Question

Describe cloud computing and explain how it is similar to obtaining a commodity product.  

Answer 1

Cloud computing, is location-independent computing whereby shared data centers deliver hosted IT services over the Internet. The concept can be equated to the way in which electricity is delivered to a private home. The homeowner enters into a contract with the local public utility company to deliver electricity as needed. The public utility company may generate some of this electricity, but during high demand periods it will go to the national electric grid to tap into the production of other electricity generators across the country. Similarly, an organization pursuing cloud computing signs a contract with an IT service provider to provide computing resources. When demand exceeds the provider’s IT capacity, it acquires additional capacity from data centers in the “cloud” that are connected via the Internet. A potential risk to the client firm is that it does not necessarily know where its data are actually being processed, just as the homeowner does not know where his or her electricity is being generated. The advantage to the client organization is access to whatever computing power it needs, while it pays only for what it uses. 

The advantage to the client organization is access to whatever computing power it needs, while it pays only for what it uses.