Cloud Computing: What is it and how does it help ( or not) ?

by Ashvini on December 20, 2010 · 5 comments

in Business

One of the trend these days is to use ‘Cloud computing’ . Cloud computing means storing your data on hired servers. Just like as someone would rent a house, companies have servers that they lease out on monthly rentals. Based on your paying capacity you can determine if you own a privileged house or just an ordinary house.

So let us say you are in need of disk space to run your website and store data for your and your customer. The best place and you cannot beat it , to store your own stuff is your own home. But sometimes your home is not big enough, does not contain enough shelves or you expect many people knocking on your door in future. There is always a chance of burglary, fire , theft and you may lose your things.
In virtual world, you may call viruses and online attacks as burglars and thieves. You need to constantly update your system with better security software because burglars are getting smarter by the way.
So in summary I feel that though it is great to have data at your own home, you will need to incur following costs

  1. Server software
  2. Database
  3. Hardware
  4. Security
  5. Maintenance
  6. Upgrading and patching from time to time
  7. Backup
  8. Enough room to house hardware
  9. Leased lines
  10. Static IP
  11. Employees to maintain server
  12. Scalability issues

and maybe some more.
For a small business, it is not possible to have all of them. Employee costs are high and hence small business owners like you and me will not be going for this option. Therefore, most of us adopt someone else to host our stuff. It is like buying a small rental house on the outskirts of the town. The rental costs are lower because lot of people put their stuff in the same house and the rental agency just needs to guard that space.

i hope I am making sense with these. So basically this is what happens, you go and get a website registered, buy some rental disk space and then point the website to that space. You do not have hassle of maintaining, running and securing the website space as the disk space providers will ensure high levels of these services.
Cloud computing is not limited to only renting out some disk space. These days you can even rent space for pre-loaded apps. For e.g. if you want a ready – to -deploy service which can be started in no time, cloud is the way to go. There are a lot of companies offering this kind of service. You just have to pay a monthly amount ( sometimes per user/ per application). It is also sometimes called SAAS or software – as – a service.
Conclusion: Cloud computing is promising because you really don’t have to worry about most of the points that you would have to, if you decided to have a solution at your premise. Once your business becomes big, you can always take up higher capacity options by paying more.

Next: Does all that glitter is gold?

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Pradip Sarkar January 10, 2011 at 8:52 am

Important issue is the implications of cloud computing on the future of in-house IT departments in large enterprises, esp. public ones

Ashvini Kumar Saxena January 10, 2011 at 10:14 am

Absolutely, Pradip. The issues related to data security privacy and others have quite an implication when it comes to cloud computing. Thanks for commenting.

Aswani December 21, 2010 at 11:08 am

Yes Ashvini, it is very promising. I have to say the same. I think yes, too bear that much really doesn’t look feasible for any small business. Opting for cloud computing is the best available solution that a company can afford in such cases. But again you are comprising with the security…what say ??

Ashvini Kumar Saxena December 21, 2010 at 5:26 pm

Security yes a huge problem. I am not worried about virus and malware hitting servers as someone with unauthorized access. As I said if the data is on premise you can put as much security as you want. In case of cloud you have to depend on what is promised by the hosting company.

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