For a lot of small-business owners, “cloud computing” is the latest IT buzzword to leave them scratching their heads. To demystify things, here’s a primer for companies looking to wade into cloud services for the first time.

What are cloud services?

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Broadly speaking, any service or program sent over an Internet connection can be considered a cloud service. An outside vendor runs the servers and software, so the buyer doesn’t have to worry about the technical issues in-house—and can focus on its own business.

The services come in a number of forms. Many businesses are already familiar with one aspect of cloud computing: software delivered over the Web. Along with email services like Google Inc.’s Gmail, there are programs that help salespeople keep track of customer information, such as Salesforce.com Inc.’s software, and backup data-storage services from providers such as Amazon.com Inc.

Some businesses don’t just use software services, they buy computing power from vendors such as Verizon Communications Inc.—much like buying power from a utility. Let’s say a retailer expects lots of additional business during the holidays, and its in-house servers can’t handle the load of customer orders. The company might pay a vendor for the use of its servers, to shoulder part of the computing work as the need arises.

Other companies, meanwhile, might buy computing power on a regular basis. They might drop one or more in-house servers entirely—or not buy the hardware in the first place—and let a vendor run their vital programs on its machines. Once again, the buyer would pay a fee based on how much computing power it used.

How much will they cost?

Unlike traditional applications, which require hardware such as servers and IT staff for maintenance, cloud services don’t carry many upfront costs.

A Cloudy Outlook

  • About 3.2% of U.S. small businesses, or about 230,000 businesses, use cloud services.
  • Another 3.6%, or 260,000, plan to add cloud services in the next 12 months.
  • Small-business spending on cloud services will increase by 36.2% in 2010 over a year ago, to $2.4 billion from $1.7 billion.

Source: IDC

Consider software. Salesforce.com’s offering for businesses costs between $5 and $25 per user each month. Google offers a host of programs including email, a word processor, video and a hosted Web site for an annual fee of $50 per user. For small businesses that have more-extensive computing needs, such as drug laboratories with extensive software, cloud services could cost more than $1,000 a month.

As for buying computing power, some providers charge for a certain amount of memory and computing configuration. Terremark Worldwide Inc., for example, charges six cents an hour for one gigabyte of RAM and the equivalent of one processor.

One caveat that might bump up costs a bit: If you’re going to rely on the Internet for your services, you will need a solid connection. While some believe a business-class DSL connection is sufficient, many industry observers and consultants recommend getting a faster line, such as a T1.

Continue Reading at WSJ

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Agreement will offer free access to new computational and collaborative services to accelerate scientific discovery for research communities.

REDMOND, Wash., and ARLINGTON, Va. — Feb. 4, 2010

Microsoft Corp. and the National Science Foundation (NSF) today announced an agreement that will offer individual researchers and research groups selected through NSF’s merit review process free access to advanced cloud computing resources. By extending the capabilities of powerful, easy-to-use PC applications via Microsoft cloud services, the program is designed to help broaden researcher capabilities, foster collaborative research communities, and accelerate scientific discovery. Projects will be awarded and managed by NSF. More details about funding opportunities are available at http://www.nsf.gov/dir/index.jsp?org=CISE.

Microsoft will provide cloud computing research projects identified by NSF with access to Windows Azure for a three-year period, along with a support team to help researchers quickly integrate cloud technology into their research. Windows Azure provides on-demand compute and storage to host, scale and manage Web applications on the Internet through Microsoft datacenters. Microsoft researchers and developers will work with grant recipients to equip them with a set of common tools, applications and data collections that can be shared with the broad academic community, and also provide its expertise in research, science and cloud computing.

“Cloud computing can transform how research is conducted, accelerating scientific exploration, discovery and results,” said Dan Reed, corporate vice president, Technology Strategy and Policy and eXtreme Computing at Microsoft. “These grants will also help researchers explore rich and diverse multidisciplinary data on a large scale.”

Today, scientists are operating in a world dominated by data, thanks to increasingly inexpensive sensors and a growing trend toward collaborative data projects. Analyzing and synthesizing this mass of data remain a challenge. The goal of the new program is to make simple yet powerful tools available that any researcher can use to extract insights by mining and combining diverse data sets.

“We’ve entered a new era of science — one based on data-driven exploration — and each new generation of computing technology, such as cloud computing, creates unprecedented opportunities for discovery,” said Jeannette M. Wing, assistant director for the NSF Computer and Information Science directorate. “We are working with Microsoft to provide the academic community a novel cloud computing service with which to experiment and explore, with the grander goal of advancing the frontiers of science and engineering as we tackle societal grand challenges.”

About the National Science Foundation

The National Science Foundation (NSF) is an independent federal agency that supports fundamental research and education across all fields of science and engineering. In fiscal year (FY) 2010, its budget is about $6.9 billion. NSF funds reach all 50 states through grants to nearly 2,000 universities and institutions. Each year, NSF receives over 45,000 competitive requests for funding, and makes over 11,500 new funding awards. NSF also awards over $400 million in professional and service contracts yearly.

Full Source

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U.S. Scientists Given Access to Cloud Computing

The National Science Foundation and the Microsoft Corporation have agreed to offer American scientific researchers free access to the company’s new cloud computing service.

A goal of the three-year project is to give scientists the computing power to cope with exploding amounts of research data. It uses Microsoft’s Windows Azure computing system, which the company recently introduced to compete with cloud computing services from companies like Amazon, Google, I.B.M. and Yahoo. These cloud computing systems allow organizations and individuals to run computing tasks and Internet services remotely in relatively low-cost data centers.

