Cloud Computing is the term which has been attached to what is now generally regarded as the next stage in the Internet’s development: the renting or borrowing of software online by users rather than buying and installing it on their computers. As a business model it is pretty much the same as, say, Yahoo mail services, but takes the concept a lot further.  The Internet “Cloud” would enable whole businesses to access a centralized hub to run their software tools, processing and storage, as online rented facilities.  The way technology is used to service customers, suppliers, and partners would be totally different and already some companies like Amazon and Google have substantial IT resources in the cloud.  They report that many of the constraining issues of, for example, cost, capacity, time and power, associated with the present Internet environment have been either substantially reduced, or eliminated.

There are a number of benefits which would accrue to businesses that adopt Cloud Computing:

• Initial investment savings.  The low initial costs or free trial arrangements offered by cloud services enable effective and swift evaluation of applications before any major outlay rather than the current purchase – install – assess model that can be both time-consuming and expensive with no guaranteed outcome.  Looking forward, the use of cloud services will preclude the need for any IT overhead: servers, software, and support staff.
• Software that always matches your business needs.  You pay only for the features you require with a choice of payment plans that let you start with a package covering present needs and allowing for additional services to reflect business growth.
• Operating flexibility.  Secure access through a web browser means that cloud services will afford connection for you and your people to crucial business information anywhere and anytime from any appropriate device.
• Goodbye to data back-up.  Your cloud service provider will store all your information in specialized “data centers” with a very low risk of damage and immense capacity.  If your PC or mobile device is lost, damaged, or stolen no data can be lost.

There are some possible downsides associated with a move to cloud computing.  Users will need to place a lot of faith in their service provider not disrupting the service.  At worst, the perception that your business is hostage to a provider holding all your documentation could become the stuff of nightmares.  The jubilation occasioned by a breathtaking reduction in IT administration costs could be tainted by worries arising from an increase in the possibility of service disruption, unreliable connectivity, and security.