As a businessperson who must make crucial decisions on a continual basis, it may be difficult to know which of the new hotly touted “next big things” are truly going to be worth investing in, and which will fizzle out by the time you’ve convinced upper management to make the leap. If you’ve heard some of the buzz about cloud computing, you may well be wondering which category it fits into.
First, a brief overview. Cloud computing may already be familiar to you from some of its popular consumer applications, like the photo sharing Website Flickr or Web-based e-mail programs like Gmail or Yahoo!. Peer-to-peer networks like BitTorrent, Kazaa and Skype run through the cloud; that is, they are decentralized and have no common server, but store and host information over the Internet.
Enterprise, or business, cloud computing, works much the same way. Cloud computing is a method by which companies access information technologies – including applications, data storage, hosting and bandwidth – through a shared network. In other words, your company won’t actually buy the software, hardware and other physical infrastructure necessary to perform everyday computing chores, but will instead purchase them on a utility basis from a third-party vendor.
Some of the essential characteristics of cloud computing include:
- On-demand self-service. A consumer can rapidly scale the computing capabilities – storage, server time, and applications – up or down based on need. A startup which may not yet know its eventual processing requirements, or a seasonal business whose requirements vary widely from month to month, will find this flexibility invaluable.
- Global, mobile network access. Since cloud computing is Internet-based and not tied to any on-premise server network, its applications can be accessed from any location where they user has a Web browser and Internet connection. Mobile devices such as PDAs, iPhones and BlackBerrys are just as capable of cloud computing as a desktop computer.
- Utility-model pricing. Unlike the upfront capital expenditure – and costly maintenance and upgrading – of traditional server-based software systems, cloud computing is billed as either a utility (like electricity) or a subscription service. Either way, the consumer pays only for what they use. Cloud computing also eliminates the need for an expansive IT department, as well as physical storage for the servers.
- Ease of use and customizable interfaces. Business applications which run through the cloud, including customer relationship management (CRM) and sales force automation (SFA) apps, generally have point-and-click configuration. They can be operated easily, so there’s less training and lead time. Furthermore, interfaces can be tailored to an individual user’s specific preference, making his or her experience with the app even more rewarding and efficient.
- Speed and convenience. Not only do cloud-based apps install quickly – you can be up and running in days, instead of the weeks or even months that it might take to deploy a traditional software and hardware system, but the infrastructure takes care of updates automatically.
- Company-wide integration. Although not all departments will use the same apps on a day-to-day basis, the integrative nature of the cloud platform means that everyone will be able to see the same real-time information whenever they need it. There’s no waiting period for reports to be collated or for data to be analyzed. Your business gets a comprehensive view of its performance and market share, as well as that of its competitors. Cloud-based business apps provide unparalleled forecasting and analytics tools and can be integrated with common enterprise programs such as Microsoft Outlook or Lotus Notes.
Cloud computing may sound like a nebulous concept, but it’s really not so difficult to understand. Nor is it difficult to see why cloud computing could mean a very sunny future indeed for your business’s productivity, revenue and bottom line.
