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PGE Solutions Cloud Computing: A Great Equalizer - PGE Solutions

cloud-computing-1

Cloud Computing: A Great Equalizer

Written by Rich Quin on . Posted in Blogs

cloud-computing-1 Cloud Computing is probably the most disruptive IT infrastructure we have heard of in the last decade. But while it has practically become a household word of sort, Cloud Computing remains a mystery to many. In this brief write-up, I will try to shed some light on this technology infrastructure currently at the heart of the many service innovations we are all experiencing. Think UBER, AIRBnB and NetSuite to cite a few.

What is Cloud Computing?

Cloud Computing is a general term for the delivery of hosted services over the internet. Cloud computing enables companies to use computing resources such as software applications or computer hardware, as a utility—just like electricity— rather than having to build (or purchase) and maintain such computing resources on its own.

Types of Cloud Computing Services

In the world of Cloud Computing, there are basically 3 broad service categories.

A. Software as a Service (SaaS)

This category covers software applications and solutions that SaaS providers offer. Many common applications from Accounting to Sales to Customer Loyalty to Enterprise Resource Planning (ERP) are deployed using cloud-based Saas model. Companies avail of these software services through subscription in lieu of buying. Companies using Saas, need not purchase the application but instead pay subscription fees on a monthly, quarterly or annually basis. Some SaaS products require clients to purchase hosting services separately.

An example of a well-known cloud-based Saas is NetSuite—currently the world’s no. 1 Cloud ERP. NetSuite is a full-cloud SaaS product that does not require a separate hosting service provider.

B. Infrastructure as a Service (IaaS)

As in SaaS, companies can have access to IT infrastructure such as data centers, storage, networking and secure computing facilities among others, without owning such facilities or infrastructure. Instead, companies can subscribe to an Iaas with a vendor and be charged based on usage, as in utility billing. Rackspace—the hosting provider is an example of an IaaS provider.

C. Platform as a Service (PaaS)

PaaS allows companies to develop software applications using software tools such as Operating System (OS), Database Management System, Server Software, etc. Google is one of the top PaaS providers in the world.

The Impact of Cloud Computing

To many, the most striking feature of Cloud Computing is the mass conversion of IT products to IT services. This in turn has shifted the focus of companies (clients) (who have chosen to acquire cloud computing services) from product quality to full-customer experience when assessing an IT product/service provider’s performance.

Therefore, choosing cloud service providers that have sustainable plans for future scalability and expansion will be very crucial for IT decision-makers.

Cloud Computing and SME’s

According to the Asia Cloud Computing Association (ACCA), SME’s in Asia was expected to spend $ 2 Billion acquiring cloud computing services. This is expected to grow by at least 42%, particulary in emerging Asia Pacific.

Table below lists the sectors thought most likely to be early cloud adopters based on historical evidence and current IT expenditures.

 

Source: ACCA SME Report 2015

Source: ACCA SME Report 2015 (click photo to enlarge)

 

The report further suggests that Cloud Computing will be a great equalizer for SME’s as this new technology allows them to access world-class technology – traditionally the realm of large companies, with low capital requirements or nothing at all.

SME’s can take advantage of the benefits that Cloud Computing offers. That, together with a strong plan and great products –services portfolio could be great ingredients for success.


Citations:
Definition of Cloud Computing: http://searchcloudcapacity.techtarget.com/definition/cloudcomputing
Types of Cloud Computing: https://apprenda.com/library/pass/iaas-paas-saas-explained.compared/

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