There are all sorts of different methods available to put your data out to the web.
You can spend a ton of money building servers and integrated software and keep everything locally controlled, or you can farm that work out. Cloud hosting let’s you farm out the work and save money, but what is cloud hosting?
Cloud hosting is basically just moving your data from a central system to a network solution. This has quite a few benefits.
The major benefit is cost. By cloud hosting you’ll be able to treat your server usage like a power bill. You just pay for what you use. Think about the difference in cost here. If you had to generate your own power you’d need a generator that costs thousands of dollars to run your business. Instead you pay the power company a couple hundred dollars based on the amount you use. Cloud hosting works the same way. By going with cloud hosting you avoid the expense of all the hardware.
The only real downside to cloud hosting is a business runs the risk of being captured by the server company. This means that if a business develops all its software for use on a particular cloud host it might not be easily moved to another company.
The benefits of cloud hosting outweigh the negative. Not only does cloud hosting allow for a reduction in hardware costs but it’s also a decentralized system. A decentralized system means users can log on and grab information from anywhere. They aren’t tied into a local intranet. This does raise a security concern but one that’s easily dealt with available encryption software.
So what is cloud hosting? It boils down to just being a cheaper way to get your business online. You limit fixed costs, and have the ability to log on from anywhere. The benefits outweigh any negatives as a business solution.