Tuesday, August 05, 2008

Cloud Computing a brief overview

Cloud Computing or (even more) Internet as a Service is an emerging tendency which allows to companies use higher processing capacities from third parties with less costs for them. This concept involves SaaS and Web2.0 and it's an straightforward approach to Web 3.0 concept defined as Platform as a Service.

What's real impact to software industry? (See this BusinessWeek article)
Merrill Lynch estimates that within the next five years, the annual global market for cloud computing will surge to $95 billion.
In a May 2008 report, Merrill Lynch estimated that 12% of the worldwide software market would go to the cloud in that period.

Companies might consider next principles by selecting a Cloud provider (See this BusinessWeek article):

Triage. Databases are not all the same. Manage more tightly the stuff your business could not afford to lose.

Secure. Especially if your sensitive information is in the cloud, learn and exploit the encryption and password features built into all professional office software.

Back Up. Don't leave the only copy with a single cloud provider. Make periodic backup copies in another place.

Who else might see the data? You may have a collective bargaining agreement assuring your employees that their e-mail won't be read, even by software. Certain industries fall under data privacy regulations that may make the cloud inappropriate.

This article from Dion Hinchcliffe's blog at Zdnet explains the need for increasing efficiency while innovating:

Businesses must keep costs down to stay competitive while at the same time investing in new ideas that will offer compelling new products and services to those same customers.

Moreover, the figure below explains so good previous idea. This article details aspects of cloud computing: multitenancy, security, scalability, etc., and different types of clouds: compute, storage and applications.

On New York Times are highlighted big investments in cloud computing by bigger technology world companies:

I.B.M. plans to build a $360-million data center in North Carolina and another big one in Tokyo, both for delivering cloud computing services to corporate customers. This follows the announcement of a joint cloud research program from Yahoo, Hewlett-Packard and Intel on Tuesday.

However, a Forrester's blog says that Cloud Computing is not a priority of CIO's but they have it in the radar:

Enterprise IT is contracting spending a bit and that cloud computing is at the very bottom of their priority list.

Cloud computing targets the tech savvy business developer, startup and interactive marketer. These business innovators don’t take their technology cues from the corporate standards set by infrastructure & operations professionals.

Cloud computing is growing faster and small companies and startups can get greater benefits.

- Ricardo Seguel P.

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