Moving into the Cloud

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In Pinching Pennies with SaaS (December 2008) we examined Software-as-a-Service and its increasing popularity in these cost conscious times. During research for that article, we found that the term SaaS is often confused with the concept of “cloud” computing. A notable difference between the two is that SaaS is enjoying a certain ubiquity. Due in part to its prevalence in analyst discourse, SaaS has been added to everyday IT vernacular. While both SaaS and cloud computing denote off premise solutions to network, storage or security challenges, (among other things), SaaS, the experts agree, is a part of a larger cloud computing ecosystem.

“My take is that SaaS is a subset of cloud computing,” says Saurabh Bhatnagar, senior product manager for Websense. “Cloud computing is the process of using cloud based resources as, and when, and to whatever extent, needed. Raw processing power for running any application would be an example of cloud computing. SaaS is more about delivering discrete applications over the Internet, it’s more about the application—the scalable computing resource underneath is secondary.”

Amir Lev, CTO of Commtouch offers, “Cloud computing describes a service whose computation power is hosted outside of a singular network. It enables customers around the world to tap in to and reap the benefits of a centralized database or computing body.”

In an October 2008 IDC study, Frank Gens, senior vice president and chief analyst at IDC, found that when people talked about cloud computing, they were usually referring to the online delivery and consumption models for business and consumer services. In most cases, he explains, the “computing” lies behind a more recognizable service, like banking or shopping or online storage. Gens defined cloud services as the consumer and business products, services, and solutions that are delivered and consumed in real time over the Internet. “As the foundation for cloud services, cloud computing consists of a growing list of technologies and IT offerings that enable cloud services, including infrastructure systems (servers, storage, networks), application software, system and application management software, IP networks, and pricing agreements.”