Introduction to Cloud Computing
Cloud computing is the delivery of applications, platforms, data storage, operating systems, and other computing resources over the Internet. In the cloud model, you pay a regular subscription fee to consume certain services from a third party provider.
This is similar to how you consume services in your home such as water and electricity. You pay the utility provider monthly or quarterly, while they handle both service delivery and the maintenance of essential infrastructure, such as public water pipes and power lines. If there is an issue, you contact the service provider for a resolution. For example, if there is a power outage due to a thunderstorm, the utility provider is responsible for troubleshooting and taking the necessary steps to resolve the issue and reinstate your service.
How is cloud different than on-premise?
On-premise computing is like owning a well on your property instead of using a public water supply. You pay upfront to dig the well, install the pump, and set up the filtration system. Once it's operational, you have full control over your water source, but you are also responsible for its maintenance. If the pump breaks or the water becomes contaminated, you must troubleshoot the issue, invest in repairs, or hire an expert to fix it. While this setup provides independence and control, it also requires ongoing effort, resources, and technical know-how to ensure everything runs smoothly.
Likewise, an on-premise license is perpetual, meaning the customer is purchasing the solution for a one-time fee "into perpetuity" (forever). The customer is responsible for purchasing and maintaining the physical server(s) where the software will be installed on-site, and installing and maintaining the software itself. This includes setting up redundancies to back up data, as well as defining security measures to protect the physical servers and the software and data in the virtual space. The software provider may release patches and upgrades, but it's completely up to the customer to decide if/when they will install them.
If a company's server crashes and needs to be restarted, someone within the organization must take care of it. Until the issue is resolved, employees relying on the software won't be able to access it. Worse, if data is lost during the crash, it could cause serious disruptions. Large organizations may have the resources to hire a dedicated team to manage servers, software updates, backups, and security. However, small and mid-sized businesses often need a more affordable solution that ensures their data is secure and their applications are always accessible.
Even large organizations are increasingly turning to cloud software to reduce maintenance costs while still benefiting from the advantages outlined in the table below.
| Benefit | Description |
|---|---|
| Elasticity | Increase or decrease the storage space and computing power you need to meet fluctuating workload requirements. |
| Affordability | Minimize hardware and IT (Information Technology) department costs; only pay for what you use. |
| Availability | 24 x 7 x 365 system access from anywhere, on any device. |
| Security | Improve compliance, protect data, and mitigate risk with continuous security updates from the cloud provider. |
| Innovation | Rapidly adopt new technologies to innovate faster, while simplifying the IT department's maintenance responsibilities. |
| Agility | Set-up cloud system(s) to quickly react to changing market conditions and business needs. |