What is Cloud Computing and Why
is it Important?
In order to understand the core principles of an open cloud, we need to first agree
on some basic definitions and concepts of cloud computing itself. First, what is
“the cloud”? The architecture and terminology of cloud computing is as clearly and
precisely defined as, well, a cloud. Since cloud computing is really a culmination of
many technologies such as grid computing, utility computing, SOA, Web 2.0, and
other technologies, a precise definition is often debated.
While definitions, taxonomies and architectures are interesting, it is more
important to understand the value propositions for cloud computing. We need to
understand how suppliers of cloud technology will come together to deliver on the
promise of cloud computing.
The key characteristics of the cloud are the ability to scale and provision
computing power dynamically in a cost efficient way and the ability of the
consumer (end user, organization or IT staff) to make the most of that power
without having to manage the underlying complexity of the technology. The cloud
architecture itself can be private (hosted within an organization’s firewall) or public
(hosted on the Internet). These characteristics lead to a set of core value
propositions:
All organizations have to deal with changes in their environments. The ability of
cloud computing solutions to scale up and down is a major benefit. If an
organization has periods of time in which their computing resource needs are
much higher or lower than normal, cloud technologies (both private and public)
can deal with those changes. The organization pays for the IT resources it
actually uses; it does not have to maintain multiple sets of artificially high levels
of resources to handle peak demands.
Streamlining the Data Center
An organization of any size will have a substantial investment in its data center.
That includes buying and maintaining the hardware and software, providing the
facilities in which the hardware is housed and hiring the personnel who keep the
data center running. An organization can streamline its data center by taking
advantage of cloud technologies internally or by offloading workload into the