Cloud Computing

A new, much less expensive alternative for computer server space is generating interest among investors for dot-com start-ups.

So who are using these services? A high-ranking Amazon executive told me there are 60,000 different customers across the various Amazon Web Services, and most of them are not the startups that are normally associated with on-demand computing. Rather the biggest customers in both number and amount of computing resources consumed are divisions of banks, pharmaceuticals companies and other large corporations who try AWS once for a temporary project, and then get hooked.

What does that have to do with CIOs?

Plenty, according to the Stamford, Conn.-based consultancy. Cloud computing might be this year's annoying buzzword, but CIOs cannot afford to swat it away.

"It is not about the label," said Gartner analyst Tom Austin, speaking to a packed room of IT executives at the Gartner Symposium/ITxpo on emerging trends last week. It's about cost, efficiency, capacity, software upgrades, maybe even better security, Austin said.

isciglia's Google 101 would evolve and grow. It would eventually lead to an ambitious partnership with IBM (IBM), announced in October, to plug universities around the world into Google-like computing clouds.

As this concept spreads, it promises to expand Google's footprint in industry far beyond search, media, and advertising, leading the giant into scientific research and perhaps into new businesses. In the process Google could become, in a sense, the world's primary computer.

What is Google's cloud? It's a network made of hundreds of thousands, or by some estimates 1 million, cheap servers, each not much more powerful than the PCs we have in our homes. It stores staggering amounts of data, including numerous copies of the World Wide Web. This makes search faster, helping ferret out answers to billions of queries in a fraction of a second. Unlike many traditional supercomputers, Google's system never ages. When its individual pieces die, usually after about three years, engineers pluck them out and replace them with new, faster boxes. This means the cloud regenerates as it grows, almost like a living thing.

A move towards clouds signals a fundamental shift in how we handle information. At the most basic level, it's the computing equivalent of the evolution in electricity a century ago when farms and businesses shut down their own generators and bought power instead from efficient industrial utilities. Google executives had long envisioned and prepared for this change. Cloud computing, with Google's machinery at the very center, fit neatly into the company's grand vision, established a decade ago by founders Sergey Brin and Larry Page: "to organize the world's information and make it universally accessible." Bisciglia's idea opened a pathway toward this future. "Maybe he had it in his brain and didn't tell me," Schmidt says. "I didn't realize he was going to try to change the way computer scientists thought about computing. That's a much more ambitious goal."

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IBM, Yahoo!, and Google are all putting the power of cloud computing to work. Here's a short primer on how the new technology works

Even the nation's elite universities do not provide the technical training needed for the kind of powerful and highly complex computing Google is famous for, say computer scientists. So Google and I.B.M. are announcing today a major research initiative to address that shortcoming.

The two companies are investing to build large data centers that students can tap into over the Internet to program and research remotely, which is called ''cloud computing.''