An explanation of cloud computing in simple terms.
Cloud computing is the use of the Internet to access applications on a monthly pay-as-you-go plan. The "Cloud" is the typical depiction for the Internet in technical diagrams. The "Computing" is on-demand access to application escaping the cost and burden of implementing and maintaining on-premise hardware and software.
When an organization subscribes to cloud computing, a Managed Service Provider (MSP) provides services to move data and applications to a software manufacturer online service and supports both cloud service and customer premise network. Cloud computing subscriptions are provided according to the terms of a Service-Level Agreement (SLA), along with direct monthly billing. This approach is often referenced as a "public cloud".
A common myth is that some organizations enjoy the same benefits with a "private cloud", using the Internet in conjunction with physical or virtual servers and purchased rack space in a data center. A private cloud:
Software manufacturers offer cloud computing with multiple geo-dispersed data centers, better security and reliability, and less cost than on-premise or hosted rack solutions. Cloud computing is a strategic business solution to lower cost and improve business. Organizations using cloud computing have clear competitive advantage by escaping planned obsolecence, disruptive upgrades, and large capital expenses.