Cloud computing is a widely-used term right now, but what is it all about?
In a nutshell, all software and resources reside remotely on the provider’s server somewhere on the internet, instead of running from your own computer’s hard drive. Services are basically provided to you on demand, and can even be used on a pay-per-use basis.
Cloud Computing is a relatively new term, but has actually been around and in use for a while now. In fact, I did my University dissertation in 2001 on ASPs (Application Service Providers), which was basically a term then for cloud computing. It must be said, however, that it has never been as accessible and easy to use as it is now. In fact, the advances in technology have made it possible to run your whole business "in the cloud".
There are a lot of obvious benefits for a Small Business to use cloud computing. Online mail accounts; online meetings; it’s all cloud computing. I even the considered the merits of paying for MS Office and similar applications on a per-per-use basis as part of my dissertation, meaning you pay an annual subscription and you always have access to the latest version of software. Enter Office365!
Of course, nowadays cloud computing offers so much more. Infractructure as a Service (Iaas), as opposed to Software as a Service (SaaS), can provide you with Virtual Servers and online storage capacity. Savings can be made on hardware and resources, licensing, and of course the IT infrastructure is already being managed!
The risks involved are mainly based around you’re internet connection failing. If you’ve got an internet connection and a web browser, you can use cloud computing. If you lose you’re internet connection for a period of time, then productivity can suffer. For this reason, and the fact that complete manageabiliity is important for many businesses, it’s still preferable to have an in-house infrastructure for many. However, if a reduction in manageability and costs are key factors, then cloud computing may be for you.