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Lately, cloud computing is a topic that has always been the talk of the world of Information Technology (IT). Almost every day there’s always news about cloud computing, both technologically and from a business aspect. What exactly is Cloud Computing? Is it just mere “hype”, or indeed something tangible? And what is the impact for all of us?Cloud Computing Definition
When we talk about Cloud Computing, in fact are we talking about the same thing? Many groups provide a definition of cloud computing with differences here and there. Wikipedia defines cloud computing as “Internet-based computing, when many servers are used together to provide resources, software and data on computers or other devices when needed, just like the electricity grid.” Gartner defines it as “a way of computing as easy IT-based services developed and supple provided as a service to customers using Internet technologies.”
Forester defines it as “standard of IT skills, such as software, application platform, or infrastructure, which is provided using Internet technology in a way self-service and pay-per-use.”
Cloud computing is a technology that uses the internet and central remote servers to maintain data and applications. Cloud computing allows consumers and businesses to use applications without installation and access their personal files at any computer with internet access. This technology allows for much more efficient computing by centralizing storage, memory, processing and bandwidth.
A simple example of cloud computing is Yahoo email or Gmail etc. You don’t need software or a server to use them. All a consumer would need is just an internet connection and you can start sending emails. The
server and email management software is all on the cloud (internet) and is totally managed by the cloud service provider Yahoo, Google etc. The consumer gets to use the software alone and enjoy the benefits. The analogy is, ‘If you only need milk, would you buy a cow ?’ All the users or consumers need is to get the benefits of using the software or hardware of the computer like sending emails etc.
Cloud computing is broken down into three segments: “applications,” “platforms,” and “infrastructure.” Each segment serves a different purpose and offers different products for businesses and individuals around the world. In June 2009, a study conducted by VersionOne found that 41% of senior IT professionals actually don’t know what cloud computing is and two-thirds of senior finance professionals are confused by the concept, highlighting the young nature of the technology. In Sept 2009, an Aberdeen Group study found that
disciplined companies achieved on average an 18% reduction in their IT budget from cloud computing and a 16% reduction in data center power costs.
Simply put, Cloud computing can we imagine such a power grid. If we need the electricity, whether we should have its own power plant? Of course not. We live contact your service provider (in this case, PLN), plug in our homes with electricity, and we are now enjoying the service. We do a monthly payment based on usage. If electricity could be like that, why can not computing services? For example, if a company requires application of CRM (Customer Relationship Management). Why do these companies have to buy a CRM application, buying server hardware, and then must have a dedicated IT team to keep the servers and applications? This is where cloud computing play.
Cloud computing service providers like Microsoft, has provided CRM application that can be used directly by the company earlier. They live contact your service provider (in this case, Microsoft), “connecting” with the service company (in this case, via the Internet), and live to use it. Payment? Simply get paid per month (or
per year, depending on contract) according to usage. No more investment in the beginning to be done.
Advantages
A better way
With cloud computing, you eliminate those headaches because you’re not managing hardware and software that’s the responsibility of an experienced vendor like salesforce.com. The shared infrastructure means it works like a utility: You only pay for what you need, upgrades are automatic, and scaling up or down is easy. Cloud-based apps can be up and running in days or weeks, and they cost less. With a cloud app, you just open a browser, log in, customize the app, and start using it. Businesses are running all kinds of apps in the cloud, like customer relationship management (CRM), HR, accounting, and much more. Some of the world’s largest companies moved their applications to the cloud with salesforce.com after rigorously testing the security and reliability of our infrastructure.
As cloud computing grows in popularity, thousands of companies are simply rebranding their non-cloud products and services as “cloud computing.” Always dig deeper when evaluating cloud offerings and keep
in mind that if you have to buy and manage hardware and software, what you’re looking at isn’t really cloud computing but a false cloud.
