Cheat Sheet: Cloud computing

Don't talk about clouds, that usually means rain's on its way…
Yeah, sorry about that but don't worry because cloud computing actually refers to services and applications that are hosted on and accessed through the internet - or 'the cloud' as it's now known.

Makes sense but why should I be interested?
Well if vendors and analysts are to be believed, everything will be done in the cloud in a few years' time. Lots of tech companies, big and small, are dabbling in cloud computing with the likes of Google, Microsoft and SAP all getting (or trying to get) a piece of the action. HP, Intel and Yahoo! also announced recently that they're teaming up to work on cloud computing.

But is it actually something businesses will find useful?
There's definitely a market out there for this kind of stuff, with Google Apps doing a roaring trade and software as a service (SaaS) companies like salesforce.com and Netsuite - who have based their entire business models on supplying software via the web - enjoying huge growth in just a few years.

Give me an example of this cloud malarkey then…
You're probably familiar with online email services such as MSN Hotmail and Google Mail. These are a form of cloud computing as they're essentially a way of storing and accessing data through a web browser.

The email data is held on servers by the service provider but users can securely access them through a standard web browser. In fact some big name businesses have moved their staff onto this kind of email service due to the flexibility and value it offers compared with traditional computing.

Other applications include online portals such as iGoogle, which allows you to have a selection of online services available on a single web page. It means you can have your email, map service, RSS feeds and even cartoon strips all appearing on a single home page.

There's also been talk of this idea being adopted in the business world to allow workers to access all the applications and information they need through their browser.

It can't just be about email though can it?
You're right - there are loads of other applications lurking in the cloud, many of which are classed as SaaS or on-demand software. This essentially allows businesses to use tailored versions of software that are actually hosted by a third-party vendor. SaaS applications range from customer relationship management to purchasing, finance, HR and document collaboration.

Big SaaS players offering these kinds of software include Google with its Google Apps and SaaS specialists salesforce.com and Netsuite.

Businesses can also use the cloud to boost their storage capability. For example, online retailer Amazon charges businesses to use spare capacity in its enormous infrastructure to give them extra storage options.

The other big traditional tech vendors are all working on cloud services, with Microsoft starting to really embrace the internet following its initial slow start and SAP is working on an ambitious software package called Business by Design, which it's touting as being the most comprehensive SaaS enterprise resource planning product on offer - when it finally appears.

OK, I get what the cloud is now but what's so great about it?
Cloud computing means data and applications don't need to be held on servers within businesses or on home PCs where they will actually be used. This does away with the need for software to be installed and fewer servers are needed, all of which significantly cuts down on tech maintenance and implementation costs.

If you look at Google Apps, for example, the licence cost per user for its Premier Edition is just £25 per user. Google simply supplies the accounts and maintains the systems while business users merrily go about their day-to-day business.

So it's cheap but is that it?
Nope. Cloud computing also means IT teams can focus on other tasks as a third party deals with any misfiring software or server maintenance. Instead, in-house IT teams can focus on projects that could improve their business and not have to worry about more mundane tasks.

Another benefit is that people can access their business services and applications through almost any device with an internet browser. This obviously means they can work more flexibly without having to rely on a connection back to their office network.

Some cloud computing vendors are also tailoring their applications to work on mobile devices. The launch of the 3G iPhone, for example, was accompanied by countless vendors touting their SaaS products for Apple's shiny new device.

What about security?
Good job you asked. Customers, on the whole, seem to trust the cloud services they are adopting in ever increasing numbers. Google Apps has been praised for its security as it incorporates tried and tested technology from security firm Postini, which it acquired in 2007.

Some people are even talking about security services that are hosted in the cloud, with malware and spam detection applications already available. In fact analysts at Gartner are predicting that spending on online security applications will treble by 2013.

There is still an issue around business continuity and uptime - namely if your cloud provider's service goes offline, for whatever reason, it can leave you unable to access vital applications, emails or information, which could have an impact on your business.

Cloud advocates point out that traditional corporate networks are just as, if not more, vulnerable to downtime, while some vendors are also working on cloud applications that can also be used in offline situations.

Sounds like clouds aren't always such as bad thing.
Well you know what they say: every cloud has a silver lining...