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What is “Cloud Computing”?

Cloud computing, also known as Software as a Service (SaaS)  has become one of the most discussed IT paradigms of recent years. Gartner[1] defines Cloud computing as “a style of computing where scalable and elastic IT-enabled capabilities are delivered as a service to external customers using Internet technologies.” 

Simply put, it is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server.

You access these services over the internet, with no up-front costs and you pay only for the resources you use. Cloud Computing gives you access to technology resources managed by experts and available on-demand.

Examples of SaaS vendors include SugarCRM, and Google Apps which provide common business applications online, where the software and data are stored on the servers.

Benefits of Cloud Computing

  • No capital expenditure
  • Pay as you go and pay only for what you use
  • True elastic capacity; Scale up and down
  • Shorten time to market
  • Reduce costs by consuming shared computing and storage resources rather than building, operating, and improving infrastructure on their own
  • Users need not have knowledge of, expertise in, or control over the technology infrastructure in the cloud. Your third party provider will take responsibility for all aspects of the applications to ensure it is working correctly.
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[1] http://www.gartner.com/DisplayDocument?doc_cd=166207