The Cloud: Part 1 What is it and why go there?

The Cloud is the latest ‘must have’ technology around today. There are a lot of arguments both for and against, each of which is perfectly valid but with varying degrees of relevance to any particular circumstances.  You may be aware of the conversation or debate but if you’re not, or have been too busy with your own business to take much notice, then please read on.

First of all what is it? The Cloud really just means that your data (and increasingly programs or software) is hosted elsewhere, not on your own computers or servers. The term ‘Cloud’ is actually a bit misleading as nothing is up in the air or in cyberspace – the data is all being stored, or hosted, on remote servers which are usually very large and powerful servers often located in vast data warehouses. These can be anywhere in the world (but for most users these will commonly be in the USA – for the moment at least).

Many of us have been using cloud applications or storage for some time without being overtly aware – or before the term was coined. Hotmail and Yahoo have been around since the mid 90’s, followed by Gmail and a multitude of Google products – all are hosted in the Cloud. Online banking is another frequently used service as well as others you can’t help but be aware (if not a user) of such as Facebook and Twitter.

The advantages of hosting your data remotely, in the Cloud, include:

• Cost effective – payment is normally by ongoing subscription but there is no upfront investment in IT infrastructure.
• Applications (rather than just data storage) will always be up to date and using the latest versions. Patches and updates/upgrades are automatic.
• Backups are done seamlessly ‘behind the scenes’ – and the Cloud hosts will normally have backup servers and IT support teams on site.
• Data and applications can be shared amongst multiple users without having to swap files and worry about version control or conflicts (who has the most up to date copy?). This sharing is done in ‘real-time’ which is a big saving in efficiency and productivity.
• Access is 24/7 – although this would probably also apply to your own servers!
• Security – there are generally very high levels of data encryption and security levels (both physical and digital) used.

On the other hand there are downsides and risks that need to be addressed and either accepted or mitigated:

• Remote storage – as your data is not stored on site, or often even in the same country, several factors must be considered:
• If hosted in another legal jurisdiction a different set of rules may apply (e.g. under the Patriot Act the US government may access any data in the interest of ‘national security’).
• The internet may be regulated which may affect access to your own information
• Loss of control – you need to rely on the Cloud provider’s policies on security, privacy, accessibility and reliability. Can you live with the possibility (however remote) of someone else seeing your sensitive data or of not being able to access it on demand, or at all!?
• Total reliance on the internet, which means you are also vulnerable with regards to your Internet Service Provider (ISP) and modem etc.

It is more likely that small and medium businesses (or SME’s) have the most to gain from using the Cloud but as with adopting any system or technology you need to do your own research or due diligence. The risks need to be weighed up against the advantages and either accepted or reduced or eliminated.