I have been asked to write a short page on the potential role of Cloud Computing in Manufacturing and would like to share with you some of my findings in this area. First, let me remind you that HP works with a very specific definition of Cloud Computing, which looks as follows: "The cloud is a means by which global class, highly scalable and flexible services can be delivered and consumed over the internet through an as-needed, pay-per-use business model." This definition is actually very close to the one of the US Federal Government. With this in mind it is unlikely that large enterprises will move their IT environment completely to the cloud, but cloud services will be used to complement their existing environment which will be optimized through advanced virtualization and other technologies.

With the above in mind, the question raises of where cloud computing could be used in manufacturing. I believe a couple areas will quickly become the favorites of manufacturing companies and these include:

• Cross enterprise collaboration. The social network environments have demonstrated the capabilities and power of cloud computing. Cross-enterprise collaboration remains a weak point in true Supply Chain management. B2B tools have been deployed to exchange data, but no integrated collaboration is available. Tools are developed for specific purpose (e.g. telepresence tools such as Halo), but there is no integrated environment available. Such environment would require the exchange of structured and unstructured data, of synchronous and asynchronous communication. By integrating multiple concepts of social networking and providing them in an integrated, cloud based environment, companies could use a variety of collaboration mechanisms to perform key business processes without having to manage the environment. Data can be contributed by the parties on request, limiting the sensitive data in the cloud.
• High Performance Computing. As companies increase the use of digital models to virtually test their products and/or to understand their business environment better (e.g. through business intelligence and decision making), they require additional compute power. Fortunately these models are typically highly parallelizable and fit well for a cloud environment as long as the amount of data they need to be provided with is not humongous, as in that case the network may become a bottleneck. We increasingly see companies move to digital testing and business intelligence, so believe there is a real opportunity to use the cloud in such environments.

As the cloud matures, other areas may be addressed through the approach. We believe that the two ones described shortly above are excellent for companies to start with as they provide added value to the enterprise without risking the core operations. However, we have to be aware that cloud computing is currently at the top of the hype curve, in Gartner's terms, and that it will go through the trough of disillusion. This means that over the coming months the "bad press" will increase. Lately we have seen initial proof of that with the massively commented study from McKinsey, titled "Clearing the Air on Cloud Computing", where they state that for large enterprises, using the cloud would cost 150% more than using their own data center. Whether they are right or wrong, the cloud will mature and address specific business problems large enterprises have. The question is really how much effort to put in early pilots to be ready to take full advantage of the new technology when it matures.