What is Cloud Computing?

cloud-computingsmallCloud computing has been generating a lot of buzz and by all accounts looks to increase in 2010. But even with all the hype (or perhaps because of it), we regularly get asked, “What is cloud computing?”

That’s a great question. There isn’t a broad consensus on exactly what cloud computing is and is not. I don’t think a valuable answer can be found in the technical discussion of what services are and are not cloud computing. Instead, the real definition is in how cloud computing meets a business need.

Eric Knorr and Galen Gruman at InfoWorld have put their finger on it:

Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT’s existing capabilities.

Cloud computing allows your business to rent, lease or subscribe to services and software without purchasing, supporting or maintaining all the associated technology yourself.

The big advantages of cloud computing? Startup is quick, initial costs are low, risks are low, you don’t have to hire internal expertise, and you get access to enterprise-quality solutions at a much lower total cost of ownership.

The disadvantages? Security, support and customization can be wildcards in the cloud.

  • Is the provider of the software or service offering proper security?
  • Do they have real people answer the phones, or do they expect you to help yourself in a jungle of FAQ pages?
  • Can you tailor the software to your business needs, or is your business expected to conform to the box they built?

Every cloud provider is striking a balance. For example, Google can provide very fast startup and a low total cost for a cloud offering such as GoogleApps, but they’re trading security (by being a high profile target), personal support and the ability to customize. For some businesses, that’s a balance they like.

At Highland, we like to think of ourselves as a hands-on cloud or maybe even a personal cloud. We value the fast startup and lower costs of cloud solutions, but we aren’t looking to trade in security, support or customization in order to achieve a larger economy of scale. We’re balancing the convenience of cloud delivery with personal support and flexible customization.

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