Cloud computing (or “the Cloud”) has become quite the buzzword among businesses and nonprofit organizations. In fact, you’ve probably heard the term “the Cloud” thrown around quite a bit in your circles. Businesses and nonprofits are considering moving their data storage “off-site” to the Cloud. Software providers are developing Cloud-based software to support mobile trends. Even consumers are using the Cloud to store data on their mobile devices. Despite all of the buzz, however, many people do not have a true understanding of what Cloud computing is and what it means for their business or organization. In an effort to clear up some of the confusion, we’ve outlined the key takeaways for businesses and nonprofits to know about Cloud computing.
What is Cloud Computing?
Before you even consider using Cloud-based software or services, you need to understand the definition of Cloud computing. Cloud computing, to put it simply, is anything that involves delivering hosted services of the Internet. For businesses and nonprofits, Cloud computing generally refers to using web applications, software, or server services that you pay for on a regular basis as opposed to purchasing and installing the software and hardware. Businesses and organizations can store data in the Cloud, access their accounting software in the Cloud, or store important electronic documents in the Cloud. Cloud computing can mean many things, depending on how your business or organization plans to use it.
There are three types of Cloud computing: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). IaaS is the lowest level of Cloud computing and refers to a Cloud-based computing structure that is fully outsourced as a service. An example of an IaaS would be your web hosting company. PaaS is more advanced than IaaS in that it also offers a computing platform and solution stack as a service (rather than simply providing the infrastructure). These services are generally used by companies needing to develop, test, collaborate and deploy Cloud solutions for various applications. The hosting, however, is done by the PaaS provider.
SaaS is the most common type of Cloud computing (particularly for the use of businesses and nonprofits). SaaS is generally what people think of when they talk about “the Cloud”. SaaS (also known as Web-based software, on-demand software, and hosted software) refers to the use of software over the Internet. Rather than having to purchase software and hardware, businesses and nonprofits pay a regular fee to access the software online. The software runs on the SaaS provider’s servers, meaning the provider is responsible for all of the maintenance, security, and performance.
How are Cloud Services Different from Traditional Hosting?
Cloud services have three distinct characteristics that set them apart from traditional hosting services. Cloud services are sold on demand (you pay as you go); it is elastic (you can use as much or as little of the service as you want at any given time); and the service is fully managed by the provider (you don’t need anything but a computer and Internet access). Say your company or nonprofit organization is looking to store your data offsite. Rather than storing your files in a separate facility that is still susceptible to the elements and natural disasters, you could store your data in the Cloud. Cloud-based data hosting services are generally low-cost, require no physical hardware or documents, and can be canceled or added to at any time. In addition, your company or organization has instant access to the data you store in the Cloud, making it easy to view the information you need when you need it.
What Does this Mean for My Business or Nonprofit?
While some organizations and businesses are still concerned about the security of storing information and accessing software in the Cloud, many are moving to Cloud-based software and services. The Cloud is making it easier to regularly back-up important data, transfer files, share contact information, and access business information while away from the office. Many businesses are even using the Cloud to access their software via their phones so they can always stay up-to-date with the most current information.
Stay tuned to our blog for more information about Cloud computing and what it means for your business or nonprofit. We will be discussing current trends in Cloud computing, as well as be explaining the difference between the Cloud and on premise solutions. We make it a priority to stay current with business and nonprofit trends to help you achieve the best results possible.
If you’d like to learn more about how your business or nonprofit can use technology successfully, check out our technology consulting services. We can help you utilize your software solutions so you can achieve true success.