Cloud computing, as defined by the National Institute of Standards and Technology, is a model for enabling “… convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” NIST is implying the economies of scale that go with cloud computing when it refers to a pool of configurable computing resources.
Cloud computing is often referred to as a technology. However, it is actually a significant shift in the business and economic models for provisioning and consuming information technology (IT) that can lead to a significant cost savings. This cost savings can only be realized through the use of significant pooling of these “configurable computing resources” or resource pooling. According to NIST, this capability is an essential characteristic of cloud computing. Resource pooling is the ability of a cloud to serve multiple customers using a multi-tenant model with different physical and virtual resources dynamically assigned and reassigned according to demand.
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