The term cloud computing describes an on-demand access via the internet, to IT resources like servers, applications (physical and virtual), development tools as well as data storage, networking capabilities and much more. They are hosted at a remote data center that is managed by a cloud service provider. Users are able to access this infrastructure via secured connections. Cloud services are accessible through a subscription, or by charging per usage.
Businesses that use cloud-based systems can reduce the costs and time associated with maintaining IT infrastructure, while also allowing IT personnel to focus on other productive tasks. The savings a business will realize will depend on the type of system they decide to transfer to the cloud and the systems they replace. However, a recent survey found that IT and business professionals reported savings of between 30 and 50 percent when moving to the cloud.
Several cloud service models are available and include Software as a Service (SaaS), Platform as a Service and Infrastructure as a Service. SaaS is the most familiar model, and is probably the one that most companies already use. It provides the application layer–software such as CRM, email, and office software- via the internet, removing the necessity of maintaining or upgrading hardware.
Businesses can also benefit from the ease of scaling up or down the size of their servers and disk storage, paying only what they use. This elasticity that is rapid can be an important feature for agile processes as well as for rapidly bringing new technologies into production. Cloud providers can also keep IT departments current on the most recent technological advancements without the need to worry about costly hardware.
