Cloud computing, in its many forms, remains largely undefined. It’s an often used, and often misused term that is fast becoming the newest catchphrase in the IT world. Cloud computing technically refers to the ability to access applications, servers, software, data storage, etc. over the Internet rather than buying them outright and handling installation, instruction, and technical support locally, in-house.

Simply put, the term “cloud computing” can refer to any pay-as-you-go or subscription service that can expand your IT capabilities through Internet access. The big claim to fame is, of course, how much money you can save. These services can potentially save your clients capital or initial investments through subscription or utility billing rather than outright purchase. Depending on the size of the customer and daily needs and usage, cloud computing can be very beneficial.

ADVANTAGE

• Increased data storage capacity: Instead of having to ensure that you have more than enough local storage, you can trust that there will always be enough storage space through cloud computing. This can be a cost savings if you have a large project underway and you want off-site storage for the exception rather than paying for more capacity than your business normally uses on a daily basis.

• Updates: no need to update programs or software internally. Providers do it automatically. That means less hassle for you and your IT staff.

• Bottlenecks – There are fewer problems with bottlenecks when usage is at peak levels. So far, it seems like high volume usage won’t slow you down when using cloud computing.

• Access: Cloud computing allows you to access your data and programs over the web from virtually anywhere. This is a huge benefit because more and more people are working from home or virtually, so you can communicate and process data from almost anywhere.

• Billed by use or subscription: This practice is one of the main motivators of cloud computing. No initial investment in programs or services that you cannot use on a daily basis. Without paying more than what you use.

• One-time use (or more): This is useful for services or programs that you don’t normally need. Without cloud computing, you would have to buy everything you might need outright for an occasional project that doesn’t fit into your core business.

While cloud computing has many advantages and is very likely the way things are going to go and continue in the long run, there are also disadvantages to pay attention to. Some can be avoided and some simply cannot be planned enough.

DISADVANTAGES

• Expenses: Your cloud computing expenses may be lower, comparable or higher than your internal services. This is something you can only find out by comparing costs and estimating usage. Some questions to ask yourself before registering: Do you have the capital to buy in advance and continue with the upgrade and training? Does it have internal capacity for maximum storage and security? Are your privacy needs better served internally or online?

• Security / Privacy – Security and privacy rights have been claimed to be better and worse than local data storage. An example is the case where the NSA recorded phone calls through AT&T and Verizon. Plus, your provider basically has 24-hour access to your data, so you’ll want to go through all of your privacy guarantees with a fine-tooth comb to make sure you’re as protected as possible from both external exposure and your employees’ access to your vital information.

• Service outage: How safe are the providers you choose to work with? What implementation plans are in place if they have technical problems, security breaches, or extreme financial difficulties? With cloud computing moving fast and furious, there are many startups waiting for the long haul and many out there to profit while it’s hot. In this unstable economy, many providers are here today and leaving tomorrow, so do a little research and get the answers to your questions, like the ones above, in writing.

Cloud computing is here to stay. It can solve many problems and save many companies money, and it is also evolving at a very fast rate. Keeping abreast of changes is vital.

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