Cloud Computing is a loose term used to describe many different things. In general it is a hosted service delivered over the Internet, either to the public or limited to privately defined users. So it is just hosting! You pay for what you need on a user basis. When individuals discuss cloud computing, they are often referring to hosting of applications, software, desktops, and even a virtual data center. So, let’s elaborate and discuss the different types.

Software/Application Hosting (Software as a Service – SaaS): This often refers to hosting applications and can be one application or many. In some cases, you can purchase this service, like a salesforce.com, on a user’s basis and you can just choose to use this per application. Common applications include email services (such as exchange and spam filtering), CRM services, HR services, Payroll services, and Data Storage services.

Platform Hosting (Plaftorm as a Service – PaaS): This takes the Software Hosting to a new level, and offers operating system features. This no longer limits you to a per application usage, as you have the entire platform to run whichever applications may be chosen. This allows developers access to coding and making adjustments to the data being displayed from the software in both front end and back end situations. An example of this would be Google Aps. You can host, manage, and customize the applications and it usage in this Platform hosted environment.

Infrastructure Hosting (Infrastructure as a Service – IaaS): This provides an entire network infrastructure to be hosted. So, you have a virtual Data Center to add servers, hardware, memory, processing power, yet never have to touch a piece of hardware. It is all billed on a per use basis and is up to the IT personnel to set up and manage the platform/software and access.

Benefits:

• Low Upfront cost – You don’t have to build your own network or purchase software in some cases, since you pay on a usage basis
• Ability to easily expand – In order to expand your network, deploy a new environment/server, or add a new user, it is only a phone call or a click away.
• Pay only for what you use – You only have to pay for what you use, no more no less.
• Simple Administration – Often administrations are universal and through an easy to use control panel available on the internet.
• No Hardware - Hardware is not managed by the Cloud Provider, so there is no management, maintenance, or additional cost associated with keeping the hardware up to date.
• Virtualization - Cloud Hosting allows users to work from anywhere.
• Redundancy - Many Cloud Providers offer hardware and Interenet redundancy that can be costly to set up for a small business on an internal network.

Set Backs:

• Security – the biggest downfall of Cloud Computing is security for many reasons
  • Access – Remember, all your data is now being stored on the World Wide Web which adds new risk into protecting your data. Password management can be a valuable policy to maintain in keeping data secure, as well as encrypting data that may not have been a concern in the past. Additional risks are also present since all administrators access their Cloud Management remotely, often through the same interface.
  • Shared – Often the data that is being stored, is on a shared environment, and not truly dedicated, so additional risk exist for attacks or compromises from users on the same hardware. In addition, other users on the same hardware may not have the same standards of security as your organization, leaving a gap in security defenses.
  •  Lack of Compliancy – There is a lack of standards for security for Cloud Hosting Providers. With you no longer having control or knowledge of who has access to your data, a loss of control also exist in protecting your data. Many organizations may not be compliant in a Cloud environment, such as the  Credit Card Data Compliancy (PCI), Financial Data Compliancy, and Patient Health Data Compliancy (HIPAA).
  • Reallocation of Applications and Disk Space – As data is deleted, you are entrusting the provider to properly dispose of your information; however with the lack of control, this may be difficult to prove all data was removed. Additional risk exist now with the number of people who may have access to your data, and the fact that the same hardware is allocated to another client.
•  Inoperability – Commonly across machines, applications, etc., this environment will not work.
• Knowledge – This is not a service any company can just dive right into, it is important that you have an IT staff who understands the Cloud Computing Environment, management, and risks associated with it compared to a traditional environment.
• Mobility – Lack of standards can make it difficult to go from one provider to another.

In conclusion, in order to take advantage of all the beneifts Cloud Computing has to offer, it is key to evaluate and plan out your set up precisely, ensuring all configurations and risks have been addressed, or the project could easily turn into a costly nightmare.