SaaS, PaaS, IaaS.
Cloud computing is a term thrown around a lot these days, but what is it and how can businesses benefit?
The cloud is a distributed network of data centers and IT resources that are accessible on-demand over the Internet on a pay-as-you-go basis. While the concept of “the cloud” is abstract, ultimately it is made up of actual physical infrastructure. Like public utilities, cloud providers are centralized operators with massive distribution networks that give consumers a critical product that is always available at a low cost.
There are three layers of the cloud. These are best thought of as a pyramid with each layer built on top of the one below it. The base layer is Infrastructure as a Service (IaaS), the middle layer is Platform as a Service (PaaS), and Software as a Service (SaaS) is on top. Each of these has different uses and benefits depending on one's particular needs. Collectively these layers represent the building blocks of a complete and robust IT ecosystem that enables companies to replace most or all of their physical server infrastructure. They are provided “as a Service,” which generally means customers only pay for the resources used on a monthly basis.
Today nearly every business uses the cloud in some form or another, mostly in the software layer. Business applications like Office 365, Google Apps, Salesforce.com and QuickBooks Online all use this layer of the cloud. These Software-as-a-Service applications allow access from any connected device, are always available and let companies easily add users when needed.
The Platform as a Service layer, while critical, is probably the least well known. It includes providers such as Heroku and Tutum as well as the Google App Engine. Platform-as-a-Service companies promote innovation by providing all the tools developers need to launch new applications, create new offerings on an easy-to-use platform, and get them into the market quickly.
While the aforementioned software and platform layers contain valuable business tools, there is a deeper level of the cloud that can have an even greater impact on companies when utilized properly. Infrastructure-as-a-Service providers, including Amazon Web Services (AWS) and Microsoft Azure, make up the base layer of the cloud which includes virtual access to low-level building blocks necessary to create almost any IT environment, including servers, storage, networking, and security.
Companies of all sizes are using this layer of the cloud to complement, or in many cases completely replace, their physical IT environments. This allows business leaders to rethink their approach to IT infrastructure by replacing their physical servers and realizing tremendous benefits along with cost savings.
One benefit is scalability, which means matching capacity needs by allowing users to scale server usage up or down depending on demand. This results in websites that can handle thousands of requests per second without affecting performance and limitless databases that grow automatically as more data is added.
Another is agility, or the ability to move quickly in the marketplace. The cloud enables this by cutting the time to deploy new IT resources from weeks to minutes. Next, the distributed network of physical locations connected by secure high-speed fiber lines means backup and disaster recovery solutions are cheap and easy to implement. Finally, on the financial side, monthly billing and a pay for use model effectively turns capital expenditures into operating expenses.
Security, both physical and virtual, is a primary concern for all companies and the cloud is no exception. In the cloud, security is a shared responsibility. IaaS providers handle physical security, providing highly protected data centers complete with compliance certifications. End users are responsible for virtual security which is achieved by following best practices concerning encryption and access management. Many used to be skeptical of security in the cloud, but it is now widely accepted that solutions deployed in IaaS can be as secure, if not more secure, than traditional on-premise offerings. Major enterprises going all-in on IaaS, such as Intuit, Notre Dame and General Electric, are proof of this.
Today, the most forward looking companies use the cloud to realize significant operational benefits including faster response times to market opportunities and the ability to quickly deploy additional infrastructure to meet increasing demand. When you combine a highly connected region with the transformational abilities of the cloud, the sky is the limit.
Jim Abercrombie is the president of Trek10, a cloud computing consulting company located in South Bend. Trek10 uses deep expertise in Infrastructure as a Service to help businesses move their IT resources to the cloud. Abercrombie has a bachelor's degree in economics from Wabash College and he is a CFA Charterholder.
