My Thoughts on the Cloud Computing Trend

Last month I posted "IBM Cloud Computing White Papers".  In that post I provide summaries and links to a number of white papers IBM has posted on the Cloud Computing topic. 

SWSC16 As I mention in that post, I did a bunch of research on the topic of Cloud Computing back in late 2007 and 2008.  The post last month gave me the opportunity to reflect on the cloud computing trend.  In 2008 it was an emerging buzzword in the IT industry.  Today, 2 years later, the concept is a little more defined and the hype has died down a bit. 

Yes, there is more that needs to happen before the true potential of cloud computing becomes a reality, but there is no question that we all need to pay attention to the vision of cloud computing…because cloud computing (or whatever it ends up being called) is the future of the IT industry. 

Why you ask?  There are a number of reasons.  But primary in my mind is that it offers businesses the promise of business agility.   Agility enables the business to respond quickly to customer requests for new products and services.  It also allows businesses to partner more quickly to reach new markets faster.  And it also allows businesses to quickly change in the face of competition.  Here are some basic reasons why the cloud computing concept will take off.

  • Economics: Clouds will require a very small up front investment.  Usage will be be billed by consumption.  The resulting reduction in Total Cost of Ownership will allow businesses to pursue improvements in operational efficiency and productivity.
  • Risk Management:  In some cases, there will be no fixed time commitment.  This will allow businesses to try many new services faster.  This reduces big failure risks and allows clients to be innovative.
  • Time to Market:  Businesses will be able to adopt new services quickly for pilot usages and then scale quickly to a global scale.
  • Information Society:  Cloud computing will provide business executives value-added information generated by the collection and analysis of massive amounts of unstructured data.
  • Ubiquitous Society:  The cloud treats all devices the same making the cloud accessible via a heterogeneous set of devices (sensors, kiosks, PC, mobile device, telematics..)

In today's fast world, new competitors, with innovative business models (e.g. Google, Amazon, etc.), seem to be able to rapidly change their business.  To match these types of competitors, businesses must have a business architecture and an IT infrastructure that is flexible enough to respond quickly to all opportunities and threats.  The emerging cloud computing concept enables businesses to become more agile because it offers the ability to get to market quickly, and with a lower capital expense.  It also assures that as demand increases, resources can be added incrementally, without the need for major architecture changes.

From an IT standpoint, business agility implies the ability to rapidly build and configure tailored solutions which span internal and external systems.  Cloud computing can enable the development of applications in real-time and then also enables them to be quickly deployed globally to any device from sensors to mobile device to PCs.  Once developed, Line of Business executives need those applications to execute in real-time, scaling to meet the needs of the business.   Follow on generations of applications must be able to handle increasingly higher amounts of data as the user base grows.  Once running, applications in the cloud offer non stop operation.  Users aren't burdened by HW and SW upgrades.  

In the future, there will be all sorts of new types of services enabled because of computing clouds.  Services we can''t even imagine right now.  The fact is that the more applications and services that are deployed in the cloud, the more opportunities there are to leverage services provided by others in the same or other clouds.

The biggest 'hurdles' to realizing the vision of cloud computing is security, privacy, & risk Management issues.  These issues can be HUGE to overcome.  The security issues will be very complex to solve and a number of the white papers I summarized in the post "IBM Cloud Computing White Papers" discuss those security issues.

I do believe that we will solve the 'hurdles' and businesses will learn to trust running our systems in the 'clouds'.   Remember the initial fear you had of buying things online with your credit card?  I bet you do that now with much less fear.  Perhaps you don't even think about it.

Anyway, Cloud Computing is a disruptive force in the Information Technology industry and it is one of the trends I will continue to watch closely.

3 thoughts on “My Thoughts on the Cloud Computing Trend

  1. Thanks. Good post on Cloud Computing.
    Very simply stated, cloud computing is the delivery of a service or a capability over the network. More specifically, cloud computing refers to IT resources and services that are abstracted from the underlying infrastructure and are provided “on demand” and “at scale” in a multitenant environment.
    Cloud computing fundamentally changes the way IT services are delivered. Organizations can employ cloud computing to meet their IT requirements using a flexible, on demand, and rapidly scalable model that requires neither ownership on their part, nor provision of dedicated resources.

  2. Cloud is an important trend. Here’s how I define it.

    Cloud computing is Internet- (“cloud-“) based development and use of computer technology (“computing”). In concept, it is a paradigm shift whereby details are abstracted from the users who no longer have need of, expertise in, or control over the technology infrastructure “in the cloud” that supports them. Cloud computing describes a new supplement, consumption and delivery model for IT services based on the Internet, and it typically involves the provision of dynamically scalable and often virtualized resources as a service over the Internet.

  3. Thanks for writing about this trend. For me…one dark CLOUD (pardon the pun) that comes to mind is the move of outsourcing of IT services to smaller start up companies. Yes the theory behind cloud computing is great – sharing resources, faster data/application delivery, which in some ways SHOULD or would have benefited smaller companies who could share software services rather than purchasing licenses themselves. However the reality for many startups is that they simply cannot afford the cloud startup costs in today’s depressed economy eg. $10,000 per annum for google map services on the cloud. Put simply.. the marketing for cloud seems to be targeted to already well established companies who could afford the move to the cloud, but smaller companies would more likely stick with single pc equipment and the limited software they need for their market niche. If large companies continue to outsource – I see trouble ahead for the cloud concept, unless the cloud providers adopt a more small company friendly arrangement payg for example.

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