05 Aug 2009
Cloud computing describes an approach whereby IT resources are provided as a service via the internet. Instead of purchasing physical servers, databases, middleware and applications separately, firms will simply be able to order them over the internet in virtual form, as demand requires.
In theory, cloud computing will deliver all the technical benefits but none of the financial costs and technical headaches associated with wholly owned IT assets. Consumption of computing power will be billed using a utility model, a per-unit approach similar to that used by power companies.
As big players such as Google, Microsoft and Sun jostle to position themselves as cloud service providers (CSPs), so relative newcomers such as Amazon.com are also being seen as technology providers rather than mere retailers. In this brave new world, the rationale goes, why shouldn’t buying computing power online be as straightforward as purchasing books or DVDs with a click of a mouse?
However, let’s consider some potential pitfalls.
Foremost is the question of value. Cloud computing promises the potential for significant efficiencies, but when many firms don’t even have an accurate picture of their IT costs today, how will they know whether the cloud can save them money?
In addition, it is possible that CIOs will be pressured to adopt a technology that may not be the most cost-effective option for their organisation.
Allied to these cost concerns are questions about technical robustness. There is an urgent need for greater industry collaboration and more cohesive standards within the cloud environment.
There is also the question of semantics. First, we must differentiate true cloud computing from related concepts. Second, we are seeing a tendency for vendors to group a multitude of disparate technologies under the handy cloud moniker. But does this provide clarity for customers?
The IT industry must work together to address nascent issues such as cost and security, ensuring that this cloud at least has a silver lining.
Joe Baguley is a BCS contributor
Even though many UK enterprises are successfully using the cloud, Joe is right to raise some concerns. I'm particularly glad he's brought up cost control and a need for more cohesive standards. There's a lot of talk from the Industry giants about how the cloud will help organisations save a bundle on IT. As experience of working in the cloud grows, CIOs will develop ways of measuring usage and limiting spend across their business. Greater value will be derived when companies can hop from one cloud to another easily to get the best deal and policy based controls can be implemented between clouds.
Posted by: Owen Garrett 11 Aug 2009
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