The Clouds Economy

The Cloud Computing from Distant Yesterday, through Deep Today, the Distant Tomorrow


Textbook, 2013
346 Pages

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TABLE OF CONTENTS

CHAPTER I. THE TIME OF CLOUD FORMATION

PRELUDE ... p. 11

1. CLOUD PREQUEL / CLOUDS ECONOMY TIMELINE ... p. 19
1.1. Four Spaces of Cloud-Forming Factors ... p. 19
1.2. Cloud-Creative Economic Determinants ... p. 24
1.2.1. IT Market Reconstruction... p. 24
1.2.2. Reconstruction of Enterprise ... p. 27
1.3. Technological Cloud-Creative Factors ... p. 28
1.3.1. Grid Computing vs Utility Computing ... p. 31
1.3.2. Grid Computing vs Cloud Computing ... p.32
1.4. Concepts related to CC ... p. 35
1.4.1. Big Data ... p. 36
1.4.1.1. Big Data in Company ... ... p. 38
1.4.1.2. Big Data: in Search of Solutions ... p. 40
1.5. Market Expectations – Formation of IT Offer ... p. 42

2. DEFINITION OF CLOUDLY ... p. 44
2.1. Understanding CC ... p. 44
2.2. The Review of the Def inition of Cloud Computing ... p. 47

3. NATURE OF THE CLOUD ... p. 53

CHAPTER II. MULTIDIMENSIONAL ARCHITECTURE OF CLOUDS

1. TAXONOMY OF CLOUD SYSTEM ... p. 63

2. FAUNA OF ACRONYMS ... p. 66
2.1. The Need for Change in IT Delivery Model ... p. 66
2.2. Three Basic Layers in a CC Delivery Model ... p. 69
2.3. ... Basic Layers in a CC Delivery Model ... continued ... p. 74
2.4. World Acronyms ‘SaaS’ ... p. 77
2.5. In Anticipation of the 2.0 Delivery Model ... p. 100

3. CLOUD SPHERE ... p. 105
3.1. Clouds Typology ... p. 105
3.1.1. Private Cloud ... p. 107
3.1.2. Public Cloud ... p. 108
3.1.3. Hybrid Cloud ... p. 109
3.1.4. Community Cloud ... p. 112
3.1.5. Specialist Cloud ... p. 112
3.2. Conf rontations: Private Cloud versus Public Cloud ... p. 112
3.3. Conf rontations: Storm Cloud ... p. 115

4. RESIDENTS CLOUDS ... p. 118
4.1. Clouds Residents Typology ... p. 118
4.1.1. Private Residents ... p. 120
4.1.2. Business Residents ... p. 122
4.1.3. Of f icials of State and Local Government ... p. 124
4.1.4. IT Residents ... p. 124
4.1.5. Partner Clouds Ecosystem ... p. 125
4.1.6. Integrators ... p. 128
4.1.7. Regulators ... p. 131

CHAPTER III. PHYSICS OF CLOUDS

1. BRIDGES AND CLIFFS ... p. 135
1.1. Bridge of Savings and Costs Lever ... p. 136
1.2. Bridge of Reliability and Risk Lever ... p. 142
1.3. Bridge of Technology and Resources Lever ... p. 143
1.4. Bridge of Know ledge and Learning Lever ... p. 145
1.5. Bridge of Organizations and Competitive Advantage Lever ... p. 146
1.6. Bridge of Innovative and New Technologies Lever ... p. 148
1.7. Data Clif f ... p. 150
1.8. Trust Clif f ... p. 152
1.9. Reliability and Ef f iciency Clif f ... p. 154
1.10. Business Clif f ... p. 156
1.11. Regulation Clif f ... p. 157
1.12. Weighing - Recommendations ... p. 157

2. THE MECHANICS OF CLOUDS ... p. 160
2.1. New IT Organization ... p. 160
2.1.1. Directions and Trends of Changes. p. 161
2.1.1.1. Change in Customer Perspective ... p. 162
2.1.1.2. Impacts of Cloud Delivery Model ... p. 163
2.1.1.3. Cloud Channel of Delivery ... p.164
2.1.1.4. Changing Role of Internal IT Departments ofEnterprises... p. 167
2.1.1.5. IT Employees role Changing ... p. 167
2.1.1.6. Turbodynamic Competition ... p. 168
2.1.1.7. Clouds Wars ... p. 170
2.1.1.8. Partnership and Cooperation in the Cloud ... p. 170
2.1.1.9. The Change in Structure and Organization of IT Providers ... p. 171
2.1.2. Summary - New Organization IT... p. 173
2.2. Lifestyles in the Clouds ... p. 176
2.3. Multi Economy of Cloud Enterprise ... p. 185
2.3.1. The Cloud is the Future of Everything ... p. 185
2.3.2. Cloud Absorption in Industries and Sectors ... p. 186
2.3.2.1. Internet Enterprises ... p. 187
2.3.2.2. Media ... p. 187
2.3.2.3. Education ... p. 190
2.3.2.4. Health Care ... p. 196
2.3.2.4.1. Pharmaceutical Industry ... p. 197
2.3.2.5. Travel and Tourism ... p. 197
2.3.2.6. Weather Forecast, Agriculture and Anticipating Threats ... p. 199
2.3.2.7. Production ... p. 199
2.3.2.8. Financial Sector ... p. 200
2.3.2.8.1. Banking Sector ... p. 202
2.3.2.8.2. Accounting ... p. 203
2.3.2.9. Telecommunications ... p. 203
2.3.2.10. Links Chain ... p. 204
2.3.3. In the Orbiting Cloudiness ... p. 205
2.3.3.1. Virtualization ... p. 206
2.3.3.2. Preparing for the Journey ... p. 207
2.3.3.3. Scenarios of the Cloud Migration ... p. 210
2.3.3.4. Selection of Clouds Provider ... p. 211
2.3.4. Enterprise C.01 ... p. 213
2.3.4.1. Numerology of Business ... p. 213
2.3.4.2. How does Cloud Changes Organizations? ... p. 214
2.3.4.3. Economy of Cooperation ... p. 221
2.3.4.4. Economy of Distributed Resources ... p. 223
2.3.4.5. Economy of Augmented Reality ... p. 224
2.3.4.6. Economy of Applications ... p. 225
2.3.4.7. Economy of MutaTechnologies ... p. 227
2.3.4.8. Clouds Economy ... p. 228
2.3.4.9. In Search of Enterprise C.01 ... p. 229
2.3.4.10. Presumption 2.0 ... p. 232
2.3.4.11. Attributes of Enterprise C.01 ... p. 232
2.3.4.11. Update of Competitive Advantage ... p. 235
2.3.4.13. Breed the Enterprise ... p. 235
2.3.4.14. Ways to Use Cloud by SMEs ... p. 236
2.4. Clouds Utopia ... p. 238

3. ROAD MAP AND A COMPASS CLOUDS ... p. 245
3.1. Layered Taxonomy of Cloud Services ... p. 245
3.1.1. Taxonomy of Cloud Services for Business Customers ... p. 247
3.1.2. The Taxonomy of SaaS Applications for Private Customers ... p. 249
3.2. Three Key Taxonomies of Cloud Services ... p. 252
3.3. Cloud Pricing Models ... p. 256
3.4. Places in the Clouds ... p. 259

4. KEY PERFORMANCE INDICATORS ... p. 262

CHAPTER IV. ALTERNATIVE SCENARIOS FOR THE FUTURE OF CLOUDS ECONOMY

1. FROM CLOUDS ECONOMY TO CLOUDONOMICS ... p. 267

2. WEATHER FORECAST FOR TOMORROW. 66 CLOUD TRENDS. ... p. 274
2.1. Clouds Market ... p. 275
2.2. Policy of Clouded ... p. 278
2.3. Economy: Evolutionary Change in Paradigm ... p. 278
2.4. Society and Communities ... p. 283
2.5. Technological Shif ts ... p. 286
2.6. Environmental Inf luence of Clouds ... p. 294
2.7. SLA Law ... p. 294
2.8. Summary ... p. 295

3. CLOUD FICTION. ALTERNATIVE SCENARIOS FOR THE FUTURE OF CLOUDS ECONOMY FROM NOW, BEYOND 2020 ... p. 296
3.1. S1. Planet ‘Like Clouds’’ ... p. 297
3.2. S2. World of Cloud Corporations ... p. 305
3.4. S3. Ecosystem of War, Control and Surveillance ... p. 308
3.5. S4. Mono-Cloud ... p. 310
3.6. End ... p. 313

List of footnotes .... p. 315

Bibliography .... p. 323

List of tables, figures, charts and infographics ... p. 329

The International Atlas of Cloud Services and Tools. ... p. 335

PRELUDE

One of the characteristic features of the modern world is a bidirectional relative perception of space. In the physical space, our global village continues to shrink. The distance relatively reduces, lifestyle, entertainment, and work standardize. In the past, you could divide people into those who lived in the countryside and those who lived in the city, however, nowadays the division is already blurred. We all live in the village, although, it is now a Global Village. We are a little bit cooped up, there are more of us, but our friendships, in an increasing degree, are not based on geographic proximity, but rather on common interests, beliefs and passions. In the Village, two attributes are essential: the distance and availability. The distance, through the process of globalization, opens borders, and a variety of the modern means of transport - contributes to the World becoming smaller. And the 'availability' is the gateway to the Virtual World.

