What is cloud computing? Its computing on demand and is very similar to movies or music on demand
. With movies and music on demand a user accesses a database and can select their entertainment without having to go out and buy the products or use valuable memory space storing the media on their hard drive.
The difference between cloud computing and entertainment on demand is that the former is designed for use by businesses. Cloud networks allow companies to access hardware, software, and other necessary business oriented services without having to install these on local hard drives. This alone saves a business a substantial amount of money in capital investment.
Cloud networks also save companies money in overhead and maintenance costs. Locally installed software and resources need frequent updating and maintenance for a company to meet customer demands and market changes. To do this a company must have IT personnel on-site at all times to address issues that suddenly arise, some of which can cause the company down time and lost revenue if not corrected quickly enough.
One of the main functions of a cloud network is to continuously keep software and resources up-to-date so that your company can access accurate information in a timely manner as needed, without the loss of money resulting from local computing issues. Spending money on repairs and maintenance has no return value for any company. Cloud computing helps a company avoid any return on investment risks.
Another advantage of the cloud network is that its inexpensive because service costs are distributed and shared among all the users of the network. Again, a company avoids the costs of capital and maintenance inherent in local computing systems and allows that company to invest its resources in profit-making pursuits such as marketing, advertising, and getting the word out to the consumer.