What exactly is cloud computing? (It has nothing to do with rain clouds)

Cloud computing is actually something that can be hard to define, but we will try. In layman’s terms, cloud computing embodies the concept of ‘software as a service’ where instead of having desktop productivity applications (such as MS Word, Excel etc), you are able to use web/cloud-based applications to accomplish the same tasks (ever heard of Google Docs? GMail?). Or instead of requiring a fully-speced desktop computer with a fast processor and copious amounts of RAM, you can instead have a thin-client which connects to and runs everything off a server, including the familiar Windows interface (perhaps using software such as Microsoft Terminal Services or Citrix). The computer you would be connecting to might even be ‘virtualised’, running on a large data server which runs tons of other ‘virtual computers’ – this can be accomplished with a product called VMWare for example.

There is an excellent article on Joyeur, which talks in much more detail about the technical intricacies of computing in the cloud: http://www.joyeur.com/2008/05/08/cloud-nine-specification-for-a-cloud-computer-a-call-to-action

As well, this video provides a wealth of useful information from industry experts



The premise behind cloud computing is two-fold. One, it is designed to enable productivity be centralising all applications and data in one place, allowing for multiple people to work on the same document at the same time for example. And two, it is supposed to reduce the need for large-scale investments by firms in IT systems because everything is being served ‘by the cloud’.

The applications we see today are only the beginning – the cloud evolves everyday, and one day soon, you may find yourself lost in it.

How we benefit from Cloud Computing

We see in today's era that 'cloud computing' presents many benefits to its users. On a global level, it facilitates the ease of access to individual files and information by making it more widely available from across the world with reliability and security. The way this happens is that the world is seen to be shared under one sky filled packed with clouds, a metaphor used to represent data. Any user provided with an internet connection to the World Wide Web can easily gain access to information from these so-called 'clouds'. It helps synchronize the data we have on hand so that none of us are at a disadvantage.

What is amazing about cloud computing is that via these 'cloud applications' on the web that are developed and released by the most renowned companies, the need for managing the software is virtually eliminated since it's already done for us. This further eases not only the uploading component of information, but the extraction process as well.

Where the Cloud Fails.

So while there are many pros with Cloud Computing, there are also many cons. What if Hurricane Ike were to hit your home in Ohio, destroying houses, trees and the phone and cable infrastructure? It could be days before you will be able access the critical corporate data that you stored on Google Docs last night. Sure, it’s nice to be able to access your info to work on your report at your boyfriend’s house. But if your boss wants that report tomorrow, it’s suddenly not so nice anymore, is it? If you are the boss, losing connection means losing money and possibly customers. Don’t forget that while confidential information stored online makes it easier to access anywhere in the world, it can be jeopardized with so many hackers out there nowadays. Leaving your information up in the cloud may also literally mean that – it has gone up there and may never come back to you.

Take Apple for instance. The company launched its new application, MobileMe, but problems with it caused for many emails to be completely erased – leaving customers not feeling so happy. My recommendation is to keep all critical data backed up locally on the computer in case the next hurricane hits.

Strengths of Cloud Computing for DWIH

A mid-sized accounting firm probably does not have a dedicated department for IT, by integrating cloud computing, one no longer has to invest in the extensive hardware, staff, and implementation expertise to support a decent IT system. Cloud computing also negates the need for updating to the newest software and hardware, as it is managed by the web application itself.

Also, in the audit practice, accountants need to be mobile. With cloud computing, after storing client data online, it'll be available anywhere in the world, with the press of a key. By having these data in a secure environment online, it also serves as a secondary backup that can be constantly updated, in case anything happens

Also, there are numerous SME that have chosen to implement cloud computing into their operations. The accounting firm that understands cloud computing and uses it within their own business would certainly be the top choice for these potential customers.

Most importantly, the benefits provided by cloud computing are often followed by the words, "with lower costs".