Cloud computing is the use of complex computing infrastructure (hardware and software) which is available in a remote location and accessible over a network (typically the Internet).
End users access cloud-based applications through a web browser or a mobile application while the business software and user’s data are stored on servers at a remote location. Cloud solutions allow companies to avoid (upfront) infrastructure costs. Cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand. It thus allows companies to invest their money in projects that strategically differentiate their businesses and that improve their market position.
The business model using software as a service (SaaS) further allows a business to reduce IT operational costs by outsourcing hardware and software maintenance and support to the cloud provider. This enables the business to reallocate IT operations costs away from hardware/software spending and personnel expenses, towards meeting other goals.
Cloud technology in combination with SaaS allow businesses to adapt their IT infrastructure fast and to be more agile and flexible than ever.