The Value of Cloud Computing

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SaaS and cloud computing have changed the landscape for businesses worldwide, from SMBs to the enterprise.

No longer do you need to purchase expensive hardware and software for many business functions. If you have an Internet connection, you can move much of your business computing to the cloud.

What’s the cloud? “Cloud” is a metaphor for the Internet. It’s an abstraction of how networks of computers are connected, in the old days by LAN and WAN, now by the Internet.

Over the last 5 to 10 years more and more companies have been delivering software that’s accessible from the Internet. They “own” the software and deliver it as a “service,” instead of having customers own and maintain it. Software-as-a-Service, or SaaS, is an application that businesses access and use via the Internet. The actual software applications reside on servers all over the web, in the cloud.

Why is there so much buzz about cloud computing?

• Reduced Cost — You typically pay as you go instead of making an upfront investment
• Security – SaaS  is often more secure than your existing network
• Reliability — Redundancy in the cloud ensures it’s always on and accessible from anywhere

One of the main drivers of the move to the cloud is cost; for many businesses, it’s cheaper to use software-as-a-service in the cloud than purchasing and maintaining software in-house.

Cost savings should be evaluated on a case-by-case basis, but analysts are starting to make the research available to the public.

For a fun overview of the cloud, check out this video created by Salesforce. They have been pioneering the “No Software” model for a decade.

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