What Is Cloud Computing?               

If you haven’t heard this latest buzz word, you will!  But what is it?  Cloud computing is a computing model that lets you access resources over the Internet, in a self-service style.  Resources include storage, servers and software.  Instead of purchasing, installing, maintaining and managing these resources on your own computer or network, you access and use them through a Web browser. Sometimes you might need to download a small software application for your computer, but for the most part, the real horsepower is supplied from the cloud.

So why is it called “cloud” computing?  Why not internet computing?   For years techies have used cloud icons to represent the technologies, infrastructure and services that encompass the Internet — and the metaphor has remained.

Chances are you are already using a cloud solution.  For example, on demand business applications, such as Sales Force, Intuit QuickBooks Online or Citrix GoToMeeting are all cloud applications.  You access them from your browser, but the software, processing power and storage reside in the cloud.  And if you are using a free Web services — such as Gmail, Hotmail, FaceBook or are using an online backup, you are in the cloud!

How does this impact your business?

The global recession is forcing businesses to look at technologies such as cloud computing, virtualization and green IT to find ways to cut costs and increase efficiencies.  Cloud computing allows you access to powerful tools without spending big dollars to buy hardware and software.  Instead you rent/lease what you need, either on a subscription basis, or on a pay-as-you go model.  Many cloud computing vendors offer free services. They are able to offer services for free by getting ad revenues or by selling optional, integrated fee-based services alongside the free services.  The list is endless, but here are some examples:  

www.smartrecruiters.com – offers a free applicant tracking system for recruiters in small and medium businesses.

www.salesforce.com – Customer Relationship Manager (CRM)

www.freshbooks.com – offers free invoicing, expense reporting and time tracking solutions for freelancers and small businesses.

www.google.com/apps - Google has several: Gmail, Google Talk, and Google Docs are a few.

www.demandbase.com – their free service is Demandbase Stream, which is a free web traffic tool to identify businesses visiting your web site.

Read the fine print.

Cloud computing is a set of powerful technology solutions that are available.  However, it provides cost savings that may temporarily blind you to the risks. Don't dive in simply to save money and time. Evaluate each service's security the same way you would evaluate off-the-shelf hardware and software. Ask tough questions about data security.  If you are going to move your data to the cloud, make sure they are taking precautions to protect your data.  Cloud computing providers should provide details about how they protect data and ensure regulatory compliance, and they should explain their policies to provide you with your data if you decide to terminate the service or if they go out of business. If you pay for a service, you should also get a service level agreement (SLA) from the cloud vendor.