language. Apple put a stake in the field by developing the iCloud,
allowing users to sync photos, apps, music and documents across a
string of devices.
Cloud Computing Today
• Over the past decade, cloud computing adoption has seen explosive
growth – at both consumer and enterprise levels. Legacy software
providers such as Microsoft, Oracle and Adobe have all made huge,
concerted efforts to encourage users of their on-premises software
offerings to upgrade to their cloud equivalents, which are usually
offered on a subscription pay-as-you-go basis.
Cloud Computing Today
• At the same time, we have seen a cornucopia of cloud-native
providers – such as Zendesk, Workday and ServiceNow – emerge
with Software as a Service (SaaS) offerings that are (and have always
been) only available in the cloud. And it’s not only Software as a
Service that has emerged, of course, but Platform as a Service (PaaS),
Infrastructure as a Service (IaaS), Backup as a Service (BaaS) and
Disaster Recovery as a Service (DRaaS) as well. Pretty much
Everything as a Service (or XaaS, as it is peddled by companies like
Google and Microsoft who offer such holistic resources) is now
available.
Cloud Computing Today
• Over the course of the last ten years or so, cloud computing has
evolved from being something that service providers told companies
they should be adopting, to the very lifeblood that runs through most
modern enterprises. As such, organizations have become increasingly
accustomed to the pay-as-you-go cloud billing model, and now look
upon IT purchases as a day-to-day expense, rather than a one-off
investment that they will be stuck with for the foreseeable future.
Cloud Computing Today
• In fact, 451 Research has found that 90% of organizations will be
using some form of cloud computing services in the next two years,
with 60% saying that the majority of their IT will be off-premise.
What’s more, 49% of organizations have adopted a cloud-first
approach for deploying net new applications. 451 Research also
predicts the cloud computing market will reach $53.3 billion in 2021 –
up from $28.1 billion in 2017
• Cloud Computing Trends to Prepare For
• So what does this all mean for organizations and their CIOs and CTOs in the future? Where is
cloud computing going? For one thing, it’s clear that cloud computing has moved beyond being
simply another option on the table, and has transformed into a way of doing business. Enterprises
will be able to increasingly consume IT without the constraints of having to build and maintain its
underlying infrastructure.
• 451 Research analysis also reveals that a slim majority of enterprise workloads will run off-
premises IT environments by 2019, and that more than one-third of all workloads will operate in
public cloud environments. In addition, research by IDC reveals that almost half of IT spending will
be cloud-based in 2018, and that it will reach 60% of all IT infrastructure and 60-70% of all
software, services and technology spending by 2020.
• As such, it’s imperative that CIOs and CTOs view cloud computing as a critical element of their
organization’s competitiveness, and that they explore which of their services, operations and
offerings would be better served by moving them to the cloud.
• Here are three cloud computing trends that CIOs and CTOs need to be prepared for in 2019.
• The Number of Cloud-based Services and Solutions Will Continue to
Rise
• Indeed, they will. According to Bain & Company, subscription-based
SaaS solutions will grow at an 18% CAGR by 2020, IaaS/PaaS at 27%,
and public cloud infrastructure and enabling services at 12%. In all,
cloud computing hardware, software and services are capturing 60%
of all IT market growth.
• Hybrid and Multi-Cloud Strategies Will Play a Key Role
• Making a full cloud transformation is a challenging prospect for most enterprises. As
such, hybrid and multi-cloud cloud strategies will play a key role in cloud transitions in
the near future. With a multi-cloud strategy, organizations may, for example, use their
own on-premises dedicated servers (private cloud) for the hosting of particularly
sensitive workloads, with those that are deemed less critical hosted with a public cloud
provider. Similar though distinct, a hybrid cloud solution mixes on-premises private
cloud and third-party public cloud with defined orchestration between the two.
• Hybrid and multi-cloud strategies are often seen as means for an organization to dip its
toes into those cloudy waters, enabling a steady-paced transition with less risk and less
expense. In 2019, many companies will continue such blended cloud approaches,
allowing them to access the efficiency and effectiveness of public cloud computing, while
still retaining central control of their most sensitive and mission-critical items. 451
Researchpredicts that 69% of enterprises will have either multi-cloud or hybrid cloud IT
environments by 2019.
• Security and Compliance Will Be Critical
• As more and more businesses migrate more and more of their services and functions to the cloud, security
and regulation compliance will become an increasing concern.
• Hackers go where the data goes, and as more data is pushed to the cloud, so too will the hackers trying to
breach the system and steal valuable databases to sell on the dark web.
• In May 2018, we saw the EU’s General Data Protection Regulation (GDPR) come into effect, which of course
has implications for all global enterprises. Cloud computing compliance under the GDPR is not easy, and
many organizations are not prepared. In fact, a recent survey from Commvault revealed that only 12% of
global IT organizations understand how GDPR will affect their cloud services. And GDPR is likely only the
beginning – as governments around the globe start recognizing the risks, cloud computing will no doubt start
to become highly regulated.
• Final Thoughts
• Cloud computing has come a long way since those early days of mainframes and dumb terminals – and
undoubtedly it has a long way still to go. Moving forward, CIOs, CTOs and the organizations they work for
will face increasing challenges to not only remain competitive in this ever-changing cloud computing
environment, but ensure they stay on the right side of both existing regulations and new ones as and when
they emerge. It’s safe to say that the next decade of cloud computing will be just as eventful as the last.
Final Thoughts
• Cloud computing has come a long way since those early days of
mainframes and dumb terminals – and undoubtedly it has a long way
still to go. Moving forward, CIOs, CTOs and the organizations they
work for will face increasing challenges to not only remain
competitive in this ever-changing cloud computing environment, but
ensure they stay on the right side of both existing regulations and
new ones as and when they emerge. It’s safe to say that the next
decade of cloud computing will be just as eventful as the last.