Think Flat

The era of “on your computer” may soon be coming to an end.  Yahoo, HP and Intel recently announced plans to build a series of research centers focused on one thing:  cloud-computing.  Cloud computing is essentially the use of the internet (cloud) as a means of providing computing power from a centralized, high-tech data center.

Though the announcement has created a buzz in the industry and the media, the triumvirate is actually slightly behind the times.  Google began its foray into cloud-computing in April of this year, with the Google App Engine emerging as a result.  Google App spreadsheets and word processors are used by you, on your computer, but hosted by a data center using cloud-computing technology hundreds of miles away.  No download necessary.

Many believe cloud-computing is the wave of the future, and will not only change the way consumers use software, but will also change the way businesses strategically approach software and IT as a whole.  In-house data-centers may soon be a thing of the past.  It will become increasingly cheaper to outsource computing power to a third-party cloud-computing data center, and the allure of variable-cost IT likely has many a CIO salivating.

Information technology is expensive and many a good business plan has been left in the drawer due to high start-up costs.  Cloud-computing opens the door for small companies, lowering barriers to entry.  It also provides scalability, growing as a business expands.  Cutting-edge modeling, analytics, and research projects all become more feasible when affordable, easily accessible processing power is available.

Though security and reliability remain issues, the technology has a strong following.  Merrill Lynch estimates that the global market for cloud computing will surge to around $95 billion in the next five years.  The thought amongst many is that once companies wean themselves off of current IT infrastructure, cloud-computing could provide the dominant means of world-wide computing power.

I find it fascinating that the ubiquity of the internet has laid the foundation for a technology that may not only change the face of IT, but may also change the way the world does business.  Companies from Uruguay to Uganda will soon need only internet access to tap into business-driving, strategic software. 

Dion Hinchcliffe provides a fascinating look at the enterprise side of cloud computing.

Computerworld provides an informative take on the future of cloud-computing.