Mobility and collaboration
The latest innovations in cloud computing are making our business applications even more mobile and collaborative, similar to popular consumer apps like Facebook and Twitter. As consumers, we now expect
that the information we care about will be pushed to us in real time, and business applications in the cloud are heading in that direction as well. With Cloud 2, keeping up with your work is as easy as keeping
up with your personal life on Facebook.
Characteristics of Cloud Computing
With the growing rise of the conversation about cloud computing, more and more companies are announcing that they provide cloud computing services. It would be very confusing for our users to ensure that the
service will we get is a cloud computing or not.
For simplicity’s sake, of all the existing definition, can be ideally describe that cloud computing is a service that has the following five characteristics.
1. On-Demand Self-Services
A cloud computing services must be utilized by the user through supermarkets and direct mechanisms available when needed. An intervention service provider is very minimal. So, if we now need a CRM application services (as per the example at the beginning), then we should be able to register for self-service and direct service is available immediately.
2. Broad Network Access
A cloud computing services must be accessible from anywhere, anytime, by any means, provided we connect to the network service. In the example above service CRM applications, as long as we connect to the
Internet, I should be able to access those services, be it through a laptop, desktop, internet cafe, mobile phones, tablets, and other devices.
3. Resource Pooling
A cloud computing services should be available centrally and can share resources efficiently. Since cloud computing is shared by many customers, service providers must be able to efficiently share the load, so the system can be utilized optimally.
4. Rapid elasticity
A cloud computing services must be able to raise (or lower) capacity as required. For example, if employees in the office increase, then we should be able to add users to the CRM applications with ease.
Likewise, if the employee is reduced. Or, if we put a news website in the network cloud computing, then the case for increasing the traffic because there is important news, then the capacity must be increased
quickly.
5. Measured Service
A cloud computing services must be provided in a measurable, because it will be used in the payment process. Please remember that cloud computing services are paid according to usage, so it must be measured
properly.
Excess Cloud Computing
Of all the explanations above, what exactly are the advantages of cloud computing, especially for the business world? Here are some of them.
Without Initial Investment
With cloud computing, we can use a service without a significant investment in the beginning. This is very important for business, especially business beginners (the startup). Maybe in the beginning of the business, we just need a CRM service for 2 users. Then increased to 10 users. Without the cloud computing model, then from the beginning we’ve had to buy hardware that is sufficient for many years to come. With cloud computing, we just pay according to what we need.
Changing CAPEX into OPEX
Just as the excess of the first, the second excess still over money.
Without cloud computing, hardware and software investment must be made at the beginning, so we have to make capital expenditures (Capital Expenditure, or CAPEX). Meanwhile, with cloud computing, we can make
operational expenditure (Operational Expenditure, or OPEX).
So, exactly the same as the cost of other utilities such as electricity or telephone when we need to pay monthly according to usage. This will really help the company financially.
Developed flexible and Easy
By leveraging the Cloud Computing, we can take advantage of business IT needs. Consider Figure 2 below to see some scenarios business needs. Use of IT in business is usually not flat course. In the scenario of “predictable bursting”, there is a period in which the use of IT to increase sharply. Simple example is the application Human Resource (HR) that at the end of the month is increasing its use for managing employees’ salaries.
For scenario “Growing Fast”, the business has grown substantially so that the IT capacity must also be followed. Example scenario “Unpredictable bursting” is when a website gets visitors who surged news because there is interesting news. Scenario “On and Off” is the use of IT that are not sustainable. For example, a tax reporting service, this is only used at certain times each year.
Without a cloud computing service, the four scenarios will require IT planning that is very inefficient, since IT investments must be made according to the highest capacity, although it may only occur at certain moments. This is done to prevent service failure occurs when the “peak time” is. With cloud computing, because it is flexible and easy to develop (elastic and scalable), so capacity can be increased in times of need, with the use of appropriate usage fee.
Focus on Business, not IT
Using Cloud Computing, we can focus on the company’s main business, and not involved in the management of IT. This can be done because IT management by service providers, and not by our own. For example,
patching, security updates, hardware upgrades, software upgrades, maintenance, and others. If we have a team of IT, then the team can focus on IT services specific to our business, while the general things are handled by the service provider.
