Cloudonomics: The Business Value of Cloud Computing, + Website

Clouds Everywhere

This proven architectural and business model, since applied to modern hotels, electricity, coffee shops, taxi fleets, rental car services, and others, has now come to computing, and in computing—as in meteorology—the cloud these days is covering a lot of ground. Now, as never before, information technology (IT) and cloud computing are having a broad impact.

The cloud is pervading the prosaic patterns of everyday existence. Teens, tweens, and even toddlers are tapping on touch screens or thumb-typing text messages. Even untethered applications, or “apps,” need to be purchased and downloaded via a cloud-based app store, but, more important, many applications require additional cloud-based services to function. Natural-language interfaces are enabled by cloud-based speech processing and semantic analysis; search requires the near-infinite processing and storage power of the cloud; social gaming is mediated via the cloud; high scores are uploaded to the cloud; apps and content are updated from the cloud; and status updates, files, photos, videos, reviews, and check-ins are shared via the cloud.

The cloud complements the consumerization of IT, and broadens and deepens its democratization. Businesses used to dictate the desktop, laptop, and software used by employees. But if applications in the cloud process data in the cloud, “bring your own device” is a viable strategy—if not without security and interoperability concerns—potentially reducing corporate expenditures ...