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TABLE OF CONTENTSINTRODUCTION 3

WHAT IS CLOUD COMPUTING 3

MICROSOFT OFFICE AND CLOUD COMPUTING 6

ADVANTAGES OF CLOUD COMPUTING 8

DISADVANTAGES OF CLOUD COMPUTING 9

FUTURE OF COUD COMPUTING 9

CONCLUSION11

BIBOLIOGRAPHY 12

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INTRODUCTION

“There was a time when every household, town, farm or village had its own water well. Today,

shared public utilities give us access to clean water by simply turning on the tap; cloud technology works

in a similar fashion.” This quote by U.S. Federal CIO Vivek Kundra really sums up the concept of cloud

technology. To understand the impacts on of cloud technology, it is important to understand the

complexities of the concept itself, although abstract in nature the infrastructure of the cloud is quite

advanced, but similar to systems we already have in place. As with any new technology there will be

significant advantages and notable disadvantages. It is key however to embrace the fact that cloud

technology is here, and more incorporated in to our daily lives then one might realize. In the following we

will discuss the concept of cloud technology, Microsoft’s move to the cloud, potential advantages and

disadvantages and where the cloud may take us next.

WHAT IS CLOUD COMPUTING

If asked to define “the cloud” or “cloud technology”, a majority of the population would visualize

the iconic cloud symbol but draw a blank on what “the cloud” actually is. Even in the vagueness of their

responses, there would be some truth. Cloud technology, at least to the end user, is more of an abstract

idea. The limitations are none existent, the reliability of information, and speed of response are

impressive. But, what is it? “Cloud Computing is a technology in which any and all resources- application

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software, processing power, data storage, backup facilities, development tools…literally everything, is

delivered as a set of services via the internet” (Haag, 2010). Compiled to include infrastructure, platforms,

and applications, the actual network and server building associated with the cloud is remote, thus the

cloud is born. There are varying types of cloud services, which are primarily broken down into two broad

categories, public and private cloud computing. In both of these categories there are even further

subcategories that include the three major driving forces behind this cloud computing model. These

include Software as a Service (SaaS), Hardware as a Service (HaaS), and Infrastructure as a Service

(IaaS). (Aljabre, 2012) With the advancements in this technology, and the trend towards incorporating it in

to the daily structure of business, large competitors are seeking advantage by emplacing their own

“clouds” and making them available to the general population, along with the private sector for a fee. The

largest of the companies with cloud technology available for service, are “Amazon, Google, IBM, Yahoo,

Ebay and Microsoft” (Aljabre, 2012).

Cisco Co, One of the leaders in the technology world, does the best job at explaining the concept

of the interior structure of the cloud. The cloud is essentially like any other network that an office would

construct on site. The foundation for the interior of the cloud is the “Technology Architecture” This

includes “Three Salient bocks of Network, Compute, and Storage” (Bakshi, 2009). In order to understand

the complexities of the inner cloud, we must first understand what the architecture consists of. According

to Cisco the fundamental building blocks include 10 Gigabit Ethernet, Unified Fabric, and Unified

Computing. In regards to the 10 Gigabit Ethernet, Cisco states that “ Multiple virtual machines on a single

server can quickly overwhelm a single gigabit Ethernet links, and multiple gigabit Ethernet links can

increase cost” It’s important to have an easy and feasible transition from a single to 10 gigabit Ethernet in

order for the remaining building blocks to function properly. The concept and network interface that

includes unified fabric, in simple terms, allows numerous virtual accesses to the same network without

increasing cost, or limiting the scale of the server under the same set of network and storage abilities.

(Bakshi, 2009). Finally the Unified Computing aspect of the cloud is the most visually functioning of the

three building blocks, this platform allows for “more virtual machines per server and key requirements for

cloud data center and applications” (Bakshi, 2009). Now that we got that out of the way, here is a more

clear interpretation of what happens when you use the cloud, to better understand the interior concepts.