Applications: It’s all On Demand
So far the applications segment of cloud computing are the only segmenting that has proven useful as a ‘business model.’ By running business applications over the internet from centralized servers rather than from on-site servers, companies can cut some serious costs. Furthermore, while avoiding maintenance costs, licensing costs and the costs of the hardware required running servers on-site, companies are able to run applications much more efficiently from a computing standpoint.
On Demand software services come in a few different varieties which vary in their pricing scheme and how the software is delivered to the end users. In the past, the end-user would generally purchase a server
and is accessed by the end user over the internet. While this is the most common platform for On Demand software services, there’re also some slightly different offerings which can be described as a hybrid of these two platforms. For instance, a program through which the end user pays a license fee, but then accesses the software over the internet from centralized servers is considered a hybrid service.
Who is Offering On Demand Software? The companies below are already established in the On-Demand software or SaaS business. These companies charge their customers a subscription fee and in return host
software on central servers that are accessed by the end user via the internet.
o International Business Machines (IBM)
o Salesforce.com (CRM)
o Google (GOOG)
o NetSuite (N)
o Cordys
o Taleo (TLEO)
o Concur Technologies (CNQR)
Who is Offering Traditional Software? The following companies have established themselves as traditional software providers. These companies sell licenses to their users, who then run the software from on premise servers.
o SAP AG (SAP)
o Oracle (ORCL)
o Blackbaud (BLKB)
o Lawson Software (LWSN)
o Blackboard (BBBB)
Platforms:
Many of the companies that started out providing On Demand application services have developed platform services as well. The platform segment of cloud computing refers to products that are used to deploy
internet. NetSuite, Amazon, Google, and Microsoft have also developed platforms that allow users to access applications from centralized servers.
In July 2008, HP, Yahoo! (YaHOO), and Intel (INTC) announced a joint cloud computing research project called the Cloud Computing Test Bed.
The companies are jointly designing and producing the internet based testing utilizing HP hardware and Intel processors.
Active platforms -The following companies are some that have developed platforms that allow end users to access applications from centralized servers using the internet. Next to each company is the name of their
platform.
o International Business Machines (IBM) – IBM Cloud – Lotus Live
o Google (GOOG) – Apps Engine
o Amazon.com (AMZN) – EC2
o Microsoft (MSFT) – Windows Azure
o SAVVIS (SVVS) – Symphony VPDC
o Terremark Worldwide (TMRK) – The Enterprise Cloud
o Salesforce.com (CRM) – Force.com
o NetSuite (N) – Suiteflex
o Rackspace Cloud – cloudservers, cloudsites, cloudfiles
o [http://www.metrisoft.com Metrisoft
Infrastructure:
The final segment in cloud computing, known as the infrastructure, is very much the backbone of the entire concept. Infrastructure vendor’s environments (such as Google gears) that allow users to build applications. Cloud storage, such as Amazon’s S3, is also considered to be part of the infrastructure segment.
Major Infrastructure Vendors – Below are companies that provide infrastructure services:
o Google (GOOG) – Managed hosting, development environment
o International Business Machines (IBM) – Managed hosting
o SAVVIS (SVVS) – Managed hosting & cloud computing
o Terremark Worldwide (TMRK) – Managed hosting
o Amazon.com (AMZN) – Cloud storage
o Rackspace Hosting (RAX) – Managed hosting & cloud computing
Conclusion
Cloud computing is already present today, including in Indonesia.
Thus, cloud computing is not a hype, but has become a reality in the IT world. Not that we all have to switch the current directly as well:
in fact, cloud computing is not for everyone. There is still the type of services that had to be done through on-premise, although there are also services that become very efficient if done with cloud computing.
Several types of services can even be done simultaneously (hybrid) by combining these two types of implementation.
Therefore, look for providers who can provide the right advice and best for your needs. The success of the use of cloud computing will be largely determined by the ability of service providers in providing appropriate services and the best for the customer.
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