And it is the latter, the opposite direction of the relative perception of space. The Virtual World is like the universe after the Big Bang. It expands constantly and the boundaries after its explosion are invisible. New social networkings, networkings, a gaming zone, commerce, e-learning, e-everything broaden our entertainment and work space. This new reality is driven by user activity. This one, in turn, by providing content, requires ever more capacious, optimized data storage centers. The Virtual World spits out a lot of information, more or less useful. In the opinion of many observers, we are creating a virtual space trash, which justifies the development of new information technologies. But this is, apparently, an inherent side effect of the development of information civilization.

THE DOMINANT INFLUENCE OF NEW TECHNOLOGIES

A few decades ago, new technologies dominated mainly in laboratories, corporate research institutes and in the Sci-Fi books. Today, new technologies are ubiquitous. There is no day, an hour or a minute, without a comment, a piece of information related to new technologies. New technologies have dominated our thinking, they are an inseparable part of our everyday life- they can help us but also complicate things at the same time. Nevertheless, they are the engine of growth for the modern economy. IT has permeated through all areas connected with entertainment, work, and education. So, are we allowed to claim that technology is information? In a sense- we are. Technology is the know-how, knowledge about how to improve or create new more effective methods of implementation of a specific task. Is it possible to imagine life without IT? Without computers, smartphones or GPS navigation? It's as if we suddenly turned off the lights, cut off electricity. The invisible becomes noticeable but only when we lack it.

CIVILIZATION OF INFORMATION

The imperceptible, especially for the average user of new IT technologies, are also changes which are taking place now. A quiet revolution amending our world from 2.0 to 3.0. Why such a numbering? This numbering is analogous to the numbering of the development stage of the Internet. Web 1.0 - that is, HTML, Web 2.0 - the social networking sites and tools.The above can be also applied to the development of the IT industry: I. The age of mainframes and computer terminals, II. The era of PC, III. The era of Cloud Computing and mobile applications. If, in turn, one refers to the famous futurist Alvin Toffler, we are still at the stage of the third wave - the post-industrial era, the era of information and services. Welcome to World 3.0.

For the purposes of this publication, I have adapted the following division of the information civilization development of the World:

World 1.0 – the Analog Era

World 2.0 –the Technotronic1 Era

World 3.0 – the Reconstruction Era (re-everything)

The numbering of individual stages is the most arbitrary and serves only as an introduction to the presentation of knowledge and information contained in this publication. As in the case of Toffler’s wave, a close demarcation border between the various stages of development of the information civilization cannot be determined. Each stage is closely connected with the following one. In World 3.0 Analog World features are present, and in the Technotronic World are features of the Reconstructive World.

WORLD 1.0 – THE ANALOG ERA

The characteristic features of the Analog World, are among other things, the transfer of information based on voice transmission, books, newspapers, radio and television. With the dominant attributes of any of these messages are printed and radio waves. World 1.0 is almost all of our history. It was not until the age of industry that the development of technology accelerated, mass production developed, work and lifestyle reorganized. What happened at the beginning of the industrial era is happening right now, but in a different reality, scale and form. So, as in the past, technologies reorganize the whole industry - creating new ones, blurring the lines between old ones while some of them die out. The educational system does not keep pace with the changes which have taken place on the labor market, companies need specialists in new areas. This area of the reorganization is taking its toll in the form of higher unemployment. This is especially true in countries that are firmly embedded in a business and economic way in the previous era. The parallels are obvious. Every great wave of technology comes together with the need for changes, and these changes which aren’t implemented properly and quickly result in crisis.

WORLD 2.0 - TECHNOTRONIC ERA

World 2.0 is the era of advanced electronics, computers, communications satellites. The term 'Technotronic' was invented and first used by Zbigniew Brzeziński in "Two Ages: America's Role in the Technetronic Era" in 1970. The Vision of the Technotronic Society, refers to other times and other reality, however, the issues raised in the publication are still valid. Population control, supervision of citizens, updated files with so-called sensitive data about people/citizens. But these were actually projections of reality warning us against side effects carried by Technotronic.

The Technotronic Era, in the economic area, is based more on services and information at the expense of industry. World 2.0 is the era of mainframes and PCs, desktop devices and the beginning of the Internet (Web 1.0). It is also the beginning of the development of mobile devices with mobile phones in the foreground.

The Technotronic world is the equivalent to the beginning of the third wave of Alvin Toffler’s. It is the announcement of the new digital reality and the consequences that it brings. It is also the first step of failures, such as the Internet bubble of the early 2000s. This crisis was a crucial stage of self-cleansing and informative Internet business. The introduction of free-market principles to e-business contributed to the formation of new, healthy financial operations. It took a few years for the Internet to become a good field for business again,. The creation and development of Facebook, the development of Google, Microsoft's refresh, Apple's business explosion are the most spectacular evidence of the formation of the World 3.0 in the corporate space.

WORLD 3.0 - THE ERA OF RECONSTRUCTION (RE-EVERYTHING)

I agree with James Gleick who declared that the clearest feature of the contemporary world of new technology is ‘Acceleration’. 2 We are bombarded with introduced, applied new technologies. Faster and faster, they arise in connection with new products, treatment of old products, new models. The market development of web, cloud applications has rated an incredible growth. Indeed, this is a feature of the market that is digitized. It also accelerates our lives (still in a hurry, despite the fact that we live longer, we feel that we have less time for everything). The Acceleration can be traced in the introduction of the first argument, that the relative distance in the Global Village is shrinking. Maybe/Probably, one word, which would include these two features, is 'shortening'. Shortening the distance and time.

World 3.0 is the Era of Reconstruction. Why Reconstruction? The reason is that we are at the stage of computerization of the world in which all areas are remodeling our lives. There is no need for longer distance or a few dozen years to feel and embrace the changes that we are witnessing. Our lifestyle is constantly changing. Let’s concentrate on the entertainment, for instance. E-readers, 3D TV and movies, access to music, movies, books, games, from anywhere, on multiple devices, and what follows, the defragmentation of devices. The era of Technotronic was dominated by mainframes and PCs. Today there are mobile devices, such as smartphones, tablets, notebooks, ultrabooks, netbooks in the foreground.

Our relations are based more on the web-community virtual relations,. Being 'turned on' in streams of the relationship is now something obvious and natural. It may not be always conducive to the depth of the relationship, but being a 'connect' is for many people, as necessary as air to breathe. As users, we produce an incredible amount of data. This is our activity in the digital space which drives the development of information technology:

Infographics. What happens on the Internet within one minute?

[Figures are not displayed in this preview]

Source: Own work, based on infographics: “Go-Globe.com” and “What Happens in an Internet Minute”, Zoli Erods, April 4, 2012.

New technologies are quickly mastered by the private user. This is our private area of activity and usefulness of new solutions that make the whole structure of our world require changes. The more organized structure, however, the harder it is to change. This is not the first time that business follows the path trodden by the consumer market. The Cloud was more used by an individual rather than a business user.

A wave of change launched by hundreds of millions of individual users can not be without impact on business. I believe that companies which use Web 2.0 concepts to their current activities have greatest problems. And this is the leading element in the activity of individual users: showing themselves and their friends, openness and transparency, that encounter the resistance of matter from companies that want to be rather closed, opaque, hierarchical. The less formal structures, the more it is dependent on people. And this is exactly what the companies seek to avoid. Companies are testing ground, place and this is happening today - a specific attempt to use new options, methods of management and organization, conducive to the requirements of the world of new technologies. Not all of them are successful and only few will succeed. Industries and companies are very resistant to changes. But as well as the old technologies have their place in the modern world, as well the old style of organization will survive in some cases. This is evolution. Revolution has reorganized many areas ruthlessly, regardless of the consequences, but in the background there is still ongoing evolution. Adapting to market requirements and customers is taking place. Just like in the nature organisms mutate, adapting to climate changes, and the strongest ones win, like here, alike, a similar process takes place. Only such organisms will win business, which quickly and best adapt to the changes.

