Cloud computing in very simple terms, is basically where a company uses someone else's computing services instead of having to run that software on their own computers.
The Applications of Cloud Computing
Some of the examples are: in our very small business, we can't afford to have an IT department and people to manage our internal services. But we still need to use a variety of software, some simple examples are: accounting, file storage, shared calendars, shared contacts, etc. So we use a range of cloud computing services such as Dropbox, Google Calendar.
The implication of this is that we, and other businesses have access to many more computing services than we would otherwise, and for much lower cost because we don't have to pay for the IT equipment, and more importantly the IT staff and expertise. However, cloud computing has its downsides, importantly there is an issue of data security - you're basically handing over your data to a third party, you are trusting the third party to keep your data safe and secure . For example we do run our own internal file server as we don't want to hand over our files to someone else, but still need a remotely accessible and secure file store .
Each of the 100 companies now pay the fraction of the price to have shared calendars, and the cloud computing provider only has to run one server to serve al these companies, so would be raking it in.
An analogy would be: instead of every house employing their own full time car mechanic, dentist, doctor, plumber, electrician; we were to put all these people in a centralized location, and people shared out their services.
The End Notes
The website which we are running also is possible with the help of Cloud Computing. We don't have our own servers but we have bought storage on someone's else servers to keep updating you with these kind of interesting articles. Please share your thoughts in the comment section which is also on a cloud storage.
Cheers!
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