By now you have probably read or heard about the benefits of using business applications in the cloud. Factors such as cost savings, agility, flexibility and disaster recovery are usually top of mind when considering using cloud-based communications applications.
Despite the cloud’s popularity, there is still confusion as to how the cloud is different from previous information technology services. A common question is, “What’s the difference between the cloud, an application service provider (ASP) and software as a service (SaaS)?”
The answer in one simple word is: nothing. The cloud is a fairly recent term that encompasses the old ASP or SaaS business models. Many cloud applications, such as e-mail and www.Salesforce.com, have been around for over a decade. So the real question is, “Why has the cloud emerged so quickly and strongly as the latest IT buzzword?”
Smart Business spoke with Mark Swanson, CEO of cloud communications provider, Telovations Inc., headquartered in Tampa, Fla., about why the term “cloud” has become so popular.
What is your take on the rise of the term ‘cloud’?
I actually had a discussion with a colleague at a tradeshow recently about this very topic. We discussed the factors that are fundamentally driving the adoption of cloud technologies today. The one thing that absolutely stood out was the emergence of ‘ubiquitous broadband’ or the ability to access online applications and data anytime, anywhere. Ubiquitous broadband frees you from worrying about being stranded without access to your data and applications. As connectivity is everywhere, you can now retrieve data and use applications on all the various devices you have — a smartphone, notebook computer, iPad, whatever.
Can you define the term ‘ubiquitous broadband’?
Ubiquitous broadband refers to the ability for anytime/anywhere access to data and applications across various types of platforms — including the simultaneous access of fixed and mobile services. It is very useful in business. The Gartner Group maintains there is a high correlation between broadband penetration and GDP per capita. It is an interesting concept that estimates the economic impact of ubiquitous broadband. It demonstrates a huge payoff for the United States in general. Would it not make sense for it to have a big payoff for businesses that adopt it as well?
