Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like the electricity grid. The term cloud is a modern metaphor for the Internet. Cloud Computing can also be referred to as Software as a Service or SaaS.
Rather than making a large capital investment to provide the hardware and software infrastructure for a particular business application, you can simply contract to use those services online.
Some common examples of a business application delivered by the cloud model would be Salesforce.com, QuickBooks Online, and Microsoft Exchange Server.
A common misconception is that a hosted solution such as that being offered by Vectrocon will actually replace the computers and networking in your office. Instead the Hosted solution works separately and you will still need your office computers to access the Internet and also run any Vertical Market applications. It is possible to outsource all of your server infrastructure using services such as Amazon's Elastic Compute Cloud, but for most small businesses it is prohibitively expensive.
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