Cloud Technologies

The term cloud-computing entered the mainstream a few years back, but it is no new idea by any means. The cloud's model began in the 1950's as IBM began developing mainframe technology. Now consoles all over the world could alter data at a single access point. In example, with a banking mainframe a single clients account balance may need to be accessed by a teller at a bank, a machine that prints statements and an ATM machine. The data in the account must be identical when accessed in all three cases. This is done by having all the data handled by transactions through one single physical machine, a mainframe. This new machine largely shaped certain industries today such as banks and insurance companies as everyone knows money transferring is all electronic.

Sixty years later we are finding cutting edge ways to use this practice in various businesses.

The explosion of the internet has brought cloud computing to new levels. Data-as-a-service, platform-as-a-service and software-as-a-service are all industries that have bloomed as the cloud continues to grow.

Cloud computing can often times be a catalyst in business models. When a company implements a cloud technology into their business often times it can have amazing consequences. Take Netflix for example. Netflix (NFLX) went public in 2002, their strategy was to attract customers into paying a monthly subscription fee in exchange for movie rentals delivered by mail. Operating costs were being battered by shipping costs on the physical DVD's but the company was profitable. Then they introduced a system where for the same monthly fee a subscriber could stream video directly to their PC. The cost of streaming movies to customers instead of mailing them decreased costs as well as established a product line that would encourage a larger subscriber base. Needless to say interest grew in the company and their stock price soared.

So where will the next cloud system make a huge impact on a company? The company I am keeping an eye on is Microsoft. Microsoft (MSFT) is already the most widely used operating system among PC's with a huge footprint in businesses. Microsoft has a very strong cloud-based product line emerging with SkyDrive, Office 365 and Windows Azure. This combination allows Microsoft to outsource your entire infrastructure-as-a-service.