
Cloud computing is a metaphor for utilizing the Internet as a resource. The term "cloud" actually refers to the Internet, and is used extensively by small-to-medium sized enterprises. This can be achieved internally, externally, or a hybrid of the two. Services chosen are based on existing resources, IT management, and concerns over physical storage. In 2010, most SMEs will probably deploy some shape or form of cloud computing. The concept of cloud computing is analogous to the way businesses over a century ago stopped producing power via their own steam engines, and plugged into the grid.
Utilization of the technology follows a simple concept of "purchasing" resources from a third-party provider, similar to purchasing electrical service from that utility provider. This allows SMEs to reduce expenditure on internal computing resources, and only pay for that which they use. Concurrently, companies can purchase packages that specify a set amount of usage, with overages billable, similar to many cell phone contracts. To that end, many communications service providers are targeting businesses to offer cloud services, especially those that have a significant percentage of telecommuting employees. Although many analysts believe that cloud computing will stall in expansion (similar to VoIP services), companies initially short on ability to purchase large amounts of capital equipment would find cloud computing to be a useful way to amortize a potentially enormous amount of computing muscle. In terms of local computing power, computers devoted to this model need only have speedy Internet connections and processing power, with the vast majority of storage found in the virtual world. Massive banks of failure-prone hard drives are no longer required as necessity for those availing themselves of the service.
Cloud computing is not a new concept. Web hosting services, online data storage/backup companies, and any real-time data hosting service is, by the strictest definition, cloud-style computing. Carbonite.com is a company that offers online mass data storage for when the inevitable happens, and a user's hard drive fails. What the future holds for organizations in the coming year mainly reflects the need to organizations to expand their network infrastructure well outside the boundaries of the office. Additionally, cloud computing allows organizations to not only utilize the Internet as a communications medium, but as a separate online economy, whereby consumption of data-heavy things like media, financial records, and computation power itself becomes self-sufficient. Cloud usage, as opposed to a new iteration of the Internet, is poised to threaten traditional internal IT departments, with organizations utilizing their databases via external service. Small and medium business markets are the ones typically targeted by entrants such as Amazon.com, that offer competitive cloud services at a very reasonable fee. To those not in the IT profession threatening unemployment (or at the very least a significant change in what they do for a living), cloud computing is viewed as the natural evolution of semi-powerful, cheap computers, and businesses' need for mass data protection and computing power. Over the next decade, it will not be surprising to see hybrid-style IT departments, whereby internal staff is utilized for the most basic computer maintenance, and the heavy lifting done externally. If current trends in the service model continue, cloud services will be the source and maintainer of applications that businesses essentially download for usage, but do not require internal maintenance.
However, in this semi-Utopian vision threats emerge. A significant issue facing cloud users moving forward revolves around security. Surprisingly, security issues have been placed in the back burner, despite the fact with such a scenario, simple critical issues such as data storage are uncertain. Because heavy cloud computing clients do not know where data is physically stored, issues such as recovery and regulatory compliance are concerns. 2010 should usher in far more steps taken not only by service providers, but smarter moves by companies employing the services to ensure data integrity is what it should be. This year, after much talk over the past decade, we should be viewing cloud computing services increasingly as a ubiquitous presence, every bit as normal as paying a water bill, so we don't require a well in the backyard.