Traditional IT would have you to acquire all of the hardware infrastructure for all of your computing needs. Specifically, servers, storage, firewall, router, cabling, and backup systems (e.g tape drive). You are left to purchase, setup and maintain it yourself, or outsource those ongoing services as recurring costs. From the bare minimum to the highly specific; everything needs to be handled expertly.
Traditional IT entails owning an individual server and all other business applications that an organization may require. Such infrastructure is often built with a very high investment. A company needs to procure individual licenses for all products and services. We all know how expensive it is to set up a server.
Cloud computing removes this inherent drawback of traditional IT. You don’t need to make such costly initial and ongoing IT outlays. You can share resources with others, thus utilizing common resources. This sharing happens with a group; referred to as the ‘cloud’. Thus, the term ‘Cloud Computing’.
Cloud computing defers from other computer applications such as web site/services, client-server model, peer-to-peer and utility computing.
Under this framework you share resources through the internet. Web browsers are typically used to access ‘cloud resources’. Once you log-in to your cloud, access to common resources is automatically granted. Cloud services are provided by Microsoft, Hewlett Packard, IBM, Salesforce, Amazon and Google. Once an agreement is signed with any of these companies, clients are guaranteed of a minimum service quality. Service level agreements oversee all contracts.
Small and medium enterprises greatly benefit from this technology. Since their capital expenditure can be converted to operational expenditure. A business does not require any capital investment to set up this system and ongoing mantenance, upgrades, and repairs are included in your recurring cost.
A cloud network can be accessed from all locations. You are not bound to any physical variables. Even if your normal work-place suffers a calamity; you can access your cloud from a remote site. Your ‘business continuity’ will not be hampered. Moreover, all your data will be completely secure as all of it is stored at a central location. ‘Data secrecy and security’ will never be compromised.
A client is metered for usage and is billed accordingly.