The new program was announced on Thursday at a news conference in Washington.

Neither Microsoft nor the foundation was willing to place a dollar amount on the agreement, but Dan Reed, the corporate vice president for technology strategy and policy at Microsoft, said that the company was prepared to invest millions of dollars in the service and that it could support thousands of scientific research programs.

Access to the service will come in grants from the foundation to new and continuing scientific research. Microsoft executives said they planned eventually to make the new service global.

The government has traditionally supported a group of scientific computing centers at universities and laboratories around the country. These centers have typically housed supercomputers capable of solving scientific and engineering problems quickly. In recent years, however, increasing emphasis has been placed on computing systems capable of storing and analyzing vast amounts of data.

“It’s all about data,” said Jeannette M. Wing, assistant director of computer and information science and engineering directorate at the science foundation. “We are generating streams and rivers of data.”

Genetic sequencing systems are capable of generating as much as a terabyte, 1,000 gigabytes, of information a minute, Dr. Wing said.

Microsoft made its commitment to scientific computing two years after a similar service was introduced by Google and I.B.M. Several scientists familiar with the Microsoft project said the software company was hoping to differentiate the new service by offering scientists a set of custom applications that simplified access to Azure and the use of older software applications like Microsoft Excel.

“We’re trying to figure out how to engage the majority of scientists,” said Dr. Reed, who directed several of the nation’s scientific computing centers before joining Microsoft.

Simplicity of use is one Microsoft goal. Programming modern cloud systems for full efficiency has been difficult. The company is trying to overcome this difficulty in creating a variety of software tools for scientists, said Ed Lazowska, a University of Washington computer scientist who works with the Microsoft researchers.

Dr. Lazowska said the explosion of data being collected by scientists had transformed the staffing needs of the typical scientific research program on campus from a half-time graduate student one day a week to a full-time employee dedicated to managing the data. He said such exponential growth in cost was increasingly hampering scientific research.

Full Source The New York  Times

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A global public relations firm with 120 employees transitions to cloud computing and the IT director lives to tell about the potential relief that software-as-a-service offers to IT.

The promise of cloud computing has been around for years.

Like any new technology, it’s taken time for the vendor community to work out the kinks and get cloud computing ready for prime time.

While cloud computing comes in numerous flavors, what I’m going to address and what’s typically most relevant to small or mid-sized businesses is software-as-a-service (SaaS). This means that applications are hosted by service providers instead of running on your hardware in the office.

This is a big deal.

My company — a global PR firm with offices across the United States, Asia, and Europe — depends on extremely high service levels from the IT function. As a one-woman band managing our technology operation, I’m always striving to simplify IT deployment, but it can’t be done at the expense of functionality.

This is what led me to evaluate cloud computing for our office applications. After doing my homework, three options were left on the table: Microsoft, Google, and Amazon.

We opted to go with Microsoft’s Business Productivity Online Suite (BPOS) solution which was best-suited for our size, reach, and 24×7 response requirements. This said, you should take the time to evaluate all three options because each provider offers a little different functionality.

Microsoft BPOS is a fully deployed, cloud-based version of Exchange, SharePoint, Office Communications Online, and Office Live Meeting, which allows us to offload basic functions such as e-mail and Web-based collaboration tools.

Continue Reading…Inc.com

A global public relations firm with 120 employees transitions to cloud computing and the IT director lives to tell about the potential relief that software-as-a-service offers to IT.

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In the wake of its merger with Sun Microsystems, Oracle is discontinuing access to Project Kenai, which was developed by Sun as an open source project-hosting site.

Kenai, Oracle said in an updated FAQ statement for developers on Tuesday, will be discontinued for public use. “Oracle will continue to use it internally and look for ways that our customers can take advantage of it,” the Oracle FAQ said.

[ InfoWorld's Paul Krill reported last week that Oracle canceled plans for the Sun Cloud public cloud service announced by Sun last year. ]

The phasing-out is being done to consolidate project-hosting, according to the Project Kenai Team in a Web posting about the future of Kenai. “Minimizing the number of current project-hosting sites is a start in this direction,” the team said.

At the Kenai beta site, users were advised to being migrating repositories and content to other locations.

“The complete shutdown of the site and the removal of the domain will be completed in the next 60 days (April 2nd 2010). This should provide ample time for all projects to be moved to a new home of the project owners choice,” the Kenai team said.

“Any projects that remain after the 60 day limit (April 2nd 2010), will be removed when the site is turned off,” the team said..

“While it has come time to close the domain of Kenai.com, the infrastructure, which is already used under Netbeans.org, will live on to support other domains in the future,” the team said.

Oracle also lauded in the FAQ the combination of the OTN (Oracle Technology Network), the Sun BigAdmin system administration portal, and the Sun Developer Network, which includes the java.sun.com Web site.

This combination will “result in the largest and most diverse community of developers, database administrators, sysadmins, and architects,” Oracle said.

For the near future, Sun Developer Network and BigAdmin will remain in current forms, Oracle said. The company foresees an integration of these sites into a redesigned and re-architected OTN.

Also, Oracle plans to continue to offer certifications for Sun technologies including Java, SPARC, Solaris, and MySQL as part of the Oracle University program.

Oracle one week ago today detailed ambitious plans for its newly acquired Sun technologies.

This story, “Oracle shutting off Sun project-hosting site,” was originally published at InfoWorld.com. Follow the latest news in software development at InfoWorld.com.

Read more about developer world in InfoWorld’s Developer World Channel.

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