Cloud computing

Introduction
Cloud computing can redefine the way you do business. It lets you store information and use
hardware and software remotely over the internet, based on where and when you need them. You
can use cloud computing as a stand-alone solution or alongside your existing IT infrastructure.

While cloud technology often enables cheaper, faster and portable operations for businesses, it
sometimes raises concerns about security and reliability.

This guide looks at the advantages and disadvantages of cloud computing for business. It explains
how cloud computing works, how to decide if it's right for your business and what you should
consider when using it.

It also looks at some of the risks involved - including data protection, business continuity and
issues around service provision.

How cloud computing works

Cloud computing provides a way of managing your IT resources online.

Instead of buying IT resources from a hardware or a software shop, with cloud computing you are
renting them from a cloud service provider, paying only for what you use.

Cloud computing is made up of four key elements:

 large-scale data centres hosted on remote servers

 services - eg software and hardware resources provided over the internet
 computers and other web-enabled devices, eg laptops, netbooks and smartphones
 broadband or 3G internet connection

Documents, emails, customer details and applications can all be stored remotely - ie 'in the cloud'
- and accessed virtually and on-demand over the internet through a web browser.

Cloud deployment models

Cloud computing has four main models in terms of access and security options:

 public cloud – where services and infrastructure are available to the general public and provided
off-site over the internet via a third-party provider
  private cloud – where services and infrastructure are available to a private customer and
maintained on a private network either in-house or at the provider’s data centre

 community cloud – where a group of customers access the resources of the same cloud service,
usually sharing same specific requirements which the service provides (eg high security or need for
legal compliance)

 hybrid cloud – where you can mix and match public, community and private cloud resources based
on your technical and business requirements

To work out which cloud model is best for your business, you should consider:

 how you currently use your IT systems and applications

 services which you would like to move to the cloud
 levels of service and support you will likely need
 your budget
 regulatory, governance or data protection issues related to those services

Cloud service models

There are three main cloud computing service models available. Depending on your needs, your
business can use one of these, or a mixture of two or even all three.

Software as a Service (SaaS)

SaaS is the most common form of cloud computing used by small businesses and involves using
software hosted on remote servers. It allows you to run applications through your web browser
and save, retrieve or share files that are stored 'outside' your business.

Examples of SaaS include services such as:

 web-based email
 office software
 customer relationship management systems
 tools that support collaborative working

SaaS provides greater flexibility when compared to conventional IT systems, allowing you to scale
your IT requirements quickly and easily to meet the changing needs of your business..
Infrastructure as a Service (IaaS)

IaaS allows businesses to use virtual hardware resources to build their IT infrastructure. This
includes:

 server space
 data storage facilities
 networking hardware

As with SaaS, you can modify or expand capacity as required. Other benefits include a reduction
in your IT costs - by outsourcing your hardware requirements you no longer need to buy it or have
the internal expertise to maintain it.

Platform as a Service (PaaS)

PaaS involves using online application development capabilities to build and adapt applications to
suit your business needs. The software development tools and hardware you need to do this -
known as 'cloudware' - are all located remotely and accessed through the web.

How cloud computing works

Cloud computing provides a way of managing your IT resources online.

Instead of buying IT resources from a hardware or a software shop, with cloud computing you are
renting them from a cloud service provider, paying only for what you use.

Cloud computing is made up of four key elements:

 large-scale data centres hosted on remote servers

 services - eg software and hardware resources provided over the internet
 computers and other web-enabled devices, eg laptops, netbooks and smartphones
 broadband or 3G internet connection

Documents, emails, customer details and applications can all be stored remotely - ie 'in the cloud'
- and accessed virtually and on-demand over the internet through a web browser.

Cloud deployment models

Cloud computing has four main models in terms of access and security options:

 public cloud – where services and infrastructure are available to the general public and provided
off-site over the internet via a third-party provider
  private cloud – where services and infrastructure are available to a private customer and
maintained on a private network either in-house or at the provider’s data centre

 community cloud – where a group of customers access the resources of the same cloud service,
usually sharing same specific requirements which the service provides (eg high security or need for
legal compliance)

 hybrid cloud – where you can mix and match public, community and private cloud resources based
on your technical and business requirements

To work out which cloud model is best for your business, you should consider:

 how you currently use your IT systems and applications

 services which you would like to move to the cloud
 levels of service and support you will likely need
 your budget
 regulatory, governance or data protection issues related to those services

Advantages and disadvantages of Software as a Service

(SaaS)
Software as a Service, also known as SaaS or on-demand software, is a way of delivering
software applications to the end-user over the internet. SaaS can provide great advantages for most
businesses, primarily in costs and flexibility. However, disadvantages of SaaS (such as lack of
control) are considerable and should not be ignored.

What is Software as a Service (SaaS)?

SaaS is a software licensing and delivery model in which software is:

 licensed on a subscription basis – usually monthly or annually

 centrally hosted in the cloud – find out more about cloud computing
 accessed via a browser over an internet connection

SaaS is an alternative to the traditional on-premise software installations. It has become a common
method of delivering many business applications, including:

 office and communication software

 payroll and accounting programs
 customer relationship management software
  HR management software
 enterprise resource planning programs
 corporate performance management suites
 mobile applications

SaaS advantages
SaaS offers many potential advantages over the traditional models of business software
installation, including:

 Lower up-front cost - SaaS is generally subscription based, and has no up-front licence fees
resulting in lower initial costs. The SaaS provider manages the IT infrastructure that is running the
software, which brings down fees for hardware and software maintenance.
 Quick set up and deployment - SaaS application is already installed and configured in the cloud.
This minimises common delays resulting from often lengthy traditional software deployment.
 Easy upgrades - The SaaS providers deal with hardware and software updates, deploying upgrades
centrally to the hosted applications and removing this workload and responsibility from you.
 Accessibility – All you need to access a SaaS application is a browser and an internet connection.
This is generally available on a wide range of devices and from anywhere in the world, making
SaaS more accessible than the traditional business software installation.
 Scalability – SaaS providers generally offer many subscription options and flexibility to change
subscriptions as and when needed, eg when your business grows, or more users need to access the
service.

SaaS, and more widely cloud computing, can help you make the most of a limited IT budget, while
giving you access to the latest technology and professional support. However, you should consider
some potential disadvantages before making a final decision.

Disadvantages of SaaS
SaaS model sometimes has certain shortcomings, including:

 Lack of control - in-house software application give businesses a higher degree of control than
hosted solutions where control resides with a third party. Typically everyone has to use the latest
version of the software application and cannot defer upgrades or changes in the features.
 Security and data concerns - access management and the privacy of sensitive information is a
major consideration around cloud and hosted services.
 Limited range of applications - while SaaS is becoming more popular, there are still many
applications that don't offer a hosted platform.
 Connectivity requirement - since SaaS model is based on web delivery, if your internet service
fails, you will lose access to your software or data
 Performance - SaaS may run at somewhat slower speeds than on-premise client or server
applications, so it's worth keeping performance in mind your software isn't hosted on a local
machine.