Cloud computing is the term used to describe on-demand access, through the internet or other network, to IT resources, including servers, applications (physical and virtual), development tools, data storage, networking capabilities and much more. They are hosted at remote data centers that are managed by a cloud services provider. The cloud computing infrastructure is typically accessed by users via a secure connection. Cloud services are accessible via a subscription or by charging per use.
Businesses that make use of cloud systems can cut costs and time needed to maintain IT infrastructure, while allowing IT personnel to concentrate on more valuable work. The exact savings a company receives will depend on the particular system it chooses to transfer to the cloud and the type of system they’re replacing. A recent survey found that IT and business professionals reported savings between 30 and 50% by moving to cloud.
A variety of cloud service models are available and include Software as a Service (SaaS), Platform as a Service and Infrastructure as a Service. SaaS is most likely to be the most well-known model and one that a lot of companies are using. It provides the application layer — software like CRM and office software, as well as email, over the internet, eliminating the need to maintain or upgrade hardware.
Businesses can also benefit from the ease of scaling up or down the size of their servers as well as disk storage, paying only what they need. This elasticity is crucial for agile processes as well as for rapid introduction of new technologies into production. It also means that IT departments don’t need to worry about buying or maintaining expensive hardware, and can depend on their cloud providers to stay on top of the most recent technological advancements.