Can we blame it on Google? Google CEO Eric Schmidt mentioned cloud computing back in 2006 and it seems companies have been rushing to roll out cloud-like services ever since. Indeed, virtualization firms, networking giants, and e-commerce legends, among others, are jumping into the cloud head first. Yet basic questions about cloud computing remain.

"I have no idea what anyone is talking about," Oracle CEO Larry Ellison told financial analysts at a conference last September about the cloud. "It's really just complete gibberish. What is it?"

Those come as surprising words from one of the most eminent figures in the world of high technology. But Ellison raised a good point: We need to define cloud computing -- and how much of an impact is it making on enterprise IT. Of course, the answer will depend on who you ask.

Analyst Firm Gartner Weighs In

Gartner defines cloud computing as "a style of computing where scalable and elastic IT capabilities are provided as a service to multiple customers using Internet technologies."

What does that mean? It means Gartner's definition includes advertising, e-commerce, payments, online HR services, and social-networking sites. That expanded view led Gartner to value cloud computing at $46 billion in 2008. The firm also predicts the cloud market will jump to $150 billion by 2013.

Recently though, Gartner's definition of the cloud has come under fire. John Treadway, principal of The Treadway Group, a technology consulting firm in Lexington, Mass., dared to challenge Gartner on its definition. In fact, Treadway adamantly insists Gartner is making a big mistake.

"If I define the cloud the way Gartner does, I could conceivably consider any Internet-delivered service as a cloud service," Treadway said. "That's not a helpful definition from the standpoint of the massive shift that's going to happen over the next 10 years in computing architecture. Gartner is diluting the term and making its figures irrelevant. Other experts don't defend Gartner's definition. Gartner is at odds with the industry." (continued...)

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