White Paper
Cloud Computing.
Alternative sourcing strategy
for business ICT.
Cloud Computing.
Alternative sourcing strategy
for business ICT.
Contents.
3 1. Abstract.
4 2. Introduction to Cloud Computing.
4 2.1 A historical background.
5 2.2 Definitions.
7 3. Flexible ICT services - more than just a dream.
7 3.1 Business needs as a driver of Cloud Computing.
11 3.2 Status Quo.
12 3.3 A summary - added value with Cloud Computing.
3 1. Abstract.
4 2. Introduction to Cloud Computing.
4 2.1 A historical background.
5 2.2 Definitions.
7 3. Flexible ICT services - more than just a dream.
7 3.1 Business needs as a driver of Cloud Computing.
11 3.2 Status Quo.
12 3.3 A summary - added value with Cloud Computing.
14 4. Areas and examples of application.
14 4.1 Cloud Computing in business startups.
14 4.2 Cloud Computing in companies with existing infrastructure.
15 4.3 Cloud Computing with business-critical applications.
17 5. Dynamic Services – a top-quality Cloud Computing service.
19 6. Summary.
20 7. Glossary.
22 8. List of figures.
23 9. List of sources.
14 4.1 Cloud Computing in business startups.
14 4.2 Cloud Computing in companies with existing infrastructure.
15 4.3 Cloud Computing with business-critical applications.
17 5. Dynamic Services – a top-quality Cloud Computing service.
19 6. Summary.
20 7. Glossary.
22 8. List of figures.
23 9. List of sources.
1. Abstract.
The term "Cloud Computing" has been mentioned for just under two years in relation to services or infrastructural resources, which can be contracted over a network. Thus, the idea of renting instead of buying IT is nothing new.
And so, Cloud Computing has many antecedents and equally as many attempts to define it. The players in the large world of clouds are Software as a Service providers, outsourcing and hosting providers, network and IT infrastructure providers and, above all, the companies whose names are closely linked with the Internet's commercial boom. But, all these services in combination outline the complete package known as Cloud Computing – depending on the source with the appropriate focus.
That which long ago established itself in the private environment of the Internet is now, noticeably, coming to the attention of businesses too. Not only developers and startups but also large companies with international activities recognize that there is more to Cloud Computing than just marketing hype. Cloud Computing offers the opportunity to access IT resources and services with appreciable convenience and speed. Behind this primarily, is a solution that provides users with services that can be drawn upon on demand and invoiced as and when used. Suppliers of cloud services, in turn, benefit as their IT resources are used more fully and eventually achieve additional economies of scale.
There are substantial arguments for the adoption of Cloud Computing: the lasting improvement of cost structures, faster reaction to changes in the market and potential for increases in productivity. Cloud Computing offers flexibility whilst simultaneously reducing costs – with the positive side effect of sustainability.
And so, Cloud Computing has many antecedents and equally as many attempts to define it. The players in the large world of clouds are Software as a Service providers, outsourcing and hosting providers, network and IT infrastructure providers and, above all, the companies whose names are closely linked with the Internet's commercial boom. But, all these services in combination outline the complete package known as Cloud Computing – depending on the source with the appropriate focus.
That which long ago established itself in the private environment of the Internet is now, noticeably, coming to the attention of businesses too. Not only developers and startups but also large companies with international activities recognize that there is more to Cloud Computing than just marketing hype. Cloud Computing offers the opportunity to access IT resources and services with appreciable convenience and speed. Behind this primarily, is a solution that provides users with services that can be drawn upon on demand and invoiced as and when used. Suppliers of cloud services, in turn, benefit as their IT resources are used more fully and eventually achieve additional economies of scale.
There are substantial arguments for the adoption of Cloud Computing: the lasting improvement of cost structures, faster reaction to changes in the market and potential for increases in productivity. Cloud Computing offers flexibility whilst simultaneously reducing costs – with the positive side effect of sustainability.
“The data center of the future could be based in the cloud.”
(Jason Staten, Forrester) [Herrmann 2008]
(Jason Staten, Forrester) [Herrmann 2008]
However, much of Cloud Computing is still a vision. This becomes especially evident if large companies wish to make use of the possibilities. Then, at the latest, questions arise about security and quality of service or, subsequently,whether the proffered services can also effectively meet the company demands of supporting the business processes.Legal aspects such as the storage of data swiftly become more weighted. Professional providers of Cloud Computing for enterprise customers must not only meet these challenges, but also develop concepts in order to do so in a transparent,
cost-effective manner.
cost-effective manner.
2. Introduction to Cloud Computing.
2.1. A historical background.
It is conceivable that August 24, 2006 will go down as the birthday of Cloud Computing, as it was on this day that Amazon made the test version of its Elastic Computing Cloud (EC2) public [Business Week 2006]. This offer, providing flexible IT resources (computing capacity), marks a definitive milestone in dynamic business relations between IT users and providers. The target of Amazon’s offer were developers, who had no wish to hold their own IT infrastructure, and instead, hired the existing infrastructure from Amazon via Internet. Nobody at this time spoke of Cloud Computing yet. The term first became popular in 2007, to which the first entry in the English Wikipedia from March 3, 2007 attests, which, again significantly, contained a reference to utility computing.
Around this time, Dell attempted to trademark the word mark. This was successful in July, but the permission was revoked only a few days later.In 2008, there as a glut of active parties in the increasingly popular field of Cloud Computing. Today, Cloud Computing generates over 10.3 million matches on Google. The scope of Cloud Computing grew from simple infrastructure services such as storage and calculation resources to include applications. However, this meant that forerunners such
as application service providing and Software as a Service would also henceforth be included under the designation of Cloud Computing.
