What is Cloud Computing?An insight into cloud computing.

There are many different definitions to what cloud computing is. In its simplest terms cloud computing can be defined as IT services delivered over the internet.

What is Cloud Computing?

The origin of the term cloud computing is obscure, but it appears to derive from the practice of using drawings of stylised clouds to denote networks in diagrams of computing and communications systems.

The internet in diagrams and IT schematics has been represented by a cloud since 1994.

The three forms of Cloud Computing: Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (SaaS)

Facts on Cloud Computing

The most popular of these at the moment is Software-as-a-Service (SaaS), this due to the rise of organisations such as Salesforce.com and services such as Google Apps.

SaaS has become very popular due to the pricing models that are available to companies which make it a lot cheaper for organisations to have a particular piece of software. The initial set up fee is a lot lower so the barriers to entry are much lower. The pricing models tend to be on subscription basis per a user, so you only pay for what you use.

Customer Relationship (CRM) is one of the most popular types of SaaS. This is because it can be accessed from anywhere simply by users logging into a system via the Internet.

Software as a Service (SaaS)

How Does Cloud Computing work?

Reduced Capital Expenditure – there is no need to spend on hardware or software licence fees

IT requirements are managed by a third party, therefore there is no need added cost of hiring an IT consultant or paying for IT support

Improved accessibility – You can login anywhere anytime from a machine that has the internet. This highly beneficial for global companies that have staff all around the world

Reduced costs and overall spending on technology- no need to pay for updates and licence fees as these come as part of the package

Increased flexibility – if for some reason a software no longer meets the businesses needs you have option to change as you are not committed to using the software

The top 5 benefits of cloud computing

Cloud computing creates a level playing field for smaller businesses. Cloud computing means that small companies have access to the same software as larger businesses. For example they can grow their business by using the same CRM systems that major businesses use

Reduced overhead costs - there is no need to spend money on expensive servers as data such as email and files can stored on the cloud

The benefits of cloud computing for small business

Remote workers – Small businesses can reduce the cost of office space and can easily take on remote workers who can access data from anywhere. This gives employers a lot more flexibility when hiring staff as well as reducing the need to have bigger offices

Working with 3rd parties – Small businesses can share data and information much easier with external employees and partners through the cloud. This means that they can work with a wider range of people and organisations such as external consultants and specialists

Using the cloud will save you money in terms of reduced energy costs of running a server and overall capital expenditure

It will also save money in terms of software upgrades and will mean that your business only pays for what it uses. For example the cost of upgrades is a shared cost with other businesses that are also using the service

It will also reduce the need for hiring external IT consultants, as most SaaS companies have their own internal experts who can manage the software and provide support when required

Can using the cloud save you money?

The cloud can be a great way of managing your IT requirements and reducing costs. Though it must be remembered that you are relying on external organisations to manage your IT infrastructure and your company data. You should ensure that you back up all data in a separate location to ensure that your business has a copy of the data. This will not only give you piece of mind, but also means that the data is still accessible in some form if your service provider is down.