Thursday, 20 October 2011

Cloud Computing Explained-VRK100-20Oct2011


Cloud Computing Explained
           



Rama Krishna Vadlamudi, HYDERABAD      20 October 2011


Cloud computing is a new internet-based technology where data is outsourced and stored in a secure environment (cloud). The new technology is provided as an online service to customers who pay for the service either by subscription or on demand.

Cloud computing refers to shared computing resources, storing data on a virtual platform rather than on an individual hard drive. The term ‘cloud computing’ was popularised in 2006 by Eric Schmidt, Google’s Executive Chairman.

Cloud computing helps reduce costs, both capital and operating, through economies of scale. The main concerns about cloud computing are data security and privacy.

The users of this new technology need to have adequate bandwidth to remain connected to the cloud, where the data is stored.

The cloud users are connected through a network to servers (where the users’ data is stored) kept in the cloud by cloud service providers. The network can be a public network (internet) or a private network (dedicated lines). 

The infrastructure for the cloud will be provided by the cloud service provider. Examples of cloud service provider are IBM, Amazon, Google, Microsoft and others. Some Indian companies that provide such services are TCS, Infosys and Wipro.

Apple Inc has recently announced introduction of its cloud computing services called iCloud for users of iPod, iPhone, iPad and others. iCloud stores customers’ music, photos, documents, books, mails, etc.
Cloud computing has taken the information technology services by storm around the world. In a cloud computing scenario, a company can actually move its core data and other programmes that operate on such data from private machines such as personal computers or corporate servers to servers owned and operated by vendors.

Cloud user companies can access these services and work from anywhere in the world. User companies will not store their data with them and instead use the servers managed by cloud service providers or vendors.

As such, companies need to choose the vendors or service providers extremely carefully; otherwise there are chances of losing valuable and important data. Overall, cloud computing has its merits and demerits and users need to assess their own needs before going for it.

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Note on author: Author is an investment analyst and writer. The views are personal and this is written only for information purpose.

Author’s articles on financial articles can be accessed at:


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