In: Computer Science
Cloud computing in very simple terms, is basically where a
company uses someone elses computing services (usually over the
internet) instead of having to run that software on their own
computers.
Concrete examples are: in our very small business, we can't afford
to have an IT department and people to manage our internal
services. But we still need to use a variety of software, some
simple examples are: accounting, file storage, shared calendars,
shared contacts, etc. So we use a range of cloud computing services
such as Dropbox, Google Calendar.
In other businesses cloud computing includes a lot more than these
simple examples that you might be familiar with, it might include
anything ranging from supplying data, to supplying testing
environments.
The implication of this is that we, and other businesses have
access to many more computing services than we would otherwise, and
for much lower cost because we don't have to pay for the IT
equipment, and more importantly the IT staff and expertise.
However, cloud computing has its downsides, importantly there is an
issue of data security - you're basically handing over your data to
a third party, you are trusting the third party to keep your data
safe (from hackers) and secure (from accidental data loss). For
example we do run our own internal file server as we don't want to
hand over our files to someone else, but still need a remotely
accessible and secure file store (but we still use Dropbox for
simple non-critical stuff).
Why cloud computing is useful is because it allows computing
resources to be minimised - instead of 100 companies running one
server each just to host some shared calendars, these 100 companies
could instead use cloud computing services offered by a cloud
computing provider, who would run just one server to serve up
calendars for each of the companies. Each of the 100 companies now
pay the fraction of the price to have shared calendars, and the
cloud computing provider only has to run one server to serve al
these companies, so would be raking it in.
An analogy would be: instead of every house employing their own
full time car mechanic, dentist, doctor, plumber, electrician; we
were to put all these people in a centralized location, and people
shared out their services. This is much cheaper for individual
households, and the people who employ these people are able to
offer their services to lots of people.