Although each service type has its particular features and business benefits, they are similar in one basic aspect, and this is how I see Cloud Computing: ultimately it's a service that enables accessing computing power, storage, or software applications instead of owning them. Another way to look at it is as a service that exchanges buying with renting (sometimes even for free!)

Here and in upcoming posts, I will try to answer the question “What is Cloud Computing” by describing the three service models of the Cloud.

SaaS (Software-as-a-Service)

Possibly the easiest term to understand as it relates to our day to day use as consumers, this term refers to online applications that we access by navigating in a web browser (such as Internet Explorer / Google Chrome / Firefox). The obvious example is Gmail, which allows accessing Email services without the need of owning a physical backbone such as servers, applications or client installations.

To understand the difference between having a cloud Email service over a physical one, consider the following example: if you've ever worked in a company you probably used Microsoft Outlook for your Email needs. To support it, your company had a server-client deployment in which it owned and operated one or more physical servers that hosted Microsoft Exchange Server, storage space, and software applications. Also, on your personal computer you needed to have an installation of an Outlook client to access your personal email account on the company’s server.

However, by using Gmail (or any other online Email service) you only need an Internet connection and a web browser to access your email as the entire physical and software infrastructure (servers, storage, and software applications) is owned and operated by the provider, in our case - Google.  

Therefore, by using a Software-as-a-Service solution you eliminate the hassle involved with owning the physical hardware, software applications and maintenance – you need only an Internet connection and a web browser.

Another example would be Google Docs which allows you to “rent” (for free) access to office tools via a web browser instead of purchasing a copy of Word/Excel/PowerPoint. 

Why should you use SaaS applications?

The advantages of using SaaS applications, from a business perspective, are numerous: from the fact that they can be made available globally and from any Internet connected device (including smart-phones and tablets), through lower initial costs as they are typically subscription based and don’t require license fees, to uncomplicated maintenance as it’s done by the provider. Moreover, companies can reduce their IT workforce, and spend less on software deployments. This, like in the other Cloud service models, eventually enables companies to focus on their core business.

The challenges of using SaaS applications, from a business perspective, could be the perceived lack of security, as businesses store valuable data (such as customer related data) in the Cloud, where possible unauthorized people may have access to it (however this disadvantage could be greatly mitigated by implementing different types of cloud security solutions – which is out of the scope of this post). Another challenge is the question of what will happen to your data if your SaaS provider goes out of business? Finally, while SaaS applications often offer broad range of features, they are less flexible to tailor-made business specific features.

Next: what IaaS and PaaS mean and why should you care?

What is your favorite SaaS solution? Do you use SaaS in your business? Use the comments below!

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In a fascinating talk, Kevin Kelly, a guru of technology and the writer of “What Technology Wants” (affiliate link) describes future technology trends such as “Accessing instead of Owning” which we've discussed here. By clicking the affiliate link and buying his captivating book I will receive 5% of the book price and you, apart from having an excellent reading, will also help support the efforts of making IT clear!

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At the beginning they were allies. In 2006, Google‟s CEO Schmidt was invited to join Jobs on Apple‟s board. But when Google began stepping on Apple‟s toes, announcing their own mobile phone operating system, Android, and when Apple refused selling two Google apps in apple store, the utopia finished and in 2009 Schmidt left apple‟s board.

The cloud

The term “Cloud Computing” refers to, in layman terms, data and applications that are available on the Internet from any Internet connected device. For example, imagine you need to create a document. Prior the cloud you could create, save and edit it only on your PC and if it was broken and you had not saved another copy of the document - you would lose your work. However, by using the cloud your file is saved in an online repository that can be accessed from any Internet connected device so you don‟t need your PC to access your file.

Apple’s Cloud

Apple stormed into the cloud in June 2011 when Jobs announced the iCloud, which stores music, photos, and other documents and pushes them to all Apple devices. For example, if you take a photo on your iPhone, it is uploaded to the cloud and pushed down to your PC, iPad and Mac so that they all have identical data and contain a local copy.

Google’s Cloud

Google has been offering Google Docs, an online service to create and edit word, spreadsheet and slides documents while collaborating with other users. For instance, you can create a word document online and share it with others without having word installed on your device - you only need an Internet connection.{gallery}blog/02-Googl.vs.Apple{/gallery}

Different approaches

“For Google, the Web is the center of the universe. For Apple, your device is the center of the universe. Can they both be right?”

Jason Hiner, the TechRepublic, June 8, 2011

To understand the difference between Apple and Google‟s approaches we need to see where data is stored. Apple stores it in its devices and utilizes the cloud “only” to sync the data among them, so you always have access to a local copy. To use Apple cloud you need to have its devices and to be connected. Google, however, stores the data online and uses the cloud to provide different services such as word processor, spreadsheet, and slide show, hence to use Google Docs you must only be online, and -preferably- to have a broadband connection.

