Imagine the possibility of a company merger
where system setup and integration doesn’t hold back the business from its most
important goal, to create and adapt to growth. Or a system that allows a
company to operate in real time with everyone in the organization, internally
and externally. Imagine having the
ability to implement an ERP (Enterprise Resource Planning) solution without
having to slow down your pace of business while constantly paying for upgrades.
Worldwide businesses are no longer worrying about their IT systems, allowing
them more time to run and improve the business. All of these factors are
enabled by the rise of technology, as cloud computing changes the way we manage
our businesses today and in the future. The Wall Street Journal online quotes a study done by Forrester that estimates cloud computing sales at $41 billion in 2011, and increasing to $241 billion in 2020.
At the most basic level, cloud computing is
comprised of the three layers. Cloud computing will change the pace and
approach management takes on conducting decisions. It is important as a small
business owner or manager to be aware of these changes in preparation for
opportunity and the implications associated with globally moving forward into
the future.
Cloud Typology by Layer
At the most basic level,
cloud computing is comprised of three layers:
Infrastructure as a
Service (IaaS)
The
first layer of cloud computing is Infrastructure as a service. Infrastructure
as a service provides standardized, highly automated computing resources with
networking and storage capabilities that are hosted by a service provider. Due
to the scalability of IaaS, service and computing requirements are available on
demand. Using a graphical interface, customers can configure the environment of
their cloud infrastructure, therefore providing extremely customized needs.
Platform as a Service
(PaaS)
Platform
as a Service offers application infrastructure services, such as Windows
operating system. PaaS allows for quick customization and changes to the operating
system. This offers a platform in order to use existing applications or to test
new ones, without the need of heavy investment in operating system software and
infrastructure. This is especially useful and important for companies that are
experiencing a lot of expansion in a short time.
Software as a Service
(SaaS)
Software
as a Service is the most widespread form of cloud computing. One of the many advantages of software as a
service is its ability to easily allow for addition of users or other services.
It is owned, delivered and operated remotely by the service provider. SaaS
provides the operation of applications and software over the Internet to many
users without the user needing the required infrastructure or platform to
operate the software. SaaS is operated in a one-to-many model, with the source
being the service provider. For SaaS, pricing is based on either a pay-for-use
or subscription based model.
Advantages and Disadvantages to Cloud Computing
Advantages
The great benefit of
using a cloud system is many of its disadvantages can be avoided with proper
planning. The advantages of cloud computing include: low initial cost, scalability,
reliability of data not being lost (compared to traditional means), often have
higher security standards than most companies, and no expertise is required, as
the service provider provides it.
Disadvantages
The
disadvantages of cloud computing include: data privacy concerns, lack of
control over information and data, the location of cloud infrastructure could
conflict with local laws and regulations, and the fear of service providers
being bought out or unable to continue operations. Often, using a trusted
service provider can mitigate these fears or potential problems.
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