The commoditization of technology has reached its pinnacle with the advent of the recent paradigm of Cloud Computing. Infosys Cloud Computing blog is a platform to exchange thoughts, ideas and opinions with Infosys experts on Cloud Computing

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February 15, 2010

SaaS makes financial accounting easier

It’s been so much talked and written about technical benefits of Cloud computing. I thought of looking at it from financial accounting point of view. Comparing the traditional IT expenses with Cloud computing expenses especially SaaS model, might give a different picture of the income statement. Before I go ahead and try putting forward my interpretation, want to make a disclaimer that I am no way finance or accounting expert, this is just a plain interpretation of what I understood. Comments and suggestions are most welcome.

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December 09, 2009

Hybrid Clouds: Business Imperatives

What could possibly be some of the business imperatives for hybrid cloud adoption by enterprises? In my opinion one of foremost imperatives is the taxation laws to be enacted by governmnets that are based on corporate emissions. Considering the fact that a significant percentage of the carbon footprint includes emissions from the datacenters, government regulations to bring down corporate emissions could act as a trigger for multiple organizations to share hosting resources within the same data-center. It is in these contexts that we may see more of hybrid cloud model perhaps taking shape.

Cloud Bursts: Reality versus Hype!!I

The taxonomy of cloud computing consisting of private clouds, public clouds and hybrid clouds is by now well established in the cloud computing literature and discussion forums. Inspite of the fact that proponents of cloud computing are gung-ho about associated technologies such as cloud burst -- the technology that ultimately helps realize hybrid clouds, Gartner predicts that businesses will use private clouds as of now. Even Forrestor backed private cloud in its report earlier this year. Does that mean the end of technologies associated with cloud burst? In my opinion it is not!!! While it is true that we may be witnessing a slowdown in hybrid cloud adoption, yet I believe that enterprises will be amenable towards adopting the cloud burst technology in the coming days. As different lines of business within an organization continues to invest in building their own private clouds, we will witness a scenario where an enterprise has multiple private clouds. The private clouds could belong to different lines of business or it could belong to one line of business possibly spread across multiple geographies. Typically, the private cloud of a particular business line on one hand can remain under-utilized for a major fraction of the time and on the other hand a short surge in demand could result in over-utilized servers and reduced quality of services even though spare capacity is available in the private cloud belonging to the other business line. Using cloud burst technologies, it possible to create a shared and yet private cloud. Each of the different LOBs has a dedicated cloud so that the applications belonging to a particular LOB runs only in its cloud under normal circumstances. Though discrete, these clouds form a shared virtual infrastructure so that an application in an overloaded cloud can procure the computing resources from an under-loaded cloud. That means, during overload situations, an application requiring more computing resources can procure these resources from a cloud different from its current host cloud. Both these cloud, however belong to the same organization; albeit different lines of business.  Scenarios such as this are likely to be more common in future and can be termed as internal cloud bursts. As enterprises adopt cloud technologies organizations are going to witness internal cloud burst more frequently than external cloud burst where applications move to an external cloud provider’s environment such as Amazon, Mosso or Rackspace when faced with scarcity of resources. 

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