Definitions: Cloud Computing
Created on: Jan 25, 2009 5:32 PM by Arthur Cole - Last Modified: Jan 25, 2009 5:34 PM by Patrick Avery
Definition
Cloud computing is the ability to draw IT resources from an internal or external, third-party source using either Internet-based or local-area infrastructure. The cloud is essentially the Software-as-a-Service (SaaS) model expanded to include hardware-driven functions like storage and processing.
While the concept dates to the late 1960s, the modern cloud movement began in 2002 with the launch of Amazon.com’s Amazon Web Services. The company followed up with the Elastic Computer Cloud (EC2) in 2008, and has since been joined by Google, Microsoft and others.
Business Applications
Applications range from server and storage services to application development/testing to the applications themselves, like ERP and CRM. In fact, it is conceivable that enterprises will soon be able to out-source virtually all their IT needs to the cloud, avoiding the cost and complexity of building an IT network from the ground up.
Likewise, established enterprises could use their existing networks to provide cloud services “behind the firewall,” that is, a private cloud for strictly internal purposes. This would improve management capabilities and allow resources to be dynamically shifted to meet rising and falling data loads, at once eliminating current silo architectures and the need to over-provision resources to meet peak demand. Internal clouds can also be leased to third parties, turning IT from a cost center to a revenue generator.
Deployment Concerns
Security and reliability are the two major issues. Cloud-based storage is a particular concern, considering it places institutional knowledge under the control of someone else.
On the security front, the main issue is the fact that users are not passing through the standard sign-on and Web access protocols before hitting the cloud. Mobile and remote users in particular can often bypass enterprise network security entirely.
As for reliability, cloud access is only as good as the Internet service it’s carried on
Technical details
The cloud is essentially an abstraction of the existing Internet infrastructure. As such, it requires client-side hardware and software tied to legacy computing infrastructures and ever-shifting application, virtualization and middleware software layers.
Many cloud providers have adopted the “utility computing” model of delivery in which IT resources are distributed to users much as electricity and telephone service.
Key enabling technologies include high-speed networking bolstered by 10 GbE in the enterprise, and advanced Application Programming Interfaces (APIs).

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It would be appropriate to mention Salesforce.com which was, and remains, a pioneer in this field.