Cloud computing: a win for all

Cloud computing is a form of computing in which all applications, information, and resources are managed in a virtual environment. The term cloud computing, specifically the use of the word “cloud”, meant to represent the nature and structure of cloud computing. Cloud computing involves virtual hosted environments that allow users to connect to hosted services over the Internet.

Google Apps is a great example of cloud computing, as businesses no longer require the need for installed word processing software, internal email servers, multiple IT staff, and many more cost-saving advantages. Google Apps allows businesses to access all services including email, website hosting, calendar, document creation / editing, and much more directly through a web browser. The advantage of using Google Apps is higher productivity, security, lower IT costs and data backup. Microsoft has also entered the cloud computing arena by integrating its current software, such as Word and Outlook, with online storage and easy access.

Many hosting companies and even some internet retailers are starting to offer cloud hosting services. Rackspace, an internet hosting company, has begun offering cloud hosting for customers who want to have personal cloud applications in a customer-controlled environment. Amazon.com also offers cloud hosting services due to its great infrastructure and internet bandwidth capabilities. Most cloud hosting companies offer easy setup and creation of private cloud hosting with straightforward user interfaces. Most cloud hosting companies have per-use pricing instead of flat fees. Users simply pay for the amount of processing, bandwidth, and storage they use. This pricing method benefits both cloud hosting companies and end users.

There are three main variations of cloud computing:

1. IaaS (Infrastructure as a Service) – The need for expensive equipment is outsourced. Instead of companies buying expensive equipment, including servers, hard drives, and network equipment, they will be used in the cloud and hosted by a cloud computing company. The business entity would use the virtual equipment based on the cost of use.
2. PaaS (platform as a service) – Applications run from virtually hosted cloud servers. A small business that sells cloud applications to businesses will use PaaS to “host” the cloud applications sold and have them run from cloud servers rather than internal servers. The company selling the applications pays for the services based on processor / bandwidth.
3. SaaS (software as a service): cloud applications are paid per use and are not sold in bulk. This allows small businesses to purchase on-demand licenses for applications that they may use infrequently. Instead of buying 15 licenses, a business can only pay when the software is used and remove limits on the number of machines the software can be installed on.

IaaS, Infrastructure as a Service, is currently the most widely used cloud service. IaaS allows small, medium and even large companies to reduce costs considerably. Businesses can completely eliminate the need for expensive network equipment, expensive bandwidth to support their network, expensive network storage equipment, and much more. A company only pays for what it uses from the cloud infrastructure, thus eliminating wasted capital due to lack of use of internal network equipment, bandwidth, etc. As IaaS becomes more popular and more cloud hosting companies emerge, costs may drop further due to oversupply and increased competition in cloud hosting.

PaaS, Platform as a Service, is second only to IaaS in terms of popularity and consumer adoption. A small business that sells cloud applications and / or cloud services does not have to host the applications, but can host them elsewhere. The platform as a service prevents the company from selling the applications / services as expensive network equipment, bandwidth and the need for additional IT staff are outsourced to a cloud hosting company. This allows cloud application companies and even small developers the ability to enter the cloud application market without the need for significant start-up capital. PaaS has the potential to outperform IaaS in terms of consumer adoption and general use.

SaaS, Software as a Service, is the least used cloud hosting service. It is a mutual benefit for both consumers and software companies. Consumers save money as high-priced software licenses are no longer required due to the fact that consumers only pay when the software is used. The need to buy software in bulk is eliminated and each consumer’s software needs are tailored based on usage. This is also an advantage for cloud software companies, as it will attract more consumers due to the custom pricing model. Consumers who could not afford the high cost of bulk software licenses will now be able to buy based on their software usage needs. SaaS has the potential to completely revolutionize the software industry and can even curb software piracy.

The personalized nature of cloud computing is what makes it such a popular and recently adopted Internet technology. It will revolutionize the way networking and day-to-day computing run. It’s a great win-win situation for both cloud companies and consumers.

Possible downsides

There are also downsides to cloud computing, specifically online storage and client applications. A business that uses cloud computing to host its email, document editing, calendars, and other applications may be shut down if a cloud hosting business experiences downtime. This specific disadvantage was the case on February 24, 2009, when both Google Apps and Gmail were inactive for several hours. Downtime also reiterated that if Google can go down, so can any other hosting company. Confidence in cloud computing may have been hampered after this specific downtime, although Google has ensured that it won’t happen again. Google Apps serves more than 1 million businesses worldwide and is a leader in cloud computing applications.

Security is also a potential downside to cloud computing. Businesses that are willing to embrace the ability to host their services in the cloud may be reluctant to do so until the security of cloud computing has been thoroughly demonstrated and tested. Large companies may find that the additional costs of in-house network hosting outweigh the potential security risks associated with cloud hosting. A security breach involving a company’s cloud storage has the potential to cause disaster. However, hacking and security breaches are rampant for in-house IT hosting, such as the theft of millions of credit card numbers, as well as detailed customer information. If cloud computing can prove your security far better than any in-house hosting, this can help you grow and exceed the percentage of companies that have in-house IT infrastructures.

Cloud computing is still in its infancy and is expected to grow and revolutionize the way of everyday computing. Many theorize that cloud computing will one day take over today’s desktop computing. Until intensive applications are developed for use in the cloud, desktop computing will remain the staple of everyday computing. Cloud computing innovation is rapid, and as new cloud technologies emerge, more people will start adopting the cloud.

Current browser technologies are not up to date with the capabilities of cloud computing, especially in the world of mobile computing. Cloud applications require various browser technologies, including Adobe Flash, JavaScript, Adobe Flex, and much more. Until browser technology evolves to accommodate cloud computing capabilities, cloud computing will remain a relatively simple computing method.

General benefits

The advantages of the cloud far outweigh the disadvantages. As better cloud computing technologies are developed and redundancy is perfected, the downsides will gradually become obsolete. As mentioned, cloud computing is in its infancy and new cloud technologies are growing exponentially. Someday we will all use the cloud. In-house IT hosting, as well as desktop computing, can become a thing of the past.