What is Cloud Computing and what are the benefits?
Cloud computing is the latest IT phenomenon to effect the business world. With the cost saving potential, cloud computing is becoming increasingly popular. But what is this new trend, what does it mean for businesses and what are the benefits?
By Jon Morgan, founder of software developer Object Matrix
The term ‘cloud computing’ refers to a variety of ways in which you can utilise online services instead of buying lots of physical hardware and software.
This means that companies can, for example, store, back up or archive data, manage emails or host perfectly scalable applications, like a website, without having to pay for the expensive infrastructure.
Businesses using cloud computing services can benefit from total flexibility. The ‘pay as you go’ aspect means users that can determine how much of a service to use, so companies avoid paying for space that is not being used. Cloud platforms are adaptable and can provide rapid expansion if demand suddenly increases.
When it comes to using the service, such as accessing emails or viewing stored information, for instance, you are not restricted to one computer or server network. The main idea behind cloud computing is that information is accessible from any computer. As a result, cloud computing is useful for remote working because it increases productivity while staff are on the move or out of the office.
In order to provide cost-effective and efficient applications to potentially thousands of users, service providers employ an automated registration procedure and web based API (Application Programming Interface) pages.
This may seem slightly impersonal but means the user can determine exactly what kind of service is needed and can adjust this at any time. It also means that it is as easy to cancel a service as it is to sign up as users can terminate a service at the click of a button.
Savings can be enormous. For example, we decided to host an online “customer relationship management” tool so that our sales force and management could keep up to date with sales opportunities.
Our first option was to set-up a tool in the office, using a dedicated computer, backing up that data, setting up the programme’s security correctly.
The second choice was to use an online tool that was essentially “pay and go”, for £4 per month. This service allowed us to set up as many users as we required and a server that we could use to host other services such as a bulletin board and a website.
Where did Cloud Computing Come From?
Cloud computing is essentially an extension of previous internet trends, such as ‘Infrastructure as a Service’ or ‘Software as a Service’, combined with aspects of Web 2.0.
However, businesses should view cloud computing as a fresh and exciting opportunity, rather than a rebranding exercise. This particular internet phenomenon can help organisations not only cut costs but also increase productivity and streamline business processes.
Cloud Computing Dangers
The primary danger of cloud computing is the longevity of the service providers. Although the concept is here to stay, some companies and products will from time-to-time disappear.
Even the large companies can shut down online products, like HP cancelling its Upline online storage service. Businesses need to be careful about what backup plans are in place in case the product goes offline or away permanently.
There are also the same dangers that accompany other software programmes, such as glitches, bugs and viruses. Therefore, if businesses are entrusting sensitive data into the cloud, they must be sure about the service.
These online business tools mean can dramatically save on costs, enjoy a greater range of freedom and flexibility and can help improve the business processes.
Despite some minor teething problems, cloud computing is becoming increasingly reliable. There is now a wealth of powerful technologies which can greatly improve business productivity, all available at the click of a button.
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KeywordsCloud computing cloud computing online CRM Web 2.0
Comments
RbgDespite i am not sure to get the full picture of what is Cloud COmputing, i would have say it is slightly different than SaaS. Cloud computing in my mind is really a new way to deploy IT infrastructures, where as SaaS is a way to hid the IT thing to the end user/customer providing directly the solution as a service simple to order.
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Adam HI I put this quick vid togther on cloud computing and it's benefits
http://www.youtube.com/watch?v=obrv2hHtfp4
cheers
Adam
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