Cloud computing is the latest buzzword bandied about the web these days and often attributed to different things. The simplest answer is this technology uses scalable and virtualized resources over the Internet. The functions and usability is generated from within the Internet or “cloud” (which is the symbol used to represent the Internet on network diagrams).
Applications like SAP and Oracle have always been too expensive and complicated to maintain. They require datacenter space, power, cooling, bandwidth, networks, massive amounts of storage, and a team of professionals to install, configure, and run them. All of which costs money.
Cloud computing allows your business to run your applications in a shared data center. This costs less because you do not need to pay for the all the people, products, and facilities to run them. In addition, applications are more scalable, more secure, and more reliable. When you run applications in a cloud, you do not buy anything. It is rolled up into a predictable monthly subscription. You pay for what you use.
There are positives and negatives to cloud computing. All of which will need to be weighed before an organization engages in cloud computing. I will discuss some of these points in future postings.