Why Cloud Computing
Cloud computing is a swiftly rising technology trend that promises to deliver profound impact to the way information technology services are delivered and consumed. In the face of dwindling capital budgets and a weakened economy, cloud computing represents a lean and nimble approach to supporting the business with more flexibility and agility at a reduced cost. Analysts compare its significance as a trend to that of the shift from mainframe computing to client/server and the evolution of the Internet as a transformative phenomenon.
The scope of cloud computing is broad, ranging from server virtualization to software-as-a-service (SaaS) and more. Our pragmatic view considers the components of the typical cloud solution, beginning with the strategic and effective use of location and infrastructure-independent software components (or service-oriented architecture) that are housed in web-based applications. In other words, the functionality delivered by the software or SOA is hosted on the Internet, or the “cloud.” Importantly, access to the functionality is on demand, which means users can scale up or down as business needs dictate and will typically pay for consumption as they go. Finally, cloud solutions are managed by third parties who manage operations and support according to service level agreements.
By taking stock of cloud benefits, it’s easy to see why it is a buzzing IT phenomenon today. Rather than making a large upfront capital investment to buy and own hardware and software as with traditional IT, companies can rent their applications and infrastructure from specialized vendors. This pay-as-you-go approach aligns capital investment to system benefits, enabling companies to reap immediate value from their systems, rather than over many years. Cloud approaches also allow for rapid, flexible startup, dynamic and automated changes, and enhanced quality of service and mobility.
While cloud computing and the popular SaaS model are hyped for their low cost, low commitment, and low risk attributes, selectively partnering with an expert in cloud strategy and implementation is an important step to navigate opportunities and implications, as well as to help safeguard against potential risks including security, privacy, downtime, and data loss.
Industry analysts proclaim cloud computing technologies as significant and high growth areas driven by a confluence of trends. These include increased cost pressures, heightened expectations for rapid ROI, greater requirements for on-demand solutions, less patience for lengthy deployments, and an increased maturity of SaaS applications. We don’t see this phenomenon as a passing one. It’s a new technology wave that will continue to force the adoption issue among companies — and those who adopt earlier will be in a stronger competitive position.
