Posted by Jim High
| The Cloud. This nebulous idea is a challenge to understand and to analyze from a financial standpoint. Every CFO needs to gain a level of understanding about the Cloud and what it means for their company's future. Here are seven questions (and answers) that every CFO needs to know concerning the cloud: |  |
1. What is cloud computing?
This is a method for providing or offering IT services, such as software and infrastructure, via the Internet.
The three most common forms of cloud computing are public, private, and hybrid. A public cloud is one provided by a third-party where multiple tenants lease various services. A private cloud is one dedicated entirely to one company or organization. A hybrid cloud is one that combines pieces of public clouds, private clouds, or on-premises IT infrastructure.
The three most common forms of cloud computing are public, private, and hybrid. A public cloud is one provided by a third-party where multiple tenants lease various services. A private cloud is one dedicated entirely to one company or organization. A hybrid cloud is one that combines pieces of public clouds, private clouds, or on-premises IT infrastructure.
2. What is IaaS?
IaaS stands for Infrastructure as a Service.This is the most basic of cloud computing services. The service provider offers access to the hardware through connectivity. The client loads their own operating system, software, and data. The client manages everything but the hardware and the third-party connectivity.
3. What is PaaS?
PaaS stands for Platform as a Service. This is a step-up from IaaS. The service provider offers access to hardware that has an operating system already installed. The client can load their own licensed or internally developed software to the operating system for their users to access. The service provider manages the operating system, storage, hardware, and network. The client manages their own software.
4. What is SaaS?
SaaS stands for Software as a Service. With this form of cloud computing, the service providers offer software for clients to access. The provider delivers the software when the client's users demand it. The software data is stored on the cloud. Many refer to this as software "on demand."
5. What is hosting?
For companies that want to use ERP software, but not manage the infrastructure internally, a hosting solution is the answer. Hosting refers to a third-party provider hosting and managing the ERP software. The ERP licensing is either subscribed to or owned.
6. What is virtualization?
Virtualization refers to the ability to run several instances of an operating system on a single hardware system. Each instance of an operating system is referred to as a "virtual machine." This happens when virtualization software is installed on top of the hardware layer, before the operating system is installed. Virtualized hardware can be used within a company or leased from a third-party provider.
7. What is an MSP?
A managed service provider (MSP) provides network-based services, applications, and equipment to clients. Many MSPs act as an agent between clients and cloud providers. The MSP adds value by monitoring applications and managing user problems.
For CFOs, getting answers to these questions is an effective first step towards a fuller understanding of cloud computing and its potential impact on the company's financial present and future.
Hopefully this clear up what the cloud is all about and some of the common terms often associated with it. The cloud is growing at a rapid pace and if it hasn't already, it will most certainly affect your business in the future. The more prepared you are, the better off you will be.
For CFOs, getting answers to these questions is an effective first step towards a fuller understanding of cloud computing and its potential impact on the company's financial present and future.
Hopefully this clear up what the cloud is all about and some of the common terms often associated with it. The cloud is growing at a rapid pace and if it hasn't already, it will most certainly affect your business in the future. The more prepared you are, the better off you will be.
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