Many people ask me to give a simple explanation about the term Cloud Computing. The reason you read a lot about cloud computing is that IT companies are touting the term as the next big thing since the invention of the light bulb.

Cloud computing is computing, software, data access, and storage services that do not require the end user’s knowledge of the particular physical location and configuration of the system providing the services. In fact, you can compare it to the mains, you don’t need specialized knowledge to use it. Just plug in the device and you’re ready to go!

The term “cloud” is used as a metaphor for the Internet, based on the drawing of the cloud used to represent the Internet in computer network diagrams. Years ago, IT companies already tried to commercialize this concept, but it was not a success. The reason for this was that you needed a fast and reliable internet connection, and at the time, if they were available, they were hefty priced.

Today almost everyone has access to the Internet through a fast broadband connection. This eliminates the problem of bandwidth and information is sent at lightning speeds around the world. Almost all businesses use fast Internet connections, because the Internet is used for much of their business, and the prices for connections have dropped significantly.

An example of a cloud-based service is Google’s Gmail. You can sign up for an account and send email to colleagues or friends around the world, without having any technical knowledge of how email works. Google has all the specialized expertise and network infrastructure to manage email traffic. The benefit is that you don’t waste valuable time on technical aspects and you can focus on your business!

The introduction of flat rate Internet and Smartphones such as iPhone or Android phones in combination with mobile Internet plans, caused a rapid adaptation of Cloud technology.

If you want to have a location independent business, Cloud Computing is the way to go! Instead of running applications locally on your computer and storing data yourself, they run in a shared data center maintained by the best experts in the industry. For example, you can set up your smartphone to connect to your favorite cloud email service and take your email with you wherever you go. Your email is stored in the cloud and you can access it from your smartphone or any computer, no data is stored on the device itself. Because you can “plug everywhere”, this has several advantages for you:

• You can access all the programs, as well as the data, using your browser.
• you can start very fast
• The costs are much less compared to conventional software programs.
• You don’t need to have your own servers and storage
• No need to configure software
• You don’t have to update your software programs
• No specialized knowledge required
• The service is often free or via a predictable regular monthly subscription.

Some popular cloud services are:

• gmail
• hotmail
• Facebook
• Amazon EC2/S3
• salesforce.com
• for gamers there’s Sony’s PlayStation Network or Microsoft’s Xbox Live.