On cloud 2009: The who, what, where, why and when of cloud computing
By Mark Williams, Extrasys Head of IS&S
First released on January 27th, 2009.
Introduction
Analysts are saying that 2009 is the big year for cloud computing (or Hosted IT services as we've been calling it); but who is doing it? what is it? why is it interesting? where can you find it? and when, if ever, will it really take off? Here are some initial answers which I'll develop here and in our team blog over the course of the year.
Who's who in cloud computing?
The big players are currently:
- Google - with Google Apps
- Microsoft - with Online services
- Amazon - with EC2
- and, because of their market presence, Salesforce.com
What is cloud computing?
This question is a source of great debate. Oracle CEO Larry Ellison has voiced the opinions of many IT industrialists on 'cloud computing' by saying "What is it? It's complete gibberish... [but] I'm not going to fight this thing". And he may be right, but the thing is the term has caught on, the words conjure up mental pictures of virtualisation in the minds of customers and fire their imaginations, making them far more willing to change what they do with IT.
As for a definition, the wikipedia one isn't bad at all:
Cloud computing is Internet ("cloud") based development and use of computer technology ("computing"). It is a business information management style of computing in which typically real-time scalable resources are provided as a service over the Internet to users who need not have knowledge of, expertise in, or control over the technology infrastructure ("in the cloud") that supports them.
Why the big interest in cloud computing?
I've mentioned the simple power of the term "cloud computing", but there has to be some substance to the technologies themselves and sufficiently compelling drivers for customers. Well the technologies have certainly matured in recent years and the entrance of Google and Microsoft into the market has given it credibility, but, as I have argued in our team blog it is, I believe, the credit crunch that will popularise cloud computing. Quoting myself:
Reducing capital expenditure on IT infrastructure has always been an argument for hosted services, but when investment and loans were readily available, economies were growing and you could make long term business plans with a degree of confidence, this argument was not as strong. Now, of course, capital is hard to come by and the near financial future is bleak, but businesses still want enterprise grade IT systems.
Paying for hosted IT software and services per user per month as and when you need them - from a company like mine, Extrasys - makes particularly good sense when growth and revenue are not assured. Your company can quickly expand and contract, and your IT costs will vary accordingly. If you hire a temporary employee for one month and she needs Microsoft Visio and Project just for that month you don't have to buy the software licenses outright, which would be expensive, you rent them for her for a single month. If she has a laptop or home computer of any type then that's hardware covered, too.
Another strong driver for adopting cloud computing in these times is overhead reduction. Do you really need an office when most of your workers can work from home and you can hot desk the rest? Do you really need an IT manager to look after an office full of computers, their software, and a server or two when you could be computing in the cloud?
Where can you find cloud computing?
Based on the steady flow of enquiries Extrasys have received from North American businesses over the last few years, it seems that hosted desktop services haven't been readily available in the USA. However, now that the 'big two' software giants have entered the market, along with Amazon, it is Europe that is slightly lagging behind when it comes to cloud computing options. That will change when Microsoft follow Amazon's lead and roll out their European data centres this year.
When, if ever, will cloud computing really take off?
I have quoted IDC's and Merril Lynch's cloud computing market forecasts in our blog, which point to a threefold increase in the market during the next three years, and, crucially, they predict that it will account for some 25% of IT expenditure by that time. On the home front, our own SPLA license vendor, Softcat predicts that their revenue from monthly software licenses will be their main source of income wihin two years. It appears then that it will soon become the norm for businesses (including large enterprises) to rent CPU time, data storage and software applications on the computing cloud, and I think 2009 will indeed see the beginning of the end of DIY IT.