Cloud computing is a computing model that lets you access software, server and storage resources over the internet instead of having to buy, install, maintain and manage these resources on your own.
The earlier form of cloud computing was ASP, which stands for Application Service Provider. These were the first providers of processing power accessed over the internet where customers did not own the application or install it on a local resource. Gmail or Hotmail are well known ASP’s.
The next generation of cloud computing was Software-as-a-Service (SaaS). These types of cloud computing providers deliver a single application through a browser to multiple customers using multitenant architecture (shared servers). On the customer side, it means no upfront investment in servers or software licensing. SaaS solutions are typically more sophisticated programs like Customer Relationship Management software (CRM). Salesforce.com is a well known SaaS provider.
Desktop as a Service (DaaS) gives your end users access to all the application and data they need to do their job over a public internet connection or a private point to point connection. This is also called cloud computing. For small businesses, it’s the next generation of gaining and maintaining a competitive advantage.
Cloud computing comes in to focus for small business when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing capital into new network infrastructure.
Instead of laying out capital to buy hardware and software, you rent what you need, usually on a subscription basis. DaaS minimizes the dependence of client-side equipment, software, and help desk personnel. In doing this, the hosted environment essentially replaces the need to do the mundane tasks of an in-house or outsourced IT department. There are no servers to manage, no software to install and system expansion (the need for more CPU, memory and storage) can be added as your needs change. PC’s can be replaced by thin client terminals (today’s dumb terminal), no backups to do and no operating system upgrades to perform.
In conclusion, there are thousands of cloud computing vendors and solutions out there. But they are not all created equal. When considering using the cloud to handle your computing needs, think about how critical a particular function is to your business. Before moving forward, consider your needs for reliability, security, performance and support. Cloud computing providers should offer a help desk with well defined response metrics and must supply you with proof that these requirements are met. You should do a comparison of the cost of cloud computing as compared to the cost of what you have been spending to own and manage your in-house IT infrastructure. Even if the cost is higher, there are many additional intangible benefits that could make it the more cost effective solution