Cloud computing is the IT markets attempt to illustrate where your programs and data are hosted and operated on the internet. This means that both the software and the information within it live on centrally located servers rather than on your premises on desktop computers and servers. This also means that all you need to access this information is a browser whether that browser lives on your desktop machine at work or at home or on a mobile device such as a phone. Examples of browsers are Internet Explorer, Google Chrome and Mozilla.
Cloud computing also delivers the first phases of transforming the access, management and financial aspects of computing to a Utility/Grid type model such as the supply of electricity, water and gas that is on demand, can be switched on and off, and more easily defined costs and benefits. One other significant benefit is that it is much easier to communicate and collaborate with others. Cloud Computing is about choice. It’s not the right approach for everything.
Times when Cloud Computing are not relevant are when you need a lot of computing power for intensive in house applications or when legal or political obligations force you to maintain your corporate data in house. So if you’re an accountant working in the public sector with a requirement to produce and design very complex 3 layer pivot tabled spreadsheets then it isn’t for you!
20% of all the worlds email will live in the cloud by 2012 – Gartner 2009
Why is the adoption of Cloud Computing accellerating?
Google is one player in this space and they claim that 3000 new businesses are signing up daily. What’s driving this mass migration? There are several important factors:
- Home IT users are demanding the same levels of collaboration and communication at work as they have at home. This is driven by the internet and social networks, the use of programs such as Ebay, online banking, twitter, MySpace, Amazon etc.
- Businesses can no longer afford to keep up with maintaining in house core systems such as email. An average of 70% of budget is spent on maintenance or just keeping the lights on according to Gartner.
- Businesses need their IT people to focus time and effort on solutions that are the core to the company’s success and not on desktop productivity which should now be treated as a utility.
- Businesses are looking to dependable, easily managed and affordable solutions that will reduce their overall IT spend significantly.
- Businesses need to collaborate and communicate globally with their employees, customers and even their perceived competition.


