What is Cloud Computing?

Cloud Computing is a new way of acquiring computer power (such as software, servers and databases) that you need in order to run your critical and non-critical business systems. It gives you access to massive computing resources but you only pay for what you use and there is no up-front investment in things like new hardware.

What are the advantages?

There are a number of advantages for an existing or new business wishing to adopt a cloud computing model for their information technology requirements, such as speed of deployment. There is no requirement to purchase and setup your own servers, as a cloud server can be established in minutes through the website of your provider.

Cloud computing is ideal if, for example, you are not sure how much usage your new website will get. You can start small (at a reduced cost) but then increase the computing power available to your website without having to buy more or bigger servers as things progress.

If your website does not expand quite as rapidly as you expect then with cloud computing you can quickly reduce your costs by scaling back of even shutting down your cloud usually without any financial penalty.

Remote working is also enhanced with "the cloud". You'll find that your in-house computer systems can be accessed from anywhere around the world allowing flexible working and continuity of services provision that was only available previously with large scale investment. With cloud computing you can normally produce savings of over 40% compared to running an in-house data-centre.

What are the risks?

As with anything there are a few risks and with cloud computing those risks are a consequence of moving your data and applications to a third party provider.

On the downside you must check the small print to find out where your data is going to be stored. If it contains personal information then you should ensure that the providers data centre is within a suitable jurisdiction.

Secondly, it's not like having staff in your office - you will be committed to a cloud computing supplier so you must be sure that you can rely on them to deliver and support effectively. Also, you will be more dependant than ever on your Internet Service Provider (ISP) so you must be sure you have a reliable broadband connection to your offices.

Summary

Fortunately cloud computing platforms are offered by many leading information technology vendors such as Amazon, Google and Microsoft and these massive technology companies are all investing heavily in the hope of winning your business.

..so overall moving to a cloud computing environment will mean you'll have reduced costs while giving you a more secure, manageable and scalable platform to run your business computer systems.

If you are a new business then you should look no further than cloud computing for your IT systems requirements, but iIf you are an established organisation then you need to have an effective strategy as to how you will benefit from the opportunities for flexibility and cost saving that "the cloud" offers.