If you have been reading any of the tech-rags or keeping up with industry websites, you have probably run across the phrase, “cloud computing” . . .a LOT. I was once asked if it was in reference to the new office spaces being built in outer space. Wait, there are new offices being built in space? No…not that we know of. However, Obama promised change. Maybe this is what he had in mind.
After a little research, you’ll find that it does seem to be the next “rage” in business technology services, but what is it and why would you care?
Let’s break it down…
The word, cloud is really just a metaphor representing the Internet. You may have seen a network diagram which depicts a variety of connected peripherals including computers, servers and firewalls. Typically the Internet is demonstrated on these diagrams as a cloud-like symbol, representing its complex infrastructure.
The second word, computing is in reference to the actual act of using computer hardware or software.
Put them together and you have, “the act of using computer hardware or software over the Internet”.
So, what is making cloud computing so appealing for business owners?
The increase in popularity is a direct result of how cloud computing services are priced. Users avoid any capital expenditure (CapEx) for the hardware or software itself, but instead pay a provider based on the level of consumption. Most often, there is no upfront cost and consumption is billed on a utility or subscription basis. (Similar to the way you are billed for electricity, water and cable)
In reality, it is much like renting instead of buying. You may choose to rent your office space because it creates a manageable monthly expense and much less risk than an outright purchase of a building.
So, what is the down side to cloud computing?
Unfortunately, users of this cloud model are at the mercy of their Internet connection. That’s right…if the Internet is down, you can’t access the hardware or software critical to your daily operations. If the connection to the Internet is slow, you will have serious performance issues. Today, many business owners aren’t willing to subject their company to that kind of risk.
As you can see, there are a number of things to think about when considering a cloud computing service for your company. Have you ever considered “the cloud” for your business? I’d love to get your feedback… please feel free to post your thoughts!
