Essentially the term cloud computing refers to a service that provides the hardware, storage devices, software, networks and various services that are traditionally found on the site of a business. By using cloud computing, everything a business would normally do with their own computer system can now be done over the Internet.
The local area network is no longer needed. The programs used are run online, and the storage of files is done online, Everything a business needs can be accessed online with cloud computing. Since everything is done over the Internet instead of locally, the word cloud is used to describe the technology.
The savings in both hardware and software can be tremendous for a company. Much of computer requirements needed to run a business are available online. There is no reason to hire as many IT professionals because your cloud hosting provider is doing most of the work for you.
The services used by a business with cloud computing can also be metered. You pay for what you use. This means cloud computing is scalable. As a business grows, so does its computing needs. With cloud computing it is easy to expand your computer usage without investing in new hardware or software.
Some businesses today are only using cloud computing for storage of files. Other firms are using the software that is available, some are taking advantage of the computer processing power that is available, and some companies use cloud computing as their entire platform.
Cloud computing is a term that is often used online, but for those unfamiliar with the concept, it is not always clear what is being described. Cloud computing should be understood, at least in general terms, by everyone using computers. In the business world, this is the direction that companies are moving in. In fact, the entire Internet may be moving in this direction as individuals use cloud computing themselves.