At the bottom of these developments was the eventual shifting of IT services away from local computers to the Internet or, generally speaking, in networks. Eventually, Cloud Computing realized an idea that had already been hit upon by Sun Microsystems long before the Cloud Computing hype: The network will be the computer.
It is conceivable that August 24, 2006 will go down as the birthday of Cloud Computing, as it was on this day that Amazon made the test version of its Elastic Computing Cloud (EC2) public [Business Week 2006]. This offer, providing flexible IT resources (computing capacity), marks a definitive milestone in dynamic business relations between IT users and providers. The target of Amazon’s offer were developers, who had no wish to hold their own IT infrastructure, and instead, hired the existing infrastructure from Amazon via Internet. Nobody at this time spoke of Cloud Computing yet. The term first became popular in 2007, to which the first entry in the English Wikipedia from March 3, 2007 attests, which, again significantly, contained a reference to utility computing.
Around this time, Dell attempted to trademark the word mark. This was successful in July, but the permission was revoked only a few days later.In 2008, there as a glut of active parties in the increasingly popular field of Cloud Computing. Today, Cloud Computing generates over 10.3 million matches on Google. The scope of Cloud Computing grew from simple infrastructure services such as storage and calculation resources to include applications. However, this meant that forerunners such
as application service providing and Software as a Service would also henceforth be included under the designation of Cloud Computing.
At the bottom of these developments was the eventual shifting of IT services away from local computers to the Internet or, generally speaking, in networks. Eventually, Cloud Computing realized an idea that had already been hit upon by Sun Microsystems long before the Cloud Computing hype: The network will be the computer.
“Cloud Computing is more an evolution than a revolution.”
Existing technology such as grid computing, utility computing or adaptive computing mark the infrastructure path leading to Cloud Computing; application service providing and Software-as-a-Service signify the growth towards the provision of programmes.
In present discussions about Cloud Computing, it is often ignored that high-performance networks represent an essential basis of the cloud construct. Consequently, the starting point of Cloud Computing would have to be linked with the development of the Internet. The various accesses to and views of Cloud Computing, and its respective origins led to differing definitions and to its strongly diverging public perception. The significance of the topic, however, became evident, in that not only specialized media were writing about it, but also popular magazines.
2.2. Definitions.
Whoever wishes to find an all-encompassing definition for the term "Cloud Computing" faces an almost impossible task. According to the field of interest, software, service or infrastructure providers highlight different aspects. Hence, at Salesforce.com, the cloud vision brings to mind the well-known paradigm of Software as a Service (SaaS). IBM, on the other hand, is raising itself to the front line of the underlying IT infrastructure with "Blue Cloud". "The cloud takes as its basis a combination of grid computing, where pure processing power is involved, and SaaS“, states Dennis Byron, an analyst at market research company Research 2.0, in turn.
Gartner sees a great potential for change accompanying the concept, describing it succinctly as "Provision of scalable IT services via the Internet for a potentially large number of external customers“. Its competitor, Forrester Research, interviewed around 30 companies from within the new market segment to develop a definition. According to the results, "Cloud Computing" refers to a "pool of abstract, highly scalable and administrated IT infrastructure, which provides for customer applications and is invoiced based on use." Frank Sempert, too, from the market research and consultancy house Saugatuck Technology refers to this distinction. "While SaaS providers only concentrated on applications, cloud providers bundled together a whole series of components for the customers. These include, amongst others, network, calculation and storage resources and the corresponding agreements with suppliers." The bottom line is that cloud is joining the whole IT world together [Herrmann 2008].
What all of the definitions have in common, is that behind the term "Cloud Computing", the theoretical and still today, abstract concept for the wider market, are IT applications, IT platforms and IT infrastructures on demand, scalable and standardized as services at the disposal of a user over the Internet, in which ressources are not physically available from the provider, but applications, calculating and storage capacity from a pool of products – metaphorically known as the “cloud” – are available over the Internet.
According to this basic understanding, we will attempt to give a consolidated definition as a starting point for this white paper. Our focus is not limited to the purely IT aspects, but broadened to include all telecommunications services. Therefore, Cloud Computing is seen as an offer for all ICT requirements.
What all of the definitions have in common, is that behind the term "Cloud Computing", the theoretical and still today, abstract concept for the wider market, are IT applications, IT platforms and IT infrastructures on demand, scalable and standardized as services at the disposal of a user over the Internet, in which ressources are not physically available from the provider, but applications, calculating and storage capacity from a pool of products – metaphorically known as the “cloud” – are available over the Internet.
According to this basic understanding, we will attempt to give a consolidated definition as a starting point for this white paper. Our focus is not limited to the purely IT aspects, but broadened to include all telecommunications services. Therefore, Cloud Computing is seen as an offer for all ICT requirements.
Our definition:
“We understand Cloud Computing to be the renting of infrastructure and software, as well as bandwidths, under defined service conditions. These components should be able to be adjusted daily to the needs of the customer and offered with the utmost availability and security. Included in Cloud Computing are end-2-end service level agreements (SLAs) and use-dependent service invoices.”
“We understand Cloud Computing to be the renting of infrastructure and software, as well as bandwidths, under defined service conditions. These components should be able to be adjusted daily to the needs of the customer and offered with the utmost availability and security. Included in Cloud Computing are end-2-end service level agreements (SLAs) and use-dependent service invoices.”