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The client requests the use of software and data that is no longer stored physically on the device or on

site. This Request enters the virtual machine, and then transfers into a switch that is part of the cloud, this

switch grants access to the storage/application portion of the cloud infrastructure. This request is

computed and the access is granted, from there the granted information is gathered from the core

application, storage, or back up portion of the cloud, and returned to the end user.

The concept of cloud technology is essentially the same, regardless of the carrier or

server holder in charge. There however two distinct cloud users currently, that includes the public at home

users, and those who require more from the cloud, such as businesses or private cloud users.

Home users, or public cloud users, have more interaction with cloud computing than they are typically

aware of. Some seek out the use of external nonphysical devices such as Xbox’s cloud storage, or your

iPhones photo stream. In other cases these, such as the one we will discuss in depth later, is services for

a fee, such as the developing Microsoft Office programs. Although public users still require security,

generally they don’t require the building of their own personal cloud infrastructure. Private sectors, such

as corporations, are relying heavier on cloud technology is enable globalization. In a business world

focused on productivity and timeliness, the cloud is the most viable option. The limitlessness of the cloud

is very appealing to the growing companies, that would in cases of onsite networks and servers, have to

incorporate the ever changing technological needs into their daily considerations. With cloud technology

that burden is removed. “Cloud computing fundamentally moves infrastructures, IT Support, Data, and

Services away from many organizations” (Shen, 2011). The term “Cloudization” coined by George Shen,

is a play on the concept of globalization, and how this technology can further advance its progress.

As mentioned above there are three primary uses for the cloud, Software as a Service, Hardware

as a Service, and Infrastructure as a service. In the public sector, when it comes to software as a service,

companies like Google, offer Gmail free of service, and also have a decent amount of offsite storage for

the personal user. For the private sector there is usually is a fee associated, a company can have a

regulated and secure server for e-mail provided for their employees. Generally software as a service,

allots the user to pay per one usage of the software, or to have continuous access of the software over

time for a fee. Hardware as a service, relates more to the storage capabilities of the cloud, such that a

person, or company can purchase off site data storage to increase processing on their client end.

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Infrastructure as a service includes tasks such as anti-virus and/or firewall capabilities (Aljabre, 2012).

With all of these available services, and the fees associated with it, it’s no wonder the larger companies

are putting the investment into forming their own cloud infrastructures to offer these services. Microsoft in

particular is looking to expand their services and software to the public and private sectors. Microsoft

office as a SaaS would allow access to the Microsoft Office platform without having to load it on to your

personal or business system.

MICROSOFT OFFICE AND CLOUD COMPUTING

Cloud computing is indeed the next evolution of the digital universe. It will bring new possibilities

in work, play, social interactions and entertainment into our lives. We are in reality still in the early stages

of cloud computing, however, as more and more consumers (business and individuals) demand the

technology, more and more organizations will shift toward cloud technologies. Computing will forever

change to fit our evolving environment. Microsoft Office moving to a cloud based application service

opens many questions on how we – companies and consumers will use the technology in the future and

what pitfalls we may face.

Microsoft is taking the leap towards the developing cloud computing technology. Simply relying

on their brand name is no longer going to produce the profit of the company; they must work harder to

stay in the game. For the company they had to reevaluate their strategy and take a look at what the

competitors around them were moving towards. They are looking to catch up with companies like Google

and make data more accessible from any location. Most important their outlook, “We have to remember

out roots and go back to building what’s good for the consumer” (Vance, Bass).

In 2012, 32.5% of Microsoft’s revenue was generated by Office (Vance, Bass). Looking at the

numbers, Microsoft knew the area of focus for the company needed to be in their new release of Office

2013 and making it more user friendly as well as upping the business aspect. The major transformation of

the new look is focusing on the cloud and adding a social networking feel that people in today’s society

value as useful. Office 365 will include in the premium package the Office applications that are user

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friendly and the ability to work with up to five devices. This becomes useful for busy families that have

multiple devices, such as PCs and tablets and multiple people. The package also comes with extra

storage on SkyDrive Pro and additional Skype time an attraction for many people who have distance

between friends and family. It is a friendly way of storing the documents in the cloud which can be

retrieved later and shared with family or friends. Not only is SkyDrive a storage unit it works to let people

access and edit the same document. Well what happens when a connection in the server is lost?

