"What is Cloud Computing?" was the question put in front of the Panel for the event that brought the highest number of attendees for a monthly event.

"Cloud is an operational model" was the key takeaway from the electrified discussion of the panel of experts in cloud computing. The discussion was energetic throughout the session, making listeners very interested, and driving the point home.

"What is considered as Cloud computing?

Are we there yet?

Are we utilizing Cloud to its fullest?

What are the characteristics of Cloud?"

Were some of the questions that the session answered.

The moderator Dan Scholnick of Trinity Partners kicked off the session with an initial discussion on defining the cloud. James Urquhart of Cisco systems and an expert blogger on Cloud Computing started with a brief and succinct definition by - "delivery of abstract IT services on network, on demand, priced for usage, at scale, and multi talented environment."

He added that the three main areas that cloud computing is prevalent in are abbreviated as SPI aaS. That is SaaS, PaaS, IaaS.

SaaS - Software as a Service

PaaS - Platform as a Service

IaaS - Infrastructure as a Service

Jason Hoffman, CTO and Founder, Joyent added that "Cloud is a desire to move from physical to logical servers. SaaS moves applications, PaaS moves coded programs, and IaaS moves OS. This is the natural evolution of the computing world from PCs to Internet to now, or near future to Clouds."

The discussion led to the next question "Why Cloud?"

KV RAO, Zuora.com answered "Elasticity of the application, and scaling of the application with example of Webex, the users are provided virtual infinite capacity"

Jen Grant, VP Marketing, BOX.net added "Applications that customers can start using within minutes, that doesnt require installs, patching, maintaining or consulting. The User Interface will be latest all the time"

Jason questioned this "Will an IT department buy such as a solution, and replace its entire staff?" which led to the next discussion - what are the functions that can be moved to a service model - or cloud. The consensus of the panel on this was that core functions will still remain core. For ex. Payroll may not be core to a company involved in semiconductor manufacture, So this will be outsourced, or moved to cloud.

The Moderator, Dan Scholnick of Trinity Partners then followed this discussion with analogy to electricity or utility supplies - 100 years ago, companies build their own power plant to supply power, but now they subscribe to the utilities. Will this be the model for IT services in the future?

As an answer to this question, James brought the reference of "Big switch", a book by Nicholas Carr and pointed "Information quality is more critical than water or electricity. We care more about the bit coming out of the service"

Jason took this discussion to the next level, by adding that though there has been consolidation in the past, no company has ever reduced the use of servers, so cloud will actually increase demand for computing power, and so increase sales.

What is a private cloud? was the next question quoting GE's proposal to create an internal cloud for all its computing need. Jason pointed out that clouds will make the usage of resources efficient, and though the use can be private, it need not necessarily be internal. He pointed out that a service that provides total security, and prevent piracy will be very successful in this cloud environment. Again, the team emphasized its consensus that not all functions can be moved to clouds. For ex., finance functions for many companies, or research modeling applications for biotech companies.

Jason, responding to Dan's reference to McKinsey report, that said its cheaper to keep everything internal, said the key impact of cloud will be to deliver resources on demand for an increase in demand in a short duration, and not for constant demand for a long time. Jen disagreed to this, and pointed out that cloud pushes for faster innovation and better software for use immediately, even if it is used on a regular basis or on demand.

There were also very good questions from the enthusiastic crowd, some of them are discussed here with the answers that the panel provided:

Difference between Virtualization and Clouds- James responded "Cloud is an operational model, where as Virtualization is a technology - a software running somewhere else", He went on to add that Cisco is predicting that Virtualization is the initial phase, which will be followed by automation, reducing IT bureaucracy, private clouds and pay per use.

What will be the cost model of the cloud and user perspective of the cloud. Rao pointed out that it will resemble utility providers and involve packaged values. Jen pointed out that it will be ready to use, always updated and no maintenance.

The schedule brought about an end to the discussion, though no one wanted it, with moderator inviting the panel member to provide a one minute summary on key benefits to the business. 

Jason started by saying "Real value is not cost containment - it is in participating in a network, and finding innovative ways of doing applications, and formulate best practices." and added that "SaaS will be fastest way to deliver software."

Rao added the values lie in Pay as you go model providing flexibility, and therefore cause creativity, and will reach many people.

Jen added that Enterprise software sales will die and low cost subscription model will take over.

In addition to the discussion, Dan also mentioned that his company's website has open jobs posted regularly in addition to details about venture capital.

 

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