Cloud is born

Link to previous article, understanding cloud semi-technically.

Let's try some analogies!

Last year, I engaged an interior design company, Joe's for renovating my home. When I observed Joe's closely they bought materials from a hardware and wood furnishing store, rented a day's slot from a woodworking factory, and delivered finished goods that need to be assembled at home.

Just focusing on Joe's rental with a factory,

• they didn't need to buy all the machines and the overhead of periodic maintenance. In business terms, they avoided capital expenditure or upfront cost
• they paid a fee for the time they used the factory. In other words, it was their cost of running the interior design business or operational expenditure
• this also reduced the need for labor and space for managing the factory

The woodworking factory offered both labor and tools as a service on payment of certain charges based on how long the services were consumed.

You may always buy your own truck or build your own factory for your business. But if your primary business is something else or if your business is not large enough, you may choose to rent a truck or a factory instead and pay for what you use.

Businesses start small and expand over the years. While expanding they keep a tab on their non-core activities like human resources, data processing, supply-chain management, and logistics. Choosing operational expenditure over capital expenditure has been a century-old practice.

So to jump-start your technology business from your desk, without investing a lot of capital, you need to rent computers as a service for a fee!

Cloud is born!!

In summary, Cloud allows you to rent computers, where you may choose to,

• manage your own computers among computers shared with others without compromising your data
• ask an expert to manage the communication network, computer operating system, and software installations
• increase/reduce the number of computers used depending upon the need
• monitor your usage and billing information

Next we will understand who offers Cloud

Footnotes:

Why is cloud called as, Cloud?

Credits:

https://www.freeimages.com/photo/a-little-cloud-baby-1409554