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You've
no doubt heard a lot about cloud computing (or the cloud).
What you may not have learned is how this misty concept can
help with the real problems of operating your business,
especially in hard times.
In short, cloud
computing offers attractive options for small and midsize
businesses that need critical IT upgrades, but may lack the
cash for a large capital investment.
Through the
cloud, you can add new, vital applications or you can
supplement the capacity of an existing infrastructure.
Because cloud services are delivered via the Internet (often
the Web) you only pay for the features and functionality you
use and don't pay for extra hardware, software, staff and
maintenance. As a result, your business can grow its IT
capabilities, often at a lower cost than doing everything
itself. And you can pull the cost from your operating budget
rather than your capital budget.
So what is
cloud computing exactly, and why is it significant to small
and midsize businesses?
Understanding the Cloud
The cloud can deliver software-as-a-service (SaaS) or
supplemental infrastructure capacity, such as data storage
space or processing power, all on-demand via the Internet,
usually the Web. Cloud services don't require that you
purchase dedicated hardware and software or manage those
particular applications. You simply pay for the
functionality, sometimes as a flat monthly fee and sometimes
by metered use.
For example, a
small greeting card company might sign up for a cloud
order-fulfillment system. The application would be hosted
and managed by the provider, and it would be accessible to
users through a Web browser. The company could sign up for
the service instantly, without having to undergo a
complicated implementation to house the application on its
own servers.
Salespeople
across the country could then access the fulfillment system
from any Internet connection, no need to go through their
employer's network or install software on their own
computers. Multiple users can be quickly added or removed,
as well.
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