Thoughts on Cloud Computing

The more things change, do they stay the same?

One of the more prominent trends in IT over the past year or so is the emergence of cloud computing. At least, according to vendors (including Microsoft), cloud computing, by leasing computing services from a third party (either using a public or private cloud)  lets you avoid the capital expenditures necessary to support those services in-house. Leasing will let you save on infrastructure costs, licensing costs, and costs for the IT personnel that would be running and managing those services.

These are all valid points. However, I have to question the novelty of them. Haven't we heard of leasing computer services before? Here are some examples:

• EDS (Electronic Data Services and now known as HP Enterprise Services) was started back in 1962 by Ross Perot to offer computer time to clients.
• General Electric, beginning in 1968 with their GEISCO subsidiary, offered "time sharing" services where customers could buy unused mainframe computer cycles to run their computer processing. GEISCO would supply the computer programming personnel as needed, in addition to providing the infrastructure. GEISCO provided packaged as well as customized programming solutions.
• ACS (Affiliated Computer Services), based in Dallas, Texas, and founded in 1988, provided information technology services along with business process outsourcing.

In fact, some critics wonder if cloud computing is just an attempt to resurrect the mainframe and thin computing. However, given our tight economic times, cloud computing (like outsourcing, off sourcing, and yes, all the way back to time sharing) can be an attractive solution to managing costs and personnel.

Using a hosting solution for services such as email allows organizations to focus their efforts on processes and systems specific to their business. For smaller businesses, hosted solutions may even eliminate the need to have an in-house IT staff. However, there is nothing particulary new about the concept of leasing computer services from a third party. The model is time tested - its the platform that may be different.

• Microsoft
• cloud computing
• off shoring
• outsourcing
• time sharing services