Cloud computing is gaining broad recognition as being the way IT services are delivered going forward.  The key advantages that cloud computing offers compared to current IT approaches are flexibility and speed.

What is Cloud Computing?

“Cloud computing enables individuals and businesses to use computer programs and resources over the Internet."

While individuals and businesses have been using the Internet and visiting websites for well over a decade, cloud computing dramatically expands it to the point that users can run all their programs “in the cloud” and instead of buying and installing big computers in the home or business, they can simply rent computing power from a service provider, just like buying electricity from your local hydro company.

With the ability to deliver IT services in a way that organizations can add resources as needed, cloud computing allows for greater ability to support a growing user base, adapt to increasing or cyclical business activity, and react faster to market opportunities. All this with significantly higher efficient use of capital and a resulting lower cost per unit of IT.

There are three fundamental avenues for cloud computing to deliver these benefits.  These are described in the industry as three layers: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).  Each one addresses a different aspect of IT and is geared towards a distinct set of users and their needs.

Software-as-a-Service (SaaS)

SaaS is predominantly geared towards the end-users - your employees.  It enables users to quickly access standardized business applications, from e-mail, word processing and spreadsheets to customer relationship management tools and enterprise accounting programs, from anywhere via a web browser.

Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS)

IaaS and PaaS layers are geared towards your technical staff.  IaaS enables IT departments to rent computing power and sub-system components such as storage capacity on an as-needed basis.  This capability is particularly useful when the demand for computing capacity is seasonal or needed for relatively short durations, such as projects (e.g., oil exploration or customer analysis projects), developing and testing new programs, or to function as backup systems in case of system failures or disasters.  IaaS provides effective alternatives for small and medium businesses to run their systems in a hosting company’s data center  rather than having to invest in their own infrastructure. This includes computers and the supporting capabilities such as redundant power supplies and cooling.

PaaS provides system and application developers an accelerated approach to write programs by enabling access to pre-built program libraries or functions such as databases through special commands called Application Program Interfaces (API), which in turn, automatically deploys the programs.

What it means for business

The common theme behind all three layers of cloud computing is that from the business buyer’s perspective, each layer of service can be accessed independently, so that the business can get just what it needs without having to become entangled in  all the other components.  This greatly simplifies and accelerates IT deployments, leading to lower cost and a concrete way of  aligning IT with business needs.

Underpinning cloud computing are cumulative technological advances over the past 10 years or more, including increased network speeds, robustness, multiple access methods from wireless to wireline, extensive use of virtualization techniques, and advances in computing hardware power.  The confluence of these technologies makes cloud computing possible in a cost-effective and pervasive manner that is transforming the IT industry today as is evident in many publications, from the leading daily press to the Costco member magazine.

Businesses need to plan now to embrace cloud computing to their advantage.  This is a broad topic that will be discussed further in upcoming articles.  As a starting point, the first step is for both business owners and IT leaders within the company to understand the potential of cloud computing to reduce their costs while allowing flexibility and growth. This is the opportune time for businesses of all sizes to review the different layers of service from SaaS to PaaS to IaaS, and examine  how the IT challenges – both current and future - can be addressed through the “cloud”.

Join the conversation!  Tell us what your thoughts are on cloud computing.