Technology + Efficiency, part one

August 19, 2009

"Cloud computing” (or virtual computing) involves using computing resources that are provided as a service over the Internet. Cloud computing resources may include software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Did you know that the popular social networking site Facebook is actually a cloud application? It runs on your computer, but you don’t have to install it on your computer. You can upload photos and save data in Facebook, and you can access that saved data from any computer in the world, unlike data you save on your hard drive. Facebook fun aside, what do virtual resources mean to business owners? Cost savings and efficiency.

As the “cloud computing” Wikipedia entry notes:

Cloud computing customers do not generally own the physical infrastructure serving as host to the software platform in question. Instead, they avoid capital expenditure by renting usage from a third-party provider. They consume resources as a service and pay only for resources that they use. Many cloud-computing offerings employ the utility computing model, which is analogous to how traditional utility services (such as electricity) are consumed, while others bill on a subscription basis.

So, when you use cloud computing, you pay for only the applications that you need—not for a costly, static package that you may not fully utilize or may not be able to afford in the first place. Cloud computing also gives you access to your stored information anytime from anywhere in the world that has access to the web. Cloud computing reduces barriers to technology use and improves agility with the ability to rapidly and cost-efficiently adapt to changes in the business landscape. Read more…