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CLOUD COMPUTING PRIMER

Cloud computing

Wikipedia defines cloud computing as “Internet based development and use of computer technology whereby dynamically scalable virtualized resources are provided as a service over the Internet.” Basically, this definition means that the services residing in the cloud are based on scalable, on demand architectures that are housed in a data center. The service itself is delivered over the Internet.

Just about any web site could be considered a cloud computing service according to this definition. However, when it comes to what is actually meant by cloud computing, the implication is that Software as a Service (SaaS) is part of the equation.

SaaS is a type of software that is available on demand, often directly from an application service provider. Probably the most recognizable SaaS application is Salesforce.com, a customer relationship management (CRM) application used by many businesses. Under Salesforce.com's SaaS model, users connect to Saleforce.com’s web-based system and purchase only the amount of licenses required for their users. Licenses aren’t priced "per computer". Salesforce.com SaaS runs "in the cloud" meaning that it relies on the overall infrastructure that is called cloud computing.

Skype and BitTorrent are sometimes considered successful cloud computing architectures due to their peer-to-peer and scalable natures. These two services are inherently scalable based simply on their basic design.

How does Cloud Computing work?
It's important to understand that the purpose of cloud computing is to deliver software and services to end users. There's no single architecture that defines cloud computing. Skype and BitTorrent are considered cloud computing services & these services are completely decentralized. However, other services,like Salesforce.com, rely on servers colocated in data centers to operate. As more users are added to the service, Salesforce.com adds capacity to handle the increased load. Many companies, such as; Amazon, Google & Microsoft are building out huge data centers specifically to provide cloud computing services.

The SaaS provider doesn’t have to have a massive Internet-facing data center themselves. They can rely on the services of one of the cloud computing infrastructure providers and keep their focus on developing the best software for their customers.

The customer, simply connects to the infrastructure put into place or used by the SaaS provider. The provider may build out their own infrastructure or partner with someone else. By sharing infrastructure costs among many customers, rather than having each customer build their own infrastructure, cloud computing can keep overall hardware costs lower.

What are the Benefits?

There's no need for an in-house IT staff to manage the services or infrastructure. If you’re utilizing services delivered over the Internet, there are no local applications or servers for you to worry about.

With cloud services, typically you require only a computer and an Internet connection, so there's no need to build out any infrastructure. If the applications you’re using are housed in data centers on the Internet, there’s no need for you to own and maintain local servers. Data centers have redundant power, connectivity and overall better security than you could ever provide in-house.

Licensing is typically less expensive For the most part you can save money on licensing with cloud computing-based services. Not always - but usually this is the case.

Some things to consider:

Reliance on Vendor. There's always the danger that your SaaS and application vendor could go out of business. If your entire business is based these apps, you must consider the implications. What will you do? Is there an alternative plan? Is there any plan at all? Consider this issue very carefully when making these decisions and when selecting a vendor. Be sure you know how your data can be accessed by your service provider.

Security of your Data. Since all your data, some of it sensitive, is housed in someone elses facility, you must be certain of the vendor's security practices and protocols. Do your due diligence and investigate their security history as well.

For many businesses, especially for those with little or no budget for an IT staff, cloud computing and SaaS can be a tremendous help. They allow you to do what you do best: running your business. It relieves you of the worry and hassle of having to deal with complex IT infrastructure issues.

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