Are there clouds on your horizon?

It seems that everywhere you turn these days, there is a conversation going on regarding cloud computing. The jaded among us will recall the days not far away when the term software as a service (SAAS) was being introduced. The two terms agree on one point, that their business model is based on the concept that IT, and especially software applications, can be delivered as a service over the internet. Documents, emails, applications, security and other business data can be processed, stored and secured in the cloud, making them available from any computing device in real-time.

Unlike traditional IT systems, genuine cloud applications require no more infrastructure than an internet connection and the devices to access them.

Cloud computing is not for everyone. While the cloud model is growing and maturing, the question business managers must ask themselves is whether or not this general way of implementing technology to run their business is the right business model.

Just for laughs, check out the comments that Larry Eliason made first in 2008 then in 2011 at conferences. It will show you the initial confusion, yes I will call it a confusion, and then the realization that the new computing model is here to stay, the subsequent launch of Oracle's new cloud-based products.

Larry Eliason, CEO of Oracle in 2008:
The interesting thing about cloud computing is that we've redefined
cloud computing to include everything that we already do. I can't think of anything that isn't cloud computing with all of these announcements. The computer industry is the only industry that is
more fashion-driven than women's fashion.

Larry Eliason in 2011:
World's Best Foundation for Cloud Computing: Oracle Exalogic Elastic
Cloud is the world's first and only integrated cloud machine
hardware and software engineered together to provide a cloud in a box.

Increase capacity and add capabilities

Narrowly defined, you could think about cloud computing as the process by which you increase capacity and add capabilities without investing in new infrastructure. Instead, your IT needs are fulfilled through a subscription-based or pay-per-use service in real-time over the Internet.

The different cloud offerings today

From utility-style infrastructure providers to software-as-a-service providers, we see different categories that may be helpful to know about.

1. SaaS
Customers access their applications through their browser, and have no up front investment in servers or software licensing. The drawbacks include limited capabilities to customize your application.

2. Utility computing
Companies that need increased capacity in their data center may turn to utility computing for storage. The idea is not new, but this form of cloud computing is getting new life from Amazon.com, Sun, IBM, and others.

3. Web services in the cloud
Directed at developers who access APIs offered by web service providers, this service enables them to exploit functionality over the internet rather than delivering full-blown applications.

4. Platform as a service
A variation on the previous model, this form of cloud computing delivers development environments as a service. You build your own applications that run on the providers infrastructure and are delivered to your users via the Internet from the providers servers.

5. MSP (managed service providers)
This model came about in the late 1990s, and is directed at IT rather than to end-users, such as virus scanning or application monitoring services.

6. Service commerce platforms
These are hybrid or SaaS and MSP and are most common in trading environments, such as expense management systems that allow users to order travel or secretarial services from a common platform that then coordinates the service delivery and pricing within the specifications set by the user.

Points to ponder

Hopefully with this overview, you've become more aware of the various types of Internet-based services available today.

No one is immune to the siren song of IT cost cutting, but it's important to understand the trade offs. It is our intention to present our clients with options that clearly outline the benefits and pitfalls of any solutions under consideration.

Our software portfolio contains both on-premise and cloud solutions. And this will be the theme of our upcoming customer conference scheduled for September 22 and 23, 2011 in Marlborough, MA. We invite you to pre-register now.