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June 2008

451 Group: Partly Cloudy – Blue-Sky Thinking About Cloud Computing

The 451 Group released a new report earlier this month on cloud computing: Partly Cloudy – Blue-Sky Thinking About Cloud Computing

So what is cloud computing? The latest buzzword for grid or utility computing? A superset of clustering or virtualization? The public network? Software as a service? A new sourcing model? The Internet for business?

‘Cloud computing’ describes a service model that combines a general organizing principle for IT delivery, infrastructure components, an architectural approach and an economic model – basically, a confluence of grid computing, virtualization, utility computing, hosting and software as a service (SaaS).

Or, put more simply, the cloud is IT, presented as a service to the user, delivered by virtualized resources that are independent of location.

This report examines cloud computing, beginning with this clear-cut definition of the technology. It then looks at the cloud computing trend – by analyzing the technology, as well as the economic models and delivery mechanisms involved – with the goal of separating the reality from the hype.

CIO.com: The Truth About Software as a Service (SaaS)

CIO.com has an interesting article on The Truth About Software as a Service (SaaS). It highlighted the fact that most CIOs are still quite cautious when it comes to adopting SaaS.

Here’s when SaaS doesn’t make sense:

  • If the application is a competitive differentiator, because everyone will get the same application;
  • If heavy customization is required;
  • If high availability is required; (this mainly reflects the fact that SaaS providers don’t current guarantee any SLAs, not the fact that SaaS providers not knowing how to keep the systems up. Suprisingly, as the article states, 85% of the SaaS apps have no SLAs.)
  • If many points of complex integrations are required.

Other areas of concerns include Service level agreement and Security.

However, there are definitely advantages to SaaS, including:

  • Faster deployment time
  • Lack of up-front licensing and infrastructure cost
  • Ability to address vanilla business processes
  • Easier access to current technology
  • Fewer bugs
  • Potentially lower costs for the enterprise

The article also showed a chart on SaaS adoption by application and vertical market.

Read related articles on why management costs need to be part of SaaS ROI calculations and three approaches for on-demand computing.

Is SaaS Cloud Computing?

[poll id="2"]

Throughout the CloudCamp sessions, most people discussed cloud computing as infrastructure in the cloud. People talk about the advantage of not having to procure and configure physical servers. People talk about the elasticity and utility factors of the cloud. People talk about scalability of the cloud. But not once, at least in my conversations, did people talk about the applications in the cloud. The one time that I raised the question that related SaaS to cloud computing, I was immediately told that SaaS is not cloud computing. Some even questioned wether Google App Engine is considered to be a cloud.

During Reuven Cohen’s “What is Cloud Computing?” session at CloudCamp, the first question I asked the group after Reuven did the introduction was, “What is Computing?

Wikipedia defines it as the activity of developing and using computer technology, including computer hardware and software.

Computing Curricula 2005[1] defined computing: (via Wikipedia)

In a general way, we can define computing to mean any goal-oriented activity requiring, benefiting from, or creating computers. Thus, computing includes designing and building hardware and software systems for a wide range of purposes; processing, structuring, and managing various kinds of information; doing scientific studies using computers; making computer systems behave intelligently; creating and using communications and entertainment media; finding and gathering information relevant to any particular purpose, and so on. The list is virtually endless, and the possibilities are vast.

Based on these definitions, it would seem like running and using any type of application, including SaaS applications, would be considered “computing.”

So then what is cloud computing?

Gartner defines cloud computing as, “a style of computing in which massively scalable IT-enabled
capabilities are delivered ‘as a service’ to multiple customers using Internet technologies.”

I am generally fine with this definition. It is sufficiently vague that it can cover many different things. It’s also not that different from how Reuven Cohen defined it, “Internet centric software.” So let’s for the time being accept this as the definition.

However, I will try to go a bit further here. In the computer industry, there’s always been the notions of platforms and applications. Wikipedia says that

In computing, a platform describes some sort of hardware architecture or software framework (including application frameworks), that allows software to run. Typical platforms include a computer’s architecture, operating system, programming languages and related runtime libraries or graphical user interface.

and

Application software is a subclass of computer software that employs the capabilities of a computer directly and thoroughly to a task that the user wishes to perform. … Typical examples of software applications are word processors, spreadsheets, and media players.

This is no different in the cloud computing world. In the cloud computing world, there are “Cloud Platforms” and “Cloud Applications.” Cloud platforms include offerings such as Amazon’s EC2 and S3, or Joyent’s Accelerator. Cloud applications include offerings such as Salesforce.com, NetSuite, SuccessFactor and many others.

So, is SaaS cloud computing?

Absolutely!

Since using applications is considered to be computing, and that SaaS is basically providing application software in the cloud, then using SaaS should be considered cloud computing.

Jason Stamper also says “yes” and sees no difference whatsoever.

Interesting enough, Gartner says “no” and calls it a myth that people consider SaaS to be cloud computing. Why they say no is a mystery to me. If you look at Gartner’s definition on cloud computing, there’s absolutely nothing there that would exclude SaaS.

What do you think? Is SaaS Cloud Computing?

Software as a Service Survey

In an April SaaS survey conducted by Burton Group and Ziff Davis Enterprise Research, 67 percent of the 252 CIOs whose companies use some form of SaaS have been doing so for two or more years.

1. Software as a Service Survey
2. Length of Time Using
3. Information Used to Evaluate
4. Viewpoints and Approaches
5. Time
6. Risks and Negatives
7. Enterprise Applications
8. Most Likely Application
9. Fees
10. Staff Reductions