| Technology has seen a number of advances | | | | • client-server model |
| throughout the years which have improved many | | | | • grid computing |
| areas of life and business. And, the best is yet to | | | | • mainframe |
| come, as more technology companies and individuals | | | | • utility computing |
| research new ways to improve even the best on | | | | • peer-to-peer |
| the market today. This is hard to imagine, but | | | | There are many things which set cloud computing |
| absolutely possible, especially in the minds of | | | | apart from others. For example, customers do not |
| technology experts. One technology, called cloud | | | | own the physical infrastructure. This reduces the |
| computing is an innovative way for various | | | | overall cost for companies when considering capital |
| resources, software and information are shared and | | | | expenditures. The companies only have to pay for |
| provided to computers. Much like the electricity grid, | | | | the services used. This is very similar to the utility |
| this Internet based way of computing also provides | | | | computing method, and different from the |
| other on-demand services. | | | | subscription based payment method that the other |
| Its predecessors, the mainframe and client-server of | | | | forms use. |
| the 1980s provided a basis for how well cloud | | | | This helps to increase the economic standing for |
| computing works today. The term cloud is a | | | | companies, especially during a time when most profits |
| metaphor, and is based on the type of drawing that | | | | are low. There is low management overhead, and |
| was used for the telephone network and computer | | | | companies have immediate access to numerous |
| network diagrams. Essentially, common business | | | | applications. Also, the contract can be terminated at |
| applications are used as a service over the Internet. | | | | any time, so the investment risk and uncertainty |
| These applications can be accessed from other web | | | | about performance is reduced. Of course, there |
| services, while at the same time the software and | | | | might be financial penalties associated with an early |
| data are stored on servers. Most often, data centers | | | | contract termination, but still the overall expense is |
| are used because of their reliability for cloud | | | | much less than having a different type of computing |
| computing infrastructure. | | | | system. |
| How It Compares to Similar Technology | | | | In addition, some companies might have to pay more |
| There are many characteristics found in cloud | | | | in operating expenses, even though they see savings |
| computing that are similar to other forms of | | | | in upfront capital expenditures. Therefore, if the |
| computing technology. However, one must not | | | | capital expenses are relatively small, and there is |
| confuse it with the others. Some examples include: | | | | flexibility, a company might want to reconsider the |
| • autonomic computing | | | | cloud model. |