What Does Cloud Computing Mean?

Cloud computing. For some, the term is wildly nebulous.

For decades, engineers have drawn a cloud to depict a network (such as the Internet) whose inner workings were unknown to them. From there, cloud computing evolved as a term to describe free or subscription-based services delivered in real time over the Internet.

Cloud computing can refer to software as a service, such as  for customer relationship management (CRM); to file storage, synchronization, backup, and other utility over the Internet.

 

Examples of Cloud Computing Services for Small Business

Among the most popular and easy explainable services were these:

 

 • Google Apps ($50 per user per year) Google Docs (free) are offerings from the Google cloud empire. Google Apps is a business-class version of Google Docs and includes souped-up Gmail, Google Calendar, and Google Docs (for word processing, spreadsheet, presentations and forms) components along with administration capabilities.

 With either Google Apps or Google Docs, your data remains in one place no matter where you access it from. Google’s cloud tools are “actually more secure on the whole because, although you’re trusting your data to an external provider, Google works hard to secure a ton of data; and it's the sort of attention to detail that you probably don't have time or money for in your local IT department.”

• Skype is popular for its free video chats as well as for the low-cost calls to landline and cell phones that it makes possible. Brand Thunder, a browser customization firm with 11 members, uses Skype for all-team meetings. Though Skype call quality varies, the service “allows easy and open communication between team members, despite their being geographically dispersed.

The Benefits of Cloud Computing

Cloud-based services can help small businesses dramatically reduce their software and other computing costs.

Google Docs, which offers office productivity tools (MS Office 2010 products) via the cloud, is free. (Microsoft is currently working on Web-based versions of Office 2010 apps.)

Storing files on a secure, reliable, cloud-based service helps eliminate backup worries and gives you anytime access to your files. Usually, cloud-based services are simple to use—the only things you need are a computer (or in some cases, a mobile handset), a browser, and an Internet connection. And such services require no maintenance from the user.

Easier collaboration with colleagues in distant locations is another oft-cited cloud benefit.

“If you're the kind of small business that has employees who work from different places--or has remote employees, board members, or vendors who need access to your data--cloud computing is the only way to go.

These benefits enable small businesses to “stay focused, be more collaborative, and bring products to market more quickly, because they’ve got access to the kind of infrastructure.

The Cloud’s Dark Side

The biggest misgiving that most businesses have about the cloud involves security , privacy and availability .

• Privacy: How much data are cloud companies like Google collecting about you , and how might that information be used?

• Availability: Will your cloud service go down unexpectedly, leaving you without access to critical customer records, e-mail, or other information for hours or more?  Well-established services have gone dark on occasion, too.

• Data loss: Some online storage sites have shut down abruptly, sending users scrambling to recover their data, sometimes with only 24 hours' notice.

• Data mobility and ownership: Will you be able to share data between different cloud services? If you decide to stop using a cloud service, can you get all of your data back? What format will it be in? How can you be certain that the cloud service will destroy all of your data once you’ve severed ties with it?

• Tool robustness: Cloud-based tools frequently aren't as powerful as software applications. Google Docs, for instance, lacks a number of features that Microsoft Office has had for years, such as the ability to track changes in a text file.

Tips for Moving Into the Cloud

Once you’ve weighed the pros and cons, you may be ready to take your first steps into cloud computing. Before you do, consider these tips from small businesses that have already made the transition.

• Start small. Cloud computing is a different way of working from what most people are used to, and building familiarity and trust takes time, says Trevor Doerksen, CEO and founder of Mobo Vivo, a software company. Doerksen recommends starting small--for example, by having two or more workers collaborate on a Google Docs file. Once team members grow more comfortable with the new work environment, you can start adding more cloud services to the mix.

• Think big. Can the service you’re considering scale to meet your needs as your business grows? If not, keep looking.

• Make sure you can export your data in standard formats. You'll want to be able to export in the formats used by Word, Excel, and other programs you use. That way, you can back up (and access) your data locally or move it easily to another service later.

• Read the agreement closely. To use the service, you’ll most likely have to accept an endless service-level agreement or other contract at the outset. Read it carefully to ensure that you know what you’re paying for, what the service provider’s privacy policy is, whether there are fees for early termination, and so on.

• Get creative. Look for ways to use free or low-cost cloud tools instead of more-expensive ones, suggests Doerksen. For example, his team uses free Google Docs spreadsheets as a basic CRM system, rather than springing for a paid CRM cloud service.

• Evaluate more than one service before deciding. Most services offer a free trial, and “you can usually figure out in 10 minutes whether the service’s user interface will drive you mad or is easy to use,” says Rosenfeld.

• Consider open-source cloud services. This arrangement encourages third-party developers to build add-ons that make a cloud-based service even more feature-rich. Plus, it allows you to create your own tools for using the service that are unique to your business.

• Don’t be afraid. It makes sense to cautiously approach any big change in how you do business, and this certainly applies to moving to the cloud. But many feel that the business world is already making the transition to cloud computing, and--given the lousy economy--now is a good time to make the transition.

Courtesy: By James A. Martin , PCWorld

James A. Martin is a PCWorld contributing editor and a coauthor of Getting Organized in the Google Era (Broadway Books).