What is cloud based computing?
Cloud computing means storing and accessing data and programs over the Internet instead of
your computer's hard drive. Cloud computing is a type of computing that relies on shared
computing resources rather than having local servers or personal devices to handle applications.
The services are delivered and used over the Internet and are paid for by the cloud customer on
an as-needed or pay-per-use business model. Cloud computing underpins a vast number of
services. That includes consumer services like Gmail or the cloud back up of the photos on
your smartphone, though to the services which allow large enterprises to host all their data and
run all of their applications in the cloud. (Cloud computing, 2020)
Example: Microsoft OneDrive, Google Drive, Apple iCloud, Netflix, Dropbox, and Sugar
Sync.
Amazon Cloud Drive: Storage at the big retailer is mainly for music, preferably MP3s that you
purchase from Amazon and images—if you have Amazon Prime, you get unlimited image
storage. Amazon Cloud Drive also holds anything you buy for the Kindle. It is essentially
storage for anything digital that would buy from Amazon, baked into all its products and
services. On the other hand, Netflix relies on cloud computing services to run its video
streaming service and its other business systems too, and have a number of other organizations.
Characteristics of Cloud Environments
All true cloud environments have some key characteristics. Those are:
1. Availability on demand: This means that cloud customers can sign up for, pay for and
start using cloud resources very quickly on their own without help from a sales agent.
2. Accessibility in Broad network: Customers access cloud services via the Internet.
3. Resource pooling: Many different customers (individuals, organizations or different
departments within an organization) all use the same servers, storage or other
computing resources.
4. Rapid expansion: Cloud customers can easily scale their use of resources up or down
as their needs change.
5. Quick to measure services: Customers pay for the amount of resources they use in a
given period of time rather than paying for hardware or software upfront. In a private
cloud, this measured service usually involves some form of chargebacks where IT keeps
track of how many resources different departments within an organization are using.
(What is cloud computing? Everything you need to know about the cloud, explained,
2020)
Cloud Delivery Models
Cloud computing can be divided into several sub-categories depending on the physical location
of the computing resources and who can access those resources.
Public cloud vendors offer their computing services to anyone in the general public. They
maintain large data centers full of computing hardware, and their customers share access to
that hardware.
Private cloud is a cloud environment set aside for the exclusive use of one organization. Some
large enterprises choose to keep some data and applications in a private cloud for security
reasons, and some are required to use private clouds in order to comply with various
regulations. Organizations have two different options for the location of a private cloud: they
can set up a private cloud in their own data centers or they can use a hosted private cloud
service. With a hosted private cloud, a public cloud vendor agrees to set aside certain
computing resources and allow only one customer to use those resources.
Hybrid cloud is a combination of both a public and private cloud with some level of integration
between the two. For example, in a practice called "cloud bursting" a company may run Web
servers in its own private cloud most of the time and use a public cloud service for additional
capacity during times of peak use.
Benefits of Cloud Computing
Consumers and organizations have many different reasons for choosing to use cloudcomputing services. They might include the following:

Convenience

Scalability

Low costs

Security

Anytime, anywhere access

High availability
Difference between cloud based computing and ERP based system?
Cost
&
Time
Customization
&
Mobile
accessibility
Data security
&
Ownership
Integration
&
Scalability
ERP Based System
Cloud Based Computing
ERP solutions need higher
investment up front to purchase
and manage the software. If your
organization does not have an IT
team, you have to hire the right
people to manage the system
before you deploy it. You can
consider
ERP
as
capital
expenditure. Setting up the
infrastructure and deploying an
ERP system is a time-intensive and
cost-intensive process.
Cloud-based systems are already set
up and deployed on the cloud. You
normally pay a subscription fee,
which includes hardware, and
software
costs.
Assuming
everything else remains the same,
this cost is generally lower than the
costs associated with an option in
the long run. Using a cloud-based
system can be considered operating
expenditure, where you pay for as
long as the services are utilized.
Compared to ERP systems, cloudbased system solutions takes less
time to deploy.
In the case of cloud-based system,
the VAR (Value Added Reseller)
will do the customization according
to the company’s requirements.
Your Cloud ERP system will be
updated automatically with the latest
updates and security patches. The
end user can avail the Cloud ERP
system through native mobile apps.
Customization
and
mobile
accessibility
are
considering
aspects of an ERP system. In the
case of ERP system, it offers a
great level of customization. But
the process of customizing the ERP
can delay the implementation
process. The ERP system is not
readily available for real-time data
monitoring by employees and
stakeholders.
In the case of ERP system, the
organization holds the data security
and control over it. But, sometimes
due to lack of implementing the
adept data security protocols and
supervision leads to malicious
attacks.
In the cloud ERP system, the data is
hosted on the vendor’s cloud and
can be accessed through a web
browser. To safeguard the data
companies will opt for encryption
methods to enhance the security.
The cloud service provider will
update your system automatically to
make sure that you are working in a
secured environment.
Scalability is all about your ERP’s
flexibility with the eventual growth
Integration is one of the daunting
of business operations and the
factors to consider while choosing number of users. Cloud ERP
an ERP solution. In the case of on- solutions enable a great level of
premises, you need to pay much
flexibility despite the increase in the
attention and time to integrate the number of operations and users.
new version with the existing
Perhaps, on-site ERP solutions don’t
legacy system. Sometimes, it may offer the same extent of freedom for
go void if the integration process
the number of users. Often, you need
is not done well. Whereas, in
cloud ERP systems, the service
provider will look after the
integration process that delivers a
seamless working experience for
the client and end-user as well.
Training
support:
and The On-premises ERP system
needs extensive training and
technical support to the employees
for a long time.
to deploy additional hardware to
handle it.
In the case of cloud-based ERP
systems, the service provider will
support the technical team to
manage the IT functions and
supports in fixing the technical
aspects.