This presentation discusses the meaning of the cloud - an IT term which defines an emerging trend in how technology is deployed in business. The intended audience is lay people in business or technology who struggle to understand the technical meaning cloud computing or to understand how it differs from traditional computing.

1. What the <bleep> is “the cloud”?
Dr. Joel Kline
Lebanon Valley College

2. Overview
1. Definition of the cloud
2. Rent vs. Buy model
3. Types of cloud services
4. Clouds and SMBs
5. How consumers use the cloud
6. How businesses use the cloud
7. Why you should care
8. Q&A

3. Definition?
• "Clouds are vast resource pools with on-demand resource
allocation.”
- Yan Pritzker
• "The ‘Cloud’ concept is finally wrapping peoples’ minds around
what is possible when you leverage web…infrastructure…in an on-
demand way. “Managed Services”, “ASP”, “Grid
Computing”, “Software as a Service”, “Platform as a
Service”, “Anything as a Service”… all terms that couldn’t get it
done. Call it a “Cloud” and everyone goes bonkers. Go figure."
- Damon Edwards

4. Still Confused?
• The cloud refers to computing that is done on
servers or devices accessed through a network
• Typically refers to services or programs
accessed over the internet
• Ubiquitous (with a network connection)
• Physical location your data and programs is
unknown (and immaterial)
• Normally accomplished through a web
browser

5. Old New
Company Server
Project Management Project Management
Accounting Software Accounting Software
Enterprise Software Enterprise Software
Sales and CRM Sales and CRM
Storage & Documents Storage and Documents
Email/Web/Collaboration Email/Web/Collaboration

6. Consider this cloud example:
A lot of people have a free email account with one of these
companies. If you have an account with one of these email
providers you do not:
- Know where the physical email server is located
- Know the network address of the physical server (computer)
- Ever need to provide maintenance or upgrades to computers
- Know what kind of software is running to control the email
You also DON’T CARE, as long as your email is reliable and
secure. This is how the cloud works…

7. Consider the buy/rent comparison
Buy A House Rent an Apartment
• You own it (eventually) • You do not own anything
• You pay on a fixed amount • Pay a monthly fee
• Pay for maintenance and • Do not pay for maintenance
upkeep • “Intangible”
• Appreciates in value (except • No appreciative value
from 2006-2012!)

8. Consider the buy/rent of technology
Your business infrastructure is like The Cloud treats your infrastructure
the house like an apartment
• You own software • You do not own software
• You pay a fixed amount • Pay a subscription fee
• You pay for maintenance • Do not pay for maintenance
and upgrades or upgrades
• Unlike a house, technology • No depreciation of
does not appreciate software and hardware

9. Types of Cloud Service*
• Storage
• Database
• Information processing
• Application
• Platform
• Integration
• Security
• Management/governance
• Testing
• Infrastructure
*As developed by David Linthicum

10. Common Models
• Software as a Service : SaaS is when software
is run on the Internet and not from your
computer.
• Platform as a Service: Provides a platform for
you to deploy software or virtual computers.
• Infrastructure as a Service : provides
computers, storage, databases and other
types of infrastructure components.

11. Benefits of Cloud Computing
• Elasticity
• Scalability
• Utility model (pay as you go)
• Low barriers to entry

12. The Cloud is Device Independent

13. Growing uses for SMBs
Microsoft surveyed small and medium
businesses (SMBs) and found that in the next
three years those SMBs paying for cloud services
will be using 3.3 services, up from fewer than
two services today.

14. SMB Examples
• CRM (Salesforce.com)
• Email (Gmail for your company.com)
• Accounting (Quicken.com)
• Niche and specialty (gomockingbird.com)
• Project Management (Basecamp)
• Collaboration (Huddle)
• Helpdesk and Technical Support (ZenDesk)

15. Consumers already use the cloud

16. What is the revenue model for
consumer cloud companies?
• Free applications in exchange for advertising
• Privacy invasion & selling of personal data
• Targeted and untargeted marketing
• Spam
• Time wasted (if you are focused on
productivity)

17. What is the revenue model for
business cloud applications?
• Typically charge a subscription fee for each
person using the service (per seat)
• Pay-as-you-go
• No advertising
• High reliability
• No privacy invasion
• Some security and compliance issues may
arise from offsite data

18. Some Popular Business Cloud Apps:

19. Take Aways
• The cloud lets you purchase reliable, state-of-the-art
technology for subscription rates.
• The cloud lets you scale the amount of services or size of
the service
• The cloud puts the burden of upgrade, maintenance, and
security on the vendor.
• Even an SMB can benefit from having cloud computing
companies run your technology systems
• You can run a small business on Google Enterprise Apps
• Security, compliance, and governance (e.g. HIPAA) are still
issues

20. Questions?
Dr. Joel Kline
Lebanon Valley College
jkline@lvc.edu