Organisations of all sizes are taking a serious look into the latest hype behind Cloud Computing. This article aims to answer some of the common questions about Cloud Computing.

Cloud computing describes the process of hosting applications on a server at an offsite facility to maximize flexibility of employees. This new technology allows employees to log in from any computer that has an internet connection and a web browser. Applications may be accessed while traveling, while onsite with a customer or while working from home. Since applications are hosted virtually, employees can work from any location. Companies significantly improve productivity when employees can maximize the time they spend offsite.

Cloud computing applications may be distributed to hundreds of computers at once with minimal staff required. Since the business applications are hosted on an offsite server, businesses no longer have to cover the capital expenditures associated with the cost of servers and server maintenance. The company will simply pay for operational expenses which include a monthly or annual fee for the cloud computing services and applications.

Most applications are customizable to meet the needs of each specific company. Companies may design a custom application within a couple of days and introduce the application to the rest of the staff within the same week. The technology is user friendly, and the interface is easy to use.

Benefits of Cloud Computing

Cloud computing offers numerous benefits to companies that utilize the technology. One of the key benefits of cloud computing arises from the flexibility the technology allows. Employees of companies with cloud computing technology can work from any location that has a computer, web browser and internet connection. The employee simply logs in with their user ID and password. Immediately, regardless of location, an employee may access any application another employee can access on the network. Companies with locations around the globe enjoy this model, because they can address customer concerns from any of their call centers regardless of location. With cloud computing, companies may lower expenses and assist customers on a 24 hour basis.

Cloud computing IDs may be established in a matter of minutes. A web administrator or manager simply assigns the password and User ID. This same individual will also grant access to the applications an employee needs to perform his or her job adequately. Immediately, the employee is ready to begin work. Companies expand on an “as needed” basis. Companies no longer have to predict their rate of expansion. They simply pay for the number of users needed for the particular time.

Cloud computing technology is easily scalable. Thousands of employees may be up and running within a matter of weeks or months. Smaller companies may take only days to set up the technology. Companies may design custom applications that improve and mimic the way their company interacts with customers. Custom applications help employees improve productivity and close more deals. Companies also save money on server costs and maintenance. These items are covered by the hosting company.

Start-up companies may begin with minimal capital with cloud computing. The technology significantly reduces costs and is considered a “green” technology. Because the servers are hosted at an offsite facility, businesses not only save on server costs but also on energy bills associated with hosting a server 24 hours per day. Businesses are not required to predict and plan for traffic spikes. The hosting company will accommodate any anticipated spikes with one of the numerous servers available.

Information is encrypted before it is stored on the hosting company’s server. When the information is retrieved, the information is decrypted. This method safeguards a company’s proprietary information. Clients who are particularly concerned may request dedicated server usage rather than shared server usage from the hosting company. Dedicated servers are another way to protect a company’s information. Companies such as IBM, Accenture and other Fortune 500 companies find cloud computing safe and operate certain aspects of their businesses “in the cloud.”

Cloud computing also safeguards against disasters. Companies that live in locations plagued by natural disasters use cloud computing to protect their information and applications at an offsite location. If disaster strikes the company’s primary location, employees may transfer to another remote location and immediately, resume work with minimal downtime. This protects the company from losing revenue.

Pros for Cloud Computing

• Low Cost
• Easy to use
• Scalable
• Flexible
• Work from Any Location in the World
• Easy to Share Information
• Web Based
• No Expensive Computing Equipment Required
• No Servers to Maintain
• Customizable Applications
• Inexpensive for Start-ups
• Great for Disaster Recovery Plans
• Encrypted Information
• 99% Up-Time
• Only Pay for Operating Expenses

Cons for Cloud Computing

• Information Safety Concerns
• Applications at an Offsite Location
• Servers, Typically, Not On-Site
• Concerns about Resource Availability
• Servers Must be Verified as the Fastest in the Market
• Legal Issues concerning Cloud Computing Trademark

Key Vendors

According to a Forrester study completed in 2008, the top cloud computing customers included the following:

1. Akamai
2. Amazon
3. Areti Internet
4. Enki
5. Fortress ITX
6. Joyent
7. Layered Technologies
8. Rackspace
9. Salesforce.com
10. Terremark
11. XCalibre

Most of these companies are still providing services today. Akamai, Amazon and Salesforce.com are probably the most recognizable companies in the industry. These companies provide fast servers that significantly decrease accessibility times for applications hosted on their servers. Platform as a Service (PaaS) and application storage are offered by other companies as a part of cloud computing solutions. Each company has an area of expertise within the cloud computing community that will help them to provide exceptional services to their clients.

References

“Eleven Cloud Computing Vendors to Watch,” CIO, accessed October 27, 2010, http://www.cio.com/article/195000/11_Cloud_Computing_Vendors_to_Watch.

“Cloud Computing,” Wikipedia, accessed October 27, 2010, http://en.wikipedia.org/wiki/Cloud_computing_vendor#Vendor.

Related posts:

1. Key Drivers of Cloud Computing Activity
2. Adoption of Cloud Computing
3. Cloud Computing Trends
4. Key Concerns with Cloud Computing
5. Enterprise Software Migrating To the Cloud