Cloud computing is a form of computing in which all applications, information, and resources are managed in a virtual environment. The term “cloud computing,” in particular the use of the word “cloud,” was intended to reflect the nature and structure of cloud computing. Cloud computing includes virtual hosted environments that allow users to connect to services hosted on the Internet.
Google Apps is a great example of cloud computing because companies no longer need installed word processing software, internal email servers, multiple IT groups, and many other cost-effective benefits. With Google Apps, companies can access all services through a web browser, including email, website hosting, calendar logging, editing/document creation, and more. The advantage of using Google Apps is to improve performance, security, reduce IT costs, and back up your data. Microsoft has also entered the cloud computing realm by integrating current software such as Word and Outlook with online storage and easy availability.
Many hosting companies and even a few online retailers are starting to offer cloud hosting services. Rackspace, an internet hosting company, has begun offering cloud hosting to customers who need personal cloud applications in a controlled environment. Amazon also offers cloud hosting services due to its extensive infrastructure and Internet bandwidth. Most cloud hosting companies offer easy customization and private cloud hosting with simple user interfaces. Most cloud hosting companies have actual fees instead of fixed tariffs. Users simply pay for the amount of processing, bandwidth and storage they use. This pricing method is beneficial to both cloud hosting companies and end users.
There are three main options for cloud computing:
IaaS (infrastructure as a service): the need for expensive equipment is outsourced. Instead of companies buying expensive hardware, including servers, hard drives, and network equipment, they will be used in the cloud and hosted by a cloud computing company. The business entity will use virtual equipment based on costs.
PaaS (platform as a service): Applications run on virtual cloud servers. A small business that sells cloud applications to businesses will use PaaS to “host” cloud-selling applications and run them on cloud servers rather than on internal servers. The company that sells apps pays for CPU/bandwidth-based services.
SaaS (software as a service): Cloud applications are paid for when used and are not sold as license packages. This allows small businesses to purchase pay-per-view licenses for apps they don’t use often. Instead of buying 15 licenses, the company can only pay if the software is used and restrictions on the number of machines on which the software can be installed are removed.
IaaS, infrastructure as a service, is now the most widely used cloud service. With IaaS, small, medium and even big business can achieve significant savings. Companies can completely eliminate the need for expensive network equipment, expensive bandwidth to support their network, expensive network storage equipment, and more. Business pays only for what it uses from cloud infrastructure, which means loss of capital due to non-use of internal network equipment, bandwidth, etc. As IaaS gains popularity and more and more cloud hosting companies emerge, costs could potentially fall even further. . due to oversupply and increased competition in cloud hosting.
PaaS, a platform as a service, ranks second after IaaS in popularity and consumer recognition. Small businesses that sell cloud apps and/or cloud services don’t need to host apps, but they can be hosted elsewhere.