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While more and more businesses are accepting Cloud Computing services, most businesses are not clear of what Cloud Computing is, how it associates to their specific business sector and more importantly how it can cater their business needs. This post maps out this missing information about Cloud Computing for the business of every size.
What is Cloud Computing?
Cloud Computing refers to IT systems and resources that can be accessed through the internet rather than equipment that a business has to buy setup and manage on their own. Cloud Computing permits an enterprise to use IT as a utility, provided as a service by a service provider and you pay for what you use. Cloud Computing is often called “Hosted IT Solutions” or “Software as a Service”.
Cloud computing has three cloud computing models.
What is Infrastructure-as-a-Service?
Infrastructure-as-a-Service (IaaS) is the building blocks of computing that can be rented: physical or virtual servers, networking, and storage. This is alluring to organizations that want to develop applications from the very ground up and want to manage all the elements on their own, but it does need firms to have the technical skills in order to align services at that level.
According to the research of Oracle, “Two-thirds of IaaS users confirmed utilizing online infrastructure makes easier to organize, had cut their time to develop new applications and services and had lowered maintenance costs. But half said IaaS is not wholly secure for most sensitive data.”
What is Platform-as-a-Service?
PaaS is the next layer up. This includes the tools and software that developers want to build applications on top of that could encompass middleware, database management, operating systems, and development tools.
What is Software-as-a-Service?
Software-as-a-Service (SaaS) is the version of cloud computing and is delivery of applications-as-a-service that most people are used to. The underlying operating system and hardware are irrelevant to the end user, who will access the service through a web browser or app; it is usually purchased on a per-seat or per-user basis.
According to researchers, IDC SaaS is the dominant cloud computing model in the medium term with more than two-thirds of public cloud spending in 2017, which is likely to drop a bit to just under 60 percent by 2021.
The significant SaaS spending is made up of system infrastructure software and applications, and IDC said that spending is likely to dominate by applications purchases, which will lead to more than half of all public cloud spending by 2019. By 2021 customer relationship management (CRM) applications and enterprise resource management (ERM) applications will be responsible for about 60 percent of all cloud applications spending.
Examples of cloud computing
Cloud computing provides a wide range of services. It involves consumer services, such as Gmail or the cloud back-up of the photos on your smartphone, allowing organizations to host their data and operate their applications in the cloud. For instance, Netflix depends on cloud computing services for its video streaming service and its other business systems too, and have various other organizations.
Cloud computing is a default option for different apps. Now, software vendors offer their applications as services on the internet rather than independent products as they switch to a subscription model. But there is a downside to cloud computing; it can also drive new costs and new risks for businesses using it. If you’re planning to migrate to cloud, you can take training like AWS training to understand more.
Why is it called cloud computing?
An important concept behind cloud computing is the site of the service, and the details of the operating system or hardware on which it is operating, are mostly irrelevant to the user. This is because the metaphor of the cloud was taken from old telecoms network schematics, in which the cloud was represented in the form of the public telephone network to show that the underlying technologies were not appropriate.
What are cloud computing services available?
Cloud computing services offer various options from the basics of networking, storage, and processing power through to natural language processing and standard office applications along with artificial intelligence. This means any service that does not need you to be physically present with computer hardware that you are utilizing can now be provided through the cloud.
Hype of Cloud Computing
Developing the infrastructure to back up cloud computing now accounts for about a third of all IT spending globally, as per the research from IDC. Simultaneously spending on in-house, traditional IT continues to fall as computing workloads continue to shift to the cloud, whether that is public cloud services provided by vendors or private clouds developed by enterprises on their own.
According to 451 Research, “About one-third of business IT spending will be on cloud services in 2017, indicating a higher reliance on external sources of application, infrastructure, application, security services, and management.” Moreover, analyst Gartner says that half of the worldwide enterprises utilizing the cloud will have gone all-in on it by 2021.
Furthermore, spending on cloud services is likely to extend $260bn this year up from $219.6bn. It is growing beyond the expectations of analysts. However, it is not completely clear how much of that demand is evolving from businesses that really want to shift to the cloud and how much is developed by vendors who only provide cloud versions of their products (usually because they want to move away from selling one-off licences to selling more profitable and predictable cloud subscriptions).