SkyDrive saves a temporary local copy while can later be moved to the cloud. As a customer, you will

have the option of instant message, video and voice chat. Microsoft is going beyond the distance of what

its office is known for and reaching into areas of life that today’s society feel are needed.

Office 365 is set up to be a service and not a software program to the customers. A service goes

beyond the initial installment and is used as a support system to fall back. As a customer, you feel as

though you are getting more for money. It will provide to the customer different services that can be used

in in multiple places and takes away the expensive software that you must keep track of. Think of the

benefits a business company would experience as they are able to open documents on the go. The Office

2013 annual subscription is set to be $100, which also includes the updates. Microsoft will update the

programs every three months as they work out each error and therefore their customers will no longer

have to wait for the yearly updated version. Those that have tested the new office program feel that

Microsoft really is working towards fixing issues sooner instead of waiting time and time they are really

understanding the significance of fixing the problem sooner than later.

Office 365 gives security and reliability that can be set apart from other competitors of the market.

Microsoft made sure that with the technology they explore every level to give the greatest protection

available. There have many improvements to the online services including the option to allow businesses

to monitor who is logging into the mailbox and that no one is abusing the rights of the company. “Moving

to cloud computing is always going to be more cost effective, “says Howie, a senior director of technical

security services for Microsoft (Ashford). Service providers will be able to handle security and

maintenance therefore valuable workers will focus on more intense missions for the companies they work

for. Time is money and the less time staff has to worry about errors and security the time is spent on the

company and therefore a significant amount of money can be used throughout the company. Though the

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service can be used for all business it is most likely to be picked up my new first mover businesses willing

to explore the cloud technology to its fullest. It is safe to say that companies will not put everything in the

cloud because there are certain important documents that they will keep in house.

When cloud and Microsoft come together, "Collaboration happens in addition to productivity,

anywhere for any business of any size" (Sarno). Morocco plans to use this to help with their education

and vocational training. It will provide the trainees with new technology and tools to allow them to be

competitive in the workplace. Morocco will be able to gain the skills that will permit a successful road in

the 21st century, creating more job opportunities.

It is evident that the new cloud technology and the brilliance of Microsoft have a great

collaboration for many people beyond those among us. It will spread through other places as the word

spreads of how convenient cloud storing and applications are for families and businesses. Curiosity and

flexibility will move Office 365 to a place Microsoft is anxious to reach. “Overall, we expect 80 percent of

Microsoft line-of-business applications to be cloud-based by 2016” (Microsoft).

ADVANTAGES OF CLOUD COMPUTING

Nowadays, being able to access your Facebook or Gmail account from multiple applications is a

huge convenience, but as with everything, people want more. Businesses are realizing this phenomenon

and in order to stay profitable must evolve to meet the needs of their customers. Businesses as

consumers can also benefit by obtaining cloud services for accounting, word processing, sales, time

management and other databases. This would allow staff to access important information from their

smartphones, tablets or other available computing devices that have internet capabilities.

Another benefit is not only the cost savings to companies like Microsoft but it levels the playing

field for small and mid-size businesses. “Using cloud services save companies from building the

expensive infrastructure to support mobile solutions” (Weber, 2011). Cloud technology will make

sophisticated technology affordable for everyone and will reduce the need for IT staff that was once

needed to maintain large infrastructures.