For business, incomparably greater than the Web 2.0 challenge is the implementation of cloud solutions. It's a challenge without precedence, because even the computerization of business had its slower start. Acceleration is relentless. The Cloud is both a challenge and a risk. CC is changing the way business users employ renewable power. The Cloud represents a fundamental shift from the traditional way of proceeding to a dynamic and flexible one. The Cloud is modularization, scalability, speed of the changes and adaptation to market needs. As Cloud Computing business users, we receive, among others:

- Access to global supermarket applications and services to improve our work,

- Unique way of sale (The Internet is the leading sales channel for digital products),

- Technical support, help in time,

- More invisible, non-invasive computing power,

- Globalization of small businesses,

- With the Cloud we become more independent.

Reconstruction is the era of the remodeling of proceeding and organizational structures: companies, government, school, hospital, bank. All institutions. Paradoxically, these which resist changes in the strongest way, they need such changes most and would also benefit from them most. is The largest area of reconstruction needs is where a large amount of data, a number of users, a centralized structure and also a geographically dispersed structure are.

DUE TO CLOUD PARADIGM SHIFT

The fundamental accelerator of changes in World 3.0 is Cloud Computing. And this is the main subject of this book. CC is a strategic part of the World 3.0 which actuates a technology avalanche effect comparable to remodeling the world via the Internet. The vast amount of data that is likely to be better organized now can accelerate the development of semantic technologies, work on better mating data, such as business intelligence, and consequently Artificial Intelligence.

In the era of mainframe computers, the forecasts for the future of the IT market, pointing to a paradigm shift in the direction of the PC were ignored, not to say, ridiculed. Nowadays, they are something obvious. Today another paradigm shift associated with increasing sales of mobile devices takes place, and hence, mobile devices displace PCs. An amount of data that is circulating, and the fact of impractical and non-economical storage of all personal data devices, force the market to look for new ways of dealing with this challenge. The Extension of services data storage, hosting, and storage of increasing amounts of data, as well as private unloading equipment from storage applications are just some of the factors affecting the development of the concept of Clouds.

However, Cloud Computing is not everything. World 3.0 includes many other elements, more or less related to the cloud, resulting from it, or being its ‘prequel’:

- Big Data3

- Virtualization

- Defragmentation devices

- Third Platform (Cloud Computing 1.0)

- Mobile Computing

- Internet of Things/Goods/Products

- Internet of Services

- Social Network Sites

- Web 3.0

THE STRUCTURE OF THE PUBLICATION

In the book, I focus on the aspect of the Clouds in the World 3.0 and Cloud-related elements. The structure of the book consists of four chapters, I. The Era of the Cloud Formation, II. Multidimensional Architecture of the Clouds, III. Cloud Physics, IV. Alternative Scenarios for the Future of Cloud Economy.

Each chapter consists of points and sub-points, so that the aspect could be explored more thoroughly. The first chapter is a thorough introduction to the Cloud. It covers issues related to technology and concepts that have had and still have a significant impact on the emergence and development of Cloud Economy. An additional element is the graphic presentation of the history of CC (CC timeline).

The second chapter discusses the Clouds system architecture. It explains how the Cloud works, what its components are, what the relationships between these elements are. Cloud Architecture brings possible solutions for the use of both business and private users.

The third chapter, examines a wide range of Clouds impact, for various types of social and economic aspects, including the IT organization, lifestyles of private users in the Cloud, the company and the administrative structure of the state. The third chapter is a specific description of the current and potential reality from the perspective of the Clouds. It gives answers to questions about time and space in the Cloud. This is a section showing the map of Cloud capabilities from the perspective of the business and private sectors.

The fourth chapter deals with the analysis of trends in CC, but it is a summary of the Cloud Economy, ten-scale. Moreover, we can find four alternative scenarios for Cloud Economy in the chapter.

The Cloud Economy is a book presenting a multidimensional perspective of Cloud Computing(CC): technological, social and economic. The publication explains what CC is, to whom it is dedicated and, how and why one should use cloud-based solutions. In addition, the book includes the description of the CC evolution from a distant yesterday, today, through a deep and distant future. The publication presents the latest and unique views, opinions and the news on the Cloud market. The whole is enriched with very modern graphic design, including dozens of infographics, tables, charts and graphs, through which the publication becomes a text and graphic record of the knowledge and the know-how about CC. Particular parts of the Cloud Economy have a different profile depending on an aspect there presented, that is: educational-popularizing, a textbook and informative. A reader will find here the broad and synthetic knowledge about Cloud Computing and its impact on business and our daily life. The book is enriched with practical content describing possible applications of Cloud solutions as well as several cases of the CC use and references to the real-world usage. The Cloud Economy is the first such extensive publication on CC which meets the broad nature of the swinging door to the Clouds’ fascinating World.

CHAPTER I. THE TIME OF CLOUD FORMATION

CLOUD PREQUEL

FOUR SPACES OF CLOUD-FORMING FACTORS

Cloud Computing, despite its seemingly simple formula, is a concept that has a broad impact on various areas of human activity and organization - just as great as the Internet has. However, the existence of the Internet is, at the first place, due to military purpose, then academic one, and in the end it migrated to the commercial zone.. The CC, in turn, came in the wake of a series of favorable economic and technological factors. But no less important were the regulations of states and changes in work and lifestyles based on the available ICT4 solutions. Thus, all the factors forming Clouds are located in the four areas listed below:

- Political Space

- Market Space

- Social Space

- Technology Space

In The Political Space , Cloud, like the Internet, owes globalization and open borders its development processes. The financial crisis, which isolated flexible financing development of the organization, led to greater pressure on governments in the direction of greater flexibility and competitiveness of the economy and created the need for reorganization of the state administration bodies at both central and local levels. Government, as the largest organizational structure, also had to start looking for new cost-effective solutions, which would increase the efficiency of structures. In the era of reconstruction of business organizations for their flexibility, speed of operations, better customer service, it is not surprising that citizens expect changes related to a more efficient and effective use of individuals, groups and communities. In addition to the greater efficiency and simplification of administrative mechanisms, an increase in citizens' expectations in terms of transparency and insight into real development forecasts made by the administrative structures at the local and national level was noticed. This, in turn, is associated with the expectation of greater and more frequent (than on election day) involvement in making important for the country / region decisions (central and local level). The subject of cloud solutions in the state administration and self-government is very broad. Some countries, like the U.S., the UK, are already at an advanced level of works on cloudy effective administrative structures. Many governments, however, do not see the need, or are not aware of the benefits cloud-based solutions may bring. In the EU, the level of awareness and commitment of the member states is quite diverse. We can only hope that with time, the EU will impose a top-down policy of the use of new technological solutions on all administrations, and in order to avoid substantial disparities, not only within the EU but also in technological delay and in civilization consequence in relation to the process of ‘cloudiness’ in the USA, and in some Asian countries. Europe in order not to be doomed itself to becom the open-air touring of the world, must not only keep pace with the development and practical application of new technologies, but also take an active part in their creation and development processes.

The search for savings is also a major factor in the pro-cloud computing in the Market Area. Market needs are more severely suffered by market organizations than by the organizational structures of the state. For many companies, a change in the action, in order to increase flexibility, dynamics, efficiency, responsiveness to market needs, and consequently performance, is a struggle for business survival . In the case of Clouds, the central place from which one should begin these changes will be the IT department of the organization. This is the model of IT work that has an influence on the increase in efficiency of the IT infrastructure, organization, capital and labor. Depending to the industry, organizations suffer varying degrees of market pressure for a change. It (the pressure) is the greater, the greater the organization's dependence on new technologies and innovation is. Another factor in favor of migration to the Cloud is the need for support of competitive advantage in the innovative use of new technologies in the organization. Another factor, no less important, is the focus on the co-operation, partnership and collaboration. This is a change in the mode of action related to the interdependence and cooperation of the organization in the process of product development, logistics, sales. World organization has become very complex and interdependent at the same time. Focus on core business, pushes business support processes outside the organization. This, in turn, forces companies to specialize, which, first, results in increased organizational interdependence, and then, in feedback, in the form of pressure on the modular structure of the organization - open and ready for permanent cooperation.

Going one level down the organizational structure, we have the same needs, but based on other sources. The reorganization of working methods in the direction of greater flexibility, mobility, collaboration, reduced costs and increased productivity – these are the number one goal for many companies. In many companies, labor costs generate the greatest financial burden on the organization. It's no surprise that solutions to reduce these burdens are being searched for.5

The whole big set of cloud-forming factors is located at the level of contact point between companies and the market, competition, and customer relationships. Starting from the last one of these elements, let’s concentrate on the amount of data handled by the company based on the large amount of products and services on the mass market. Take, for example, financial services, banking, insurance, telecommunications, logistics (courier), and in particular Internet services companies like Google, Facebook, and Amazon. The amount of data in the market, concerning the customers, their behaviors, identified problems, the anticipated needs - it's all a gigantic amount of information that must be available in a number of places (defragmented organizational structure of the company, mobile workers), just in time (customer service, customer identification, access to their service history, orders, etc..), and what is the greatest challenge – conversion of information into knowledge, especially from unstructured data 6.

