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! ! ! Welcometo ! ! ! theCLOUD (R evolution) There’s been an awful lot
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Welcometo
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theCLOUD
(R evolution)
There’s been an awful lot of
noise made about cloud
computing—but is it here to
stay? ! ! ! !
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B usinesses are constantly looking for the next
innovation that will provide a competitive
advantage. By allowing businesses of all sizes
to compete on a global level, cloud computing
is doing exactly that. The cloud is changing
how businesses fundamentally operate. Many
are skeptical about cloud computing; however,
the migration of processes, infrastructure,
relationships, media, and (some would argue)
our very lives, to the “Cloud”, is something
that is happening now. Before casting your
vote you should be aware of several aspects
related to cloud computing. How cloud
computing works, how clouds are setup, the
expected growth rate of the cloud industry,
advantages cloud computing offers businesses,
and how the cloud is becoming a part of daily
life are all important points for discussion.
the same way they pay for basic utilities each
month. Cloud computing allows organizations
of all sizes to shift up front capital expenses to
more effective operating expenses (Goodburn
& Hill, 2010). The result? Businesses are able
to function more efficiently. Downsized IT
departments armed with increased spending
flexibility provide businesses with greater
agility in the marketplace. As a result of
benefits like increased efficiency, the term
cloud computing has become a buzzword in
many contexts as businesses seek to claim
ownership of the new trend. ! !
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The Cloud Services !
How the Cloud Works
Cloud computing allows businesses to bypass
the expensive and complicated process of
obtaining computer equipment and software.
IT requirements can be outsourced to third-
party “cloud providers” who supply computer
hardware virtually via the Internet. Because of
this, a business can now pay for the computing
power it requires on a need-to-need basis. This
allows businesses to pay for IT specifications
To understand cloud computing one must be
aware of the three basic service models that a
business can choose from. The first model,
software as a service, allows users to run and
access programs through the internet instead
of having to physically purchase, install,
upgrade, and maintain programs on all the
computers in a business. The second model,
infrastructure as a service, allows businesses
to rent computer hardware via the Internet to
perform fundamental computing needs such as
storage, or processing. The third model,
platform as a service, allows businesses to
create new computer programs through the
use of online-development tools (Ryan &
Loeffler, 2010). These service models are
physically setup either in a private,
cooperative, public, or hybrid cloud.

“Cloud ! computing is expected to grow from a $50 million

industry in 2009 to a $15 billion industry by 2013.”

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The Cloud Setup

The easiest way to understand each setup is to compare everyday business needs like processing, storage and data mining, to everyday household needs like doing the laundry. The washing machine represents computer hardware and the laundry represents business information and computing tasks. A private cloud setup is much like owning a washing machine and doing the laundry at home. A cooperative cloud setup is similar to using the shared washing machines at a Laundromat. A public cloud setup is like having the laundry go to the cleaners where hired staff does the work. In a hybrid cloud setup, the delicate clothes go to the cleaners while the rest is done at home (Walz & Grier, 2010). Cloud computing allows businesses a great deal of flexibility when provisioning IT resources.

Expected#Growth#of#

the#Cloud#Industry#in#

Billions#of#Dollars#

$16,000,000,000#

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$0#

2009# 2015#

$14,000,000,000#

$12,000,000,000#

$10,000,000,000#

Future Cloud Growth

A businesses bottom line is often what drives the shift and adoption of new technology and the global shift to cloud computing is no different. In some parts of the world cloud computing is expected to grow from a $50 million industry in 2009 to a $15 billion industry by 2013 (Greengard, 2010). While many have viewed cloud computing as fueled by hype and pre-mature results, even skeptics find it hard to disagree with some of the key advantages that cloud computing offers.

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Over a six-year period the cloud- computing industry is expected to grow by nearly 3000 percent! !

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$8,000,000,000#

2009#

2015#

$6,000,000,000#

$4,000,000,000#

$2,000,000,000#

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“Because of the utility-pricing structure cloud computing offers, businesses only pay for the resources they need.”

The Cloud Advantage

Because of the utility-pricing structure cloud computing offers, businesses only pay for the resources they need. Smaller companies gain access to resources normally out of budget, while large enterprises can streamline and cut back on unnecessary staff and hardware. The cloud also allows all types of businesses the ability to scale their services as the business grows. Before cloud computing, a business would have to invest up front in new capital in anticipation of continued growth to meet new customer demand (Marston, Li, Bandyopadhyay, Zhang, Ghalsasi, 2011).

Life in the Cloud

Many individuals don’t realize they’ve been experiencing the power of cloud computing almost every day. Facebook, Google Docs, flickr, Pandora, and Gmail are all services built around the concept and reality of cloud computing. The flexibility that cloud computing provides has led to a more open and more connected world. What was impossible a few years ago is now a part of daily life. Social networking and media sites connect millions of people every second, and have changed the way we interact with the world around us. The cloud offers a fully customizable experience catering almost instantly and, in some cases predicatively, to user preferences. The cloud offers a never- ending stream of information. With the increased flow and accessibility of information comes power. This power in the hands of consumers is another way the cloud is forcing businesses to adapt and innovate. #

A Clouded future?

With any new paradigm shift the future can seem “cloudy” at times. Some unwarranted hype may surround cloud computing;

however, make no mistake—the cloud is here to stay. The cloud computing industry will continue to grow with the adoption of industry wide standards and continual research into new cloud technology. New minds, businesses, and consumers will tap into the potential that cloud computing has to offer and continue to provide the world with new waves of collaborative innovation. Where will the cloud take us? The sky’s the limit.

! ! ! By Eric Germann ! Sources( ( ! Goodburn, M. A., & Hill,
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By Eric Germann
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Sources( (
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Goodburn, M. A., & Hill, S. (2010). The cloud transforms business.
Financial Executive, 26(10), 34-39.
Greengard, S., (2010). Cloud Computing and Developing Nations.
Communications of the ACM, 53(5), 18-20.
Ryan, W. M., & Loeffler, C. M. (2010). Insights into cloud computing.
Intellectual Property & Technology Law Journal, 22(11), 22-
28.
Walz, J., & Grier, A.G. (2010). Time to Push the Cloud. IT Pro, 14-16.
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Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing — the business perspective. Decision Support Systems, 51(1), 176-189.

J., & Ghalsasi, A. (2011). Cloud computing — the business perspective. Decision Support Systems, 51(1), 176-189.