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Living On A Cloud - Understanding Cloud Computing

In the Information Technology industry, cloud computing refers to an on-demand computing

service where the users are provided computing resources and services through the Internet.

Most cloud computing service provider offer this as shared hosting, VPS hosting or SaaS (Software as a Service) hosting. Other than SaaS, cloud computing also involves Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS). The basic purpose of this service is to cut down expenditures as customers pay for only the services they use.

For instance, if a clinic needs a software solution to maintain patient records and appointments, it would normally need to buy a server and software solutions bearing huge installation costs. On top of this, the clinic will have to shell out monthly maintenance costs. It'll also need to pay salaries of various professionals such as network engineer, project manager and other technicians. In cloud computing, the clinic can opt for a yearly or monthly plan from an Internet based service provider. In such a case, the entire software solution is hosted by third party servers that are accessible through the Internet. The service is completely managed by the provider (the data and the application). and the customer does not own any physical infrastructure. Thus, customers pay for what they use, similar to a telephone or electricity connection. For this reason, it is also called utility computing.

Unlike conventional computing, cloud computing operates on a much larger scale. It is very efficient in the way it delivers, manages and integrates applications. It is also very beneficial for hosting services providers. A cloud can be either public or private. The public cloud, also called external cloud, is free to sell services to anyone online. The services of a private cloud are available to only a few people. There is also a possibility of a hybrid cloud or a virtual private cloud. This cloud is formed when a private service provider uses a public cloud to offer their services.


It is estimated that in the near future, cloud hosting will get divided into two types- proprietary platform clouds and services clouds.

Cloud computing is a new concept but it's gaining popularity very fast due to its benefits. This services reduces cost as well as gives added advantage of flexibility of storing information from any location. All major technology players in the market today are offering cloud-computing services. Though cheaper than traditional software solutions, each cloud computing service provider has their own billing method. Therefore, you must choose carefully.

by: Melissa Smich
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