Cloud computing is an information technology (IT) paradigm that enables ubiquitous access to shared pools of configurable system resources and higher-level services that can be rapidly provisioned with minimal management effort, often over the Internet. Cloud computing relies on sharing of resources to achieve coherence and economy of scale, similar to a utility.
The term “Cloud Computing” was most probably derived from the diagrams of clouds used to represent the internet in textbooks. The concept was derived from telecommunications companies who made a radical shift from point-to-point data circuits to Virtual Private Networks ( VPN ) services in the 1990 s. By optimizing resource utilization through load balancing, they could get their work done more efficiently and inexpensively.

Important Milestones in Cloud Computing Platform

  • The introduction of Google Docs in 2006 really brought cloud computing to the front of public consciousness.
  • In 2006 Amazon also introduces Elastic Compute Cloud(EC2) as a commercial Web Service that allowed small companies and individuals to rent computers on which to run their own computer applications.
  • Technical collaboration in 2007 between Google, IBM and a number of universities across the United States.
  • In 2008, the introduction of Eucalyptus, the first open source AWS API compatible platform for deploying private clouds, followed by OpenNebula, the first open source software for deploying private and hybrid clouds.
  • 2009 saw Microsoft’s entry into cloud computing with the launch of Windows Azure in November.

Cloud Computing Tries to Address Two Problems

Business Problems

  • Cost: Inconsistent peak loads, Visible cost.

  • Time to market: During transition of vendor/platform.

  • Risk.

  • Peer pressure.

Technical Problems

  • Availability: Ensuring costs time, money and effort.

  • Peak loads: Understanding defining peak load based on usage profile.

  • Lead times; Purchase and readiness of infrastructure.

  • Deployment.

How Cloud Technology Enables New Business Models

There are 4 types of cloud computing deployment models.

  1. Private Cloud.

  2. Public Cloud.

  3. Community Cloud.

  4. Hybrid Cloud.

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