Cloud Computing Explained

What is Cloud Computing and How is it Changing IT?

© Libby Black

Oct 27, 2009
Cloud Computing for Business, Akae
Users can do nearly everything in the cloud formerly done with onsite servers including business applications, word processing, invoicing, email and more.

Cloud computing enables users to access computing power from a distance. Thousands of servers stored in remote warehouses are connected to the Internet, and users can plug in to access them and use offsite software through a web browser.

It’s an idea similar to getting electricity from the electrical grid, and cloud computing gets its name from the nebulous way data seems to appear from the ether. The cloud is a metaphor for the Internet.

History of Cloud Computing

The concept of cloud computing isn’t new. Around fifteen years ago, companies began offering fully managed and hosted services on servers outside their clients’ four walls. But in the early years people questioned whether they should even consider this route. Privacy and security were among the top concerns. Then came improvements in broadband speed. Security encryption was enhanced, and Internet applications such as Yahoo mail and Gmail increased familiarity with the concept.

A few years ago, the term “software as a service” (SaaS), often used in conjunction with cloud computing, was coined to refer to using applications owned by a different company through a web browser. SaaS can be defined through five key ideas.

  • Services are fully managed and hosted;
  • have regular recurring payments;
  • allow for anytime, anywhere access;
  • have multiple tenants on servers;
  • and don’t require installation of specialized software.

Cloud Computing for Businesses

The implications of cloud computing for businesses are huge. For business professionals, cloud computing is a potential answer to tougher technology demands and tightening IT budgets. Businesses can outsource data storage, software and computing power. They can avoid paying for multiple software licenses, hardware purchases and salaries for full-time IT staff. These costs are replaced by monthly services fees.

IT service companies offering cloud computing options provide secure data storage in remote data centers, software applications and scalable, on-demand computing power. Depending on a company’s needs, these options can serve to completely outsource the IT department.

As with any off-the-shelf solution, some loss of control is inevitable, and some companies shy away at the thought of keeping information outside of their offices. However, outsourced solutions are growing in popularity.

Reasons to Adopt Cloud Computing Solutions

  • Reduce operating costs.
  • Share the risk in capital investments in changing technology.
  • Keep resources inside the company free for other uses.
  • Ensure access to expertise, and reduce the need for constant updating in technology training.
  • Keep the company focused on its own business.

Scalability with Dispersed Data Storage

Moving forward, perhaps the most promising feature of cloud computing is its scalability. Data creation is increasing exponentially from video, images and multimedia files; and storing it, let alone backing it up several times is a daunting task. With cloud computing, it’s the IT service companies’ responsibility to build additional servers, and server warehouses can house backup data in different geographical locations for added security.

New technologies such as dispersed data storage from companies such as Cleversafe in Chicago, can help decrease the amount of data storage required without reducing information. The technology works by dividing information into slices and distributing those slices on individual storage nodes around a network. Only one copy is necessary because data can be retrieved even if parts of it are destroyed or lost.


The copyright of the article Cloud Computing Explained in Internet is owned by Libby Black. Permission to republish Cloud Computing Explained in print or online must be granted by the author in writing.


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