Data-Driven Development

Supply: Data Connectivity and Capacity

Cloud Computing: Back to the Future

The ability to store and process data remotely dates to the early days of computer networks. Back then, end-user devices were "dumb" terminals hooked up to large mainframe computers that did all the work. The invention of the personal computer was revolutionary in providing users with their own device that could run applications and store data. The process is again reverting to centralized control, where data is increasingly stored and processed over the "cloud" on anonymous data servers. Three main reasons explain this:

  • Faster networks. Rising internet speeds are making the transfer of data between device and cloud increasingly transparent. According to Cisco, average global fixed broadband speeds were 25 Mbps in 2015, up from 7 Mbps in 2010. Average mobile speeds were considerably slower at 2.0 Mbps in 2015, but with large device differences; smartphones averaged 7.5 Mbps around the world in 2015 and are forecast to rise to 12.5 Mbps by 2020.

  • Greater storage. Storage available over the cloud is vastly superior to what can be saved on a desktop, laptop, or tablet computer or smartphone.

  • Proliferation of smart devices. As the number of devices a person owns increases, the cloud provides a useful way of keeping them all synced. There were 2.2 devices per person worldwide in 2015, projected to rise to 3.4 by 2020.

Several acronyms are used to identify different cloud services. Infrastructure as a service (IaaS) offers computing power and storage. Platform as a service (PaaS) offers computer programs and other tools for users to develop their own applications. Software as a service (SaaS) offers complete applications and supporting upgrades and maintenance.

There are a number of benefits for cloud users, including reduced need for IT expertise, flexibility for scaling, and consistent application rollout and maintenance for large organizations. Free cloud services also exist that provide office-like application tools useful for small and medium enterprises (SMEs), as well as social network pages and blogs. This is particularly relevant for developing countries where the cost of licensed software can be an obstacle to creating applications and services.

Though cloud computing offers a number of benefits, it comes with costs and risks. Users will utilize more of their data allowance accessing cloud services, and businesses face migration costs either converting to the cloud or changing cloud providers. Risks include security and privacy breaches as well as potential loss of service due to communications or electrical failures. These risks have been well publicized through headline stories detailing cyberattacks, such as against IT giant Yahoo, affecting some 1.5 billion accounts.