Cloud Computing

Cloud Computing enables cost effective IT services to be delivered to users via the internet. The users access the applications through their web browser and typically pay a monthly subscription to use the services, eliminating the need for on premise IT equipment and annual software licence fees. This is described as the Software-as-a-Service (SaaS) business model.  They have shared use of a virtualised IT infrastructure and application management platform that supports the delivery of dynamically scalable business software applications over the internet. 

Cloud Computing services consist of three layers:

• IaaS – Infrastructure as a Service – virtualised computing and storage foundation
• PaaS – Platform as a Service – management and support layer for Cloud applications
• SaaS – Software as a Service – multi-tenant applications addressing  business needs

“The economics are compelling, with business applications made three to five times cheaper and consumer applications five to ten times cheaper” – Merrill Lynch

 In addition to the potential cost savings, Cloud Computing also provides users with increased business agility and flexibility. For instance, they will have the ability to scale up their service usage to cope with seasonal peaks.

 The key enablers for Cloud Computing becoming a viable alternative to traditional client-server, on premise software deployment include:

• The increasing availability of high speed broadband networks to optimise user response times on the web enabled software
• Advances in server performance and virtualisation to optimise the multi-tenant shared hosting of the Cloud applications
• The development of highly scalable and robust Cloud software platforms taking care of the common services (eg. user management, security, multi-tenancy and billing) shared by all the applications

The economic downturn and the drive towards Green computing with reduced energy costs has provided added impetus for businesses and government bodies to explore the potential benefits of deploying Cloud Computing.