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Companies and Cloud Computing

Delivering supercomputing power over the Internet—that’s basically what cloud computing is.

For a more in-depth journey into this seemingly interesting concept and a look into how it is being harnessed by companies, read on.

How does cloud computing work?

When we say supercomputers, these are usually the type that tackles very complex calculations (nuclear explosion simulation, climate change prediction, airplane design, etc), measuring to tens of trillions of computations per second.

Cloud computing aims to use the impressive computing power of supercomputers in producing services which users can access over the Internet. This ranges from financial portfolio analysis to personalized medical information to immersive computer games. This is done through networking large groups of servers (data centers) using low-cost consumer PC technology with specialized connections to distribute the data-processing chores.

What's the market opportunity for this technology?

The potential uses for cloud computing are widespread, as it brings supercomputing to the masses.
True, it brings to mind privacy issues because user data is distributed to different computing facilities. There will always be a balancing act between the computer industry’s preference for centrally located software to programs and files located in the personal machine. But one look at today’s high-speed networks, sophisticated graphics processors and fast servers can tilt the balance in favor of data centers.

Which companies are at the forefront of cloud computing?

GOOGLE - Google, which built its business model around searching the Internet, introduced Google App Engine. This lets developers write applications and host them on Google infrastructure. Companies like General Electric and Procter & Gamble have already signed on to Google Apps (the Apps users now number to 10 million).

The company is also opening its cloud to businesses for application hosting, enterprise search, web-based documents, spreadsheets and other applications. It is also taking steps to become more IT-oriented by acquiring Postini (which hosted email security) and Salesforce.com.

The ability to offer this kind of cloud computing comes at the cost of a massive investment in IT infrastructure. Google built new data centers in Iowa, Oregon, North Carolina and South Carolina at an average cost of $600 million each.

MICROSOFT - Microsoft aims to offer software-as-a-service (SAAS) to businesses, calling their cloud computing “software plus service.” Their products include Dynamics CRM Online, Exchange Online, Office Communications Online, and SharePoint Online. Each is available in a multitenant version for small and midsize businesses. For consumers, Microsoft's online services include Windows Live, Office Live, and Xbox Live.

Large companies such as Autodesk, Blockbuster, Energizer, and Ingersoll-Rand already adopted Microsoft’s cloud computing services. There are even plans of Coca-Cola subscribing 30,000 seats of Microsoft-hosted Exchange and SharePoint.

AMAZON - The newest business of this online bookstore and e-retailer is cloud computing. Its cloud is called Amazon Web Services (AWS), which has four main services: 1) Simple Storage Service, 2) Elastic Compute Cloud, 3) Simple Queuing Service and 4) SimpleDB. This means Amazon offers storage, computer processing, message queuing and database management, all accessed over the Internet.

Why does Amazon move ever so aggressively into cloud computing? Well, in their rise as a leading online retailer, they also developed major technical expertise and heavily invested in data centers. To manage their assets, they are now sharing their services to other companies.

IBM - IBM’s expertise in building, supporting and operating large-scale computer systems is its main advantage in cloud computing. They even unveiled Blue Cloud, which lets corporate data centers compute across globally accessible resources.

They have recently advocated efficiency and centralization of computing tasks in data centers. IBM now has around 200 researchers working on cloud technology, and they are banking heavily on gut feeling that cloud computing is something big, same as what happened when they first endorsed Linux in 2000. IBM’s cloud software offering is Hadoop, which runs on the Linux operating system.

Sources:

Lohr, Steve. “I.B.M. to Push ‘Cloud Computing,’ Using Data From Afar.” Retrieved June 17, 2009 from
http://www.nytimes.com/2007/11/15/technology/15blue.html?_r=1
Martin, Richard and Hoover, J. Nicholas. “Guide To Cloud Computing.” Retrieved June 17, 2009 from
http://www.informationweek.com/news/services/hosted_apps/showArticle.jhtml?articleID=208700713&pgno=7&queryText=&isPrev=
Ricadela, Aaron. “Computing Heads for the Clouds.” Retrieved June 17, 2009 from
http://www.businessweek.com/technology/content/nov2007/tc20071116_379585.htm

(Published 29 June 2009, Smart Communications, Inc.)