Those different approaches originate from the fact that Apple sells devices and thus considers hardware its core business whereas Google provides online services and thus considers the web its primary business. However for Google‟s approach to win, broadband Internet connection must be cheap and available everywhere - an uncertainty.

Which approach will win? Will we see Google dominate the cloud or will Apple prevail? Or maybe new players will enter the cloud market soon? Use the comment below to sahre your opinion! 

A sunny Friday afternoon in the heart of Madrid’s Salamanca district. As you are walking down Maria de Molina Street, you feel hungry. Instinctively, you tweet “I’m starving!” and, instantly, you receive a €5 voucher for a veggie sandwich in a friendly place, within a five minute walk.

Behind the scenes your tweet was captured by sophisticated algorithms. Then, by integrating your credit transactions, social media activity, and your location (given away by your phone’s GPS) you were identified as a 29-year old vegetarian, with a craving for healthy food, who appreciates a friendly atmosphere and would pay up to €5 for a snack. After scanning the nearby cafes, the algorithm found the perfect match for you.

Our digital life

Data that is too big or too fast to process in typical systems is called Big Data. With nearly 6 billion people, i.e. 87% of the world population, using mobile phones and 2 billion using the Internet, anything from transactions, through social media, to search queries or even medical records is being tracked. While living our life, each one of us is leaving behind his/her own digital trail.

Furthermore, millions of networked street sensors, smart phones, or industrial equipment that measures and communicates location/ movement/ temperature etc., generate unprecedented amounts of data and rapidy fomulating our digital universe.

{gallery}blog/01-bigdata{/gallery}Among the most stunning data visualzation maps (above) that illustrate the global use of social media, Eric Fischer compared Flickr and Twitter usage. The color white indicates where people used both, blue is Twitter, and orange is Flickr.

How big is Big?

1.8 zettabytes of data, equivalent to 200 billion HD movies (that would take 47 million years to watch), was generated in 2011 and this figure is more than doubling every two years, IDC reports. The Economist reports that this industry is worth more than $100 billion and is growing at almost 10% a year.

Big Data is a disruptive trend

Companies are making every effort to build a customer-centric business. If only they could collect their customer data, mine it and transform it into actionable insights they could improve their bottom line. This ability will soon become vital for their growth and will drive their competitive advantage.

Companies will use Big Data for informed decision making, predictive analytics, sentiment analysis, or micro-segmentation.

A pioneer in that area is Wal-Mart’s customer tracking system that captures a total of 24 terabytes of transaction information from each of its 2,900 retail outlets, and analyzes sales, pricing, demographics and even weather info to customize the most efficient product selections and to determine the timing for discounts at particular stores.

Amazon exploits Big Data analytics to feed its recommendation engine (“you may also like”) and LinkedIn for its “People you may know” feature.

Another use of Big Data is sentiment analysis, i.e. detecting consumer attitudes towards brands, companies, or individuals. Start-ups such as Datasift or Gnip already analyze Google search queries, Facebook posts and Twitter messages to measure the public sentiment in real-time.

Global Pulse is a UN organization that analyzes social networks and text messages in the Third World countries to predict job losses or disease outbreaks in certain regions. Big data analysis, thus, serves them as a digital warning that signals where to send assistance programs.

Governments may use Big Data to combine different databases and improve public service. A Mckinsey report estimates that the EU public sector could save up to €300 billion in administrative costs by using big data.

Government agencies, such the NYPD, analyze historical arrest patterns and combine them with variables such as paydays, sporting events, weather and holidays in order to predict the places where a crime could occur and deploy in advance.

The Challenges of Big Data

There are technical challenges, privacy and security concerns, and a lack of talent in the Big Data arena.

Some of the technical challenges are related to capturing and analyzing different types of data (structured and unstructured), integrating different databases together and ensuring that out of the vast amount of data only the relevant one will be transferred to the decision makers so they can extract actionable insights from it.

Governments will need to create policies related to privacy, security and intellectual property as not many people are happy with the idea that their every move is digitized and analyzed, while companies want to make sure their data collecting is legal and not compromising them.

Finally, a lack of talent is another challenge. According to McKinsey, in the next 5 years in the US there will be a shortage of 140,000 to 190,000 people with analytical skills and 1.5 million managers and analysts skilled enough to make decisions based on the Big Data input.

Tell me what you think about Big Data and how will it affect our lives? 

Use the comments below!

 

This blog is about technology. No, forget that - it´s about us.

How quickly will we adapt to this flow of new technologies and live to see another day?

Wouldn’t you agree that technology is here to serve us and not vice versa?

But the main question still remains:

What new technologies mean and how can they make our lives better?

This blog will not be about the new screen resolution or clock speed of the new smartphone but rather on how using this new model can improve your life. So instead of “what is this new thing?” I will try to answer “Why is this new thing?”

This is about the why behind the what.