Introduction
This study, commissioned by the Carbon Disclosure Project and conducted by the independent analyst firm Verdantix, provides detailed analysis of the financial and carbon benefits of cloud computing. With the aid of a detailed model and looking specifically at firms generating at least $1 billion of annual revenues in the US, we demonstrate how projected cloud computing adoption will drive economy wide benefits from both a financial and carbon perspective.
So what is cloud computing? It is a term which has been used in many different contexts but the definition we are using comes from The National Institute of Standards and Technology (NIST)7
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“Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g. networks, servers, storage, applications, and services that can be rapidly provisioned and released with minimal management effort or service provider interaction).”
Cloud computing is a multi- faceted concept and needs to be understood across three dimensions:
1. Characteristics. Server virtualization (where multiple server instances are created on one physical server machine) is a key element of the cloud, allowing for the rapid provisioning or de-provisioning of services (often referred to as elasticity). Self service is also a key component, allowing users to provision new or additional server capacity without requiring interaction from the service provider. The capabilities are available over a network and the services used can be measured accurately and charged for on a usage basis.
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http://csrc.nist.gov/publications/drafts/800-145/Draft- SP-800-145_cloud-definition.pdf
2. Service delivery. Three main types of cloud service have emerged. Infrastructure as a service (IaaS) provides the processing, storage and network capability to a user. Platform as a service (PaaS) provides users with a development platform for the design and test of custom applications. Software as a service (SaaS) provides applications to users through a centralized network allowing access over the internet or intranet.
3. Deployment models. Three main deployment models of cloud computing have developed. Public cloud describes when a third party is providing the cloud service and does so on a multi-tenant basis such that different firms share the same infrastructure, platform or instance of the software application. Private cloud describes a situation where the service is operated exclusively for one particular firm. This service can be provided either internally or externally, by a third party provider. Finally, hybrid clouds describe a situation where the service is delivered through a combination of both the public and private cloud models.
Virtual private cloud
Internal and external private clouds have been discussed but it is also valuable to reference a subset of the external private cloud. Virtual private cloud (VPC) describes a situation whereby a cloud provider virtually partitions (rather than physically partitions which would be a standard external private cloud) a portion of a public cloud environment into an isolated environment for exclusive use by a single customer. The service is only accessible via a private network connection and not through the public internet. While our interviewees had not implemented any VPC services, this is an area which could grow alongside the wider growth in cloud computing.
“First we saw the need to get infrastructure which allows us to create a virtualized environment. Following that, we felt we should partner with an IaaS provider to allow us to scale without having to build our own infrastructure.”
Applied Materials, Jay Kerley
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