Let’s take a look at the main
differences between grids and clouds.
| 
Grid computing | 
Cloud computing | |
| 
What?  | 
Grids enable access to shared
  computing power and storage capacity from your desktop | 
Clouds enable access to leased
  computing power and storage capacity from your desktop | 
| 
Who provides the service? | 
Research institutes and
  universities federate their services around the world through projects such
  as EGI-InSPIRE and the European Grid Infrastructure. | 
Large individual companies e.g.
  Amazon and Microsoft and at a smaller scale, institutes and organisations
  deploying open source software such as Open Slate, Eucalyptus and Open
  Nebula. | 
| 
Who uses the service? | 
Research collaborations, called
  "Virtual Organisations", which bring togetherresearchers around the
  world working in the same field. | 
Small to medium commercial businesses
  or researchers with generic IT needs | 
| 
Who pays for the service? | 
Governments - providers and users
  are usually publicly funded research organisations, for example through
  National Grid Initiatives. | 
The cloud provider pays for the
  computing resources; the user pays to use them | 
| 
Where are the computing resources? | 
In computing centres distributed
  across different sites, countries and continents. | 
The cloud providers private data
  centres which are often centralised in a few locations with excellent network
  connections and cheap electrical power. | 
| 
Why use them? | 
      -
  You don`t need to buy or maintain your own large computer centre - You can complete more work more quickly and tackle more difficult problems. - You can share data with your distributed team in a secure way. | 
      -
  You don`t need to buy or maintain your own personal computer centre - You can quickly access extra resources during peak work periods | 
| 
What are they useful for? | 
Grids were designed to handle
  large sets of limited duration jobs that produce or use large quantities of
  data (e.g. the LHC and life sciences) | 
Clouds best support long term
  services and longer running jobs (E.g. facebook.com) | 
| 
How do they work? | 
Grids are an open source technology.
  Resource users and providers alike can understand and contribute to the
  management of their grid | 
Clouds are a proprietary technology.
  Only the resource provider knows exactly how their cloud manages data, job
  queues, security requirements and so on. | 
| 
Benefits? | 
- Collaboration: grid
  offers a federated platform for distributed and collective work. - Ownership : resource providers maintain ownership of the resources they contribute to the grid - Transparency: the technologies used are open source, encouraging trust and transparency. - Resilience: grids are located at multiple sites, reducing the risk in case of a failure at one site that removes significant resources from the infrastructure. | 
- Flexibility: users can
  quickly outsource peaks of activity without long term commitment - Reliability: provider has financial incentive to guarantee service availability (Amazon, for example, can provide user rebates if availability drops below 99.9%) - Ease of use: relatively quick and easy for non-expert users to get started but setting up sophisticated virtual machines to support complex applications is more difficult. | 
| 
Drawbacks? | 
- Reliability: grids rely
  on distributed services maintained by distributed staff, often resulting in
  inconsistency in reliability across individual sites, although the service
  itself is always available. - Complexity: grids are complicated to build and use, and currently users require some level of expertise. - Commercial: grids are generally only available for not-for-profit work, and for proof of concept in the commercial sphere | 
- Generality: clouds do not
  offer many of the specific high-level services currently provided by grid
  technology. - Security: users with sensitive data may be reluctant to entrust it to external providers or to providers outside their borders. - Opacity: the technologies used to guarantee reliability and safety of cloud operations are not made public. - Rigidity: the cloud is generally located at a single site, which increases risk of complete cloud failure. - Provider lock-in: there’s a risk of being locked in to services provided by a very small group of suppliers. | 
| 
When? | 
The concept of grids was proposed
  in 1995. The Open science grid (OSG) started in 1995 The EDG (European Data
  Grid) project began in 2001. | 
In the late 1990`s Oracle and EMC
  offered early private cloud solutions . However the term cloud computing
  didn't gain prominence until 2007. | 

 
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