The last of the signaled Clouds-forming factors in the Market Space is the SME sector. Yes, all this huge market is cloud-creative and cloud-development factor. Why? Because, the need for growth and expansion of SMEs are implemented through tools and Internet services, and the Cloud accelerates this process. SMEs can not only globalize their operations, but with the use of the Cloud they can also compete with larger organizations. By migrating to the Cloud, SMEs obtain access to the same resources as corporations do. In conclusion, the emphasis shifts competitive advantage to innovative ways of existing resources and technology use.

There is probably no area of life in the Social Space, which is not in any way supported by cloud applications. Starting by listening to music, viewing and sharing photos, through project and task management, financial management, to reading digital books at the end. Most people are not aware of the fact that they already use cloud-based solutions. Just the first example: email, and the most popular services on the market, Gmail, Yahoo Mail, Hotmail. And then, all data on external servers, such as music (MyMusicCLoud, Amazon Cloud Player), documents (Google Documents), videos (YouTube, Tudou, Youku), pictures, and graphics (Picasa, Flickr), and the fastest growing market for storage services data (Dropbox, Google Drive, SkyDrive).

There are more digital devices on the market, there is a greater demand for mobility, and expectations for the smaller and more capacious device, and those reasons are sufficient to justify the development of cloud-based solutions. Manufacturers of digital devices have a difficult task ahead of them and it is not due to lack of capacity. Technological potential, which is already available, is just enough for many years of the digital arms race. The thing, however, is that it is hard to sense what the next hit will turn to be, what functionality will prevail, and that devices will be on market top. A classic example of a war in the market for digital devices are mobile phones, or to be more precise their successor, namely smartphone. Who remembers Nokia's dominant role today? And who is aware now that tech-better products of Nokia, lost to a better design, simplicity and perfect marketing of iPhone?

Such examples can be multiplied. There is no such a thing as homo economicus, it is rather homo motus, or a man receptive to trends, fashions and economic symbols. I believe most of the changes in our lifestyle can be noted in the field of entertainment. In business, at work, we are more conservative than we are outside the company. It is not only our taste that is changing, but ,most of all, the way of entertainment and content consumption we crave for. Thanks to portable devices, music can be present with us anywhere and at any time. We not only have access to an unlimited number of radio stations, but also to the entire music library that we have gathered. Audio was probably the first bastion that has been released from our physical living space and thanks to devices such as a cassette, walkman, discman, and devices for MP3 playing, music accompanies us everywhere. The games followed that trend, and then so did the video, and at the end digitized print, namely press and a book.

Our habits have changed thanks to the possibility of creating action groups, which are also accessible via the Internet. All kinds of networking services and / or community, and the option of sharing in the digital world: information, knowledge, music, movies, photos, documents, etc. were the stimulus for the development of our ‘sociability.’ Data exchange services for Peer-to-Peer and Web 2.0 revolution based on the creation of content by the user and all kinds of activities related to cooperation, interoperability, sharing played a great role in the process too.

The option of group play enriched the games available on the internet most intensely. While sharing of digital content entails the effect of contact and comments, in the case of games it is much more intense and full-bodied interaction. Generally, the gaming market is a 'giant' topic that requires further analysis. To sum up this thread, we can only conclude that the habits of younger generations differ dramatically not only from their parents' generation, but also from the colleagues who are about a decade older or younger. I have recently read an article on the use of digital devices by children, which was characterized by one of the described examples. A child at the age of pre-verbal, having for a while a tablet in their hands was next given a regular Illustrated magazine to play with. The child got bored quickly, seeing that moving pictures, that were available on the tablet ,do not start in the magazine ... So this 'toy' is probably broken…

Speaking about toys, ... and, at the same time, returning to a more serious tone of digital devices - it is their multiplicity, defragmentation of tasks that turns out to be quite important to synchronize data. If we are within our home network and all devices are in the vicinity, a network solution is sufficient. However, when the distance between devices increases, the cloud solution is essential.

These are only brief points of change in our behavior patterns and habits associated with our lifestyles.

In general, we can note the Social Space cloud-creative agents, and cloud-development on four levels:

The level of the relationship: the citizen - Administration / Institutions
The need for faster, less invasive settling matters in government offices and institutions,
Quick access to our data, shared by various agencies and institutions of government,
Ability to handle routine and current affairs on the principle of 'one-stop-shop',
Information help - precise, just-in-time.7

The level of education and training
School at home - alone or in a virtual classroom,
Training anywhere - alone or in a virtual group,
The end of printed textbooks and schoolbags,
Collaboration, just-in-time data access between pupils, students and teachers, teachers and parents,
Education and training model based on a smaller number of participants / students and quicker adaptation to changing market requirements,
Model schools connected to cloud-based network, with the possibility of a global co-operation and exchange of experience, and participation of students in various international virtual classroom,
Model based on teamwork, with an emphasis on collaboration skills, group management, and project management,
Model based on multi-culturalism and global IT infrastructure schools.

The level of the relationship: user - user / users
Virtual access to relatives, friends,
Voice, text and video communication for free,
Sharing everything that can be digitized,
Common entertainment,
Cooperation,
Virtualization of work and play.

The level of personal preferences
More space to store and share data,
Smaller and lighter digital devices with more capacity and memory at a lower cost,
Data synchronization,
Faster access to data,
Data ‘at hand’ - anything and everything,
Increased bandwidth and widespread access to the Internet,
More and more digital products and services for free.

I have just briefly defined cloud-creative and cloud-development factors in the Political, Market and Social Space. The cloud-creative factors and cloud-development in the Technology Space will be analyzed at some length later in the book dedicated to the economic and technological determinants. In the next section I will focus on two sets of determinants related to the emergence of the cloud and pro-developmental Clouds factors. These sets of determinants are: 1) economic determinants, 2) technological determinants.

Economic determinants will include issues related to the multi-faceted needs of companies and organizations and the IT market. However, the determinants of technology provide an overview of technologies and concepts prior to the Cloud and have an impact on its appearance, and the technologies and concepts to complement and support the development of Clouds.

CLOUD-CREATIVE ECONOMIC DETERMINANTS

The cloud is a natural consequence of decades of Acceleration. The explosion of a huge amount of data has launched a new business needs. The most important of these is the need for flexibility. The change did not come from new technologies, but appeared thanks to the need to cut costs. And all these began together with the financial crisis and global recession. Most organizations were forced to reduce costs and risks in order to survive, and therefore launched a completely new business models. Market demands are forcing companies to consolidate, also in the area of IT.

Significant breakthroughs often occur immediately after periods of economic difficulty. Businesses may freeze investment in times of crisis, and when conditions change for the better, they want to make up for lost time, focusing on improvements in operations. And then they look for and invest in new, radical ideas. There are many sources and causes of Clouds.

IT MARKET RECONSTRUCTION

The evolution of the IT market in the direction of seeking more cost-effective and efficient solutions resulted in different concepts of network, among which Cloud Computing wins greatest popularity. In response to the new needs of business and individual customers, IT suppliers had to reconsider their 'boxed' approach to SMEs, and the one dedicated to large organizations.

On the way to the idea of a more effective method of service, the experience of market services for consumers through Internet applications became the inspiration. An application that is available on a single platform of information, allows you to monitor the use of the functions by the customer, gather comments about problems on the fly, and to simplify application development methods. And, instead of providing new versions of the applications to the tens of thousands of customers, tens of thousands of customers had an access to a simple place where they could either download the revised application, or work on it in the option of the access to the Internet. Another valuable experience was the fact that a fussy individual customer, accustomed to the fact that the majority of functions performed on the Internet for free, has a low willingness to pay for anything. On the other hand, during the intensive development of new applications, it became more and more difficult to draw the user's attention and get him/her to try to take advantage of the new product offered by the IT developer. Therefore, the business model began to evolve in the direction of the concept of freemium - the basic functions are free, while others are available for a small fee. All of these new experiences of the client market, they were a great training ground for the application of similar mechanisms for business to business market.

Savings, for IT vendors, in the age of exploration the effective use of infrastructure, are very important. Capital-consuming investments do not always work out due to the unpredictable infrastructure boundaries. You could, of course, plan and forecast the approximate use of owned hardware and software, but only if you possess a multi-annual contracts for the implementation of specific services for large customers. Assuming that we are talking about large customer support only. Thus, IT infrastructure could be only dedicated to large organizations. For smaller customers boxed tape solutions - standardized software that is running on the customer's IT infrastructure remains.

At a time when large organizations began to invest themselves in their IT resources, efficient use of infrastructure owned by IT organizations began to diminish. The market got tighter (internal and external competition). First of all, the increased number of fully unused resources was noted. Paradoxically, this led to both large organizations and IT vendors having the same sort of problems. These two categories of bodies had to find a way to a greater resource flexibility, scalability and cost-effectiveness of use of their IT infrastructure.

