Cloud computing and virtualization are efficient approaches to computing that save money by using computer hardware more efficiently. Cloud computing provides resources on a pay-per-use basis, while virtualization creates simulated resources. Cloud computing relies on a third party to manage data, while virtualization can take place within an organization. Both options allow for dynamic scalability, but virtualization is limited by the hardware power of the computer it runs on.
Cloud computing and virtualization are two approaches to computing that attempt to make more efficient use of computer hardware. Cloud computing is an internet-based form of computing that provides resources such as storage space and processing time on a pay-per-use basis. Virtualization creates simulated resources and allows a single piece of hardware to provide multiple services simultaneously. Both options save you money by using your computer hardware more efficiently. The main difference between the two is that the physical resources that power cloud computing are owned by a cloud service provider, while a company using virtualization still maintains servers and hardware in its data centers.
The basic premise behind cloud computing, which is similar to the earlier concept of utility computing, is that computing resources can be transformed into consumer goods and delivered over the Internet. A business or individual can then use these resources on a metered basis, thus paying only for the processing power and storage consumed. Large capital investments in computer hardware are left to cloud service providers, who take advantage of economies of scale by offering their services to many different customers. By engaging a cloud service provider, the company’s need for in-house IT support staff may be reduced.
Virtualization is a set of technologies that allow you to replace simulated computing resources with more expensive physical resources. Many organizations have used this approach to consolidate many different servers onto a single physical piece of hardware that features a set of hardware simulating two or more operating systems. Virtualization can happen in many different ways and in some cases look a lot like cloud computing. For example, a virtualized file system groups a number of physical hard drives into a single virtual disk. Enterprises often view cloud computing and virtualization as two distinct options, but many cloud service providers use virtualization extensively in their data centers.
Both cloud computing and virtualization can save money by using computing resources in more efficient ways. In the past, many companies’ servers and computers would only be fully utilized for very short periods of high demand and would have been underutilized most of the time. Cloud computing and virtualization services more efficiently balance the demand and supply of resources, thereby enabling computer hardware to reach its fullest potential.
A key difference between cloud computing and virtualization is where the physical computing resources reside. Businesses purchasing resources from the cloud must depend on a third party to manage and protect their data, while virtualization can take place within the framework of an organization. For businesses that want or need to maintain physical control over their data, a private cloud with many of the same benefits as a public cloud can be created within an enterprise data center or corporate network. Some companies have also started using a “hybrid cloud” that outsources non-critical data and services to cloud service providers while keeping the most sensitive stuff in-house.
One benefit to a business using public cloud computing is the ability to rapidly expand its use of computing resources. There is no physical hardware to purchase, install or maintain, and additional resources can be purchased from the cloud provider almost instantly. This dynamic scalability is a strategic advantage for rapidly growing small and medium-sized businesses. Virtualized services can be enabled and disabled to accommodate certain changes in demand, but are ultimately limited by the hardware power of the computer they are running on.
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