The Cloud Computing concept is one based on the outsourcing of computing resources. Rather than purchasing certain hardware or software at relatively high capital expenditure, companies instead rent applications from service providers and access them over the Internet. As an alternative to managing traditional IT resources - a hosting company takes care of the background technicalities and you simply connect to your services through a secure Web-browser, using them whenever needed. These services are hosted online on secure servers - a network of computers collectively referred to as the Cloud.

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Advantages of Cloud Computing

Lower Cost and Initial Investment

Cloud computing is much less expensive than getting similar services in the traditional way. Companies will be paying solely for the aspects of the service that they demand, which will in turn affect the price.

Scalability

A cloud service is much easier to scale up or down than the traditional computing service. This is the perfect option for companies that require flexibility.

Companies in today's world are trying to survive in a very competitive and intense business environment. Many of them are forced to scale down. Several other companies manage to make it through, which calls for staff expansion.