A significant area of the client, which had so far not been effectively cultivated by IT vendors, was a huge market for SMEs. Small and medium-sized businesses could not afford expensive solutions dedicated and personalized to small organizations’ needs. The market, as Nature, does not like empty space. A niche, which was developed by larger developers and IT vendors started to be slowly filled with smaller competitors. These smaller developers are responsible for a breakthrough on the market. And bigger IT players have eventually begun to move in that direction.8

Small developers did not have the capital to spin-up and operate large business organizations. They had to look for other ways and methods to support the market. In addition, they remained primarily to support the SME market, left on the margins of mainstream IT activities of larger competitors. The central battleground became the Internet due to common and relatively cheap access – optimal costs for both suppliers and customers. Applications which were run, delivered, supported, developed and available on the Internet became developers’ secret weapon. This direction hit the jackpot. Lower costs, flexible labor resources and infrastructure adapted quickly to customers’ needs, and what is most important, low prices triggered an avalanche of solutions, delivered over the Internet.

Changes in the IT industry are not only caused by looking for savings, although this factor is always crucial. Another important challenge that still awaits its solution is handling more and more data that is in circulation in the company. In particular, the company supports hundreds of thousands, and sometimes millions of the customers, where the result of information must be exactly on time and in a particular place. In this case, the conventional approaches cannot be successful. Factors triggering the enormous amount of data in the form of increase in the number of digital devices sold, and the subsequent increase in the content created by customers, only reinforced the expectations of business customers for effective ways to handle large amounts of data (Big Data).

In the company, one of the key issues is the time of customer service and interaction with clients. With more services, more customers, call center service is simply no longer enough . And even if it turns to be some kind of solution it must be based on just-in-time information. This information must include previous dealings with the client (historical data), but it should be also available to other departments within the company in order to respond to emerging issues and needs appearing on time. This requires the reorganization of all the existing organizational structures and information. The problem is now of such a kind that the changes are so dynamic that organizations must act like some kind of transformers- they have to change their shape and functions constantly.

They are looking for the ways to automate and simplify customer service. And this is a specific paradox, since this direction, on the one hand dehumanizes the relationship with the customer, but, at the same time, it collides with the opposite direction - the expectation of a direct contact between the customer and the employee of the company. The one that has never dealt with the customer service of the bank, telecom operator, hosting provider, etc. does not know how much patience you need to have today in order to listen to all the commands and instructions aiming at resolving the problem without human intervention from the company. So, it is invested in an extensive infrastructure to replace the unreliable and costly human factors (reduction in the number of customer service staff to support the staff infrastructure that supports the client in an automated manner). The idea good enough, but existing solutions still leave much to be desired.

Cooperation should be, and in many cases it the main mantra of companies. It is not only about working with the client. It's also about cooperation within the organization and co-operation between the organizations, bodies orbiting around the company. In addition to the obvious communication (savings, savings, savings), is also an access to shared resources and collaboration tools. And once again the network works out. To choose from, either own - intra / extra-nets, or the public, or the Internet.

The Internet is not just a place where we upload collaboration and data. This is the place from which we draw the computing power (applications run on the Internet), but also an excellent channel of distribution of digital products, such as Software. Many of the issues raised above are related to the reorganization of the IT needs of the organization and IT. Therefore, the solution of Cloud Computing is not a new technology, it is a new, or, to be more precise, it is the modernized concept of organization and the use of IT resources.

The IT market has developed a technological (r)evolution, and the market now expects IT solutions to measure current expectations - not without impact on the IT market itself, but on IT organizations as well.

RECONSTRUCTION OF ENTERPRISE

Many of the issues raised in the subject line concerning reconstruction of the IT market is converging with the need for the reconstruction of enterprises. These two trends overlap and are interdependent. You only need to note the specific perspective of the expectations of companies.

Focus on the core business of the company . Businesses need relief from the side function. Moreover, this trend is not new, and the method has been known for years. Cloud Computing, in this case, is nothing else but outsourcing of a part of delegated tasks to the cooperating entities. The need for concentration is associated with the requirements of the market, its dynamics, competition, varying customer needs, technological race. Especially this last factor is important. One of the fashionable terms, sometimes misused by business today, is innovation. Everything has to be innovative in order to be sold better. Sometimes it is a simple touch-up, or just marketing, which has nothing to do with innovation, however, the need appears. This need can be very well managed and used at a higher concentration on the company’s core business. The Cloud is the result of the commercialization of convergent technologies which enable organizations to get rid of a lot of fixed costs and focus on its core business. For organizations, the acquisition of a set of on-demand services, paying only for what is needed and what can be realistically used activates a revolutionary change in the organization and costs.

The need for more efficient use of the infrastructure has already been mentioned in the section about the reconstruction of the IT market. It is worth noting, however, that the organization is not only the IT infrastructure. The emphasis on greater productivity also applies to capital and labor resources. In particular, the work is a weighing factor of changes here. Beside the subject of labor costs, legislative load contracts (depending on the country, contracts are often unbalanced, their center of gravity lies more on the employee’s side, or the side of the operator), the need for reconstruction is localized in the organization of work and that will be discussed in following paragraphs.

Mobile work, telework . A worker ‘released’ from the physical desk, for some people is a good and motivating movement, a necessary evil for others, and almost a heresy for the rest. Much depends on the culture of the organization, industry, competition, and, most of all, on the main decision maker in the company. Why are Mobile Computing and teleworking so important? Firstly, they are often associated with the need to work in the field (mobility), due to the nature of the product or service provided by the company. Sometimes it's just a necessity. Teleworking is a different case. It is rather the direction associated with the search for savings. Even if the tools (computer, phone, desk) do not change the cost (regardless of whether the employee performs work in the office or at home) two other factors have a significant impact on cost reduction: first, reduction of costs associated with less office space and second, time and commuting costs of the employee. Another important saving factor is flexible working time of teleworkers. Depending on your needs, teleworker can work more or less for your organization. They can be leased temporarily, or in order to carry out a specific task. Besides, the teleworker can adjust their working time and the amount of time and work for more than one client. Both, in the case of Mobile Computing and teleworking access to key information resources of the company. The need lies also and plays a key role mainly on the supplier’s side. With the access and monitoring of the effects of mobile employee and teleworkers, the company has a live update of information about the performance of their tasks, time effects and labor costs. The more mobile employees, teleworkers and the greater the company's organizational defragmentation, the greater the need for network and / or cloud-based IT infrastructure.

Once again, I have to notice a greater amount of data factors in circulation. However, this is a very important factor and it weighs to the entire market and users. Companies, as never before, need a better and more precise handling data coming from different directions, from the enterprise to the market, from the market to the enterprise market in many different directions, and within the company. Previous basing on the existing Business Intelligence solutions is not enough. The need to deal with the greater than ever amount of data in circulation increases together with an effective analysis and conversion of this data into useful knowledge. Nothing but the access to information is not enough. As in the case of other resources, in this case, the resource information must be more efficient. A performance is associated with related information, the capturing trends, with precise access to the logical structure of information which becomes useful knowledge adaptable to current operational and strategic planning.

A new paradigm of the organization (not just companies) is a Change. A Continuous Change. In a dynamic business environment where competition is no longer directly related to the large capital and large organizational structure, where small businesses can compete with corporations, and where customers are less and less inclined to loyalty as they yield to momentary fashions and have a greater awareness of choice and access to information, organizations need to change. Not only change but keep on changing.

TECHNOLOGICAL CLOUD-CREATIVE FACTORS

Cloud Computing, which is the processing of data in the Cloud, reminds previous technologies and marketing phenomena such as network computers, on-demand access infrastructure (Utility Computing), Distributed Computing and virtualization.

A full understanding of Cloud Computing requires a broader perspective, including both elements related to CC, but also those on which CC could be based.. And so we can identify precursors of CC:

Autonomic Computing (automation) computer systems capable of self-management.

Mainframe: computers used mainly by large organizations for highly complex task of processing large amounts of data, such as census, consumer statistics, industry statistics, enterprise resource planning, and financial transaction processing.

Client-Server Model: consisting of the distribution of applications between software vendors (or servers) and clients.

Grid Computing: virtual machine, constructed as a network cluster. Grid computing is based on pairs of computers for the purpose of execution of more complex tasks. In the following sections this topic will be expanded.

Peer-to-Peer: both suppliers and customers, using distribution architecture without the need for a central location for the distribution.

Utility Computing: rental of data processing resources, such as hardware, software, and networks on-demand. In the following sections this topic will be expanded.

Service-Oriented Computing: like Cloud Computing, the direction of implementation of the computer technology in the Software-as-a-Service option.

Services Oriented Architectures: CC services are often associated with the term ‘Service-Oriented Architecture’. But you must not confuse these terms, even though they are compiled to support the implementation of the services. By CC, companies are able to have access to services hosted on third-party servers on the Internet. With Service-Oriented Architecture, companies will benefit from the application of integrated services in a more lightweight manner than on traditional platforms.

