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Theres been an awful lot of noise made about cloud computingbut is it here to stay?
B usinesses are constantly looking for the next
innovation that will provide a competitive advantage. By allowing businesses of all sizes to compete on a global level, cloud computing is doing exactly that. The cloud is changing how businesses fundamentally operate. Many are skeptical about cloud computing; however, the migration of processes, infrastructure, relationships, media, and (some would argue) our very lives, to the Cloud, is something that is happening now. Before casting your vote you should be aware of several aspects related to cloud computing. How cloud computing works, how clouds are setup, the expected growth rate of the cloud industry, advantages cloud computing offers businesses, and how the cloud is becoming a part of daily life are all important points for discussion.
the same way they pay for basic utilities each month. Cloud computing allows organizations of all sizes to shift up front capital expenses to more effective operating expenses (Goodburn & Hill, 2010). The result? Businesses are able to function more efficiently. Downsized IT departments armed with increased spending flexibility provide businesses with greater agility in the marketplace. As a result of benefits like increased efficiency, the term cloud computing has become a buzzword in many contexts as businesses seek to claim ownership of the new trend. The Cloud Services To understand cloud computing one must be aware of the three basic service models that a business can choose from. The first model, software as a service, allows users to run and access programs through the internet instead of having to physically purchase, install, upgrade, and maintain programs on all the computers in a business. The second model, infrastructure as a service, allows businesses to rent computer hardware via the Internet to perform fundamental computing needs such as storage, or processing. The third model, platform as a service, allows businesses to create new computer programs through the use of online-development tools (Ryan & Loeffler, 2010). These service models are physically setup either in a private, cooperative, public, or hybrid cloud.
Cloud computing is expected to grow from a $50 million industry in 2009 to a $15 billion industry by 2013.
$14,000,000,000
$12,000,000,000
$10,000,000,000
2009
2015
$6,000,000,000
$4,000,000,000
Over a six-year period the cloudcomputing industry is expected to grow by nearly 3000 percent!
$2,000,000,000
$0
2009
2015
Because of the utility-pricing structure cloud computing offers, businesses only pay for the resources they need.
By Eric Germann
Sources
Goodburn, M. A., & Hill, S. (2010). The cloud transforms business. Financial Executive, 26(10), 34-39. Greengard, S., (2010). Cloud Computing and Developing Nations. Communications of the ACM, 53(5), 18-20. Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing the business perspective. Decision Support Systems, 51(1), 176-189. Ryan, W. M., & Loeffler, C. M. (2010). Insights into cloud computing. Intellectual Property & Technology Law Journal, 22(11), 2228. Walz, J., & Grier, A.G. (2010). Time to Push the Cloud. IT Pro, 14-16.
A Clouded future?
With any new paradigm shift the future can seem cloudy at times. Some unwarranted hype may surround cloud computing;