What is Cloud Computing?

As with many new technologies today they seem to creep up on us and before we know it they are common place in all our lives. The sad thing is so many of us IT geeks spout these words believing everyone understands them. In fact a lot of the time I am not sure we truly understand them ourselves. One the these terms that is be used more frequently since 2007 is Cloud Computing. With Apple also releasing the icloud we will surely be hearing a lot more about it.

A little like a cloud in the sky  the true definition of cloud computing is a little fluffy. It originates from the diagrams people produced  to represent the internet. Cloud computing is basically a software or platform stored where the user doesn’t need to administer the software but can purely connect to it. Cloud computing is really a form of a client server platform that is stored and administered elsewhere. Now that would be using a computer network and would normally involve the internet. The most common type of cloud computing is the public cloud. This is normally in the form of offering a SAAS (software as a service) in which the public subscribe to and sometimes pay a monthly subscription for. This is also sometimes known as utility computing as you pay for the service just like your gas or electricity supply.

What is Grid Computing?

Cloud computing has been made possible by grid computing. Grid computing is used to make cloud computing scalable for the general public. By using special middleware software the grid computer system uses multiple servers and computer resources which can be allocated depending on the systems demand. So cloud computing is just a form of using grid computing to deliver a service via the internet. Grid computing has made such a service very scalable. Which means as their user base increases they can continue to add new band width, processing power in the form of hardware and increase the storage space.

How Cloud Computing Can be Used For a Small Business

So now we hopefully understand what cloud computing actual is, we  need to identify the benefits of using such a system for the small business owner. In the company I work for we are fortunate enough to  be big enough to be able to justify a dedicated IT department. By having these IT skills in house we can administer and support our own IT system. oeH=dddAlthough the benefits of cloud computing seem obvious for the small business that doesn’t have the infrastructure and skills for such a system it is becoming common for the larger business to consider cloud computing as a method of reducing costs and cutting overhead.

So What Are Common Examples of Cloud Computing

The most common example of cloud computing is webmail like AOL, Hotmail, Yahoo Mail or Gmail. Now most of us have used such a service which we purely accessed via the internet or should I say the cloud. I think this is why so many of us are confused by this term because it is just another description of a service we have probably all used before. We are now starting to see further uses of the SAAS model replacing our commonly installed software like Microsoft’s Office 365 and Google Enterprise which replaces the traditional office applications like word processing, spread sheets and presentation software.

List of  Common SAAS Providers

Microsoft Office 365 : Office application including outlook and exchange client
Google Enterprise: Office application including a mail client
Adobe Photoshop Express: Simple to use free online photo editor
Salesforce.com: Customer Relationship Software and database

Now that we understand what cloud computing is and the type of software that is currently available we need to highlight the pros and cons of using cloud computing versus traditional local server software installations.

Advantages of Cloud Computing

Cost

This is always a good one to start with and gets people’s attention. Although cloud computing is not an automatic cost saving the up-front cost is drastically reduced.

Cheaper Setup Costs

Most SAAS has a relatively small monthly cost in comparison to buying  the server hardware, installing and administering the software. However the more users you have there could be a tipping point where doing it all yourself may be cheaper in the long term although a lot will depend on how long a server would last.

More Tax Efficient

With a service in many countries taxed less compared to purchasing an asset this gives another immediate benefit to cloud computing.

Cheap to Test

Again the cost to try some of the SAAS providers is relatively small and risk free. In fact some offer a free 30 trial of their software so you can test the features and performance.

Speed to Implement

Cloud computing is normally very quick to implement as it just normally requires you to sign up to a service. You also find most clouding computing providers are very good and online help and training so the learning curve is usually quicker.

Disaster Recovery

One aspect we hope you never have to use is if your business had a disastrous event they have to recover from for example a fire or flood. Because all you need to access your software and data is an internet connection you could setup business virtually anywhere at a push of a button.

Disadvantages of Cloud Computing

Bandwidth Requirements and Reliabilty

You are totally reliant on your broadband connection and if you are in a poor area for broadband  speed or reliability you will have to consider carefully the risk this is to your business. The traditional model of locally installed software means as long as your computer is working then you have access to your information. However even the traditional model will still probably require a broadband connection to deliver its information.

What are the Cloud Computing Security Issues?

Although with data encryption your data should be secure however you are very reliant on your provider to take the necessary steps. You should pick your provider very carefully and read through the SLA (Service Level Agreement) so you go into the process with your eyes open. Many of such agreements are very one side in the favour of the provider. Even large companies are at risk as Sony proved when they lost thousands of peoples data when their PlayStation Network got hacked.  Although your own server setup is at risk a large SAAS provider will probably be more of a target for the hackers.

You should also check your providers SLA for what form of backups it provides and if you needed to access a large amount of data that you can physically go and get it rather than rely on a slow internet connection. This is particularly important if you are using an online backup service.

This is definitely one area where you maybe get what you pay for so beware of very cheap or free cloud computing solutions.

The other issues to consider is regulatory problems when personal data is stored internationally. Although your provider may be a local company they may be storing your information almost anywhere round the world.

Data Migration

One aspect you may not consider is whether you are tying yourself into a provider for good. You should consider the options available to you if you become unhappy with your current cloud computing provider. You should also consider how stable your provider is and the likelihood they will be around for many years to come. Can you export the data in a format that you can either transfer to another provider or even another software package.

Is Cloud Computing Sustainable, Green and Eco Friendly?

Your actual business should see a reduction in your carbon foot print as it means you can totally switch off your computers when you are not using them, unlike the traditional model where servers are left running all night and weekends when not being used. However this is just moving it from one premises to another although some believe there is an energy saving by the use of shared process power and hardware. This has yet to be truly proven but as new technology improves the energy efficiency of these large server farms will probably provide a further carbon footprint saving.

Conclusion

The size of your small business and your software requirements will help decide if the real benefits of cloud computing are worth the risk. In some cases the cost implication for very small user system really gives you no choice than use a cloud computing service. Select your provider carefully and ensure the software has the features you require. If possible test the service thoroughly before implementing it in your business. Understand their SLA and how your data is backed up. Although cloud computing is not a one size fits all solution. Cloud computing technology and SAAS is still in its infancy but is on the increase every day. In years to come I believe every business will use some form of cloud computing service and it will become part of all our everyday life.