The cloud can be either a private or public computing infrastructure offering various hardware and software services using standard Internet tools. These can be data storage services, application services, business continuity services, etc. Typically, these services are hosted in virtual machines which are provisioned on-demand. The primary business benefit includes a utility pricing model (you only pay for what you use) that affords companies the ability to convert capital expenditures for operational expenditures for a lower TCO.
The cloud is the result of the evolution of computing following mainframes, PCs, networks and the Web. Cloud takes much of its DNA from Application Service Providers (ASP), Internet Service Providers (ISP) and Managed Service Providers (MSP) who pioneered the concept of using a Web browser for delivering business-critical applications and content. The evolution has taken on these and other characteristics of outsourced services to allow for instantaneous access to on-demand, low-cost and highly available resources that can expand and contract to meet the business requirements of the SMB and enterprise markets.
Cloud providers will typically offer configuration services, templates and pay-as-you-go pricing for the services being hosted in the cloud and made available to their clients. Depending on the business model of the cloud provider, this platform can be extended by adding browser-based applications like e-mail, file backup, development and test, CRM, ERM, collaboration, office automation, Web services and social networking.
Soon, companies will be able to utilize the cloud to assure business continuity and deliver the next level of cost and productivity enhancements that will afford them the ability to implement complete data centers for extended services. In one example, cloud vendors will deliver real-time data replication and disaster recovery services to budget-constrained clients without them having to absorb the infrastructure investments typically required to implement a business continuity plan.
One property of clouds is that no one cloud will be able to deliver all of the compute requirements of an organization. Many of the services mentioned above are offered individually through separate cloud infrastructures. Companies may utilize different cloud infrastructures depending on their requirements such as Salesforce.com, Go-to-Meeting/Go-to-Webinar/Go-to-Assist, Web mail, SEO/SEM management, Google Adwords, Yahoo Analytics, etc. All of these, in the broadest sense, define what a cloud is.
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