Cloud Computing: What is it and Why is it Important?

Cloud computing has grown considerably since the early 2000s. 451 Research predicted that in 2017, a third of all spending on IT will be on cloud computing. 





What is Cloud Computing?

Cloud computing refers to the provision of on-demand computer services over the internet on a pay-as-you-go model. The aforementioned computing services include software services, database management, intelligence, analytics and hardware(servers).


Cloud computing is often provided by vendors with vast computing resources and relies on the economics of scale. Major players in this space are AWS(Amazon Web Services), Microsoft's Azure, IBM Cloud, Alibaba Cloud and Google Cloud. 


There are various service models that are provided by vendors and the use of each depends on the needs of a customer. These service models include (but are not limited to): Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).


IaaS: this involves the provision of computing resources in the form of hardware for use by a customer. In this case, the customer has the expertise required to configure servers and manage and run software on said servers. This is the most rudimentary of the three service models and represents the earliest form of what would come to be referred to today as cloud computing. This form of service is appealing to businesses that want to build applications from the ground up and control every aspect; from development to deployment to scaling.


PaaS: this is a layer of abstraction higher than IaaS. While IaaS requires that the customer be concerned with operating and managing hardware, PaaS vendors provide an environment on which development, deployment and scaling of software can occur. The customer need not concern themselves with the setting up, maintainance and upgrading of servers and/or datacenters; the vendor takes care of all of the above.


SaaS: of the three service models discussed here, this is the most pervasive and accounts for most of the revenue generated from cloud computing. Software as a Service is the provision of software to end users who in turn do not have to worry about the operational costs associated with  data storage, maintenance, updates and the patching of software. Examples of this service model include Microsoft's Office 365 suit, Customer Relationship Management software providers like Salesforce, online gaming, productivity software like google drive and of course social media applications.



The advantages of cloud computing

Proponents of cloud computing argue that perhaps the greatest advantage of cloud computing lies in the avoidance of the large upfront costs of acquiring large collections of computing infrastructure and operational costs associated with the ownership of said hardware. This means that businesses can focus their resources on building and fine-tuning their products instead of setting up and operating the computing infrastructure required to run them. This in turn fosters innovation and allows for greater business growth.


Additionally, for businesses that only need to seasonally scale up their operations, the pay-as-you-go model means that businesses do not have to pay for the operation of infrastructure they do not use. 


Arguably, security for small businesses is significantly greater as cloud providers have teams dedicated to security instead of the security experts who have other responsibilities as is the case in many medium to small businesses. Engineers with multiple responsibilities are more likely to make security mistakes than those who are wholly dedicated to security and nothing else.



The disadvantages of cloud computing

The nature of cloud computing means that the scope of customization is very limited owing the the economics of scale on which cloud computing relies. After all, a restaurant that offers limited a menu is several times cheaper than a chef who can prepare whatever you want.


Often, security concerns arise for enterprises that handle sensitive data as data management is handled by third parties who may not have the same interests with regard to the handling and use of the stored data. This is especially true when dealing with sensitive data such as banking details or medical records.


Also, while it is easy to begin using cloud services, complications arise when clients wish to migrate existing applications to the cloud or move applications from one cloud provider to another. The complexities associated with the aforementioned situations require specialized knowledge which may cost clients more in the long run and thus nullify the economic benefits of moving to the cloud.


Since customization is limited, competitors using the same cloud computing provider may not be able to acquire a competitive advantage over each other owing to the standardized nature of their infrastructure.


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