Understanding Cloud Computing

Cloud Computing, Software as a Service (SaaS), Web-Based Software, Hosted Software, Online Software

If you are interested in the world of technology and are familiar with what is taking place then you would have heard some, if not all the terms listed above. However, for most people it all makes the world of information technology so daunting and confusing. It would seem that new terms and acronyms are coming out everyday and you just cannot keep on top of everything.

This short article seeks to explain to you in everyday English how Cloud Computing could benefit your business.

Traditional software business applications required a number of tasks to be completed before you could start to use it and see a return on your investment. These included any or all of the following:

Installing the software – this often involved a consultant visiting your site to load the software media (such as a CD or DVD) on to a server. Access to the server usually required a technical person to provide appropriate user privileges and to ensure no other applications were affected.
Sometimes the server needed to be dedicated to the application being installed which may require the purchase of new hardware, operating systems, anti-virus software and backup software.
Client side software to be installed – visiting every PC that was to be used to access the application and loading more software.
Implementation – often this would take days, weeks and even months to fully implement. You may have consultants on site helping with the setup, configuration and data manipulation and migration.
Training – at the appropriate time during the implementation all users would need training.

All the above would involve upfront costs before you saw any benefit. Often the upfront costs were huge (software and consulting fees) and then you were hit every year with a maintenance bill (typically about 20% of the original software price) to ensure you got telephone support and upgrades. Even upgrades, despite being free, often involved the same steps as above thus resulting in more expense and potentially delaying any upgrades.

So what is Cloud Computing and what is different from the above?

First of all purists would argue about what exactly it means. But this article is aimed at the 'man in the street' and therefore what are the basic fundamentals of Cloud Computing?

Think about electricity as this is a good way to think of Cloud Computing. You walk into a room and switch on the light – you expect it to shine. Occasionally it might not if the light bulb is broken or there is no electricity either because you have been cut off, or cables have not been installed yet!

The Internet is similar in that we now expect it to work in most places. Our computer will automatically find a wireless point to connect to. Similarly our smart phones are also able to do this. Software solutions have now been written for the web so you can use the software through a browser. Hence, you can switch on your computer and, assuming you have interent access, can start to use the software straightaway.

So Cloud Computing is being able to access software business applications through your browser and paying a monthly (or subscription) fee to achieve this.

If we go through the steps required to get up and running with a cloud based software application then we get the following:

Nothing to install – no software is required. All you need is a browser (any browser such as Internet Explorer, Firefox, Chrome or Safari) and access to the Internet. You simply go to a page on the web and type in your Username and Password.
No need to worry about operating systems, anti-virus software or backups being performed. These are all handled by the vendor delivering the application to your browser.
You can log on ANY computer that has Internet access. You can access your business application from work, at home or from an internet cafe if you so wish.
Implementation still needs to happen but this tends to be a faster process than with traditional software due to the fact that the design of these Cloud based applications is more simplisitic to ensure there is appropriate speed.
Training tends to be minimal if required as the software is easy to use. No-one trains you in how to use LinkedIn or Facebook as they tend to be intuitive.
No on-going annual maintenance fees as the subscription fee usually includes support (email and telephone) and all upgrades to the software.

The return on investment tends to be counted in days or weeks. You only pay a monthly fee and can often test the software for free for a period of time. This ensures that it will work for your business before you spend any money on it. Just as with an electric bill, you will pay a monthly fee and continue to use the software as long as necessary. It becomes an Operating rather than a Capital Expense.

For more information please visit www.reallysimplesystems.com.au or email Simon at simon.hubbard@reallysimplesystems.com.au or call on 02 8987 1909.