Service Oriented Architecture (SOA) is perceived as a flexible set of design principles used in the development phase and system integration. The implementation of SOA-based architecture provides a loosely integrated set of services that can be used in many areas of business. Although SOA is closely associated with many services in the Cloud, it is mainly dedicated to business use.

Some believe that SOA is dead, or at least anticipated by Cloud Computing, BPM, mashups and SaaS. The others argue that SOA and CC should go hand in hand. Attempts to reactivate the dynamic development of SOA are through integration into the CC. According to some experts, SOA and CC can offer a complete package of services.

Cloud Gaming: a way of delivering games on computers. Data for the games is stored on a provider’s server.

Distributed Computing: field of computer science dealing with distributed systems. The distribution system consists of many autonomous computing units, which communicate with each other through the network to achieve common goals.

Virtualization: a temporary, non-physical version, for example, the hardware platform, operating system, storage device or network resources. A virtual machine (a computer, a server, etc..) is a complete non-physical machine, consisting of a set of files and programs running on real physical machine. The purpose of virtualization is to centralize administrative tasks while improving scalability and more effective utilization of hardware resources. What does this mean? For example, the parallel use of multiple operating systems run on a single processor (CPU). For what purpose? To reduce overall costs. The rest of the book expands this topic further more thoroughly.

Computer Cluster: the architecture consisting of a set of loosely coupled computers, cooperating as one system. Cluster members are usually connected to each other through fast local area networks. The main task of clustering is to improve the efficiency and availability of operating data as a single system alternative to less efficient and cost-effective way of working of single computers with comparable speed and availability.

Infographic: IT Cloud-Creative Decades

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Source: Own work.

GRID COMPUTING vs UTILITY COMPUTING

In terms of relational concepts Grid Computing and Utility Computing are related to CC. What is interesting, The Grid was, int the beginning the term interchangeable with the CC. Yes, and CC Grid is more a concept than a new technology model. What is the difference between Grid and CC? Scalability, flexibility, openness, which is characterized by CC. The term Grid was used for the first time by Ian Foster and Carl Kesselman in the innovative publication "The Grid: Bluprint For a New Computing Infrastructure" in 2004, as a metaphor for the generation and transfer of computing power in a manner similar to the power generation and transmission of electrical energy. Utility computing has been compared with the mains available to all potential buyers. Grid computing can be defined as the use of multiple computing resources from multiple domains administered in order to achieve a common goal. This can be considered as a non-interactive system for the distribution of workload that contains a large number of files, loosely paired, heterogeneous and geographically dispersed which are comparable to data clustering (Cluster Computing). In the simplest terms, Grid Computing, can be likened to a ‘virtual super computer’ consisting of a large network of loosely paired computers that work together to achieve homogeneous tasks.

The Utility Computing relates to rental of data processing resources, such as hardware, software and network "on demand". This concept was first proposed by an American scientist John McCathy from MIT in 1961, when he claimed: "If computers of the kind I have advocated become the computers of the future, then computing may someday be organized as a public utility just as the telephone system is a public utility… The computer utility could become the basis of a new and important industry.”9

Grid Computing and Utility Computing, include CC features, but they are not CC. The CC is located in the Grid Computing and Utility Computing, but in a wider version which is not limited to the above concept. For example, the CC is not limited to a specific network, but relies on a global network that is the Internet. Also, virtualization, and therefore their scalability is not limited to CC. You can imagine a case in which the Utility Computing is not a CC. This case will take place when the supercomputer rents time data processing a few clients. In this case, customers pay for the rental of supercomputer time actually used, however, it has nothing to do with the virtualization of resources, but with the location.

A great point of reference for both the Grid Computing and Utility Computing may be a lesson on the development of the telephone network. The global telephone network can be compared to the way the Cloud can work for us today. The international telephone network has been the largest machine in the world for nearly a hundred years. You can call anywhere in the world without worrying about whether used systems are compatible with each other. Tone shows us that the system is ready for operation.

Just as you do not need to know the details of the telephone network, more and more users do no longer ask for the mechanism of processing and storage of data. What really matters is mainly the availability and integrity of the services that will come from professionals in the Cloud more frequently. 10

GRID COMPUTING vs CLOUD COMPUTING

The potential that lies in the Grid Computing can be realized through a parallel image processing, where each data resource is shared by all computers on the network. Following the path further more heterogeneous networks may be traced, and they may belong to different organizations. This leads us to a hypothetical supercomputer model with unmatched computing power, storage capacity, memory, storage capacity and the ability to perform the most complex tasks. The problem is that each supplier on your network servers, to say it simply, the infrastructure which is a part of a joint Grid Computing, loses its sovereignty to the group. Thus the idea seems good, but it is also limited.

Cloud Computing has evolved from computer networks and is placed now in a broad horizon of the concept based on burden sharing in virtualized resources and providing on-demand computing power in a dynamic and scalable manner. CC is attractive due to the economical use in business and the ability to relieve the overburdened infrastructures, with the possibility of added value.

The following Preeti Sunil’s table, compares Grid Computing with Cloud Computing in the area of business model, data model, security and selected problems.

Table. Grid Computing vs Cloud Computing.11

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Source: Own work, based on: Cloud Computing Vs. Grid Computing: How Do They Differ? Preeti Sunil. 1/30/2012.12 12

As it is noticeable in the above comparison, the choice of the data model is not obvious for larger organizations. Factors that determine the choice of solutions are related to the purpose, a scope, openness of the created system as well as of resources.

Florence G. de Borja, in his "Why Cloud Computing Is Better Than Grid Computing"13 concluded a very comprehensive comparison of GC and CC . Complementing the arguments of Florence G. de Borja with my own remarks, I present below a brief comparative analysis of two network models.

Cloud Computing allows companies to instantly scale without the need to buy infrastructure, software licenses or personnel training. CC, especially in the Public Cloud options, is crucial for small and medium-sized enterprises. Larger organizations benefit from CC in Hybrid Clouds option. Users have access to data and applications in the cloud via the Internet by paying for what exactly and for how long they have enjoyed it. It's just like the use of the car when you want or need it, without incurring any fees of insurance, depreciation, etc.., It is like paying only for a real time of driving.

CC user has access to his/her data, applications, resources and services from any device with Internet access. They do not need to have any platform, any software, or an infrastructure. Start-up costs are lower and operating costs depend on the real use of resources. CC user does not have to know anything about Cloud infrastructure, which they use.

On the other hand, Grid Computing is the basis of Cloud Computing, as it bases on the same interpretation of the access to resources ‘on demand’. Network models are also implemented beyond the Clouds environment. For the user, it does not matter what model of network they use, as long as they can get what they want, for the price they can afford. Grid Computing is possible thanks to the software that can control all the computers connected to the network.

In GC, tasks are divided into smaller ones and then, they are sent to different servers connected to the main computer. On the specified server computing tasks are realized and the results are sent to the main computer. As soon as all the other computing tasks are received by the main server, the result is delivered to the user. GC enables efficient use of computational power in all connected servers. Processing time is also greatly reduced when tasks are divided and assigned to different servers.

Both the GC and CC, are scalable due to uniform use of computing power. Network bandwidth and processor can be shared and non-shared, depending on the number of customers using the network, the size of data transfer and also the capacity available for data storage. Both concepts can apply multi-tasking and multi-lease.

CC and GC differ in a method used. In GC, a large task is divided into smaller tasks and then, distributed to different servers. After completing the tasks, the results are sent back to the main computer. The CC offers a variety of services to users, which are not possible in the GC, such as web hosting, for instance.

CC is also friendly to the environment (less energy consumption, lower CO2 emission), as it reduces the number of hardware components to run the application. CC also offers the possibility of teleworking, mobile working, which results in reduced hardware costs and the business office space.

CONCEPTS RELATED TO CC

The foundation of the development of CC, is the Internet. Therefore, other concepts related to the CC, as Big Data, Internet of Services and Internet of Things are worth noting at this point.

Internet of Services is a concept related to the thesis of determining the future of the Internet by developing services (applications) available via the Internet. This concept is consistent with the CC, which is also based on the development of applications available to users both individual and business over the Internet. The main difference between Internet of Services and the CC is based on the fundamental factor of development, which is, in the case of the Internet, uncontrolled, chaotic organic growth, while in the CC development is planned, organized and controlled by corporate IT or IT related issues.

Internet of Things is loosely associated with the CC in comparison to the Internet of Services, however, it is also a concept related to defining the future of the Internet. Similarities, as the name suggests, relate to real things - devices. In the case of the Internet of Things there will be not only devices, such as PCs, notebooks, netbooks, tablets, smartphones but also household appliances (fridge, microwave), and cars and other everyday devices ‘hooked’ to the Internet. In the CC, the ‘Things’ are mainly data centers, places where data is stored and where computing power available in the Public and / or Private Cloud is localized.

