Cloud computing is an emerging trend of online file access being used by businesses worldwide. It creates a virtual space or cloud of company files and applications, which have can be used by the employees from anywhere. It requires a subscription which allows the businesses to utilize the services of a provider to organize installations and data customizations. Everything is ready to use once logged in.

Using a centralized server brings down the expenses, as it eliminates the need to buy multiple software and maintain the hardware needed to run local servers. Clouds may be private, which limits the server access to a particular group, public, which can be used by any user logged onto the internet or virtual public, where a private cloud of services is attained by using public resources. High speed internet has been one of the primary factors which spurred the growth of cloud computing.

Based on how it works, cloud computing services can be classified into:

1.Software as a service (SaaS): In this type, registered software applications are managed by the provider. Browser based access allows individual applications to be used by the customers without bothering about licensing or server expenses.

2.Platform as a service (PaaS): In this type, working platforms are managed by the provider to run and develop business applications. It is built so as to support all stages of creating a web application online, without additional software needed in local computers.

3.Infrastructure as a service (IaaS): This type can be considered as an enhanced version of web hosting. Virtual servers along with related data and equipment can be purchased on a per-use basis.

Even though the end users did not have to worry about installing and managing the applications which they were not familiar with, this approach did have some problems. Instances of changing company requirements proved too complex for what the providers had to offer. Some classified company data were too confidential to be exposed outside the local firewall. The alignment of cost per usage in such cases did not suit the company’s business plan.

An efficient method was required, which allowed a more flexible usage of services and the applications to be easily deployed in the new platform provided. This was solved by using virtualization as a part of the cloud approach. It made the applications function independent of the infrastructure. Several applications could utilize a particular server and run on any system which needed them. The application needs to be virtualized for this capability, which basically means making them self sufficient. The operating system, middleware and related databases combined with the application constitute the entire package. Such a package does not have its applicability restricted to the provider or the end user’s system. It runs on the cloud which is made available online and charged by the duration and amount of usage.

The power of cloud computing lets your businesses have any application start running in a matter of days. The subscription fees are nothing compared to amount of money you will save from not having to buy expensive business software and hiring experts to get them started.