Welcome!

SOA & WOA Authors: Carmen Gonzalez, Lori MacVittie, Liz McMillan, Pat Romanski, Natalie Lerner

Related Topics: Cloud Expo, SOA & WOA

Cloud Expo: Article

The Difference Between Public and Private Cloud Computing

If the cloud’s origin is essentially private, what is the “public cloud”?

Cloud computing has essentially been private from the beginning. Google, for one, demonstrates that the world's most successful search engine runs not on an IBM Power, Sun Enterprise, or other massively powerful machine engineered for business by the go-to-vendors for computer solutions. More in keeping with its democratic, spare, and ubiquitous, engineering ethos Google created a "cloud" of white box computer - throw-away hardware servers running Linux.

Rather than purchase software box-software or hire a large consulting firm to design and build the infrastructure, Google engineered proprietary software to enable search requests and indexing tasks to be coordinated across this white "cloud" of white box hardware. Like most innovations that somehow become synonymous with brilliance and innovation, the innovation of using large numbers of identical machines to process enormous amounts of work isn't new at all. In fact it isn't even an innovation that can be attributed to computing at all.

If the cloud's origin is essentially private, what is the "public cloud"? One possible definition is that the public cloud is a disruptive channel through which to package and deliver some of the advantages of the cloud to "the public." Why is the public interested in the cloud? The cloud promises advantages that elude even the largest enterprises today. Public cloud computing services are purchased by individual users, small business, medium-sized business, and one of the world's largest firms.

What problems does the business community imagine the cloud might solve? Traditional technology solutions take a lot of time and money to implement, yet business needs to move quickly and flexibly to seize new opportunities. The business systems of yesterday seldom adapt easily to new requirements. And the work involved in adding new capabilities to existing systems is almost always significantly greater than the effort to build from scratch. Given this dynamic, the risk of building new systems or modifying existing systems seems high. What makes the current practice even less appealing is the tendency over time for the cost of maintaining existing systems to grow. Some studies show that today maintaining current systems consumes seventy percent of a firm's technology budget.

Given these dynamics, the (public) cloud computing model seems to offer an approach that mitigates some of the issues faced in businesses of all sizes.

  1. Firms would like to be able to purchase focused, low-cost, customizable, and flexible technology services
  2. Pay for these services when and how they are consumed. For example, some cloud computing vendors offer a metered rate model in which the firm or individual pays for just the right amount and quality of resources required to meet demand.
  3. Provision these firms as they are needed. If a company needs to provide a temporary call center in Asia for three months while consolidating their data centers in the region, then the cloud computing model offers the ability to provision, configure, and host the software and desktops to do so. If a 25-person firm decides that a customer relationship management solution seems like a good idea, the firm can provision and use that solution in the cloud.

Beyond the rapid deployment, the capability to flexibly alter and shape technology services in the cloud infrastructure can help firms design, deploy, and "shape" technology solutions that fit their immediate needs, yet can adapt over time as the business evolves. In other words, compared to traditional technology practices, the financial model of the cloud seems attractive.

CIOs and business owners tend to look at the return on investment for existing and new technology spending. One of the key factors in the ROI model of investment is the length of time, or "payback" period over which the benefits of the expenditure outweigh the costs. It's not any easy decision because in the traditional model, the CIO purchases equipment, software, services, training up-front, and then hopes that the benefits can be clearly demonstrated. Yet most firms have difficulty tracking costs and benefits in a way that makes the outcome clear. If the CIO chooses too little hardware, or implements a solution that the business users later reject, the whole solution can require additional customization or additional hardware. The cloud computing model assists in mitigating these risks by enabling both the cost and the benefit flows to be aligned. Because the building blocks of a cloud solution are much more scalable, many aspects of the solution can be tuned.

Most firms choose not to write their own desktop operating system or desktop applications. Firms make these choices every day. Yet much of the computing expenditures today deliver little competitive advantage, yet consume scarce and valuable human and capital resources. For a firm like Google, a Private Cloud of white boxes orchestrated to index and return search results makes sense. Yet, for the majority of businesses the public cloud computing model may enable business to better align the cost of computing with the business value, and make competitive advantages achievable through technology.

More Stories By Brian McCallion

Brian McCallion, founder of New York City-based consultancy Bronze Drum focuses on the unique challenges of Public Cloud adoption in the Fortune 500. Forged along the fault line of Corporate IT and line of business meet, Brian successfully delivers successful enterprise public cloud solutions that matter to the business. In 2011, while the Cloud was just a gleam in the eye of most Fortune 500 firms Brian designed and proved the often referenced hybrid cloud architecture that enabled McGraw-Hill Education to scale the web and application layer of its $160M revenue, 2M user higher education platform in Amazon Web Services. Brian recently designed and delivered the JD Power and Associates strategic customer facing Next Generation Content Platform, an Alfresco Content Management solution supported by a substantial data warehouse and data mart running in AWS and a batch job that processes over 500M records daily in RDS Oracle.”

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Swiss innovators dizmo Inc. launches its ground-breaking software, which turns any digital surface into an immersive platform. The dizmo platform seamlessly connects digital and physical objects in the home and at the workplace. Dizmo breaks down traditional boundaries between device, operating systems, apps and software, transforming the way users work, play and live. It supports orchestration and collaboration in an unparalleled way enabling any data to instantaneously be accessed on any surface, anywhere and made interactive. Dizmo brings fantasies as seen in Sci-fi movies such as Iro...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
This Internet of Nouns trend is still in the early stages and many of our already connected gadgets do provide human benefits over the typical infotainment. Internet of Things or IoT. You know, where everyday objects have software, chips, and sensors to capture data and report back. Household items like refrigerators, toilets and thermostats along with clothing, cars and soon, the entire home will be connected. Many of these devices provide actionable data - or just fun entertainment - so people can make decisions about whatever is being monitored. It can also help save lives.