Cloud computing can be compared to distance education. It is a service provided to you by a person whom you will never come to see or communicated with any other manner. All its services are provided through the internet as per your specific requirements and therefore it is termed as on demand service. You get host of services like computer resources, operating systems, applications, services etc; through the internet. All this furnished by the service provider. The service is more economical than computing services provided personally.
Service providers do their cloud working through a number of methods like PPS, shared hosting SaaS. The last mentioned has been in vogue for quite some time now. Independent software vendors and others like them like VARs have benefitted greatly by cloud working in the form of increased revenue. Users can avail of the services without making any commitment ob long term basis. They are able to pay as when they need the service and get it done. It means less financial resources for the user. For the service provider the potential growth is tremendous.
The provider gets the scope for growing very fast by doing this work. Cloud working has become an industry and its growth has been very rapid in the last few years. The forecast for the future for the entire IT industry is that by the year by 2012 the expenditure of the IT industry in this form of service would have grown to a level of nearly 10%. More and more host service providers are turning to the cloud form of giving service because of the lower investment and the ever increasing popularity among users.
There are several benefits to both the service provider and the user in cloud computing. The maximum benefit will accrue to corporate servers. It is estimated that considerable part of their service capacity remains unutilized which makes the investment idle with no return. This can be easily avoided by switching over to cloud work. The user also benefits because he pays only for the service provided at any particular time. Delivery of scaling up or down of services used to be delayed process and now it has become an instant service.