Geek speak
Cloud Computing isn’t really new but the term caught on a few years ago. Cloud Computing simply means accessing resources and using services over the internet. Almost everyone in the West has been using cloud services for more than a decade.

Some examples of Cloud Computing are online banking, buying music from iTunes, electronic books, movie services like Netflix, Gmail and even Facebook. To be even more specific it is internet-based computing, whereby shared “resources” (servers, disk space, firewalls, backup, software and the services needed to install and support it) are provided to users’ personal computer, laptop and other devices on-demand, like a utility (electricity, water, etc.).

SaaS, or “Software as a Service” is a cloud computing service. The hardware, software and support required to host and deliver the application is the sole responsibility of the SaaS provider, not the end user. The end user only pays for the service of using the software on an as-needed subscription basis or simply uses the service.

Bringing the Cloud down to earth
The best way to illustrate what Cloud Computing is and why it’s spreading like wildfire is to compare it to the modern electric utility industry. On September 4, 1882, Thomas Edison opened the Pearl Street electricity generating station in New York city, introducing the concept of electricity as a utility. There were four key elements introduced by Edison’s concept of electricity as utility that were, previously, unheard of: 

1. Reliable central generation, 
2. Efficient distribution,
3. Successful end use (in 1882, the light bulb), and
4. Competitive price.

Up until 1882, factories or other entities requiring electrical power were required to build and maintain their own generators – a very expensive, time consuming distraction for most companies whose core business centered on producing a product or other service. The idea of being able to pay for electricity as a utility as opposed to producing it on their own was a highly-attractive proposition for businesses who didn’t want the cost and distraction of producing their own power.

Cloud Computing is essentially offering the same promise to businesses today.  Very few people or businesses generate their own electricity with generator or windmill and live off the grid.  Until recently, the cost of building and maintaining your own computer network in house has been a “necessary evil” of running a business. But now, thanks to major advancements in Internet connectivity and technology, businesses can simply pay for basic IT necessities on a “utility” basis. Of course, Cloud Computing isn’t ideal for everyone just yet and we will see a period of hybrid networks where businesses have some applications in the cloud and others on site; but it IS a much smarter, lower-cost way of meeting basic computing needs (e-mail, spreadsheets, word processing, backup, and file sharing for example).

So Cloud Computing is like trading in your generator and all the related cost and upkeep of doing it on your own and connecting to the grid for electricity. You pay a monthly fee and it just works. Cool, huh?

Why would a business owner choose cloud computing over a traditional network?

• The cost of buying, installing and supporting a computer network goes down dramatically.
• You gain greater flexibility in accessing your computer network (files, applications, etc.) remotely and from various devices (laptop, iPad, Blackberry, etc).
• You gain the benefit of having built-in disaster recovery and data backup.
• You can purchase cheaper workstations (devices) and get them to last longer since the computing “power” is in the cloud and not on the individual workstation.
• Since you are paying for the service like a utility, it’s cheaper and easier to add and remove workers from your network.
• You avoid hefty network upgrade costs.
• You no longer need to pay for someone to maintain your network (server, firewall, patch management, backups, etc.)

What cloud computing is NOT
There is a lot of Cloud Computing mumbo jumbo out there. The term “Cloud Computing” gets thrown around a lot and is often used to describe the following services, which are only pieces of a Cloud Computing solution. As a business owner you shouldn’t need to deal with all the geek-Greek. You should leave that to a Cloud specialist like Paruzia.

Business Benefits Of Cloud Computing

• Eliminates capital expenditures for hardware, software, networking equipment
• Ensures automatic software licensing compliance
• Eliminates the business risk associated with owning and managing computer technology
• Reduces administrative overhead and associated costs
• Liberates existing IT staff to refocus on strategic, business building objectives and projects
• Maximizes business productivity with anytime, anywhere and any device availability for users
• Built-in, state-of-the-art business continuity and disaster recovery capabilities
• Financial flexibility and control over IT spending