It is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet).
Overview
Cloud computing relies on sharing of resources to achieve coherence and economies of scale. At the foundation of cloud computing is the broader concept of converged infrastructure and shared services.Cloud computing, or in simpler shorthand just "the cloud", also focuses on maximizing the effectiveness of the shared resources. Cloud resources are usually not only shared by multiple users but are also dynamically reallocated per demand. This can work for allocating resources to users.
For example, a cloud computer facility that serves European users during European business hours with a specific application (e.g., email) may reallocate the same resources to serve North American users during North America's business hours with a different application (e.g., a web server). This approach should maximize the use of computing power thus reducing environmental damage as well since less power, air conditioning, rackspace, etc. are required for a variety of functions. With cloud computing, multiple users can access a single server to retrieve and update their data without purchasing licenses for different applications.
History
The origin of the term cloud computing is unclear. The expression cloud is commonly used in science to describe a large agglomeration of objects that visually appear from a distance as a cloud and describes any set of things.In analogy to above usage the word cloud was used as a metaphor for the Internet and a standardized cloud-like shape was used to denote a network on telephony schematics and later to depict the Internet in computer network diagrams. With this simplification, the implication is that the specifics of how the end points of a network are connected are not relevant for the purposes of understanding the diagram. The cloud symbol was used to represent the Internet as early as 1994, in which servers were then shown connected to, but external to, the cloud.
References to cloud computing in its modern sense can be found as early as 1996, with the earliest known mention to be found in a Compaq internal document.
The popularization of the term can be traced to 2006 when Amazon.com introduced the Elastic Compute Cloud.
In the 1990s, telecommunications companies, who previously offered primarily dedicated point-to-point data circuits, began offering virtual private network (VPN) services with comparable quality of service, but at a lower cost. By switching traffic as they saw fit to balance server use, they could use overall network bandwidth more effectively. They began to use the cloud symbol to denote the demarcation point between what the provider was responsible for and what users were responsible for. Cloud computing extends this boundary to cover all servers as well as the network infrastructure.
In early 2008, Eucalyptus became the first open-source, AWS API-compatible platform for deploying private clouds.
In July 2010, Rackspace Hosting and NASA jointly launched an open-source cloud-software initiative known as OpenStack. The OpenStack project intended to help organizations offer cloud-computing services running on standard hardware. The early code came from NASA's Nebula platform as well as from Rackspace's Cloud Files platform.
On March 1, 2011, IBM announced the IBM SmartCloud framework to support Smarter Planet. Among the various components of the Smarter Computing foundation, cloud computing is a critical piece.
On June 7, 2012, Oracle announced the Oracle Cloud. While aspects of the Oracle Cloud are still in development, this cloud offering is posed to be the first to provide users with access to an integrated set of IT solutions, including the Applications (SaaS), Platform (PaaS), and Infrastructure (IaaS) layers.
Characteristics
The National Institute of Standards and Technology's definition of cloud computing identifies "five essential characteristics":
On-demand self-service
. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.