This is Part 5 of cloud computing tutorial. These days cloud is everywhere. So, in this
video we'll understand why cloud, what are the benefits it offers. One of the main benefits
of moving to cloud is reduced IT costs. If I have a business application and want to
make it available online for users, prior to cloud computing came into existence,
organizations had to procure a physical server and all the related infrastructure to host the
applications. Servers are expensive and there you go organizations are faced with a large initial
capex, that is, capital expenditure. It does not stop there. We need a server room and that needs
to be secured. Set up and configure the server, connect it to UPS and network, make sure proper
cooling system is in place, install the server, operating system, antivirus software, database
server and any other dependencies your business application might have like dot net framework,
a web server like IIS for example. All this is the initial setup. It does not stop here either. We
need to keep these servers up and running, that is maintain them in good health. If there is an
update or a security patch available, that needs to be downloaded and installed. If there is a
hardware failure, power failure, natural disaster or some other crisis , again we are responsible
for replacing that failed hardware. What about database backups, disaster recovery, failover
systems, the list goes on. We need specialized IT workforce, both for the initial setup and ongoing
maintenance there on. So the point that I'm trying to make is, organizations are faced with a huge
opex, that is operating expenses which are every month usually. Moving to cloud reduces both capex
and opex. Organizations no longer have to spend huge amounts of money on physical servers, related
IT infrastructure, specialized IT workforce, server rooms or data centers. We instead use the
cloud infrastructure and pay a monthly fee for the resources and services we use. With cloud,
it's pay as you go, meaning you only pay for what you use. It's like your utility bills,
electricity or water bill for example. If there's a lot of demand for your application and you use
a lot of cloud resources like storage, computing power etc you pay more. You use them less, you pay
less. So, the bottom line is, cloud resources are metered and you only pay for what you use. Cloud
provides a lot of scalability and flexibility options. Maybe you're launching a new business or
product line and you need more cloud resources, you can scale up cloud resources like memory,
processing power, storage etc with just a click of a button. You can even automate this by setting
threshold limits. For example, if ninety percent of the existing storage capacity is reached,
add another 100 gigabytes to the storage. You can do the opposite as well. If you're not using the
resources, you can scale them down. Again, even for scaling down, you can set the threshold limits
and automate. With cloud, we will never run out of resources. When you need more power, scale up and
when you don't, scale down. You no longer have the burden of purchasing and installing that expensive
upgrades yourself. Your cloud service provider like Azure or Amazon Web Services for example
handles this for you. Cloud-based applications services and data can be accessed from virtually
anywhere and anytime, home, office, while on holiday or in-commute. All you really need,
is an internet connected device. Cloud ensures business continuity. If you have your data stored
on your own on-premise server and if there is a hardware failure, power failure or any
other crisis your data is gone. Without data, it is extremely difficult to run a business.
The fact is, no data, no business. On the other hand, if you have data stored in the cloud.
Hardware failure, power failure, natural disaster or any other crisis do not result in data loss.
This is because in the cloud data is backed up across the networked servers. Cloud ensures
automatic updates. If you have your services and applications on-premise, you are responsible
for downloading and installing software updates and security patches, which is not only tedious
but also time consuming. On the other hand, if you're using cloud, security patches and
updates are automatically installed off-site by the service provider. You just have to pay a small
monthly fee. You don't have to worry about rolling out those updates and patches yourself. Instead
you can use the time to focus on what matters to the business. Cloud increases collaboration.
With cloud, it's very easy for teams and team members to access, edit and share files anytime
and from anywhere. There is no longer the need to send documents or spreadsheets in email. It's
all in the cloud and everyone who wants to have access has access. So teams are able to better
collaborate and work together. Self-service is another great benefit. Most of the resources and
services cloud provide can be self-serviced, meaning, with a little bit of learning curve
most people can easily procure, configure and use cloud resources and services. For example,
if you need a server to host your business application, there is no need to consult
IT experts to determine how big and fast the server has to be. With just a few simple clicks,
you can very easily procure a virtual machine from the cloud and host your application. If
you need more processing power, you can scale up and if you don't need as much you scale down.
Again with a few simple clicks. You'll see how easy it is to create VMs, containers, scale
resources up and down etc in our upcoming videos. That's it in this video. Thank you for listening.