GoogleCodeIn2012/Sugar in the cloud

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Background
"The Cloud. There, I've said it." The Cloud is the buzzword du jour. What would Sugar look like as a Cloud service as opposed to a desktop service?
Task
Model Sugar as a Cloud service. What order of magnitude of computer and bandwidth would be necessary to serve up Sugar to a typical school, population 500 children? What back-end technologies could be use?
Contact
Sugar Infrastructure Team