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DISADVANTAGES OF CLOUD COMPUTING

Like any new technology advancement, there are potential issues. Amazon’s S3 service,

designed for developers who want access to storage, has had a few outages. This brought about

concerns in regards to the reliability of the service. As more and more shift to cloud services,

interruptions like Amazon faced could literally stop operations. Issues like this are a reality and definitely

cause CIO’s to proceed cautiously. However, outages are a fact of life whether you house your own

servers or place everything on the cloud. I venture to bet that as more companies offer storage space,

outages will be limited to acts of God.

Security is an even bigger concern for consumers and businesses. In 2010 4 million user

accounts were hacked and that number grew to 174 million in 2011 (Fogarty, 2012). The cloud is just as

dangerous as any website created by humans. Security should be a concern for some users, especially

those who use simple pass codes. The problem with securing cloud services is that “every cloud needs

a back door for end users who can't get in; the problem is that locks on the back door are just as flimsy as

those on the front. No matter how secure it's possible to make cloud services, it will never be possible to

make them secure enough that clueless users won't lock themselves out and unscrupulous hackers won't

be able to weasel their way in” (Fogarty, 2012). No doubt that there is risk but the risk is only “marginally

more risky than traditional IT” (Fogarty, 2012).

FUTURE OF CLOUD COMPUTING

According to analysts they expect “the global cloud computing market will grow from $35bn in

2011 to around $150bn by 2020.” (Clark, 2012) As we enter a shift in generations, those who grew up

using cloud-based tools will enter the IT infrastructures of organizations, which will promote the idea for

companies to adopt the cloud more readily. This will allow businesses to shift a huge chunk of their

budget away from IT infrastructures to growth and innovation. There will be a major shift in the way

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companies and consumers obtain software. Like Microsoft Office, businesses and consumers will be able

to pay for what they use. Businesses will be able to purchase hardware as a service, which is a way to

obtain storage and server capacity. “Computing power and storage space would become a commodity,

bought when needed and scaled up when necessary” (Weber, 2011). Small businesses would see the

most benefit. Obtaining servers, software licenses and a staff to maintain everything is quite expensive

but with cloud technology “you have a new server in 30 seconds” (Weber, 2011).

The gaming industry is an example of where big changes are predicted to come, and very soon.

Graphic intensive games that require powerful consoles by companies like Xbox and Nintendo may soon

find themselves moving to “platforms where a developer can run powerful games that require extensive

graphic rendering capabilities on remote servers and via a cloud service stream the games rendered

visuals to all kinds of devices such as PC’s, Notebooks, Smartphones, etc” (Srivastava, 2012). This would

eliminate the need to purchase expensive consoles. Nowadays, financial constraints make it hard for

individuals to purchase expensive gaming machines. To the consumer this would be of great benefit for

the cost savings alone while expanding the businesses potential of the gaming market. Experts believe

that “graphic rendering of games via the cloud would prove to be a diplomatic tool for them to collaborate

with other developers and produce quality graphical content that would in turn be developed into

elaborate games” (Srivastava, 2012). Casinos may also see a benefit to cloud computing. International

Game Technology designs (IGT), develops and manufactures gaming machines and systems products.

IGT recently announced its move to a cloud computing platform to deliver its casino software. IGT is

making changes to the “gaming industry by empowering casino operators to provide seamless gaming

experiences across land-based, mobile, and online devices” (PR, 2012). The evolution for gaming

industries has begun. In addition, developers will be able to focus more on the creation of new innovative

games and not worry about resource issues for the end users. This will allow developers to work quicker

without as many constraints. Therefore, cloud-based rendering for gaming has great potential and we

can expect to see it soon.

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CONCLUSION

Even with the reliability and security risks, the future of cloud computing is inevitable. The

abundant supply of information technology capabilities at a low cost offers many enticing opportunities. In

essence, it will be important for business owners do the research before making the decision to move into

‘the cloud’. Microsoft’s move is a big decision; however, even with some of the risks, the potential growth

definitely outweighs the risk. Whether you want to accept it or not, it will be what IT looks like in the

future.

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BIBLIOGRAPHY

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