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CAPITAL EXPENDITURES

a learning investment in DAta Science, entrepreneurship, and Biotech

by
​ ​Vanessa Mahoney

Head in the Clouds

6/10/2015

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IBM Hybrid Cloud Infographic. http://www.ibm.com/cloud-computing/us/en/what-is-cloud-computing.html
Sources:
1. IT World: Differences between SaaS and Cloud Computing
2. Wiki: Cloud Computing
3. Interoute: What is SaaS?
4. CapEx versus OpEx
5. VMware: What is virtualization
6. IBM: What is cloud computing
7. InfoWorld: 9 top threats to cloud computing security
Picturehttp://readwrite.com/2010/11/29/3-infographics-about-cloud-com
What words comes to mind when you think of IBM? For me, it’s words like: monolithic, respectable, powerful, but really most exceptionally: innovative. It is quite impressive how such a large company has been able to constantly reinvent itself, expertly pulling out of areas that become unsavory and diving in to new and propitious markets. In the 90s, that big blue icon meant hard disk drives and personal computers, but IBM has evolved far beyond these commoditizing businesses today. Presently, big data, business intelligence, data analytics, virtualization, and cloud computing are the dominating themes at this multinational company.

Cloud computing  and virtualization may sound daunting, but chances are you are “in the cloud” frequently. When you log on to websites like Facebook or Gmail, you are able to access the entire database, not because you have the software downloaded and stored, but because you have an internet-enabled device that allows you to access these cloud hosted applications. Software as a service, or SaaS is a delivery model that relies on software hosted via the cloud. SaaS does not sit on your machine, running on your server and commanding space from your hard drive, but rather allows a third party to handle the operations.

As a user, you are “in the cloud” when you run a SaaS application, but it is on the other side- the software developer side - that the actual cloud computing occurs.  Cloud computing is the internet delivery of on-demand computing resources. Much like an electrical grid, cloud computing relies on resource sharing in order to achieve economies of scale. Cloud computing is made possible due to virtualization. Virtualization is the act of converting actual computing components, ie hardware, operating systems, storage devices, and computer network resources, into virtual components. At the heart of virtualization is a physical server or host, but this host allows several operating systems and applications to run and to utilize as much of the host’s computing resources as is required. Basically, there are
Five main components of cloud computing
  1.  Virtual computers and servers
  2. Data storage capacity,
  3. Communications and messaging capacity
  4. Network capacity 
  5. Development environments. 

The idea is that with cloud computing, companies can move an application or infrastructure component to the cloud, when previously this application would have been implemented through hardware dedicated to that component. Interesting, this is recognized as a movement from CapEx – capital expenditures (shout out! :), a business expense incurred to create future benefit to OpEx – operational expenditure, an expenditure required for daily business functions. (Here is more explication and comparison between CapEx and OpEx if you're interested.) This unveils another potential advantage for the cloud: a company only has to pay for what it uses cloud on the cloud, rather than making an initial (and depreciative) investment in hardware. 

Now due to the shared, on-demand nature of the cloud, one of the underlying concerns with clouds has been security. This technology is susceptible to breaches such as data loss or leakage and service or traffic hijacking. While there are means such as data encryption and two-step account credential authentication, there are also remedies of private and hybrid clouds. In a private cloud setting, the cloud infrastructure is operated by a single organization, disallowing public access, while hybrid clouds allow companies to keep sensitive data private, while at the same time utilizing public cloud resources likes SaaS (IBM Hybrid Cloud infographic pictured below).  


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    Vanessa Mahoney,  PHD

    Biomedical scientist & data analyst who loves learning how things work - from mortgage-backed securities to cardiac electrophysiology to Donald Trump's comb over

     
    The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions. 

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