Let’s first talk about traditional on-premises computing.
Typically when an organization implements IT system, then along with software organization also has to purchase hardware, servers, storage and other components to set up IT infrastructure. Initial cost of setting up IT infrastructure is huge. Then organization hires some people for the maintenance of IT infrastructure and some people for maintenance of software (installation, upgrades, performance etc.).
Organization might hire developers to develop customized software. To develop software developers need software platform (framework they can build upon to develop or customize applications like C++, Java, .NET framework etc.) which involves cost.
On premises computing facility involves huge initial cost.
What if organization doesn’t have to purchase hardware, don’t have to hire people for maintenance of IT infrastructure and software, don’t need to bother about software platform. How about organization doesn’t need to bother about all these things and rather focus on their core business. Here comes cloud computing.
In cloud computing, maintenance of IT infrastructure and software is taken care by vendor. Organization doesn’t need to install software on individual computer, software can be accessed through Internet/ web browser. Developers can create software applications using tools supplied by the provider.
Video to help you understand the concept of cloud computing:
Cloud computing is basically composed of three fundamental services:
SAAS: Software As A Service
Applications can be run directly from a web browser without any downloads or installations required, although some require plugins. Software updates, firewall etc. is managed by vendor itself.
PAAS: Platform As A Service
Developers can create software applications using tools supplied by the provider. PaaS services can consist of preconfigured features that customers can subscribe to; they can choose to include the features that meet their requirements while discarding those that do not.
IAAS: Infrastructure As A Service
IT infrastructure is maintained by vendor itself. Hardware, server, data centers, cooling system and other components is managed by vendor.
Example: We use electricity and pay electricity bill without bothering about infrastructure.
Very nice article on cloud computing:
SAP launched SAP cloud computing. What has SAP done to ensure security of organization data?
SAP can be accesses through web browser which means access to data from anywhere in the world. SAP takes care of IT infrastructure and software maintenance. Companies don’t need to spend money on hiring people for maintenance of IT system.
Watch this video to understand how secure organization data in SAP data centers is: