DATA CENTER

Silver Lining for Cloud Computing

Spending on IT cloud services will grow to reach $42 billion by 2012, observes tech researcher IDC. Cloud services are the consumer and business products, services, and solutions that are delivered and consumed in real time over the Internet. 

"A recent IDC survey of IT executives, CIOs, and their line of business (LOB) colleagues shows that cloud services are 'crossing the chasm' and entering a period of widespread adoption," said Frank Gens, senior vice president and chief analyst at IDC. "Moreover, IDC expects the cloud adoption trend to be amplified by the current financial crisis. The cloud model offers a much cheaper way for businesses to acquire and use IT – in an economic downturn, the appeal of that cost advantage will be greatly magnified. This advantage is especially important for small and medium businesses, a sector that will be key target in any plan for recovery." 

To determine how big the cloud computing opportunity might be, and what it will take to capture that opportunity, a broad group of IDC analysts collaborated on the development of a formal point of view on just what cloud computing is. 

When people talk about cloud computing, they are usually referring to the online delivery and consumption models for business and consumer services. In most cases, however, the "computing" lies behind a more recognizable service, like banking or shopping or online storage. Accordingly, IDC believes it is important to distinguish between cloud services and the cloud computing environment that enables these services.  

- Cloud Services are the consumer and business products, services, and solutions that are delivered and consumed in real time over the Internet.  

- Cloud Computing is an emerging IT development, deployment, and delivery model, enabling real- time delivery of products, services, and solutions over the Internet.  

The attributes of cloud services make the consumption of goods and services easier and cheaper – and often better – than through traditional delivery modes. These attributes also lower costs, simplify and accelerate access, enable fine-tuned provisioning, greatly increase the number and variety of available services, and improve the potential to integrate these services. 

As the foundation for cloud services, cloud computing consists of a growing list of technologies and IT offerings that enable cloud services, including infrastructure systems (servers, storage, networks), application software, system and application management software, IP networks, and pricing agreements. 

The shift toward cloud computing, says IDC, is being driven by three market forces: the search for growth (and revenues) in important new segments, including emerging markets like Brazil, Russia, India and China (BRIC) as well as the small and medium business (SMB) sector; the shortcomings of traditional approaches in capturing the growth in these increasingly important markets; and competitive pressures from new players with little to lose and everything to gain from pushing the new model.