Cloud computing is a growing form of computing service to help reduce business costs by cutting back on computer infrastructure, like data servers, so that your business can focus on its services. By sourcing out computing services like application development, or data storage to an internet based infrastructure, your business can remain mobile and focus on the demands it needs rather than the tools to get it done.
Advantages of the Cloud Rather than pay and maintain your own business hardware, you are outsourcing your IaaS (Infrastructure as a Service) to companies like AT&T, IBM or Amazon to manage your business services. These companies will then charge your business for usage and service as opposed to paying for and maintaining your own hardware infrastructure. For example, by storing your data on the cloud you would pay a nominal fee to access information versus the cost of maintaining a data center at all times.
By utilizing the cloud as a platform for your business, you can rely on giant businesses like Amazon to store your data with them. This brings reliability as Amazon is a large retailer with extensive capability and advanced hardware technology. Netflix, the popular entertainment streaming service, is a company that relies on the backbone of Amazon to provide its’ services with cloud computing.
Disadvantages of the Cloud A major disadvantage of utilizing the Cloud is that your business will lose service if your provider experiences downtime. Not being able to access your information due to reasons uncontrolled by your company can suspend your operations indefinitely and cause you to lose money. There is also the issue of data ownership as, depending on the service agreement, your businesses’ data may belong to the cloud computing provider and not you.
Cloud computing is an interesting option for your business to consider. With extensive capabilities and cost efficiency, choosing to use these services can help you cut costs for your business. Whether or not Cloud computing is right for you, at Vreeland Insurance, we understand all the challenges that face your Essex County Technology Company. Contact us at (877) 755-3767 to learn more about these products as well as our other New Jersey Business Insurance options.