Speaking of Things (devices) referred to, it is impossible not to mention the main character of the evolution of IT, which is a computer. If the devices are getting smaller, lighter, so at what cost? What do we really have in our computers? Our device is bigger than we may think. But we do not see it. Devices are becoming faster, more capacious, not only because they have unlimited storage for data storage. As noted at the beginning of the publication there are bidirectional changes in the real and the virtual world, and here this phenomenon does also take place. Computers and more devices involved in the movement of data processing are becoming smaller while their resources are increasing at the same time. More data, more applications, more power. Physical limitations no longer take place when processing and storing data begins to migrate from physical machines to the Clouds.

This process does also involve the need for mobility and lightweight devices, ease of use, data synchronization, and the ubiquity and high-speed Internet access.

Going one step further, one may raise the question, do we really need those devices? What do we really need? The access. Continuous and unlimited access to people, information and tools, so that we can satisfy our needs and tasks of private business. The tool becomes a port gate, as nomen omen, the name ‘portal’, means multi-thematic website. So now we expect the portal in the form of non-invasive desktop, which you can take with you anywhere, fit in your pocket, bag and use it freely in any conditions. Current solutions do not even cover the opportunities that device manufacturers may deliver us in the future.

BIG DATA

In the last few years, there have been a lot of rumors around the concept of Big Data14. Big Data is the term invented to reflect the huge amount of unstructured data, collected by various business organizations and governments. Big Data’s key word is ‘disorder’. The traditional structure of the databases cannot cope with this problem, both because of the number of supported data and its disorder (unstructured). Big data does not have a real internal structure. This is mostly data of different categories, random, uncategorized, and therefore, difficult to be fully enjoyed, and thus manageable.

Infographic. Why is Big Data so important?

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Source: Own work, based on:

Magoulas, Roger., Lorica, Ben. (Feb 2009) Introduction to Big Data. Release 2.0. Issue 11. Sebastopol, CA: O’Reilly Media.

Wikipedia15

Big Data is a bewildering number of customer records, data, sound, photographs, graphics, text, comments on social networking sites, digital articles and books, information from blogs and technical information. If you have a problem with the handling of our telecom operator, you expect immediate help and advice. The operator has to respond quickly to our application, they should know who we are and refer the problem to our specific case, which means they must have an immediate insight into our data. We become more and more impatient. Waiting for the implementation of banking transactions, maintenance, customer service website, we never want to wait, to waste time. At the same time, the world economy, based on services, is becoming more and more complex. The amount of information that is in circulation, archiving of our use of web applications, smartphones, or other digital products or services collects a lot of data about us. The support of these data becomes more and more challenging.

According to Dave Kellogg, the boom in Big Data has its three sources:

Most new IT innovation in the last three decades has been associated with databases.

Hardware architecture has changed - demand for horizontal scaling as Google has increased.

We are experiencing a significant explosion of data about people (such as social networking, the use of mobile devices by users, etc..) and, consequently, the need to accurately analyze and manage these data increases. The biggest machine that generates the data is the Internet. 16

This, what I noted the above, is just the tip of the iceberg. The future development of the information technology tends more and more towards the automotive market. A computerized car, which recognizes the way, not only on the road, but in the digital highway becomes as real as necessary. However, the greatest area of generating data is and will become the mobile technology.

Infographic. Timeline of Big Data

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Source: Own work, based on:

The World’s Technological Capacity to Store, Communicate, and Compute Information. Martin Hilbert, Priscila L.pez. Published Online February 10 2011. Science 1 April 2011: Vol. 332 no.6025 pp. 60-65. DOI: 10.1126/science.1200970. http://www.sciencemag.org/content/332/6025/60.

Mobile Market 2012. Chetan Sharma.

http://www.chetansharma.com/GlobalMobileMarketUpdate2012.htm

BIG DATE IN COMPANY

Enterprises have always relied on opaque information. Access to information, the speed of data analysis and rapid decision-making have always determined and still determine the success. The problem is, that today, there is much more information than 10 or 20 years ago. Another critical sign of our times is access to information. Today, it is ubiquitous. Nowadays, companies face not only the access to the new information, but more and more often its analysis and management.

The Fulcrum Research claims that 80% of the company's data is unstructured (such as data stored in Word documents and PDF docs, as opposed to structured databases, CRM, etc.). On the other hand, according to The Forrester Research, the amount of data in enterprises’ circulation is growing at 200% per year. 17 This is a simple way to ‘overheating’ of Information and that will result in a degrade of performance. ‘Information overload’ is a reality for many businesses, organizations and individual users.

Infographic. BIG DATA in the company. Outlook and Challenges.

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Source: Own work, based on: the „Unstructured data: Challenge or Asset?” Diane Berry, April 9, 2012. 18

A major challenge for employees is a search for information from various sources and formats, intranets, email, shared files, wikis, and systems, like enterprise gathering knowledge systems i.e. Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) or from other applications. According to research done by the Gartner corporation, 66% of the companies use six or more of these repositories. Finding the right information from so many different sources in a larger corporate structure, without the knowledge of where to look for it becomes almost impossible. Improvement of the system lies in the tools for analysis and data management, and in employees trainings.

Table. Proposed Integrated Data Management in the Enterprise.

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Source: Own work, based on: the „Unstructured data: Challenge or Asset?” Diane Berry, April 9, 2012. 19

One way to better manage the data is presented in the table above, the concept of Diane Berry. Although everything seems to be the most logical and well thought out, it is still one of the many purposes, without specifying how it is implemented.

BIG DATA: IN SEARCH OF SOLUTIONS

Traditional tools, such as a conventional relational database, are useless for Big Data. Only Internet companies began pioneering work in this field. They avoided relational database models and created their own framework for cooperation with Big Data, consisting of NoSQL databases, distributed processing systems, specialized data structures, and other elements. Over time, these frameworks were consolidated, and many of them are available today as an option for parallel processing.20

Google was probably the first company with the effective use of Big Data. By collecting and analyzing large collections of web pages, and the relationship between them (links), it was finally possible to create first truly universal search engines able to query and index billions of pages without human intervention. Instead of relying on traditional technology - a relational database - Google engineers have created their own unique system to support the Big Data.

Support of Big Data has created the possibility for a company of any size to have access to the computing power requiring to process increasing amounts of data. This, in turn, generates a positive feedback loop: if the end users believe that they can process more data, they will also collect more data, which, in turn, leads to greater demand for data processing, and so on.

Big Data is also a Big Challenge. Algorithms necessary for data processing must be much more complex than they are now. This, in turn, means greater complications for end users in adaptation of the system to their needs. The Big Analysis of the data also can be a very difficult task. One of the main challenges is the selection of relevant content from all available information noise.

Another problem is the fact that the correlation between the data does not imply causation. In fact, the more information is processed, the greater the chance of finding false correlations that have no real meaning, or, at least, there is no causal relationship.

Despite these problems, Big Data has the potential to change the way many companies and organizations work, and the cloud is an excellent low-cost opportunity to try out the new processing methods and algorithms.

Krishnan Subramanian presented a very interesting analysis of Convergences of the Big Data processing connected with mobile technologies and Cloud Computing.

Table. Convergence of Data Processing in the Cloud.

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Source: Own work, based on: the „Big Data $ Intelligent Platforms. Next Iteration of PaaS for data driven world.” Krishnan Subramanian, Principal Analyst, Rishidot Research Editor, CloudAve.com.21

As we can see in the table above, convergence of data processing in the Cloud has a different system today, but a completely different sequence in the future. Data from Social Media and mobile data need to be treated as a single source. Big Data will not be the last link in the chain of data processing, but it will become its central hub.

Moving Big Data into the central data processing chain is associated with several overlapping trends; a greater number of users with mobile devices, a greater amount of data generated by these devices, increased demand and market capacity on mobile devices and applications.

A number of mobile applications, and thus, their relationship with Cloud Computing is changing consumption patterns application, as illustrated in the following graphic:

Figure. Next Generation of Intelligent Application.

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Source: Own work, based on: the „Big Data $ Intelligent Platforms. Next Iteration of PaaS for data driven world.” Krishnan Subramanian, Principal Analyst, Rishidot Research Editor, CloudAve.com.22

Data aggregated by the applications is processed through the CC as Big Data, and then used to support users of the application and further development of the application. It is an amazing challenge to handle incredibly large amounts of data in a blink of an eye. If the market find a solution for handling unstructured data it will be just one step away from the semantic web, semantic search and the beginnings of artificial intelligence.

