A simple definition of Cloud Computing – Pay as you go SaaS

UC Berkeley RAD lab is researching data center innovations.  Here is a slide from one of their presentations.  Note the sponsors and members.

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One of the points made on a blog post is cloud computing is their definition of cloud computing is a Software as a Service (SaaS) with “pay as you go billing.

Hence, to be more precise, in Above the Clouds, we defined Cloud Computing as follows:

Cloud Computing refers to both the applications delivered as services over the Internet and the hardware and systems software in the datacenters that provide those services. The services themselves have long been referred to as Software as a Service(SaaS), so we use that term. The datacenter hardware and software is what we will call a Cloud. When a Cloud is made available in a pay-as-you-go manner to the public, we call it a Public Cloud; the service being sold is Utility Computing. … We use the term Private Cloud to refer to internal datacenters of a business or other organization that are not made available to the public. Thus, Cloud Computing is the sum of SaaS and Utility Computing, but does not normally include Private Clouds.

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In the same presentation, RAD lab goes on to explain “why now?”

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The Economics of Pay by use have an interesting overlap with a point AWS makes.

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Capacity vs. Usage Comparison

This last graph is the Christmas wish list for enlightened green IT thinkers.  IT load that tracks to demand.