‘Cloud Computing’ is one of the many buzz words that has gained momentum during 2009. In the past, many references have been made to ‘desktop hosting’ or ‘distributed computing’ and all three terms have similar meanings.

So what is it, and what can it do for your business?
Historically, the use of the ‘cloud’ has always represented the Internet in technical diagrams. Cloud computing extends this concept, allowing users to access their regular business applications and documentation securely using a web browser on their local computer. The applications and documentation are stored remotely on servers; that is, off-site usually hosted by a third party. These servers typically have 24/7 backup and automatic failover. File transfers between the cloud and the local PC rarely take place; it’s just key clicks and mouse movements sent, with screen refreshes received.

What are the Benefits?
Primarily, cloud computing is a cost saver: the various cost savings are listed and explained below:

Licensing Costs: No need for costly software licenses, updates or patches. Software licences are included with any patches or updates taking place behind the scenes and included in the service cost; the cost model tends to be ‘per user per month’ negating the need for a large capital expenditure budget and catering well for expansion or contraction.

Reduced Staffing Costs: There is a reduced requirement for skilled IT staff to ensure all computing applications are up to date with the latest updates and patches and so on. The level of experience required for this support is not as great or as highly skilled as is required in traditional models.

Reduced Computer Hardware Costs: Now that the applications and documentation are sited remotely, the desktop computer needs to be no more than an inexpensive dumb terminal. There is no need for large amounts of memory, no need for large amounts of processing power – just the requirement to run an internet browser.

Reduced Bandwidth: When editing or producing documentation using cloud computing, the document itself remains on the server; it is not downloaded locally for editing. Instead, the changes to the document are small bytes of information as words or letters change within the document. Typically, on average, this is only 40-50Kb of information, peaking (for example when printing) at approximately 80-90Kb. This is turn means that there is no longer a business need for large bandwidth on the network as the data traffic is greatly reduced.

Reduced Server Costs: With all documentation held remotely on managed servers, there is a no requirement for server hardware on site. This means no need for additional floor space or expensive to run comm.s rooms with racks of power-sapping servers. In turn this leads to reduced energy costs and makes for a ‘greener’ business model.

Increased Flexible Working: It is easy to see how cloud computing leads to flexible working, including home working for employees. It is well documented that a flexible workers are a more motivated, with less staff turnover and less absenteeism. An increase in home working leads to office hot-desking, which in turn leads to a reduced need for large office space and associated rents and rates.

Business Continuity: Many small businesses make no meaningful provision for Business Continuity, or Disaster Recovery. The use of cloud computing offers this by default; if a primary office site were to suffer a ‘Bunsfield Oil Depot’ type of disaster, all company data and applications can be accessed in full via any internet connection without any down time.

Quality of Service (QoS): All reputable cloud computing providers operate 24/7 support; rarely are there any service degradations or service breaks and reputable service providers offer robust service level agreements.

Security: An architectural shift to the cloud is considered by many to be inevitable but this often leads to concerns regarding security, trust and control: giving up control to the cloud provider and trusting that provider with the crucial business’ information. Many businesses are wary that possible sensitive information and valuable company data is held centrally in the cloud but reputable providers ensure that security is paramount and certainly more secure than if the data or service remained in-house with the use of biometric entry systems, mirrored data centres and security cleared staff.

The Future….
Cloud computing is here, is established and is increasing it’s market share primarily due to the average saving of between 25-45% when compared to traditional IT models.

It is extremely appealing for small and medium sized businesses, especially start-ups, as it lets them to concentrate on their core business not their IT infrastructure. This is especially important where resources are finite and budgets are scrutinised.

Cloud computing services allow business not only to keep their feet on the ground but also to hit the desks running…

Should you wish to discuss cloud computing and find out how 500 can help you with our Hosted Desktop service then please call us on 0845 0000 500, or alternatively fill in our Contact Form.

This entry was posted on Tuesday, December 15th, 2009 at 10:09 am and is filed under Latest News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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