Cloud computing and hosted services

Cloud computing could simplify IT management and reduce costs for your business.

If something is 'in the cloud', you access it across the internet. Cloud computing allows you to log in to IT resources online, rather than managing them in your company. This has two main benefits:

• Reduced costs. There are no expensive, up-front costs for hardware or software. You just pay a monthly fee to the cloud computing provider.
• Reduced complexity. Management and support tasks are the service provider’s responsibility. If something goes wrong, you can just call them.

To access cloud computing services, you need a computer and internet connection. Cloud computing is also sometimes called application hosting, hosted services or software as a service.

Cloud computing services

In general, if you’re paying a subscription to access a service online instead of buying software to use in your business, that’s cloud computing. You can use it to perform lots of different tasks:

• Email. Cloud-based email allows employees to send and receive messages by logging in on the internet instead of accessing your own server.
• Customer relationship management. Setting up an in-house CRM system can be complex. With cloud computing, you can get going quickly.
• Collaboration tools. These centralised services, which allow you to share, manage and track changes to documents, are ideal for cloud computing.
• Office software. You can log in to a website that functions like a word processor – and save documents online too.
• Accounting software. There are several online accounting services which let you manage your finances online.

Cloud computing is well-suited for services which are used by several people in your company (like your CRM system or a collaboration tool). It’s also ideal when you need to provide access from several locations, or where it’s important you keep data off-site.

Some services are less appropriate. For instance, web design and photo editing software still works best when installed on an individual computer.

Why cloud computing?

Cloud computing has three main advantages over running software within your business:

• Simple management. Cloud software and services are managed by their suppliers – so you don’t have that headache in-house.
• Cost effectiveness. Cloud computing or hosted services are purchased on a subscription basis. You pay by the month, based on what you use.
• Scalability. Cloud computing gives you access to extra computer power whenever you need it.

Although these advantages can be significant, there is a downside. Cloud software requires a fast, reliable internet connection. If that fails, your data is stuck where you can’t access it.

Additionally, although cloud computing providers go to lengths to protect data, there are still risks. What happens if the company behind the hosted services goes bust or is attacked by hackers?

That’s not to say cloud computing is unsafe. In fact, the risks may be lower than those involved in managing services yourself. It’s just important to evaluate them carefully when deciding whether to use the cloud.

Are hosted services for you?

Cloud services tend to be offered by web hosting companies. Although cloud computing may not be suitable if you feel the security issues are too great, or where you need guaranteed, 24/7 access to your data, the reduced management overheads alone make it worthwhile for many jobs.

What’s more, you can often try cloud computing at a low cost. A service to run your company intranet should cost from £10 a month. Given the money saved over buying a server, installing intranet software and learning how to use it, that makes the cloud a very attractive option.