The “Internet of Things”, the rise of information and virtualisation technologies and the huge importance of data analytics can be characterised as key features of our mobile age. According to this, nowadays businesses are related to a great extent upon new technologies and expect them to deliver cost effective solutions, improve customers experience, drive revenue growth and foster innovation.
Cloud computing signifies a new approach in the way companies manage Information Technologies and offer new opportunities for increased efficiency, improved cash flow and many other benefits. According to the National Institute of Standards and Technology (NIST) cloud computing is defined as:
“Cloud computing is a model for enabling 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.”
Basic Cloud Computing Model
Source: OpenGroup – Cloud Computing for Business
Based on the definition above, one of the cloud’s key characteristics is the accessibility of information technologies, from infrastructures to applications, such as services over the network at any time. This can happen over a wide variety of devices (smartphones, laptops and other mobile internet devices) and offer new opportunities for businesses and new ways for employees to work, connect, and collaborate.
“I don’t need a hard disk in my computer if I can get to the server faster… carrying around these non- connected computers is byzantine by comparison.”
Steve Jobs, 1997
Another important characteristic of cloud is the reduction of capital expenditure through the optimization and utilization of Information Technology assets and the provision of the necessary capabilities according to business requirements. These requirements about the usage of resources (storage, processing, bandwidth) are controlled from companies that are flexible to increase or decrease them at any time. This flexibility in combination with the new application and services can provide cloud computing to a company creating a potential competitive advantage and increase in business agility. It’s not surprising that according to the Gartner’s survey, Enterprise Cloud Adoption Plans Through, 2015, CIOs and IT Directors rank ‘operational agility’ as a top driver for cloud adoption. As stated in the same survey, the simplification of internal operations and the better allocation of internal resources are the next two motives that companies adopt cloud computing.
The Essential Characteristics of Cloud Computing
Source: OpenGroup – Cloud Computing for Business
- Software – as- a -Service (SaaS). Enable users to access applications running on a cloud infrastructure from various end-user devices. For instance, Google Drive can be characterised as SaaS cloud service.
- Platform – as – a – Service (PaaS). Business create its own custom application for use by all in the company.
- Infrastructure – as – a – Service (IaaS). Companies like Amazon, Microsoft, Google provide users with processing, storage, network and other computer infrastructure resources. For instance, Netflix use the Amazon’s cloud services for its operations.
Also companies have to choose about the cloud deployment model that want to use. According to the National Institute of Standards and Technology (NIST) there are four deployment models:
- Private clouds are operated solely for one organisation.
- Public clouds are open to the general public or to a large industry group.
- Hybrid clouds are combine to or more clouds (private or public).
- Community clouds are feature infrastructures that is shared by several organisations and support a specific community
Taking all these into consideration, cloud computing is fast becoming the new “normal” in business environment and already many companies use a cloud-base serviced to provide individuals with software tools and services or they are emerging their own tools for storing and analysing data. According to Forbes’ survey, Roundup of Cloud Computing Forecasts and Market Estimates, 2016, the worldwide revenues of IT cloud services in 2018 is predicted to be $127B.
Worldwide Public IT Cloud Service Revenue in 2018
Source: Microsoft Cloud Landscape Update, 2015
Reference List:
Bandyopadhyay, S., Ghalsasi, A., Li, Z., Marston, S., Zhang J. (2010). Cloud computing — The business perspective. Decision Support Systems, 51 (2011), 176–189 doi: 10.1016/j.dss.2010.12.006
CISCO. (2011). Cloud: What an Enterprise Must Know. Retrieved 20 June, 2016, from http://www.cisco.com/c/en/us/solutions/collateral/data-center-virtualization/cloud-computing/white_paper_c11-617239.html
Forbes. (2016). Roundup Of Cloud Computing Forecasts And Market Estimates, 2016. Retrieved 20 June, 2016, from http://www.forbes.com/sites/louiscolumbus/2016/03/13/roundup-of-cloud-computing-forecasts-and-market-estimates-2016/#7f15111f74b0
Gartner. (2014). Gartner Survey Reveals That SaaS Deployments Are Now Mission Critical. Retrieved 20 June, 2016, from http://www.gartner.com/newsroom/id/2923217
National Institute of Standards and Technology. (2011).The NIST Definition of Cloud Computing. Retrieved from http://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-145.pdf
RightScale. (2016). State of the Cloud Report. Retrieved from http://assets.rightscale.com/uploads/pdfs/RightScale-2016-State-of-the-Cloud-Report.pdf
TheOpenGroup.(2013). Cloud Computing for Business : What is Cloud?.Retrieved 20 June, 2016, from http://www.opengroup.org/cloud/cloud/cloud_for_business/what.htm
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