CLOUD COMPUTING Corey Rutledge Spencer Peaty Group 4 – IT Seminar

Cloud Computing Roots Founding Father – John McCarthy in the early 1960’s “Computation may someday be organized as a public utility.” – Douglass Parkhill – 1966 Published The Challenge of the Computer Utility Explored the comparison of the “cloud” concept to the electricity industry.

Cloud Computing Modernized Roots Where did the term “cloud” originate? – Telecommunications Industry in 1990 Switched from point-to- point to a virtual private network (VPN) Increased bandwidth utilization Ramnath Chellapa – Coined “cloud computing” in 1997 Cloud Computing Modernized – Amazon Launched Amazon Web Services (AWS) in 2006 – Google & IBM Launched Eucalyptus in – First open-source cloud platform – RESERVIOR (European Research Team) Launched OpenNebula later in 2008

“Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per- use service that, in real time over the Internet, extends IT's existing capabilities” – Galen Gruman

What Is Cloud Computing Paradigm Shift in IT Management Open-Source System Architecture – Infrastructure – Platform – Applications Cluster of Virtual Servers

Different “Cloud” Concepts Software as a Service (SaaS) – Single application to multiple users – No upfront investment for users – Low costs for hosts Utility Computing – Computing available when needed – Billed based on usage Managed Service Providers (MSP) – Remote IT services

Benefits of Cloud Computing Flexibility Agility – Speed of technology advancements Cost Management – Low capital investments – Residual effects – Staff re-allocation Capacity on Demand – Efficient use

Managerial Implications Capital Expenditures – Evaluation of capital vs. operating budgets – Applicable to small and medium organizations Human Capital – Job elimination or re-tasking – Organizational Structure Implications Efficiency Future of Business

Risks and Drawbacks 3 rd Party Provider – Security – Reliability Implementation Compatibility Network Effect Internet Connectivity – Provider bandwidth and speed

Today In Practice Providers of Cloud Computing Infrastructure – Google – Amazon – Microsoft – Salesforce.com Google Laptop – Vision of consumer hardware products

Questions??