There is no doubt that Big Data is still waiting for its Big Time. I agree with Martijn Linssen, according to whom the Baath (Big Data as a Service) will become the next big hit of technology.23

MARKET EXPECTATIONS - FORMATION OF IT OFFER

Economic considerations are one of the main reasons for the application of Cloud computing in business. Special interest due to the reduction of costs and increased productivity by outsourcing and / or automation of core management processes. In order to meet the economic expectations, the main task of CC is to reduce the cost which is the first step in creation of the effective system of organization. Successive points on the map of expectations are: adaption to changing consumer behavior, the reduction of infrastructure costs and scalability.

The market expects cost models based on the actual consumption of resources. The solution to pay-per-use is associated particularly with the services, where specific criteria must be met by the system. In particular, the SME market is expected to bypass the capital-intensive methods of investment in the IT infrastructure, which many companies simply cannot afford, and without which it is difficult to imagine a successfully functioning organization.

Another expectation of SMEs is to improve the response time to changes and needs of the market. SMEs want to sell their services quickly and easily, especially in competition with larger organizations. Larger companies have to be able to meet the new demands with less investment burden to remain competitive.

The return on investment (ROI) is important for all investors, but it may not always be guaranteed. Expectations in this matter are the greater, the greater the equity interest in the organization creating and maintaining IT infrastructure is. The cost and organizational effort must reflect in a greater organizational efficiency / performance resulting in higher amounts of clients and larger revenues.

The expectation of lower investment (CAPEX) to operating expenses (OPEX) is also significant. Nobody wants to incur the same costs when handling 1 million and 1 thousand customers. This applies, in particular, to industries characterized by seasonal sales, or significant changes in burden and enterprise resource commitment. Such extensibility and structural plasticity of companies, contrary to appearances, is within organizational and technological capabilities. Expectations of companies, institutions, universities, administrations are the same in this regard. Pay as little as possible, and only for what you actually have used, and for what is being used.

What is also important, is the direction of the ‘Going Green’ not only because of a significant reduction in energy costs, but also reduction of carbon dioxide. Scalability and flexibility in use of the IT infrastructure is not only about resources, but also the energy, which takes a significant position in the cost table of many companies.

Users want solutions that are characterized by the following features:

- Ease of use: by hiding the complexity of the infrastructure (including the management, configuration, etc.)
- Infrastructure independence: independence from suppliers, from third parties, reluctance to store data beyond the infrastructure of the organization.
- Flexibility and adaptability: the flexible use of resources, with such a cost system which allows to reduce investment costs in favor of the operating costs.
- Independence of location: services can be achieved regardless of the user's physical location and resources.
- Resource Efficiency: efficient use of resources, not only in the period of increased involvement in the implementation of infrastructure and business processes, but especially when the load is lower. It is about the use of spare capacity of the organizational infrastructure.
- Security and privacy: they are, of course, necessary for all systems dealing with potentially sensitive data.
- IT System Management: Easy, intuitive and understandable to the user, regardless of the complexity of the system and managed processes.
- Meters: Measuring consumption of all kinds of resources and services is necessary in order to offer flexible pricing, charging and billing. No less important is the measurement of the effectiveness of using the solution, where Business Intelligence can be helpful.
- Reliability: is essential for all IT systems. Reliability is the ability to ensure the continued smooth operation of the system, i.e. without loss of data.
- The quality of support services: that is, to provide solutions according to established indicators such as response time to problems, speed data processing, system capacity, and any other measurable effects of the use of IT infrastructure, including a package of warranty which is crucial in emergencies, such as all kinds of crashes, and other unforeseen but perciptible problems related to the use of the IT system.
- Availability of services and data.

Subsequent chapters of the book, reveal new opportunities and a specific response to the needs and expectations of business users and individuals in all four Spaces (Political, Social, Market, Technology) and thereby describing Clouds Economy.

[…]


1 technotronic, formed by the impact of technology, computers and modern ways of communication, due to the rapid transformation of the industrial age - with its emphasis on efficiency and mass production - in the period giving priority to those services, automation, cybernetics, microprocessors, communication satellites, etc. Source: Dictionary of Foreign Words and Phrases, Władysław Kopaliński. http://www.slownik-online.pl/kopalinski/66E64F0D9C4BA0FAC125659D000B25FE.php
2 Faster: The Acceleration of Just About Everything. James Gleick. September 5, 2000. Hachette Book Group USA.
3 In order to analyze huge amounts of data special tools are necessary. A number of applications increased from tens of thousands (PC era) to millions (the age of Clouds).

4 Information $ Communications Technology
5 Hybrid Clouds: Is it the future of Cloud Computing?, A Market Insight by Frost $ Sullivan n collaboration with CITIC Telecom CPC©, http://www.citictel-cpc.com/english/pdt/pdt_cloud/files/fns_hybrid_cloud.pdf
6 The development of this thread, later in the book.
7 Cloud computing Market overview and perspective, Patrick Callewaert, Paul A. Robinson, Peter Blatman, October 2009 - Deloitte Consulting. Member of Deloitte Touche Tohmatsu, Designed and produced by the Creative Studio at Deloitte, Belgium, https://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/TMT/cloud_-_market_overview_and_perspective.pdf
8 http://www3.weforum.org/docs/WEF_DigitalEcosystem_Scenario2015_ExecutiveSummary_2010.pdf
9 http://continuations.com/post/11948018055/john-mccarthy

10 Source: The Center for Computing History. http://www.computinghistory.org.uk/det/5493/Jack%20Kilby%20created%20the%20first%20integrated%20circuit
11 “Computation may be organized as a public utility”: A History of Cloud Computing, by SOURYA ON FEBRUARY 9, 2011, http://www.cloudtweaks.com/2011/02/a-history-of-cloud-computing/
12 http://www.buzzle.com/articles/cloud-computing-vs-grid-computing-how-do-they-differ.html
13 Why Cloud Computing Is Better Than Grid Computing. Florence G. de Borja. MARCH 26, 2012 AT http://www.cloudtweaks.com/2012/03/why-cloud-computing-is-better-than-grid-computing/
14 ‘Big Data’ is a term applied to data sets whose size is beyond the capabilities of commonly used tools for capturing, managing and processing data within tolerable elapsed time. Designated size down ‘Big Data’ is constantly shifted, from 2012 the benchmark increased from tens of terabytes to multiple petabytes of data in single data sets.
15 http://radar.oreilly.com/r2/release2-0-11.html
16 BIG DATA, CLOUD COMPUTING AND INDUSTRY PERSPECTIVES. Dave Kellogg. http://kellblog.com/2011/08/19/interview-by-sandhill-com-on-big-data-cloud-computing-and-the-future-of-it/
17 Return on Information: Improving your ROI with Google Enterprise Search. How Google search solutions can boost your bottom line, Google Inc, 16 Dec 2011, http://www.4point.com/pdf/internal_search_roi.pdf
18 http://www.zdnet.com/news/unstructured-data-challenge-or-asset/6356681
19 http://www.zdnet.com/news/unstructured-data-challenge-or-asset/6356681
20 Big Data challenges and how the Cloud can help, Thoran Rodrigues, April 25, 2012. http://www.techrepublic.com/blog/datacenter/big-data-challenges-and-how-the-cloud-can-help/5508
21 www.cloudave.com/author/krishnan
22 www.cloudave.com/author/krishnan
23 Big Data? No. Big Information as a Service. Martijn Linssen, February 21, 2012. http://www.cloudave.com/17278/big-data-no-big-information-as-a-service/?utm_source=feedburner$utm_medium=email$utm_campaign=Feed%3A+CloudAve+%28CloudAve%29

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Title
The Clouds Economy
Subtitle
The Cloud Computing from Distant Yesterday, through Deep Today, the Distant Tomorrow
Author
Year
2013
Pages
346
Catalog Number
V312379
ISBN (eBook)
9783668116030
ISBN (Book)
9783668116047
File size
9307 KB
Language
English
Tags
cloud computing, clouding, software as a service, platform as a service, infrastructure as a service, hardware as a service, everything as a service, cloud services, cloud apps, war cloud, migrate to cloud, mobile computing, cloud solutions providers, cloud apps stores, big data, changed enterprise, cloudonomics, new IT organization, cloud metrics, open clouds, vertical clouds, internet of services, personal clouds, hardware virtualization, service-oriented architecture (SOA), virtualization, resources on-demand, grid computing, client–server model, distributed application, computing resources, peer-to-peer, utility computing, application programming interface (API), device and location independence, multitenancy, scalability and elasticity, on-demand self-service, resource pooling, rapid elasticity, measured service, service models, cloud management, private cloud, public cloud, hybrid cloud, distributed cloud, cloud engineering, vendor lock-in, storage, dot-com bubble, data centers, cloud computing providers, cloud collaboration, Amazon Web Services, IBM, Oracle Cloud, Rackspace Cloud, NIWA Cloud Application Platform, HP Cloud, Microsoft Azure, National Institute of Standards and Technology, Gartner, Inc.
Quote paper
Matt Mayevsky (Author), 2013, The Clouds Economy, Munich, GRIN Verlag, https://www.grin.com/document/312379

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