Here is a brief write up showing the difference between Grid and Cloud Computing - complete details see here
With cloud computing, companies can scale up to massive capacities in an instant without having to invest in new infrastructure, train new personnel, or license new software. Cloud computing is of particular benefit to small and medium-sized businesses who wish to completely outsource their data-center infrastructure, or large companies who wish to get peak load capacity without incurring the higher cost of building larger data centers internally. In both instances, service consumers use what they need on the Internet and pay only for what they use.
The service consumer no longer has to be at a PC, use an application from the PC, or purchase a specific version that's configured for smartphones, PDAs, and other devices. The consumer does not own the infrastructure, software, or platform in the cloud. He has lower upfront costs, capital expenses, and operating expenses. He does not care about how servers and networks are maintained in the cloud. The consumer can access multiple servers anywhere on the globe without knowing which ones and where they are located.
Cloud computing evolves from grid computing and provides on-demand resource provisioning. Grid computing may or may not be in the cloud depending on what type of users are using it. If the users are systems administrators and integrators, they care how things are maintained in the cloud. They upgrade, install, and virtualize servers and applications. If the users are consumers, they do not care how things are run in the system.
Grid computing requires the use of software that can divide and farm out pieces of a program as one large system image to several thousand computers. One concern about grid is that if one piece of the software on a node fails, other pieces of the software on other nodes may fail. This is alleviated if that component has a failover component on another node, but problems can still arise if components rely on other pieces of software to accomplish one or more grid computing tasks. Large system images and associated hardware to operate and maintain them can contribute to large capital and operating expenses.
Cloud computing and grid computing are scalable. Scalability is accomplished through load balancing of application instances running separately on a variety of operating systems and connected through Web services. CPU and network bandwidth is allocated and de-allocated on demand. The system's storage capacity goes up and down depending on the number of users, instances, and the amount of data transferred at a given time.
Both computing types involve multitenancy and multitask, meaning that many customers can perform different tasks, accessing a single or multiple application instances. Sharing resources among a large pool of users assists in reducing infrastructure costs and peak load capacity. Cloud and grid computing provide service-level agreements (SLAs) for guaranteed uptime availability of, say, 99 percent. If the service slides below the level of the guaranteed uptime service, the consumer will get service credit for receiving data late.
The Amazon S3 provides a Web services interface for the storage and retrieval of data in the cloud. Setting a maximum limits the number of objects you can store in S3. You can store an object as small as 1 byte and as large as 5 GB or even several terabytes. S3 uses the concept of buckets as containers for each storage location of your objects. The data is stored securely using the same data storage infrastructure that Amazon uses for its e-commerce Web sites.
While the storage computing in the grid is well suited for data-intensive storage, it is not economically suited for storing objects as small as 1 byte. In a data grid, the amounts of distributed data must be large for maximum benefit.
A computational grid focuses on computationally intensive operations. Amazon Web Services in cloud computing offers two types of instances: standard and high-CPU
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