Intel personal computing model, providing a platform on which many other companies can come up with countless variations.
Under the cloud-computing model, Microsoft would store Office programs on its own servers and deliver them to customers online.
As these ecosystems expand, the world will move steadily closer to the ubiquitous-computing model envisaged by Xerox PARC's Mark Weiser.
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The cloud computing model is evolving around the world today.
One concern is that the shift to a cloud computing model will lead to an excess of low-level coders who do not have broad enough experience that enable them to build solutions comprised of many diverse parts.
When implemented properly, the cloud computing economic model can drastically reduce the operations and maintenance cost of IT infrastructures.
This aggressive transformation will be accomplished by virtualizing data centers, consolidating IT operations, and ultimately adopting a cloud-computing business model.
"A new model of computing is here, and mobile is the next large platform, " says Schmidt.
Sun Microsystems is betting big on utility computing, a new model that would make processing time available to businesses on demand, much in the same way they buy utilities like gas and electricity.
MySQL's lighter-weight database system may also fit into Sun's ambitions of becoming a major player in "utility computing, " a model of information technology infrastructure that pipes in software applications, processing and storage over the Internet rather than from a company's own data centers.
By radically changing the information technology business model, cloud computing also challenges the traditional federal acquisition process.
The mistake that CIOs will make in this stage is making their model of the computing assets too detailed too early.
That will be the most basic model, doing the computing and word processing tasks of today's PCs as well as such functions as accessing the Internet.
We talked about cloud computing and his vision for a hybrid model, the role that converged infrastructure and automation from the compute resources all the way to VM provisioning, Steve agreed that is what would ultimately be needed to enable private cloud.
Cloud computing is based on the time-sharing model we leveraged years ago before we could afford our own computers.
In fact, argues Nicholas Carr, the former editor of the Harvard Business Review and author of the new book The Big Switch, those Web applications are signs of a fundamental change, a shift from the desktop to the Web that could redefine computing--and Google's business model.
That focus on driving customer value via a new business and deployment model helped fuel the early days of Cloud computing and established a customer-focused ethos that is still present in most Cloud companies.
Companies like Yammer and Socialcast have taken this category of social computing tools to new levels with Software-as-a-service (SaaS) and cloud computing, making it simple for any company of any size to deploy a similar model almost instantly for their own employees.
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Vertex labs are packed with workstations that tap 112 Pentium chips in parallel, capable of crunching 110 gigaflops per second, roughly the same computing power used to produce the National Weather Service's two-week global climate model.
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