Almost every child has looked at a cloud and said, "That cloud looks like a _____." The filled-in blank often becomes the point of highly subjective argument. In much the same way, IT professionals continuously seek to fill in the blank with an understanding of "cloud computing" and we've learned that what you see in your cloud has a lot to do with what's important to your company. However, the general concept of "the cloud" does not have to lack a defined shape or be complicated.

FAQ: Cloud computing demystified

This is part one of two columns on this subject intended to help you consider the options. In this column we address specific opportunities and benefits hosted and managed cloud services. In the second column we'll discuss the signals and inflection points to help you determine the most appropriate time to begin addressing cloud options within your organization and present strategies for how you can make it happen.

Simply put, cloud computing is a dynamically scalable set of computing resources available from outside your network. It is a virtualized computing environment in the broadest sense of the term, "virtual." It often includes online applications from a service provider, but can also include hosted and managed infrastructure services, which are an often-overlooked but viable option for many SMBs.

Much of the discussion around cloud computing is appropriately focused on accessing sophisticated applications (for example CRM) that can be prohibitively costly for a small or mid-sized business to either develop and manage itself or to purchase and customize. But consider your company’s non-proprietary infrastructure as well. After all, every IT manager would prefer to tackle strategic, high-value computing issues, so look to a partner for assistance with your core infrastructure and platforms, such as:
 Microsoft Exchange service and capacity.
 Cisco network infrastructure.
 Voice/data platforms.
 Storage.

Small and midsized businesses typically cite purchase and transition costs as the main deterrent to adopting a new technology, but that is precisely the attractiveness of moving your infrastructure to the cloud. You will realize several immediate business benefits:
1. Your CFO will approve: You'll convert what has previously been a capital investment into an operating expense. For your finance department these recognizable benefits include simpler accounting, more accurate matching of current cash flow with actual use and life of the computing resource, and freed investment capital for other organizational uses.
2. You'll alleviate some headaches: Infrastructure operates 24/7, and internal staffing necessary to support it means added cost and the nagging headaches of dealing with on-call-overnight coverage. The staffing challenges are two-fold; not only do you need to find qualified staff, you need to keep them happy and, in the ultra-competitive market for IT experts, this can be easier said than done. In addition to finding the staff, you need somewhere to house them and with that comes the expense of a dedicated on-site or remote facility. Put your infrastructure in the cloud, and those headaches dissipate.
3. Your users will approve: Basic infrastructure upgrades often consume entire SMB IT staffs, competing with and impeding the other vital support services they provide users. Moving those infrastructure components to the cloud avoids the disruptions that system-wide upgrades can cause.