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January 4, 2010

Blue Skies For Cloud Computing

The future of cloud computing is anything but cloudy.

Business and IT executives are saying the pay-per-use advantages of cloud technologies make it the wave of the future.

“I think the recession has really accelerated the evaluation of cloud technology,” said Michael Werner, senior platform strategist with Microsoft out of the company’s Waltham offices.

“Everyone’s taking a look at how to optimize their business, and they’re taking a look at the technology that runs their business specifically.”

Clouds On The Rise

A recent study by Framingham-based GlassHouse Technologies found that 60 percent of IT executives plan to implement cloud technologies in the next year.

Connecticut-based IT research firm Gartner Inc. estimates that the $50 billion cloud computing market in 2009 will grow three times over by 2013.

“It’s a model that allows companies to use off-site services, software, storage, infrastructure, and pay a per-use fee,” said David Cearly, who has been studying cloud technologies for Gartner.

There are numerous forms of cloud technology, from a business basically renting software from a cloud provider, to a business moving its entire network to an offsite computing system.

Nonetheless, almost all cloud technologies have some common characteristics which make them attractive to customers.

Firstly, is the “pay-per-use” model. It allows a company to pay for only the amount of computing it uses.

For example, cloud storage means that instead of buying a data storage center to hold electronic files, a company would purchase storage space online and pay for however much it needs.

“It means going from a ‘just in case’ amount to a ‘just enough’ amount,” said Jim Damoulakis, chief technology officer for GlassHouse, which released the study on clouds.

Most clouds are also shared between multiple users, are hosted off-site, provide predictable cost structures and are automated management systems, meaning user-companies don’t have to manage the computers doing the work.

Choices, Choices

There are three basic models of cloud computing as well.

Companies can use “infrastructure as a service,” which could include having a data or networking center off-site that users can upload files and applications to for use on-site.

Another type of cloud is “platform as a service.” In that model, computing functions, such as e-mail messaging, are hosted offsite.

This allows companies to utilize the function without having to store it in a company network.

And the third is “software as a service,” which allows companies to use applications, like word processors, spreadsheets and analytical programs, from an off-site server.

A cloud customer could use any, or all of these services and pay a fee based on however much computing power they use — no more, no less.

Clouds are being integrated into all sectors of business, from law, health and insurance firms that have a large amount of data to store, to science and engineering firms that have large amounts of data to analyze and process.

With cloud computing, a company can use technology functions as much or as little as it needs to, but only pay on a per-use scale. That means companies will not overinvest in technology, and therefore not overspend.

Evaluation Period

Damoulakis said there are numerous factors for business leaders to consider before implementing cloud technologies at their companies.

The first step is to determine how much is being spent on IT and what services are being utilized. Then, think about if those services can be offered from an off-site provider and if that would reduce expenses and/or improve efficiency.

When exploring which cloud options would be best, Damoulakis said it’s important to ensure there is a predefined cost structure and that customers know where the host computing will be stored.

And, it’s good to have a way to back out of an agreement in case the technology is not improving efficiency.

Check out our sidebar on two local startups looking to cash in on the rush for cloud technology.

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