Most people use cloud computing in different ways, but
rarely give it much thought. On smartphones they listen to music that is stored
"in the cloud," and on tablets they read books and magazines that are
also stored there. If they use Gmail or Hotmail, they're using a cloud-based
email system. One reason most users give the cloud so little thought is that
these cloud services work well and are free of charge.
Most business users, however, give the cloud serious
thought because they use it for professional purposes, and, crucially, they pay
a lot to do so. Companies use cloud computing for three principal purposes:
data storage, security backup and disaster recovery, and online applications.
Let's examine each, and then look at the risks.
Simple storage, security backup and disaster recovery
Most small and medium sized companies have at least one
on-site backup copy of their current "active" data - the
"live" data they continually access. For additional safety, many of
those companies now also backup that data to the cloud; in the past, they would
merely have held an extra backup copy on their premises.
The amount of digital data generated by most businesses is
growing very quickly as many businesses adopt additional IT solutions to reduce
staff costs and increase efficiency. Because of this growth in data, senior
management has become increasingly aware of the need for data security and
disaster recovery in addition to just storage. They realize that the cloud is a
more flexible, cheaper, and safer solution to all those issues because the
on-site alternative requires the purchase of new equipment and the recruitment
of extra IT staff.
Online applications
Apart from using the cloud for data storage and disaster
recovery, many companies reduce costs by also outsourcing many of their
critical computer applications to the cloud. This shift fundamentally changes
the business's operational ecosystem - no longer must it purchase expensive
hardware or software, ensure it is constantly updated, employ expert staff to
support and maintain it, and accommodate the staff and the equipment. The cloud
company hosts and maintains the application software and stores all data. The
client company accesses the applications usually via a relatively inexpensive
client-side interface or a standard web browser; the cloud company looks after
everything else. This kind of infrastructure is called SaaS (software as a
service) and it enables the client company to concentrate more on its core
activities.
Companies that use the cloud extensively make the biggest
savings because they can more accurately predict and control their IT costs and
easily adjust their usage according to changing needs. The cloud also helps
cash flow because the revenue authorities treat cloud costs as day-to-day
business expenses. As a result, companies can write off those costs against the
current year's tax.
Surprisingly, smaller businesses have adopted cloud
computing faster than larger ones. The reasons are twofold. First, big
companies have more cumbersome structures and are generally slower to change in
most areas of operation. Second, many are in industries that must have the
highest level of secrecy and security, like banking and insurance. Such
businesses prefer to keep all their highly sensitive information in house.
The risks
There is little doubt that cloud computing offers
considerable advantages to most businesses, and that an increasing number will
become users as time goes by.
Most potential users, however, have worries about moving to
the cloud, and virtually all of them ask the same two questions: Can we be
certain that highly confidential data is completely secure? Can we be
guaranteed uninterrupted and unrestricted access to our data and applications
whenever we want it? These two questions are important, but a positive answer
to either is impossible because there will always be doubts. Potential users
should, however, bear in mind that data stored on their own premises is not
completely secure or always accessible - it can be affected, for example, by
fire, water leaks, power outages, equipment failures, or theft.
All major cloud companies backup their clients' data
frequently and keep multiple copies of the data in different locations, each
protected by the highest level of physical security. They are able to guarantee
a level of security and accessibility that few of their clients could ever match
on their own, and they can do it more economically. In the end, there is really
no contest: cloud computing is definitely worth the money and the risks.
By: Robert Blake
If you would like additional information about cloud computing please call 877.860.5831 or visit us online at Bit by Bit
