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What is Cloud Computing?

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We’ve all heard that cloud computing is the future of technology and will take over how we work with computers over the next few years. Truth is, the transition has already begun in more ways than you probably realize. Understanding what cloud computing is and how it will affect your business is important. In the next few years, cloud computing will dramatically affect your decisions surrounding technology – from how you use software to what equipment you buy.

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Dictionary.com defines cloud computing as:

A loosely defined term for any system providing access via the Internet to processing power, storage, software or other computing services, often via a web browser. Typically these services will be rented from an external company that hosts and manages them.

Cloud computing is the idea that, in the future, all applications will run on the Internet rather than on your computer. Let’s use email as an example. Think about the difference between Outlook, an email program that runs on your computer, versus Gmail, an email program that runs on the Internet. Gmail is an example of cloud computing. With cloud computing, there is no software to purchase, install or maintain. The entire application runs on the Internet via your Web browser.

One day, probably in the next 5 years, all computing will work this way. Every application you have running on your local computer will have an online counterpart that will run within your Web browser. It may seem farfetched, but there are countless examples of desktop applications that already have an online counterpart. The following is a table showing popular desktop applications and their online (“in the cloud”) alternatives.

 

On your computer

In the cloud

Email

Outlook, Macintosh Mail

Gmail, Hotmail

Desktop publishing

Microsoft Word, Excel

Google Docs, Zoho

Customer relations

ACT!, Goldmine

Salesforce.com, SugarCRM, HighRise

Financial

QuickBooks, Peachtree

Freshbooks, Mint

Content management

Contribute

ExpressionEngine, Wordpress, Joomla, Drupal

The benefits of cloud computing

If you’ve used an application “in the cloud” you’ve probably already realized some of the benefits. I asked my friend Joe Gleinser of GCS Technologies for his definition of cloud computing and this was his reply:

“Cloud computing is how businesses will slash IT spending in the next two years. It will drive down technical support costs, reduce headcounts in IT departments, and minimize complexity in our networks. The Cloud will increase the rate of technical change. New technologies will be introduced much more quickly than before.”

Within Joe’s definition are several benefits of computing in the cloud.

Reduced Cost

Overall, cloud computing will cost less than traditional computing. Instead of investing serious dollars in servers, IT infrastructure and software licenses, companies will be able to leave all of that to service providers as they subscribe to all of their applications. In the future, computers will need to be less powerful as well. Since all the computing power will happen in the cloud there will be less physical drain on local resources. Once cloud computing really takes off, companies will be able to cut their IT costs big time.

Increased Reliability

Because cloud applications exist on redundant computers in professional data centers, cloud computing will be more reliable than traditional computing. Since businesses will be subscribing to a service, the service provider will be responsible for backing up data, providing security fixes and solving technical problems. The result will be a suite of applications that have greater uptime and better performance than traditional software.

Less Maintenance

IT managers will rejoice as their companies invest in cloud applications. Applications that run in the cloud will have virtually zero required maintenance versus traditional software. The responsibility of maintenance, from upgrading the software to fixing bugs, will fall on the service provider, relieving local IT staffs of the software maintenance burden. Overall, countless hours (and headaches) will be saved as companies no longer have to maintain local software applications.

With cloud computing on the horizon, it will soon be time to ditch your clunky desktop applications and move to running your business from the Web. Let’s hope life is even better in the cloud.

Nick Weynad Founder, president and strategy director for TradeMark Media. Nick provides strategy consulting for clients and manages the business activities of TradeMark Media.

We invite all of you to get a discussion going.  Please submit your comments at the end of this article, Thanks.


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