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Why Should I Care About “The Cloud?” And What Does “The Cloud” Actually Mean?!?
Posted on September 3, 2015
Author: Kirby Lunger, Performance Architects

We’ve all had that moment…the one where you’re sitting at lunch, in a meeting, or in the sunshine with friends and someone casually mentions, “My <insert here> [music/photos/software/banking account] are stored in the cloud”…and you end up daydreaming about angels up in the clouds reviewing everyone’s information! You’re then left wondering, “What is ‘The Cloud’…and why should I care?!”

Source: http://cloudtweaks.com

PCMag.com offers a great definition, along with an explanation of how the silly ‘cloud’ imagery developed over the years in this article, “In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of over your computer’s hard drive. The cloud is just a metaphor for the Internet. It goes back to the days of flowcharts and presentations that would represent the gigantic server-farm infrastructure of the Internet as nothing but a puffy, white cumulonimbus cloud, accepting connections and doling out information as it floats.”

So how does this impact you? As AccountingWeb.com mentions in this article, “In the early days of computers, users rented time on a mainframe computer. A few decades later, we all became accustomed to having our own personal computers on our desk, upon which we installed shrink-wrapped software. We became responsible for upgrading our computers, software, and backing up our data. As often happens in life, though, things are going full circle where we’re returning to the days of renting time on someone else’s computer.”

In terms of your day-to-day life, this means devices like your smart phone or tablet allow you to access huge amounts of information stored on someone else’s computers (called “servers”) via an advertising and/or subscription model. You no longer have to have local storage on your device to keep everything close at hand! As with anything positive, there are also possible negatives in this situation and a few of the big potential downsides include:

  • Security. You’re trusting someone else with your data, outside of your own protected environment. Mistakes can and do happen (the recent Ashley Madison hack is a frightening example of what can happen with personal data stored on the Internet!).
  • Data access. A business could decide to stop offering the service…or you could close your account…and you may lose access to important data and information.

This big shift to ‘The Cloud’ also impacts your work life, in much the same way, although the terminology can get a little confusing here too. You may have heard the term ‘Software-as-a-Service’ or ‘SaaS.’ This simply means software that you use that doesn’t run “on premise” at your office location(s). Sometimes companies refer to storage in ‘The Cloud’ and to ‘SaaS’ as different things. This is because cloud-based storage of information (infrastructure and services) can be a totally different solution than the software being delivered as a service (applications) via the cloud! Other organizations use these terms interchangeably. Just be careful to clarify what someone means if you hear these words used in a business context.

We’ve already talked about some of the concerns with SaaS and cloud-based solutions; the obvious benefits include (but aren’t limited to):

  • Reduced upfront costs. SaaS is delivered as a service with fees per month or year, allowing the costs to spread out over time.
  • Reduced IT costs. The SaaS vendor automatically deals with hardware and software upgrades, as well as the personnel to support the solution.
  • Remote access. You no longer need to be tied to a physical computer where the data is stored so you can access solutions almost anywhere!

Why should you care? This is big business, and a trend that’s not slowing down any time soon, as demonstrated in this Forbes article published earlier in 2015.

If you’re reading this blog post, you’re probably a current or prospective Performance Architects customer or partner and are interested in how this impacts your enterprise and financial management and/or business analytics and BI environments. A good way to get started is to join me for our next live webinar on Tuesday, September 15, 2015 at 3:30 PM EDT, “How to Start Planning, Budgeting and Forecasting in the Cloud: Case Studies and Lessons Learned.”

We welcome questions and comments either in the forms below the blog entry, or email us directly at communications@performancearchitects.com.

 

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