Cloud computing refers to running web-based computer applications over the Internet - the 'cloud'. It is a system that allows businesses to access hosted services, which in this case could be any kind of software that can run on a normal computer. This has been found to be advantageous to businesses for reasons such as cost reduction and improved remote access.
What cloud computing really means is that the same applications like word processing or email clients that run on the company's machines are instead hosted on powerful servers and accessed via the internet through a simple application (mostly a web browser).
Industrial leaders in providing cloud solutions include Google's Google Apps, Amazon's Web Services, IBM, Intel and Microsoft's Office 2010 Web Apps. However, the cloud system is still at a development stage, with companies still skeptical about having their sensitive information being transmitted over the internet. But secure data encryption services should be able to address such issues, as demonstrated by the many online secure banking systems.
To understand how cloud computing works, here's a look at how companies could benefit by harnessing the power of the cloud.
Slashed Hardware Costs
Companies take advantage of the hardware infrastructure in place as they do not have to purchase their own servers or newer expensive computers that meet the hardware requirements needed to run their operations efficiently. In essence, cloud services can run on any machine with a good internet connection.
Moreover, the cost of hardware upgrades and maintenance is almost entirely wiped out as the company's computer systems are less strained. Cloud servers are also a lot more powerful, especially if on a grid system, where application queries would take much less processing time than they would on a single PC.
Software Affordability
Companies don't just save on IT infrastructure. Software services, like Microsoft office for instance, usually require the purchase of additional licenses for each client computer. With the cloud, the company's entire network of computers relies on and shares just one application per service hosted on the web for a small fee paid out to the hosting service. This new found advantage saves the company a lot of money but leaves software manufacturers as the biggest losers.
Scalability is also a big advantage brought about by cloud computing. Companies can always expand their network without having to worry about the cost of additional software licensing or network upgrading.
Source: http://EzineArticles.com
What cloud computing really means is that the same applications like word processing or email clients that run on the company's machines are instead hosted on powerful servers and accessed via the internet through a simple application (mostly a web browser).
Industrial leaders in providing cloud solutions include Google's Google Apps, Amazon's Web Services, IBM, Intel and Microsoft's Office 2010 Web Apps. However, the cloud system is still at a development stage, with companies still skeptical about having their sensitive information being transmitted over the internet. But secure data encryption services should be able to address such issues, as demonstrated by the many online secure banking systems.
To understand how cloud computing works, here's a look at how companies could benefit by harnessing the power of the cloud.
Slashed Hardware Costs
Companies take advantage of the hardware infrastructure in place as they do not have to purchase their own servers or newer expensive computers that meet the hardware requirements needed to run their operations efficiently. In essence, cloud services can run on any machine with a good internet connection.
Moreover, the cost of hardware upgrades and maintenance is almost entirely wiped out as the company's computer systems are less strained. Cloud servers are also a lot more powerful, especially if on a grid system, where application queries would take much less processing time than they would on a single PC.
Software Affordability
Companies don't just save on IT infrastructure. Software services, like Microsoft office for instance, usually require the purchase of additional licenses for each client computer. With the cloud, the company's entire network of computers relies on and shares just one application per service hosted on the web for a small fee paid out to the hosting service. This new found advantage saves the company a lot of money but leaves software manufacturers as the biggest losers.
Scalability is also a big advantage brought about by cloud computing. Companies can always expand their network without having to worry about the cost of additional software licensing or network upgrading.
Source: http://EzineArticles.com
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