Understanding Basics of Cloud Computing
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In Information Technology industry Cloud Computing is one of the most talked about and discussed topic. This article provides an easy to understand definition of this technical term and its main advantages.
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"Cloud Computing" for non-technical person may sounds like computer based solutions made for heaven. Well, this may sound true to some extend as Cloud computing removes huge Capital Expenditure from consumers perspective and gives them freedom of making use of best technology on rental basis. Cloud Computing gives its customer a very effective and easy solution, where they don't have to worry about deploying and managing huge network, computers and software infrastructure.
By using Cloud Computing customers can reduce or avoid capital expenditure by renting 3rd party services. Customers can make use of resources as services and only pay for the resources that they use. You can think of Cloud computing as subscription based Telephone or Electricity service, where customer is liable to pay only for whatever they have consumed.
To make it more simpler let's take example of a medical centre or clinic which requires a software solution for maintaining patients records, managing appointments and schedules, accounting, customer relationship management and other integrated solutions. Medical Centre can purchase Servers, install network, purchase multiple software solutions and implement all this by bearing a huge one cost. This cost will be followed by monthly maintenance cost, salaries of technical human resources like: project manager, network engineer, support technician and other related costs. OR company can rent monthly / yearly plan from a software service provider who provides Internet based required software solution/s. The complete solution will be hosted on third party's servers which can be accessed by medical centre through internet. This will minimize company's capital expense cost dramatically. This capital can be spent in other business areas for gaining better financial returns. Thus, these web hosted solutions which can be referred as Software As Service (SaaS), and SaaS is part of Cloud Computing.
To Summarize, we can say that, Cloud Computing customers do not own the physical infrastructure and the software applications they require, instead they make use of renting monthly or yearly usage of hardware and software from third-party provider/s. All of these resources can be accessed through internet thus avoiding in house networking cost. They consume resources as a service and pay only for resources that they use.
Though Cloud Computing is relatively new in the market but it's getting popular very rapidly. In coming years we will see lot many businesses taking advantage of it because it not only reduces cost but also give advantages like flexibility, mobility by accessing your applications from anywhere and ease of storing high volume of data on third party servers.
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