Gartner, a consulting and research information technology, defines cloud computing as Internet-based “scalable and elastic service” provided to multiple external customers. The data and applications no longer reside exclusively on desktops, now in the cloud, which is a shared network application servers and databases hosted scalable data in multiple locations around the world. Software as a service and remote file management are some of the applications of cloud computing.

Benefits of Cloud Computing :

Cost :

Cloud computing offers flexibility in costs. Businesses can avoid significant upfront costs of purchasing and installing software applications and hardware systems. This is particularly useful for small businesses operating on a tight budget. These can rent software applications and store space as needed. This avoids the risk of installing expensive systems, only to discover that they are insufficient for the needs of the company. The cloud computing becomes fixed costs into variable costs. Businesses use and pay for only what they need, reducing fixed overheads.

Flexibility :

Business operations are more flexible to use cloud computing. Companies can hire operations routine information technologies, such as data storage and backup, and focus on core operations such as design and development. For example, a software design company can use storage devices based on the cloud for backup operations information data and focus only on the design component of value added business. Cloud computing enables easier collaboration group. A software company can engage independent software engineers worldwide, which may use shared documents and virtual meetings to collaborate on projects.

Performance :

Internet connections allow high speed fast data transfer and real-time communication. Administrators can use mobile technology to keep in touch with headquarters and field offices. Cloud computing perite employees log on from their homes and interact in real time with colleagues working at remote sites several time zones away. Cloud computing offers unlimited storage capacity and releases the storage and processing on the desktop. The lightning strike or a system failure can destroy data on a personal computer, but not the data stored on network servers through redundancy created in Internet. Businesses may also be able to reduce their electricity costs, since cloud computing enables the sharing of resources.

Considerations :

Cloud computing represents some challenges. Relying on the cloud for storage and other critical IT needs can cause companies vulnerable in case of a network outage. For example, the outage of email can leave thousands of customers without a major communication tool. Privacy is something troubling, because the criminal elements can access personal data. Companies may also be reluctant to use cloud computing due to security issues such as hacking (hacking), information theft and unauthorized access to private data.