It’s impossible to overestimate the industry’s ability to hype any new concept, stretching it to mean virtually everything, and so nothing. The Cloud is the latest example. Here I propose a narrow, limited definition, intentionally excluding as much as possible, because in that narrow definition something profound is occurring, something that will extend the reach of information technology to vast new markets, increase its value to existing ones, and ultimately transform the structure of our industry.

The Cloud comprises three aspects:

• Cloud Computing, a design pattern that enables self-service automation, scaling , flexing, variable costs, and rich data and analytics;
• Cloud Services, a delivery model for information services;
• Cloud Platforms, the tools, programming and information models, supporting software runtime components, and related technologies. Platforms facilitate implementing Cloud Services that depend on the Cloud Computing design pattern to meet their requirements, particularly those related to cost.

This definition excludes much that others would include in the Cloud: hosted application management, SaaS (some SaaS offerings are Cloud-based, others aren’t), and other forms of remote delivery and distributed computing with different architectures and different economics.

The Role of the Cloud

The Cloud will not replace other forms of IT delivery any time soon. We’ll still find value in software running and storing data on local devices, in complex mission critical applications running on scale-up hardware, in virtualized and automated internal IT environments using Adaptive Infrastructure and HP BTO software, in outsourced delivery, and so on. There are many reasons: today's inability of the Cloud to meet mission-critical requirements, the cost and risk of rewriting software to the Cloud Computing design pattern, and an unwillingness to change things that aren’t broken among them. This means that most enterprises will execute in a hybrid model, providing and consuming Cloud Services, with those services integrated into traditionally delivered IT services as needed.

If not to replace existing IT services, where will the Cloud fit? The best use of the Cloud will be to exploit its advantages and address un-served markets beyond the reach of traditional IT approaches. Because of their low-cost, pervasive accessibility, and ability to capture, persist, and analyze massive amounts of data, Cloud Services allow us to identify an individual's intentions, preferences, and circumstances and offer assistance. We can shift the focus of experience from an application/device pair to the user’s concerns. Technology can provide continuity and consistency across services and devices, removing layers of complexity, serving more people in more circumstances.

None of this will happen without the appropriate incentives for the businesses needed to enable it. The good news is the other side of this coin is that Cloud Services enable businesses to create richer, deeper relationships with customers, to treat each one as an individual, to customize offerings to meet the specific needs of each, and to integrate with the business partners to make this happen smoothly and affordably.