The buzz at the moment is Cloud computing. There has been a lot of talk about it. Vendors have re-aligned their products to be included as services with the Cloud.

Cloud computing as a term is a little ambiguous at the moment. The definition shifts depending on which vendor is using it.

It generally refers to services and resources located within the Internet and includes at the moment:

• Software as a Service - Saas
• Utility computing
• Web services in the Cloud
• Managed Service providers - MSP

Utility computing

This area is not new and includes all the large Internet organizations, including Amazon.com, Sun and IBM. The hosting of virtual servers and other supplement services is one type of this model. Until now the service has been used more for non-critical IT needs. The development of additional resource on demand services means that this type of service is more desirable now.

Web Services

Web Services is similar to Saas, but instead of providing full applications, it only exposes Application programming interfaces(API) to enable developers to use their functionality. An example of this includes Google Maps.

MSP

MSP is also related to Saas except that the services are used by IT. These services usually provide core security and management services like Anti-Spam and Antivirus products.

Saas

Software as a service is probably the newest concept of the three and introduces a subscription model to traditional software packages. Instead of paying several thousands of dollars to buy and host the software yourself you approach a Saas vendor. They will give you access on a subscription basis to software over the Internet. This is a great service for a small, medium or home business who do not have the capital or technical expertise to buy, install and manage the services.

What is the down side? Well in my view the biggest downside to this model of software usage is twofold. Firstly, the fact that your information has to travel over the Internet and is stored on a service providers infrastructure means that the potential for breach of security/privacy is greater. Secondly, and more importantly, what happens to your business if you cannot get on the Internet?

The service provider would have a high availability network will multiple connections to the Internet, but do you? The software as a service is easy for small and home businesses. These are the most vulnerable to Internet access disruption. What if your ISP loses connection to upstream Internet connections? What if your hardware stops working? Large businesses usually have multiple sites, redundant connections to the Internet and the technical expertise to work out almost any problem that arises.

Summary

The movement to Cloud based services is a good thing for the general Internet and Business community, but just like every other aspect of business continuity you need to assess your risks and have alternatives available in the event that your cloud focused services are not available to you.