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What is Cloud?

There are lots are opinions and arguments about what is a Cloud System and there is no point getting into that.

As Accountants North London, I feel Cloud computing will have a major impact on business so wanted to give some background to this development.

Simply put, Cloud Computing is the ability to access data, software applications, storage, communications capabilities, and computer processing power from a “Cloud” of online resources.

My guess is that we all use the Cloud. Google and Facebook are examples.

The idea of calling remotely located resources a “cloud” goes back to the early days of the Internet and, even before that.

In concept this is really nothing new. As far back as the 1960’s, there were solution providers called “Service Bureaus.” Mainframe computers, the only ones that existed at the time, cost millions of dollars.

Service bureaus allowed small businesses to share the costs of computing by letting those companies submit their data or run their programs on the service bureaus’ computers.

The media may have been punched cards and printed reports, but the underlying concept was the same as with the Cloud. Cut costs by sharing resources.

Even earlier in the 20th Century, companies that once ran their own power generators eventually bought electricity from a select group of utility providers because it was cheaper and easier to do so.

At first, companies were reluctant to give up control of part of their infrastructure, but once they did, they were able to focus on getting better at their business. And everyone came out ahead.

Industry experts have long known that once information technology got to be fast and reliable enough, the world’s computing infrastructure would come to resemble the electricity infrastructure—and that’s exactly what’s happening with Cloud Computing and it is happening right now.