Cloud Computing at a Glance

The “cloud” is here to stay.  High speed Internet connections and marked improvements in security now mean that information technology services for businesses can be delivered remotely, reliably and at lower cost.  Businesses no longer need invest in their own equipment and IT staff to support either desktop applications such as Microsoft Office, or enterprise applications, such as Oracle databases and ERP systems.  These applications become available through internet connections.  The two together  – Internet-enabled applications and the Internet itself –  comprise the cloud.

Cloud software is a service rather than something one needs to buy, deploy and support.  No enterprise servers are needed locally.  Connectivity to the Internet is sufficient to access the cloud and all that it can provide.

To make this clearer, let’s look at four key cloud computing benefits: Enhanced Availability, Capacity on Demand, Robust Security, and Reduced Costs.

Enhanced Availability

Cloud-based services are provided over the Internet, and so users may connect to applications anywhere they are, as long as there is Internet connectivity, which is becoming commonplace around the world.

Using the cloud, anyone in an enterprise can access their business systems from anywhere in the world — to run reports, perform analysis, or create documents alone or in collaboration with others.

This advantage in availability is of particular benefit for businesses who employ staff routinely away from their offices — for example, sales staff or service staff.  It also means that employees who are present at client sites can easily run demos, presentations, and conferences remotely, over the Web.

In addition, if everyone is on the cloud, access to problem-solving resources does not need to wait for a returned phone call and is not held hostage to those who may be on vacation.  Anyone with a smartphone can be part of a conference in which documents may be shared. Critical customer problems can be solved in real time.  Getting access to the right people becomes a business policy issue rather than a technology problem.

Capacity On Demand

Adding additional capacity in a cloud environment — whether processing power, computer memory, or network capacity — can be much simpler than doing so in-house.  Companies offering cloud computing services design their systems so that capacity utilization is constantly monitored to achieve an agreed-upon level of performance for customers, and their infrastructure is designed from the ground up for rapid expansion. While providing these kinds of capabilities often falls victim to cost-benefit priorities for an in-house data center, it is necessary to support the cloud vendors‘ business model.  As for user capacity, since user connectivity is provided by the Internet, there is little requirement for additional network equipment at the user end as more users are added.  The business client of a cloud computing vendor need only ensure that their internet service providers (ISPs) are able to provide the required bandwidth at each location that services its users.

Robust Security

Delivery of IT services over the cloud is done over a secure Internet connection.  Strong levels of data encryption are used that were first developed to safeguard military and financial data. This same security currently protects hundreds of millions of transactions every day — for online banking, funds transfer, data transmission, or database access.

Reduced Costs

Apart from the obvious savings from not purchasing computer hardware and software, there are other cost benefits to be achieved.

After moving to the cloud, businesses no longer need hardware and software engineers to maintain their servers. There will still be IT support for end user workstations, but the large investment in staffing required to support in-house enterprise systems will no longer exist.  In addition, since cloud computing providers can locate their facilities anywhere in which high-speed Internet connectivity exists, they can take advantage of locations with competitive labor costs across the world.

Cloud computing systems are also built according to industry standards, and so there is little proprietary or one-off software to support.  This means that the skills of those IT staff who are required are more likely to be fungible, providing for both flexibility in controlling staffing costs, as well as minimizing any vulnerability associated with staffing turnover.

Finally, because all IT functions relevant to maintaining servers, operating systems, and network communications will be provided by the cloud vendor, IT professionals engaged directly by a business utilizing cloud services can focus exclusively on revenue-generating product and service development, rather than systems support.

Cloud computing, in short, is a much more efficient way to provide IT support for a given business, and because it leverages economies of scale and flexible labor models, it can be considerably less expensive than in-house alternatives.