Feature article

Cloud Computing: What is it and why should you care?

 

Cloud computing is everywhere. It's on the TV. It's on the radio. It's on blogs and Tweets and LinkedIn posts. Everyone is talking about it. But what is it, really?

As one of the fastest-spreading technological developments of the last five years, cloud computing has evolved from an interesting theoretical idea into a commercially viable and cost-effective business tool – seemingly overnight.

If you only know one thing about The Cloud, it should be this: cloud computing lets you rent additional processing power and storage space over the internet. Forget about paying loads of money to fill your server room with million-dollar machines. Instead, cloud computing is a means of outsourcing your IT requirements and having them delivered as a service – accessible from anywhere in the world from any PC or mobile device. The best part: not unlike your utilities bill, you pay as you go, adding and subtracting servers depending on your current needs.

As with any evolutionary technology, there are always cons that need to be assessed alongside the pros. To gain a deeper understanding of this popular technology, and to decide whether it's right for your business, here's a look at cloud computing's key elements – from perks to potential pitfalls.

The cloud's building blocks: Infrastructure as a service (IaaS)

Rather than pay hundreds of thousands of dollars on costly servers, storage capacity, network equipment and operating systems, IaaS lets you rent the hardware components and storage capacity you need.

The upside: Perhaps the most valuable aspect of an IaaS focused approach to the cloud is its flexibility. With IaaS there is no need to scramble for additional hardware and software if there's an uptick in demand for computing power. Simply add and subtract capacity based on your network needs.

The downside: On the other hand, turning over your hardware and software services to a third-party provider requires relinquishing control – a potentially unnerving prospect for many IT managers. Cloud computing outages that can prevent companies from accessing their data for hours – sometimes days – also present an IT challenge that will need to be planned for. Be certain to thoroughly vet potential suppliers and select a vendor you know and trust.

Power on demand: Software as a service (SaaS)

Instead of installing, managing, patching and updating software on your own computers, SaaS allows you to pay a fee to access the most up-to-date versions of whatever software you desire online and on-demand.

The upside: By placing time-consuming duties such as patching and updating software in the hands of an outsourcer, your IT department is better able to focus on business-critical tasks.

The downside: The challenge with an SaaS approach comes from storing sensitive data on third-party servers – which can lead to security risks that are beyond the control of your in-house team. In an SaaS environment, vendor selection is mission critical. When choosing a vendor be sure your chosen supplier secures data through user authentication, encryption and firewalls. These basic steps will significantly reduce your exposure.

Development made easy: Platform as a service (PaaS)

PaaS simplifies the building and delivery of Web applications by allowing companies to rent their entire online development platform – including servers, services and software.

The upside: PaaS allows for enormous flexibility as hardware, storage, software and networking capacity can be added and removed as needed, at any time. The completely online nature of a PaaS sytem also allows for unfettered collaboration as IT teams scattered around the world can work together to build and develop innovative applications.

The downside: Developers may find themselves ‘locked-in' or restricted by a cloud computing provider's own development limitations.

With its promises of lower cost of ownership, cost efficiencies and scalability, it's no wonder a growing number of companies are reaching for the cloud. Although early adoption has been largely driven by companies motivated by an unending demand for user-storage (Flickr, YouTube, PlayStation) all indications point to 2011 being the break out year for the cloud. By taking the time to weigh the pros and cons of this popular technology, you can determine whether making a similar move to the cloud is the right one for your business.

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How are companies using The Cloud?

AMD 2011 Global Cloud Computing Adoption, Attitudes and Approaches Study.