CLOUD COMPUTING

Corey RutledgeSpencer Peaty

Group 4 – IT Seminar

Cloud Computing Roots

• Founding Father– John McCarthy in the early 1960’s• “Computation may someday be organized as a public

utility.”

– Douglass Parkhill – 1966• Published The Challenge of the Computer Utility• Explored the comparison of the “cloud” concept to the

electricity industry.

Cloud Computing Modernized Roots

• Where did the term “cloud” originate?– Telecommunications

Industry in 1990• Switched from point-to-

point to a virtual private network (VPN)

• Increased bandwidth utilization

• Ramnath Chellapa– Coined “cloud

computing” in 1997

• Cloud Computing Modernized– Amazon

• Launched Amazon Web Services (AWS) in 2006

– Google & IBM• Launched Eucalyptus in

2008. – First open-source cloud

platform

– RESERVIOR (European Research Team)• Launched OpenNebula later

in 2008

• “Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities”– Galen Gruman

What Is Cloud Computing

• Paradigm Shift in IT Management • Open-Source System Architecture– Infrastructure– Platform– Applications

• Cluster of Virtual Servers

Different “Cloud” Concepts

• Software as a Service (SaaS)– Single application to multiple users– No upfront investment for users– Low costs for hosts

• Utility Computing– Computing available when needed– Billed based on usage

• Managed Service Providers (MSP)– Remote IT services

Benefits of Cloud Computing

• Flexibility• Agility– Speed of technology advancements

• Cost Management – Low capital investments– Residual effects– Staff re-allocation

• Capacity on Demand– Efficient use

Managerial Implications

• Capital Expenditures– Evaluation of capital vs. operating budgets– Applicable to small and medium organizations

• Human Capital– Job elimination or re-tasking– Organizational Structure Implications

• Efficiency • Future of Business

Risks and Drawbacks

• 3rd Party Provider– Security– Reliability

• Implementation• Compatibility• Network Effect• Internet Connectivity– Provider bandwidth and speed

Today In Practice

• Providers of Cloud Computing Infrastructure– Google– Amazon– Microsoft– Salesforce.com

• Google Laptop– Vision of consumer hardware products

Questions??