LISA: Hello and welcome to English Island. Today, we will be talking about cloud computing. It is a topic that is making headlines recently and understanding how the business works will put you in a better position in our globalizing world.
MIKE: is one of the biggest trends in technology right now and it is on track to be a major force of change in the technology industry. It will impact both consumers and suppliers in many different ways. Do you want to know how cloud computing will impact you? Do you want to know how to make investments related to cloud computing? Do you want to understand one of the hottest trends in the technology world right now? Well if you do you have come to the right place. By the end of this lesson, you should be able to understand and discuss cloud computing. We will give you the background of the industry and important ways in which this trend will impact your life.
LISA: Cloud computing is delivering computing as a service instead of a product. Instead of buying a product like Microsoft Office, cloud-computing users will to services over the internet. One example of this would be Salesforce.com which is a Cloud Computing Customer Relationship Management (CRM) service.
MIKE: of cloud computing oftentimes talk about the similarities of cloud computing and the . Users experience the end result of the service without needing to understand the infrastructure of configuration of the system, but that only of what is possible with cloud computing.
LISA: True, cloud computing is the idea that computing is . With cloud computing, as your business grows you do not need to make major capital investments in new computing infrastructure. Mike, can you explain that a bit more?
MIKE: Sure, think about your own company. Maybe right now your company’s IT server and database can support up to 1000 users. As the company grows, it will eventually find itself by this computing hardware. When the company surpasses that 1000 users they would typically have to invest in hardware that is an larger. In this case, we will assume that they want to upgrade to hardware that will support up to 5000 users, but the problem is that this is a major capital investment. This is where cloud computing shines. Cloud computing is a service, so users of the service will pay based on usage. Take Salesforce.com for example, they charge on a per user per month basis. So with each additional user, your business will pay an higher fee. Can you see how this would be useful?
LISA: Yes. This means that as my company grows I would pay only for what I am using. If I invested in that 5000 user server, but only employed 1500 people, I would be wasting 3500 people’s worth of capacity. Using cloud computing, I only pay for what I am using and, as an added benefit there are no upfront costs.