More on Cloud Computing

Simon Wardley posted a blog explaining the difference between two words that are key to understanding cloud computing and the value it brings. The two words are Commodification and Commoditization.

The following is a quote from cnet explaining the difference.

• Commodification (mid to late 1970s, Word) is used to describe the process by which something which does not have an economic value is assigned a value and hence how market values can replace other social values. It describes a modification of relationships, formerly untainted by commerce, into commercial relationships.

• Commoditization (early to mid 1990s, Neologism) is the process by which goods that have economic value and are distinguishable in terms of attributes (uniqueness or brand) end up becoming simple commodities in the eyes of the market or consumers. It is the movement of a market from differentiated to undifferentiated price competition, from monopolistic to perfect competition.

These two concepts are at the root of many debates and theories about cloud computing. One of the theories is based around that cloud computing is the "end of infrastructure differentiation". Another theory states that the cloud will be at a more granular level. Others feels that the two theories can not exist side by side. The market has already spawned "Cloud Service Brokers" that offer a blend of services. The author, James Urquhart feels that in the end the market will decide.

There is so much more information on this post on cnet. Besides Simon Wardley's blog is a really cool blog spot. You should read it.