Cloud Computing Primer

When I was a kid, my 4th grade teacher used to always say “Get your head out of the clouds!”. True, I was daydreaming but I bet Mrs. Rinched probably never imagined that only a few years (ok 29 years) later, ‘The Cloud’ would be where every ones head should be.

What is ‘The Cloud’

The cloud can really be a few things. At it’s core, it’s some kind of hosted service that is brought to the end user via the Internet. Now, most end-users are going to think of Internet based services as software that runs from the Internet that you can run in your browser, and that is technically correct. However, in the context of cloud computing, services stretch beyond just software. Here is a quick break down of some services:

1. Software As a Service (SaaS): Probably the first thing you think of when you think of a service being delivered through the Internet. Some examples would be Google Documents, Groove Shark’s music streaming, or Dropbox’s file service. All of these services run within your browser and store all files and data on their servers ‘in the cloud’.
2. Infrastructure As a Service (IaaS): Now we get geeky... This is really where I first heard about cloud computing. IaaS basically allows companies to instance virtual servers to run applications or services using a ‘pay what you use’ model. I know most people’s eyes just glazed right over so I will try to explain it a little better. Let’s say you have a very busy website, and you are expecting to get some national press for a particular product you sell. Setting up your web server in a cloud environment will allow you to ‘expand’ to other servers very easily if demand on your website becomes great. Also with cloud storage, you can store your company’s files in the cloud and never worry about back-ups or data loss. Amazon is probably the best known provider of IaaS but several players are entering the market, most notably Microsoft and Google.
3. Platform As a Service (PaaS): Have you ever used an online application that directly tied in with your Google Calender? Or maybe a program that ties into your Salesforce.com database? These programs utilize what is known as an API (application programming interface) that allows them to ‘talk’ to cloud services like Google Apps or Salesforce.com. As a business owner, you should pay special attention to this type of cloud service as I guarantee in the next couple years it will be an integral part of your company’s day to day operation.

So, now we know the basic services that exist in the cloud, the question is how does it affect ‘regular’ business owners? I think the answer to this is a one word answer: profoundly.

The Cloud Will Profoundly Change How Your Business Operates.

Pretty bold statement isn’t it? Believe me, I don’t throw those statements around loosely but I think we are at the cusp of a migration from local infrastructure, local software, and local storage and into an age where everything is ran and stored off-site in the cloud. I am not talking about email programs or YouTube videos, things that we are used to accessing through a web-browser, I am talking about word processing documents and even accounting software. Heck, Groove Shark and most recently Amazon, will even allow you to store your music on their servers and stream it on any device you want for free. No need to obsess about back-ups or worry about data loss, its all done for you. No need to download and install the latest version of your favorite programs, they are updated automatically from where you run them.

Google has a prototype laptop that is 100% cloud based. This slick device runs the Chrome browser as it’s operating system, and runs all the apps through it. Absolutely nothing is stored on the machine, everything is ran and stored in the cloud. As someone who grew up typing in machine language code into a TI-99 all day to play a game when I was a kid, I find it amazing that we will soon have production computers that will never need anything installed on them. Whats more, as a business owner, I am yearning for the day where I don’t have to worry about data loss and worry about if backups are happening.

But Will All This Cloud Stuff Save Me Money?

Now we are getting down to business. Lets face it, as a business owner the bottom line is probably at the top of the list of importance. Will all this cloud stuff save you money? Short answer, nobody knows yet because really this is emerging technology. I think hard costs in the long run will be about the same, however I think productivity and management savings will definitely be there. Also, because most cloud services are based on recurring monthly fees, the initial outlay of capital to buy software and servers are spread out. Of course this could be a good thing or a bad thing, depending on the service and it’s pricing. However, I do feel that as time goes on, competition will surely increase which, as always, will drive up feature offerings and reduce costs.

Cloud computing is a buzz word that you will surely hear over and over for the next foreseeable future. I really do think that this is going to transform most company’s work-flows to a point where pulling out a CD or DVD to install software will be a thing of the past. I think it’s a given that the change will be gradual, but I do feel it will be inevitable. If you have any questions regarding this or anything else, feel free to send me an email at sharbel@wiredsolutions.ca or call me at 519-250-7786 ext 200 / toll free 1-877-549-4733 ext 200.

* Sharbel Lutfallah is the lead developer at Wired Solutions, and has been a web-developer since 1998.