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is a technology that uses the internet and central remote servers to maintain data and
applications. Cloud computing allows consumers and businesses to use applications without installation
and access their personal files at any computer with internet access. This technology allows for much
more efficient computing by centralizing storage, memory, processing and bandwidth.

A simple example of cloud computing is Yahoo email or Gmail etc. You don¶t need software or a server
to use them. All a consumer would need is just an internet connection and you can start sending emails.
The server and email management software is all on the cloud (internet) and is totally managed by the
cloud service provider Yahoo, Google etc. The consumer gets to use the software alone and enjoy the
benefits.

Fig: figure showing how cloud computing works

Cloud computing is broken down into three segments: "applications," "platforms," and "infrastructure."
Each segment serves a different purpose and offers different products for businesses and individuals
around the world. In Sept 2009, an Aberdeen Group study found that disciplined companies achieved on
average an 18% reduction in their IT budget from cloud computing and a 16% reduction in data center
power costs.

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Famous vendors in the On-Demand software or SaaS business are: Amazon Web Services, Google,
IBM, Microsoft, Salesforce.com, Oracle, EMC & VMware, HP, SAP, Dell, Novel, Akamai, Rollbase,
Cisco, Red Hat, Citrix, CA etc. These companies charge their customers a subscription fee and in return
host software on central servers that are accessed by the end user via the internet.

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å? Ê  p  It helps keep the cost down for both the users and website owners. Also for the
users, they can access it from any computer and still have the file they need. For the owners, they
do not need to reproduce the software and ship it out. They just rent the server space.
å? m   : They can hold more storage than a personal computer can. It takes away the
need for the upgrading computer memory, which also helps keep the cost down for the
companies and users alike.
å? x    Owners no longer need to hire people to update more than one server,
and it also helps the users who do not like to download updates for the software. The server gets
the updates and everyone who uses the service gets the updates without updating anything on
their end.
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    It has more flexibility than other network computing systems and saves
time plus money for people who are in a time crunch.
å? m  Like most networks it allows users to connect even without their own computers,
meaning you can do your work from anywhere in the world as long as you have an internet
connection and a computer access.
å?   Ê   A key component of cloud computing is that companies share resources.
With cloud computing, this allows them all to have access to the resources via cloud computing.
This again saves businesses time and money by placing their resources all in one location that is
easy for their workers to look up and access.


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Perhaps the biggest concerns about cloud computing are   and  . The idea of
handing over important data to another company worries some people. Corporate executives
might hesitate to take advantage of a cloud computing system because they can't keep their
company's information under lock and key. Privacy is another matter. If a client can log in from
any location to access data and applications, it's possible the client's privacy could be
compromised. Cloud computing companies will need to find ways to protect client privacy.
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In order to obtain compliance with regulations including FISMA, HIPAA and SOX in the United
States, the Data Protection Directive in the EU and the credit card industry's PCI DSS, users may
have to adopt community or hybrid deployment modes which are typically more expensive and
may offer restricted benefits.
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The relative security of cloud computing services is a contentious issue which may be delaying
its adoption. Some argue that customer data is more secure when managed internally, while
others argue that cloud providers have a strong incentive to maintain trust and as such employ a
higher level of security.
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In addition to concerns about security, businesses are also worried about acceptable levels of
availability and performance of applications hosted in the cloud.
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Other than this customization is nearly impossible in case of cloud computing.

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Though not everyone agrees on the exact definition of cloud computing, most agree the vision
encompasses a general shift of computer processing, storage, and software delivery away from the
desktop and local servers, across the network, and into next generation data centers hosted by large
infrastructure companies such as Amazon, Google, Yahoo, Microsoft, or Sun. Just as the electric grid
revolutionized access to electricity one hundred years ago, freeing corporations from having to generate
their own power, and enabling them to focus on their business differentiators, cloud computing is hailed
as revolutionizing IT, freeing corporations from large IT capital investments, and enabling them to plug
into extremely powerful computing resources over the network.Cloud computing are still growing and
many government bodies and company organizations already using this type of network for their
businesses. This type of computing allows them to focus on what matters and not to worry about
technology side of things. Cloud computing does have its place, though it is not for all companies.

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