Cloud Computing is the practice of using
a network of remote servers hosted on the Internet to store, manage, and
process data, rather than a local server or a personal computer.
Advantages
Disaster Recovery
When companies start relying on cloud-based
services, they no longer need complex disaster
recovery plans. Cloud computing providers take
care of most issues, and they do it faster.
Aberdeen Group found that businesses which
used the cloud were able to resolve issues in an
average of 2.1 hours, nearly four times faster than
businesses that didn’t use the cloud (8 hours).
Cap-Ex Free
Cloud computing services are typically pay as you go, so
there’s no need for capital expenditure at all. And because
cloud computing is much faster to deploy, businesses have
minimal project start-up costs and predictable ongoing
operating expenses.
Work from anywhere
As long as employees have internet access, they can work from anywhere. This flexibility positively affects
knowledge workers' work-life blanace and productivity. One study found that 42% of working adults would
give up some of their salary if they could telecommute, and on average they would take a 6% paycut
Automatic Softawre Updates
In 2010, UK companies spent 18
working days per month managing
on-site security alone. But cloud
computing suppliers do the server
maintenance – including security
updates –themselves, freeing up
their customers’ time and
resources for other tasks
Disadvantages
Possible downtime
Cloud computing makes your small business dependent on the reliability of your Internet connection.
When it's offline, you're offline. And even the most reliable cloud computing service providers suffer server
outages now and again.
Security issues
Cloud computing means Internet
computing. So you should not be using
cloud computing applications that
involve using or storing data that you
are not comfortable having on the
Internet.
Cost.
At first glance, a cloud computing application may appear
to be a lot cheaper than a particular software solution
installed and run in-house, but you need to be sure you're
comparing apples and apples.
Inflexibility
Be careful when you're choosing a cloud computing vendor
that you're not locking your business into using their
proprietary applications or formats. You can't insert a document
created in another application into a Google Docs spreadsheet,
for instance
Lack of support
The second a company needs more bandwidth than usual, a
cloud-based service can instantly meet the demand because of the
vast capacity of the service’s remote servers.