Cloud Computing

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 need knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them.It typically involves the provision of dynamically scalable and often virtualized resources as a service over the Internet.

The term cloud is used as a metaphor for the Internet, based on how the Internet is depicted in computer network diagrams and is an abstraction of the underlying infrastructure it conceals.Typical cloud computing providers deliver common business applications online which are accessed from a web browser, while the software and data are stored on the servers.

These applications are broadly divided into the following categories: Software as a Service (SaaS), Utility Computing, Web Services, Platform as a Service (PaaS), Managed Service Providers (MSP), Service Commerce, and Internet Integration. The name cloud computing was inspired by the cloud symbol that is often used to represent the Internet in flow charts and diagrams."

Cloud computing users can avoid capital expenditure (CapEx) on hardware, software, and services when they pay a provider only for what they use. Consumption is usually billed on a utility (resources consumed, like electricity) or subscription (time-based, like a newspaper) basis with little or no upfront cost. Other benefits of this time sharing-style approach are low barriers to entry, shared infrastructure and costs, low management overhead, and immediate access to a broad range of applications. In general, users can terminate the contract at any time (thereby avoiding return on investment risk and uncertainty), and the services are often covered by service level agreements (SLAs) with financial penalties.

According to Nicholas Carr, the strategic importance of information technology is diminishing as it becomes standardized and less expensive. He argues that the cloud computing paradigm shift is similar to the displacement of electricity generators by electricity grids early in the 20th century.

Although companies might be able to save on upfront capital expenditures, they might not save much and might actually pay more for operating expenses. In situations where the capital expense would be relatively small, or where the organization has more flexibility in their capital budget than their operating budget, the cloud model might not make great fiscal sense. Other factors impacting the scale of any potential cost savings include the efficiency of a company’s data center as compared to the cloud vendor’s, the company's existing operating costs, the level of adoption of cloud computing, and the type of functionality being hosted in the cloud.

Types by visibility

Public cloud

Public cloud or external cloud describes cloud computing in the traditional mainstream sense, whereby resources are dynamically provisioned on a fine-grained, self-service basis over the Internet, via web applications/web services, from an off-site third-party provider who shares resources and bills on a fine-grained utility computing basis.

Hybrid cloud

A hybrid cloud environment consisting of multiple internal and/or external providers "will be typical for most enterprises".A hybrid cloud can describe configuration combining a local device, such as a Plug computer with cloud services. It can also describe configurations combining virtual and physical, colocated assets—for example, a mostly virtualized environment that requires physical servers, routers, or other hardware such as a network appliance acting as a firewall or spam filter.

Private cloud

Private cloud and internal cloud are neologisms that some vendors have recently used to describe offerings that emulate cloud computing on private networks. These (typically virtualisation automation) products claim to "deliver some benefits of cloud computing without the pitfalls", capitalising on data security, corporate governance, and reliability concerns. They have been criticized on the basis that users "still have to buy, build, and manage them" and as such do not benefit from lower up-front capital costs and less hands-on management, essentially "[lacking] the economic model that makes cloud computing such an intriguing concept".

While an analyst predicted in 2008 that private cloud networks would be the future of corporate IT,there is some uncertainty whether they are a reality even within the same firm.Analysts also claim that within five years a "huge percentage" of small and medium enterprises will get most of their computing resources from external cloud computing providers as they "will not have economies of scale to make it worth staying in the IT business" or be able to afford private clouds.Analysts have reported on Platform's view that private clouds are a stepping stone to external clouds, particularly for the financial services, and that future datacenters will look like internal clouds.

The term has also been used in the logical rather than physical sense, for example in reference to platform as a service offerings,though such offerings including Microsoft's Azure Services Platform are not available for on-premises deployment.

Types by services

Services provided by cloud computing can be split into three major categories.

Infrastructure-as-a-Service (IaaS)

Infrastructure-as-a-Service like Amazon Web Services provides virtual servers with unique IP addresses and blocks of storage on demand. Customers benefit from an API from which they can control their servers. Because customers can pay for exactly the amount of service they use, like for electricity or water, this service is also called utility computing.

Platform-as-a-Service (PaaS)

Platform-as-a-Service is a set of software and development tools hosted on the provider's servers. Developers can create applications using the provider's APIs. Google Apps is one of the most famous Platform-as-a-Service providers. Developers should take notice that there aren't any interoperability standards (yet), so some providers may not allow you to take your application and put it on another platform.

Software-as-a-Service (SaaS)

Software-as-a-Service (SaaS) is the broadest market. In this case the provider allows the customer only to use its applications. The software interacts with the user through a user interface. These applications can be anything from web based email, to applications like Twitter or Last FM.