Cloud/Grid/Utility: Definitions Drift Because IT Is In Denial About Outsourcing

Why did the term cloud computing so quickly lose its original meaning? At first, cloud computing was about how to not build a data center, but it quickly morphed into an architectural description of how you should build a data center. The first definition is about accessing IT services over the Internet from computing resources that somebody else owns and operates. The second definition is about building your own hyper-efficient data center based on virtualization, shared resources, and dynamic provisioning. These definitions are so different – contradictory even – that it takes modifiers like external, public, internal, and private to tell them apart. To many, it seems that we have sunk into a morass of confusion.

My point here, though, is not to debate definitions or technology. (I believe that both internal and external clouds will be wildly successful for many years to come.)

My question today is why the definition got muddled so quickly, especially since this isn’t the first time it has happened. The original idea of utility computing was that computing should be like electricity. In the early days, companies had their own generators, but over time, centralized power companies replaced them. The theory was that IT should evolve in the same way. This same metaphor also inspired grid computing, but as with cloud computing, the definitions quickly shifted to data center architectures. I remember many data center tours where the proud owner of rack after rack of Linux nodes would say, “Check out my compute grid.”

What is going on here? I believe that IT is in denial. CEOs and CIOs are like ships passing in the night.

CEOs ask, “Why can’t we just convert to cloud computing?” What they mean is this: “I’m tired of expensive data centers, high capital costs, and hard to manage infrastructure. Why can’t someone else do all of that for us and we just buy it as a service over the Internet? You know, like Yahoo! email or Salesforce.com?” In other words, CEOs would like to outsource big chunks of IT, just like they have already outsourced big chunks of manufacturing.

And then the CIO comes back and says, “I figured it out. We can convert to cloud computing, but the good news is that we still get to build the data center and buy the IT equipment ourselves.” Ships in the night.

IT departments are so averse to the idea of having their jobs outsourced – who wouldn’t be! – that whenever someone tries to define a term to mean exactly that, they redefine it to mean a new thing that they get to build and run themselves. Perhaps soon there will be a creative new definition of external cloud that somehow means you build it yourself.

As I said above, I believe that both internal and external clouds will be wildly successful. For at least the next five years, more likely ten, most CIOs will run a hybrid model consisting of three main parts: (1) Traditional silos, where an application, a server, and storage are purchased and installed together; (2) Internal clouds, which will initially run less critical apps and grow over time; and (3) External clouds, which will also start low and move up.

Comments

[antonio romero]

Dave,

I certainly understand the thrust of your comment... seems like the next natural point to take things to, though, is the idea of an internal cloud based in Company X's data center that can spill over to external resources for extra capacity when needed, use external resources for things like test environments, etc..

I assume that at most companies even the CEO is aware that internal infrastructure can't be entirely abandoned in favor of some great grand ascension into the clouds (or is at least driven by some reptile-brain intution that "what's in my datacenter is more secure than what's not")... and the CIO understands that reducing fixed costs will matter more and more long term and will work to his/her advantage... and the cloud provider understands that future adoption will be enabled by creating bridges between what's inside/fixed and what's outside/variable.

This points towards the true hybrid-- where internal and external clouds are built out of compatible stuff, at some useful level of abstraction.

Anyway, it's far too late at night and I should be dreaming of some cloud apotheosis rather than talking back on blogs.

[antonio romero]

oh, one more thing... I speak for me here, not for my employers. Nobody tells me anything important anyway :)

[Paul Sorgiovanni]

Couldn't agree with you more Dave. There is soo much hype surrounding cloud announcements and offerings that customers have lost focus on what the actual meanings are and what the key outcomes should be

[Robert Sanchez]

Clouds, Clouds and more Clouds when what we need is clarity and focus.

The problem in most IT organizations is not the infrastructure per se. It is one of people and process, and an overall lack of effective leadership to drive the change that is needed to transform IT from being a cost center and having to always look to save money (while actually spending more through a lack of strategy and leadership) to save its proverbial shrinking budget.

To an IT organization that can respond to the needs of the business it serves in ways that enhcances that business and is relevant and meaningful from a profit, market share perspective.

All too many IT shops are lead by individuals who have come up through the ranks, mostly with an operational focus. Who shudder at the thought of change, while the business is changing daily. I've seen an IT organization take up to three weeks to spin up a server followed by a two week change control. That's just too slow and that's not a technology problem but a result of inefficient and expensive processes.

When will we get it? Technology in and of itself no longer provides any business the advantage over its competitors in the market. It's now all about how easy and quickly IT can respond to a changing business environment that in this day of the Internet, 7x24x365 and real time trading happens more quickly and more often than IT can accept...

Oh, outsourcing doesn't make it better, in most cases it makes matters worse... Rarely is it less expensive and more often than not it happens out of frustration with IT from a service delivery perspective.

[Evelyn Lindquist]

I'm not the most technical tool in the shed, but I read alot, and I have been reading alot about cloud computing - and the lyrics of a song keep playing in my head
"I've looked at clouds from both sides now
From up and down, and still somehow
It's cloud illusions I recall
I really don't know clouds at all"
Cloud Computing - how does it affect me, the person on the receiving end (security issues, reliability).
The definition of Cloud - Webster's dictionary:
- Something that darkens or fills with gloom.
- A dark region or blemish- Something that obscures.
Again, average person with concerns.

[Randy Bias]

Agreed. The difference this time is that there is a whole generation of up and coming IT consumers who want their on-demand, always-on IT services now, now, now.

These will eventually be the decision makers. Combined with the increasing competitive pressure from external IT/cloud services, IT as we know it has no choice but to shift. It's simply typical market forces at work.

The incumbent IT teams have shot themselves in the foot by failing to deliver quality results, largely because of fear, risk aversion, and corporate structures that make it difficult to move out of a mold.

Innovate or be replaced.

[Rajdeep]

Agrred, I would rather say that cloud has moved from infant towards child. As you may agree that most of the infants looks similar, and as they grow up they develop their own characteristics. Similarly cloud computing has grown up and now you see two different forms, you may see many more like hybrid clouds. At present the issue incase someone wants to take advantage of cloud correctly, then the external infrastruture needs to be in place with proper tools to smoothly share the tasks between internal and external cloud. The present bottleneck is around these issues. And it is not neccessary that everyone moves to cloud, but yes, everyone can advantage of external cloud for test or DR sites.