How Does Cloud Computing Work

Cloud computing is a phenomenon made possible from the increasing speed of broadband Internet and the ability for people to access web pages at lightning speeds. Without these lightning speeds, people would never access to compute in the clouds. In order to better understanding of mechanism of cloud computing, it is vital to understand what it is.

Cloud computing is a grid or farm of computer servers that provide software and data to other computers(users). Its purpose is to deliver software and the software functionality that might be put on the farm by a company to individual computers connected to the Internet. For example, Google Documents is software that is “in the clouds” that delivers a word processing software to people without software installation required on their computer. And, with the power of Google’s servers, they can then save those files right “in the clouds” without requiring to store on their own hard drive.

How Does Cloud Computing Work?

To understand how it works, it is important to think of cloud computing in two levels. The front level is the user level which is what you use such as your Google Email or the webpage where you are downloading the latest version of Flash or even a Sales Tracking Software. The other level is the backend which is all of the hardware and the software architecture in the Grid. It’s here that the actual Gmail or Facebook or Sales Tracking Software is held waiting to be accessed by you.

Because all of the different servers in farm are running together in cloud computing approach, one application can have the computer power of multiple servers. This allows something like Facebook to run and able to serve million of users.

Thus, the cloud brings together a large collection of server computers to operate a single service application. And anything that is stored anywhere other than your local hard drive is labeled as being in the clouds.

One of the main advantages of cloud computing is it enables companies to deliver files or services to customers without having to send an physical disk or CD. For example, if you are using a HP laptop and you need to get a patch for your Driver. Instead of having to have it sent to you, HP can deliver to you over the Internet. If HP wants to sell you a new piece of software, they can do that over the Internet and have it installed without needing the physical CD. It saves time and money both company and customers.

Article Source: Kenny Blog

SaaS

SaaS (Software as a Service) is an application hosted on a remote server and accessed via the Internet.

A simple and concrete example of SaaS are "free" e-mail (also known as web-based e-mail) systems offered on the Internet such as Microsoft Hotmail, G-Mail and Yahoo Mail. Each program meets the basic criteria of a SaaS application: a vendor (Microsoft, Google or Yahoo), contains all the programs, logic and data in a central location and provides access to end users of these data and the software runs and used during the world-wide web.

This "simple" application architecture can be applied to a wide range of software applications for use by companies or firms or individual users.

Two main categories of SaaS

SaaS is often divided into two main categories:

• The so-called "line of business services" which refers to business solutions offered to enterprises and businesses, and sold or made available to these companies on the basis of a subscription. Applications in this category include business processes such as supply chain management programs, applications, customer relationship and other
• Customer-oriented services that are offered to the public in general or on a subscription basis or (more often than not) offered for free but are supported by advertising. Web-based e-mail, such as those mentioned above fall into this general category.

Software Ownership

Traditionally, the user purchases a software package and license by paying a one time fee. The software becomes the property of the person who made the purchase. The software support and updates are provided by the seller or developer under the terms of the license agreement.

SaaS, on the other hand, did not have licenses. Rather than a single price, the payment for the use of software is by subscription. You access and use the software ends when you stop paying the subscription fees. In addition, the software is downloaded to your computer. In this example we used, G-Mail or Hotmail, it is not "resident" on your computer - to access and use over the Internet, but it is uploaded and stored on computer.

The main advantages for the user

• Lower costs. You should not pay a single (usually large) fee for licensing. He just needs to pay recurring subscription fees. An article about how you save money on SaaS implementation.
• Smaller storage requirements. You do not need to store the software or data stored on your computer so you do not need large data storage facilities. There is also the convenience of not having to constantly details backup - storage is the responsibility of the SaaS provider.
• Fewer staff. SaaS reduces the need for specially trained IT staff to manage the maintenance, monitoring and software updates. The SaaS vendor will provide a dedicated team to handle these tasks.

The main advantages for the seller

The main advantage for the vendor is in continuous stream of income that will amount to much more than can be expected in the traditional setup software licenses. Using SaaS also suppliers to mitigate piracy and without the use of software and reduce the losses associated with these  activitie

One example of SaaS in market today is Sales Tracking Portal. Sales Tracking Portal is an Online Sales Tracking Software helping sales professional to track and manage their sales operations. The strong point of this service is their simplicity and affordable. The features is much enough to support most of sales operation while very cost effective.

Article Source: SaaS