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In this article
 Ayanthi Anandagoda
demystifies Cloud Computing and related concepts.
Introduction
"The network is the computer," Sun's chief researcher John Gage prophesied in 1984.In the blooming space of cloud computing, we see an industry trend towards a componetizedsoftware ecosystem built on Software as a Service (SaaS), Hardware as a Service (HaaS) andPlatform as a Service (PaaS) - all operating in the cloud!. SaaS, HaaS and PaaS are a collectionof powerful software forces that to a greater or lesser extent aims at completing the paradigmof cloud computing being drawn with individual offerings largely blurring between them. What they each bring to the table is the power that leverages from enormous economies of scale and operational competencies that Web-based modules deliver. To make an informeddecision on which cloud computing facility to employ in your enterprise, let's be informedfirst.
Table of Contents
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1. Cloud Computing..
Cloud computing essentially encapsulates the following three concepts: pay-as-you-go, on-demand and on the Net. It is the computing model of the day, where the use of IT is billed likea utility and hence the term utility computing. Cloud computing is a part of the on-demandmodel for computing that allows companies to focus on creating true business value ratherthan delve on setting up and maintaining IT infrastructure to get going.How do we then, relate cloud computing to SaaS, PaaS and HaaS? As you dig deeper it becomes apparent that SaaS, PaaS and HaaS are different categories of cloud computing. Where SaaS refers to applications in the cloud, PaaS refers to the platforms in the cloud whileHaaS refers to the infrastructure in the cloud
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2. Software as a Service..
The concept of 'Software as a Service' or SaaS, is an application delivery model with vendorshosting Web-based applications on the Internet and consumers consuming them on line.Technologies such as Web services and REST play an integral role in the development of SaaSapplications.
 
The origins of the popular CamelCase term goes back to a white paper published by theSoftware & Information Industry's eBusiness Division in 2001 titled "Strategic Backgrounder:Software as a Service"
 [2]
, in which they discussed, “the delivery, management and payment of software by Application Service Providers (ASPs) as a service rather than a product..” withusers 'subscribing' for the use of software rather than purchasing them upfront.Despite the hype back in the days, the ASP model failed to take off as anticipated by theoriginators largely due to the unavailability of network and Web being untested grounds formany. Today, tables have clearly turned with Internet access at lightening speeds, increasedhabitats on the Web and the increased adoption of open standards. Web 2.0
addressed largely the Web-based socializing and consumer-oriented softwaredomain but not SaaS. The list of vertical industries qualifying for SaaS application modelinclude Customer Relationship Management (CRM) systems, Supply Chain Management(SCM) systems, Human Resources Management (HRM) systems, video conferencing,accounting and various others.SaaS presents a number of licensing and pricing models for the vendors to choose from thatincludes pay-as-you-go, subscription-based, revenue-based, usage/transaction-based andother. Some even go as far as offering complete services free of charge preferring to monetize with ads only.
3. Hardware as a Service..
The concept of Hardware as a Service' or HaaS refers to, the virtualization of the data center.It appears to be that HaaS provides the real estate support while SaaS provides the applicationfunctionality in the journey towards cloud computing supremacy. With striking similarities to hardware leasing, HaaS is a model in which the vendor managesthe lease as opposed to the customer that helps keep service calls to an absolute minimum.Earlier this year, Apple announced its slightly different flavor of HaaS that promises toimprove old hardware with software upgrades an act that was already adopted by Microsofton Zune devices, Nintendo on wii and Sony on its BlueRay playback on the Playstation.
4. Platform as a Service..
In the next logical evolution of computing in the cloud comes as an integrated platform to build, test, and deploy custom applications that we called Platform as a Service (PaaS).The concept of 'Platform as a Service' is a form of cloud computing, that delivers developmentenvironments as a service rather than offering full-blown applications. Pioneered by Amazon,Google already has an offer with the Google App engine, where you are able to sign up for afree account to use up to 500MB of persistent storage, CPU and bandwidth for about 5 millionpage views a month. Sun is on its way with their offering of Platform as a Service in what they called Project Caroline
.
More Definitions
Utility Computing refers to making computing resources available as a metered service.
Grid Computing refers to an infrastructure in which networked computers are able to
 
access and utilize the power of one another
Elasticity refers to the ability to dynamically acquire or release computing resourceson-demand
5. at cross-roads..
SaaS is predominantly looked at as an application delivery model, as opposed to the conceptof SOA (Service Oriented Architecture)
 - an architectural strategy weaving together servicesto create business processes. So, what have they got in common?On one side, the flexible and scalable pedigree of SOA brings value to SaaS - a loosely coupled,contracted services that empowers SaaS providers more efficiently compete in themarketplace against packaged, on-premise software vendors in terms of price, flexibility andother service quality offerings. As demand for scalability and flexibility mounts, SaaS can only serve in the short term without SOA offerings to enable them optimize the construction andoperation of SaaS services for the long run.On the other side of the equation, increasingly many enterprises expect SaaS be madeavailable for their SOA implementations without getting bogged down in development. As wethen see, although the initial impressions of the cloud computing model was all aboutdelivering software, the actual transformation is far more fundamental and deep routed inSOA.The intersection has been inevitable. The two forms have converged and have already begunto fuse great possibilities for the enterprise.
6. Benefits
Is SaaS, cloud computing and PaaS serious enough for the enterprise to build and deploy  business applications? Here are the benefits:1.virtualization of computing power2.on demand service coupled with a pay-per-use business model yielding to economies of scale3.increased scalability 4.ability to leverage power of SO5.reduced startup times specially for the Small Office Home Office customer(SOHO), who no longer has to bear all the costs of infrastructure and maintenance.6.single point of accountabilit7.rich application functionality at dramatically low costs8.removes the need to over-buy in terms of "safety net" capacities to handle periodictraffic spikes
7. Concerns
Cloud computing seem convincing enough. Buy how about security and privacy?The concern inevitably raises the question "how much do we need to know about the services we acquire or consume from other sources?To this point I'd say that the companies offeringcloud computing services will live and die by their reputations. As cloud computing leavesusers to feel that they lose a degree of control over their often-sensitive information - it would

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