Is Cloud computing the best option for businesses today?

Cloud computing has been a “buzzword” for a few years now. What is it and is it right for your business? Read on to find out.

What is cloud computing?

Cloud computing is Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand. This may include applications such as email, office software and various other programs. Cloud computing is a new model for delivering IT services in contrast to the client-server infrastructure that has been prevalent since 1980s.

Benefits of cloud computing

• No need to own the physical infrastructure
• Avoid capital expenditure
• Consume resources as a service and pay only for resources that you use
• Low barriers to entry
• Shared infrastructure and costs
• Low management overhead
• Immediate access to a broad range of applications
• Increased storage
• Flexibility
• Allows IT to shift focus

Drawbacks and limitations of cloud computing

• Benefits are limited by the  service level agreements
• Operating expenses may be high in the form of user fees
• Limited control over security and privacy of information
• Not all  “legacy” technology can be “converted” to cloud computing
• Limited control over availability and performance

Providers of Cloud Computing

Google and Microsoft are major players who are involved in cloud computing. The two companies are currently competing against each other in this market. An article published yesterday by the Los Angeles times discusses how Microsoft won the battle by getting a number of high profile contracts in California and New York and will be providing office software to a number of government entities via the cloud computing technology.

The article also points out that data security is a major issue with cloud computing. Because sensitive data resides outside of the boundaries of an organization, it sometimes takes a while for all the details to be resolved and for the implementation of cloud computing projects to be executed to the end.

Conclusion

In deciding whether cloud computing is right for your organization, consider the benefits and limitations discussed above as well as the capital budget that is available to your organization for technology related investments. In addition, it is important to consider what role technology plays in your company. Is it mostly operational or does your product offering rely heavily on technology and development? You may find out that managing your hardware infrastructure and applications internally is the best answer. For additional information about cloud computing, refer to http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031.