Cloud Hosting

Q: I'm not quite sure I understand the concept of cloud computing. What exactly is it, and is it a good idea to use it for my small business?

A: With cloud computing, instead of running applications and storing data on your own computer system, you rent space on a remote server where your applications and data reside. Access to this remote system - the cloud - is through the Internet.

If you use Hotmail or Gmail or another web-based email program, you already use cloud computing. The software for these programs is not on your personal computer or office server - it's hosted elsewhere and you access it online.

There are several benefits to using the cloud for your computing needs.

First, it's all about the data. Reputable cloud computing providers have processes in place to protect the security of data and provide instant and easy access. Data is encrypted, and multiple servers and backup systems are in place to make sure data is not stolen or lost.

And as long as you have access to the Internet, you and your employees don't have to be at your desks or connected to your company's network. This also opens up access via smartphones and other mobile devices.

Equipment needs and associated costs typically decrease. You don't need the latest hardware because processing and storage is done remotely, and speed and capacity are no longer issues.

The way you buy software changes, too. You no longer need to buy software and software licenses for each user. Instead, you pay the cloud provider a fee based on overall usage.

Since you are basically outsourcing your computer maintenance and troubleshooting functions, it makes sense that it's not only your hardware and software needs that will decrease, but also your IT support requirements. Your cloud provider handles it all, including upgrades.

So what's the downside? Arguments against moving to the cloud revolve around security and privacy. Although a cloud provider would soon be out of business if it didn't go to great lengths to make sure it encrypts and backs up your data and provides access only to authorized users, you are no longer strictly in control of your data. And, if you're unable to access the Internet for whatever reason, you're out of luck.

Read more:
Small-business Q&A: The cloud isn't just pie in the sky