Cloud Computing

Cloud Computing:

Definition, advantages and disadvantages

prepared by

London School of Business & Finance

London

CONTENTS

Executive summary 3

Introduction 4

Defining Cloud Computing 5

The effects of Cloud Computing on business 8

Associated Press 8

3M 9

Target 11

Summary 12

Advantages and disadvantages of Cloud Computing 12

Conclusion 17

References 19

EXECUTIVE SUMMARY

Cloud Computing is one of the most discussed trends of modern IT industry. However, official definition given by National Institute of Standards and Technology in January 2011 does not give a clear image of what CC really is. Cloud Computing can be briefly defined as a mix of infrastructure, platform and software provided as a service to businesses, inspired by Web 2.0 technology.

Case studies of three companies show that the main benefits of implementing "the cloud" are cost cutting, faster time-to-market speed, faster development speed, simplified management and planning, etc. However, there is a significant list of disadvantages of using Cloud Computing, such as security, dependency, implementation, transition, and constant requirement of strong Internet connection to operate business.

INTRODUCTION

Cloud Computing is the "hottest" trend in IT industry for the past several years. Though most companies have exact understanding of what it is, no one can even agree on a single definition. Hence, there are 68 definitions on Google, and Wikipedia which is known for summarizing common knowledge, does not have any.

Cloud Computing is being vastly promoted by giants like Microsoft and Google, who are speaking of it like a solution of the future for all sorts of businesses. In this work we will see how companies like Associated Press, 3M and Target implemented cloud systems, and what benefits did they gain. We will also discuss disadvantages of such systems, and why the majority of companies are still reluctant to transit, and use their own hardware instead of receiving computing as utility or service.

Defining Cloud Computing

Cloud Computing (CC, "the cloud") is one of the most uncertain, controversial and intriguing concepts of modern Information Technologies. Practically, the first open-source systems began to emerge in 2008. However, the concept of Cloud Computing was predicted back in 1966 by Douglas Parkhill in his book "The challenge of the computer utility" (Wardley, S., 2010).

Though it is spoken about everywhere, there is no single definition for the Cloud Computing. Even Wikipedia does not have a definition, but only thorough description of how it works. All said, presently there are 68 different definitions given to Cloud Computing, varying from simple "it is like computers on the Internet" to much more complicated and hard to understand ones. However, most definitions agree that Cloud Computing includes the mix of common concepts such as: IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service) (Knorr, E., Gruman, G., n.d.).

IaaS basically provides the user with the same server as they would have had physically in the office, but online. Therefore, you can start, stop or configure your server and storage from any device with Internet connection.

PaaS provides a platform on which users can create their own applications, web-sites, portals online without purchasing the required hardware.

SaaS basically provides software over the Internet, which means that you can use a program without actually paying for the license itself. Simple example of this: if your company uses 100 desktops, you will need either 100 licenses of Microsoft Office, or one expensive corporate license. With SaaS, you just use equal software online and pay for it as much, as you do use it (SearchCloudComputing, 2007).

Keeping in mind those 3 concepts, we can have our first perception of what Cloud Computing is.

Another major technology which led to the Cloud is known as Web 2.0, which generally allowed interconnecting different online services such as Amazon, Youtube, Facebook, etc.

Source: BlueMileCloud

Although there are disputes on the definition of CC, we will use one which was brought up by National Institute of Standards and Technology (USA) in January 2011:

"Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models." (NIST, 2011)

Five essential characteristics of CC are:

- On-demand self-service

- Broad network access

- Resource pooling

- Rapid elasticity

- Measured service

Three service models are Iaas, Paas, SaaS as described above.

Four deployment models are:

- Private cloud - operated solely for an organization.

- Community cloud - shared by several organizations.

- Public cloud - available to the generic public.

- Hybrid cloud - composition of two or more clouds.

If we try to make this definition more simple and easy to understand, we may say that Cloud Computing is the logical development of computing and IT industry, provided by a set of economic, cultural and technological conditions (Wardley, S., 2009). Computing is brought