The concept of Cloud computing, which was a term introduced in 2007 has been around since the 1960's when John McCarthy wrote "computation may someday be organized as a public utility." With Saas (Software as a service) becoming more and more popular, companies.The services can be public or private depending on the user's preference. Private clouds are proprietary networks or data centers that are managed by the organization it serves. In addition, there is also a cloud computing Hybrid service, which is maintained by the organization and external providers.
Software as a service has been reported to cut cost thus, allowing companies to invest money elsewhere within. Along with reducing technical cost, the cloud also allows users to access the network from virtually anywhere with any Internet ready device like a desktop, laptop, smartphone, or tablet increasing productivity.
Many companies are starting to look at cloud computing as a necessity. For instance, IT departments can focus on other issues, without concerning themselves with constant server updates or software upgrades. Also, organizations can store more data than before avoiding the cost of buying more storage devices. Lastly, another advantage of software as a service is the pay as you go model. This enables companies to increase resources only when needed. If more resources are needed, it is as simple as calling your service provider and upgrading the account.
source:http://ezinearticles.com/