Cloud is the datacenter software and hardware that enable provision of services as a software. It is what makes delivery of service over the internet possible a success and hence the name cloud computing(Armbrust, 2009).
Public cloud is a situation where the cloud made available to the general public in a pay-as-you-go method.
On the other hand, private cloud is when the datacenters are made for internal use within the organization, and, therefore, the public have no access.
According to Armbrust (2009), cloud computing is the process of delivering both applications as a service through the internet and the software and hardware structures that offer the services. It is a structure used to provide application and other information technology services which are reclaimed from the internet without a direct server connection but through web tools.
For a company to become a cloud computing provider, it has to meet some minimum requirements. Examples of such necessities include sufficient finances, leverage current investments, ability to guard franchise, develop into a platform, and leverage customer relationships(Armbrust, 2009).
A cloud computing company should have enough capital to invest in network bandwidth, power, and hardware. The company also has to spend huge sums of money on software development and maintenance.
The company should have other investments so that cloud computing act as a leverage to the current investments of the company.
To become a provider, a firm should have the ability to defend a franchise. This is important because it protects the customers of the company from migrating to other rival companies.
Customer relations are important for any firm interested in becoming a provider. This is achieved through branding, investment in the clients, and defending a franchise.
In reference to Armbrust (2009), data lock-in is the scenario where a client subscribed to a certain provider cannot simply shift to another provider of cloud computing services. It is caused by patented technologies which are discordant with that of a rival company
Data lock-in is an obstacle to the cloud computing users and an advantage to the providers. The users do not have freedom of choice in terms of price and quality. On the other hand, the providers are able to protect their services and, therefore, maintain considerable price margins.
Examples of current public utility computing companies are Microsoft Azure, AppEngine, Google, and Amazon Web Services.
Armbrust, M. (2009). Above the Clouds: A Berkeley View of Cloud. Carlifornia: University of Carlifornia. Retrieved from http://www.eecs.berkeley.edu/Pubs/TechRpts/2009/EECS-2009-28.html