What Is Cloud Computing
Dave Parkin
Transformational Leader - Management Consultant, specialising in Consultancy, C-Level Advisory, Transformation, Behavioural Change, and Managed IT Services
Most people know cloud computing only as a mechanism for accessing applications and data storage via the internet
Individuals and businesses increasingly use cloud computing to manage a multitude of computing services, including personal email, video streaming, mainstream office applications and IT infrastructure. The cloud enables companies to streamline IT operations by renting hardware and software, often on a pay-as-you-go basis. Companies increasingly rely on cloud services. Corporate IT expenditures have been shifting away from in-house toward the cloud, and the trend appears to continue. The move to the cloud may be a company’s choice or the result of an existing provider’s own shift to cloud-based business models.
“It’s not entirely clear how much of [the] demand is coming from businesses that actually want to move to the cloud and how much is being created by vendors who now only offer cloud versions of their products.”
Companies offer three types of cloud services:
- Infrastructure as a Service (IaaS) – Cloud companies like Amazon Web Services (AWS) offer infrastructure, such as servers, storage and networking capabilities.
- Platform as a Service (PaaS) – Such services build on IaaS but include development tools, operating systems and databases to build applications.
- Software as a Service (SaaS) – The most familiar model is SaaS provided as an app or in a browser. It includes cloud-based email programs, video services and photo storage.
Migrating IT services to the cloud presents both risks and benefits
Companies save time and resources when they no longer need to invest in expensive servers, deal with outdated software and hardware, and staff IT experts on-site. Cloud service gives companies the flexibility to quickly ramp up as they grow and to innovate without incurring significant up-front infrastructure costs.
“Early cloud adopters found that the need to rewrite applications to optimize them for the cloud was one of the biggest costs, especially if the apps were complex or customized.”
But cloud servicing comes with risks as well. Storing sensitive customer data or other business data externally raises cybersecurity exposure. Migrating existing data or applications can be expensive and complex to the point that it diminishes any cost advantage that the cloud solution affords. Once you move your processes to one provider, it may be difficult to switch. In addition, hiring staff with cloud expertise has proven more difficult than anticipated.
Globalization creates additional security complications
Cloud computing services operate around the world, and the cloud servers’ geopolitical location is significant. Consider these examples:
- Servers in distant or heavily trafficked locations slow application response times.
- The laws of the country in which the data centers reside may dictate who can request access to the data.
- Technology regulations vary by country, raising cybersecurity concerns with multichannel supply chains.
Major cloud services providers, such as Microsoft, Google and AWS seek to mitigate these risks and ensure business continuity by establishing cloud computing regions and availability zones. These regional centers aim to ensure that clients can run services locally to offset the issues of latency, country sovereignty and privacy.
Bentley Moore Executive
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About the Author
Steve Ranger is an award-winning journalist and UK editor in chief of ZDNet and TechRepublic. He writes about technology, business and culture and regularly discusses tech issues on TV and radio.