Cloud Computing

Cloud computing refers to the paradigm by which computing functions, document storage, software applications, and parts of or all of a data center are located and maintained at an external provider’s site.

There are many reason why an organization would want to adopt a cloud-computing strategy. Most of these reasons revolve around the desire to carry out IT functions more cost-effectively. Another reason might be capital outlays. A small startup company, for example, might not have the resources to hire staff and purchase computing hardware. Using a service such as Amazon Web Services or Google Apps (offered by Amazon and Google, respectively) for computing and archiving data saves startup costs with fewer financial risks. If the organization grows, it won’t outgrow the hardware that it purchased earlier. Conversely, if the business fails or slows down dramatically, it doesn’t have an investment in hardware and software with little resale value or one that might be too sophisticated for its changing needs.