Editor's note: All you need to know about our upcoming cloud computing event is right here.



Cloud Computing is, by its very nature, nebulous. Users of Cloud Computing do not "touch" the Cloud, which is housed in data centers and server farms located in far-flung places. Because of this, Cloud Computing can be difficult to explain to a non-IT person. However, everyone is familiar with utilities such as phone services, cable TV, and electricity. Although few people may fully understand how electricity is generated or provided on an electricity grid, they do understand that electricity is provided on a pay-per-use model. The metering for these services is provided by the service provider itself, but measured using tamper-proof electricity installed at the user side. These meters are under the control of the service provider themselves, even though they are installed at the "client-side" i.e. at people's homes. These meters are generally trusted by consumers, because they are familiar, established, and provide feedback on usage (even if it's just a little spinning disk showing electricity usage).

With Cloud Computing, the meters are provided by the Cloud Service provider. There is no client-side meter, as in the case of utilities. This means that there is no local onsite meter to examine, and to trust.

The Problem with Meters

Meters are not without their problems, however. The Californian utility, PG&E, recently had problems related to a rollout of "smart meters" in Bakersfield. The website SmartMeters.com reported: "Bakersfield residents believe their new smart meters are malfunctioning because their bills are much higher than before. PG&E claims higher bills are due to rate hikes, an unusually warm summer, and customers not shifting demand to off-peak times when rates are lower."

In this same piece, State Senator Dean Florez, the Majority Leader in California, is quoted as saying, "People think these meters are fraud meters. They feel they're being defrauded. They're getting no benefit from these things."

The story of this "smart meter" rollout has a direct bearing to Cloud Computing. Customers of Cloud services right now depend on the "meters" being provided by the service providers themselves, just like the PG&E customers in Bakersfield. This means they depend on the service provider to tell them about usage and pricing. There isn't an independent audit trail of usage. Additionally, the meter also locks the customer into the service provider.

-1-

1  2  

   Next Page

Explore Our Topics

  • EDITOR'S BRIEFING
ebizQ editorial highlights and updates, compiled by ebizQ staff
  • BaaS bonus: In this podcast, Gartner Research Director Gordon Van Huizen discusses the Backend as a Service marketplace and the approach's pros, cons and challenges.
  • Cloud quiz: How much do you know about business process management in the cloud? Test yourself with this six-question cloud BPM quiz.
  • Three key steps: Clay Richardson of Forrester Research describes ways to emphasize user experience in business process design.
  • ebizQ editorial: Browse ebizQ's collection of independent editorial content, including articles, tips, Q & As, podcasts, guest columns, book excerpts and more.
  • Virtual Conferences
  • Webinars
  • Roundtables

BPM in Action

March 10, 2011

The sixth annual BPM in Action 2011 Virtual Conference will explore cutting-edge market developments in BPM and describe how to leverage them for improved business operation and performance. More

View All Virtual Conferences

Smart Case Management: Why It's So Smart.

Date:Nov 05, 2009
Time:12:00 PM ET- (17:00 GMT)

REGISTER TODAY!

Date:Oct 29, 2009
Time:15:00 PM ET- (19:00 GMT)

REGISTER TODAY!
View All Roundtables
  • Research Library
  • Podcasts
  • News

Joe McKendrick: Part II of II: Designing Evolve-ability into SOA and IT Systems

In part two of Joe McKendrick's recent podcast with Miko Matsumura, chief strategist for Software AG, they talk about how SOA and IT systems need to change and grow and adapt with the organization around it.

Listen Now

Phil Wainewright: Helping Brands Engage with Social Media

Phil Wainewright interviews David Vap, VP of products at RightNow Technologies, and finds out how sharing best practices can help businesses understand how best to engage with online communities.

Listen Now

Peter Schooff: Making Every IT Dollar Result in a Desired Business Outcome: Scott Hebner of IBM Rati

Scott Hebner, Vice President of Marketing and Strategy for IBM Rational, discusses a topic on the top of every company's mind today: getting the most from IT investments.

Listen Now

Jessica Ann Mola: Where Will BI Fit In? Lyndsay Wise Explains

In BI, this tough economy and the increasing role of Web 2.0 and MDM are certainly topics on people's minds today. WiseAnalytics' Lyndsay Wise addresses each of them in this informative podcast.

Listen Now

Dennis Byron: Talking with...Deepak Singh of BPM Provider Adeptia

Deepak Singh, President and CTO of Adeptia, joins ebizQ's Dennis Byron in a podcast that gets its hand around the trend of industry-specific BPM.

Listen Now
More Podcasts
  • Most Popular
  • Quick Guide
  • Most Discussed

Quick Guide: What is BPM?

Learn More

Quick Guide: What is Event Processing?

Smart event processing can help your company run smarter and faster. This comprehensive guide helps you research the basics of complex event processing (CEP) and learn how to get started on the right foot with your CEP project using EDA, RFID, SOA, SCADA and other relevant technologies. Learn More

Quick Guide: What is Enterprise 2.0?

A lot of people are talking about Enterprise 2.0 as being the business application of Web 2.0 technology. However, there's still some debate on exactly what this technology entails, how it applies to today's business models, and which components bring true value. Some use the term Enterprise 2.0 exclusively to describe the use of social networking technologies in the enterprise, while others use it to describe a web economy platform, or the technological framework behind such a platform. Still others say that Enterprise 2.0 is all of these things. Learn More

Featured Bloggers

Scott Cleveland's Latest Blog Posts:

Read Scott Cleveland's Blog
Adrian Grigoriu's Latest Blog Posts:

Read Adrian Grigoriu's Blog
Steven Minsky's Latest Blog Posts:

Read Steven Minsky's Blog
Noam Tamarkin's Latest Blog Posts:

Read Noam Tamarkin's Blog
Dion Hinchcliffe's Latest Blog Posts:

Read Dion Hinchcliffe's Blog
Michael Poulin's Latest Blog Posts:

Read Michael Poulin's Blog
Janne J. Korhonen's Latest Blog Posts:

Read Janne J. Korhonen's Blog

View All ebizQ Bloggers