Cloud computing promises to change the way companies and consumers view information technology, and some bullish industry experts have even likened it to the Industrial Revolution. Most of us are familiar with the term and have likely used a “cloud” service is the past. But what exactly is cloud computing? In simple terms, cloud computing describes computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. Maybe more importantly, what cloud computing symbolizes is a paradigm shift from IT infrastructure and software to enabling IT products to be consumed as services.
A conceptual diagram of cloud computing.
Michelle Price’s recent Wall Street Journal article “Pinning Down the Cloud” delves into the growing importance of cloud computing for businesses. One of the top benefits of operating in the cloud is cheaper IT. These third party services can be consumed on-demand and on a pay-as-you-go basis, allowing businesses to determine how much they want to spend. Second, cloud computing improves business agility. According to Alan Goldstein, chief information officer of BNY Mellon Asset Management, “[Companies are] able to more rapidly deploy infrastructure and applications and to scale-up horizontally.” Third, cloud computing allows company employees to access their IT services and the data stored in it from any location. In today’s increasingly global world, this makes doing business easier.
Businesses are starting to notice these benefits; a recent Gartner Inc. study shows that by 2015, 50 percent of Global 1000 companies are expected to use cloud computing for their top 10 revenue generating processes. Cloud computing is still a relatively new concept and will continue to evolve over time. And while companies are still trying to figure out how to incorporate cloud computing into their daily work life, there is no doubt cloud computing is growing rapidly.
