Gales Network • Brand building from the inside out

May 2008

Today's Weather...Partly Cloudy
Cloud Computing is the newest old thing in information technology.

THE BIG IDEAS TOPIC: Cloud Computing is a new term for an older concept whose potential may be fully realized through today's improved technology.

While a consensus on a single definition of Cloud Computing is hard to find, it's commonly thought of in the following way. The Internet is the sky that holds different types of Clouds or clusters of connected computers. There are clouds of servers that store data. There are clouds of computers with high-speed processors that crunch data. There are clouds that host computer programs that can be used by thousands simultaneously to tell the processing clouds what to do with the data that are stored on the server clouds. And there are clouds filled with computers that do combinations of these things, all outside the box that sits on your desk or lap.

The Internet already hosts a great deal of functionality "in the clouds." Data back- up and remote storage options (iBackup, IronMountain) protect family photo albums and corporate accounting files alike. Social networks (Facebook, MySpace, LinkedIn) are communities that reside outside of personal computers. Companies big and small use web-based applications like Salesforce (customer relationship), Backpack (scheduling,tasks), del.icio.us (bookmarks), Freshbooks (invoicing, time tracking), SurveyMonkey (surveys) and many, many others.

AT ISSUE: Is a world of personal computer users ready to fully engage the power offered outside of their personal computers? Will improvements in security and wider deployment of broadband service encourage more of us to walk among the Clouds?

THE BIG IDEAS VIEW: We live in the age of the personal computer, where all four functions: data input, output, storage and processing take place inside the sexy little box.

However, web-based services and storage, many using cloud power, provide numerous advantages. One of the most useful is scalability. A business that has outgrown its local storage capability can move that data to a storage cloud created by a company in the business of storage. When the data exceeds current capacity, that capacity can be increased, often seamlessly and automatically. The converse is also true. If less data capacity is needed, it can virtually downsize, saving costs associated with owning and maintaining servers. Additional processing power can be
accessed as needed, on-demand as well. Great for a company that crunches payroll data twice a month or quarterly financial reports. This same concept of scalability can be applied to applications, like word processing, spreadsheets or even complex proprietary e-commerce solutions or salestools. Hire a new sales guy? She's online in minutes with the same bag of tricks that the entire sales team uses.

Other advantages include 24/7 maintenance and support, off-site data back-up and significant cost-efficiency on all fronts. Sounds great, doesn't it? Hold on, there may be stormy weather ahead.

Three issues cloud the picture as they wait to be fully resolved: broadband access, data security and user adoption. With wider availability of broadband Internet service, Cloud Computing may be enjoyed by more than just the large corporations and science organizations that have benefited from it to date. With greater security and better privacy safeguards developed and legislated, personal data can be exchanged and stored across the Internet with higher confidence. As individuals and companies become more familiar with external computing provided by widely
used services like social network sites and webmail, the urge to stay inside the box will subside.

It's wise to consider the privacy and security implications, in particular, before going outside. But with the advantages of Cloud Computing clearing up, everyone's eyes are on the weather.

Button up your overcoat!

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The Big Ideas Report separates the real issues (Big Ideas) from the noise, so that it’s possible to move forward with confidence or simply converse intelligently with others. We identify issues that have a material impact on your business, define them succinctly and suggest a position, so you can get going. Part fact, part opinion, part alchemy, that’s The Big Ideas Report.