Cloud computing can sometimes seem more complicated than it really is
Cloud computing refers to the already widespread practice of using computer resources that do not reside on the hard drive in your desktop machine or laptop, or on the corporate server, but on the physically and logically remote computing infrastructure that loosely comprises the network we call the internet.
The computer industry is driven by fads and fashions that spawn an ever-increasing array of abbreviations and buzzwords. As a student accountant you can forget about most of them, but some – such as ‘cloud computing’ – demand your attention.
Fortunately, it’s easier to grasp than many computing concepts because you’ve probably experienced ‘the cloud’ without even realising it. You can’t see it or touch it, but if you have a free e-mail account set up with MSN, Yahoo!, or a similar service provider, your e-mail messages are stored in ‘the cloud’. Likewise, for example, if you use any of the free productivity software provided by Google. Cloud computing refers to the already widespread practice of using computer resources that do not reside on the hard drive in your desktop machine or laptop, or on the corporate server, but on the physically and logically remote computing infrastructure that loosely comprises the network we call the internet.
The cloud concept can sometimes seem more complicated than it is, because the term ‘cloud computing’ encompasses some other terms of reference. These include ‘Software as a Service’ (software applications that you can access over the web using a browser) and interactive Web 2.0 developments such as blogs, wikis, and social networking sites.
However, there is a unifying theme: they all use the internet as a platform for delivering software and services. Software programs and information are permanently stored on the vast servers and data centres of the service providers (such as Google and Yahoo!) and then downloaded into the memory of various devices (such as PCs, corporate servers, mobile phones, and smart gaming consoles) on demand (yet another related term of reference), as and when users need to access them.
Cloud computing is becoming almost as commonplace as the term of reference. Because of the economies of scale inherent in this approach, it is popular with organisations that want to offer their software and services; individuals and organisations like it because it is a lot less costly and complex than traditional ‘on-premise’ software and systems.
Anybody with a computer, an internet service provider, and (preferably a broadband) telephone line can access the software and data in the cloud using a browser from anywhere they happen to be, any time it suits them. Instead of costly software licence fees, users pay a small monthly subscription – and the service provider takes care of software maintenance, upgrades, and the various processes associated with keeping data safe and secure.
This can provide individuals and small organisations with access to powerful software and systems that would once have been the preserve of large organisations with substantial financial and technical resources. So, accountants in business and practice are now opting to use an increasingly broad range of ‘on demand’ systems, ranging from e-mail and spreadsheets, to accounts production software, and financial planning systems.