Analyst firm Gartner just issued a statement that it believes there is “confusion” in the market over the definition of “cloud computing,” and wants to set the record straight.

Gartner defines cloud computing as “a style of computing in which massively scalable IT-related capabilities are provided ‘as a service’ using Internet technologies to multiple external customers.”

However, the consultancy’s analysts say, there have been different perceptions of what is included in cloud computing.  ”The term cloud computing has come to mean two very different things: a broader use that focuses on ‘cloud,’ and a more-focused use on system infrastructure and virtualization,” said David Mitchell Smith, vice president and Gartner Fellow. “Mixing the discussion of ‘cloud-enabling technologies’ with ‘cloud computing services’ creates confusion.”

Gartner says some commentators and vendors have applied the “cloud” label to internal initiatives, such as virtualization and automation. However, in the broader context, cloud computing applies to “the perspective of the Internet/Web/software as a service (SaaS). The focus is more on cloud than computing with the emphasis placed on access to services from elsewhere (that is, from the cloud).”

Gartner says the internal aspects and the external Web-based aspects are related, but that the internal definition is more of a “subset” of the larger phenonemon.

Is Gartner getting too picky on this? By employing the same standards and principles, organizations will be supporting their own, secure internal “clouds” as well as relying on the global cloud. In many cases, the overlap will not even be apparent to end users.