Use the following cloud terms to enhance your understanding of cloud computing and the potential it has for your small business.

Cloud Computing:  Using a network of third-party servers to access programs and store information via the Internet instead of keeping applications and data “local” on your own, or your company’s, personal computer or servers.

Cloud App (Cloud Application):  A software program or “application” that is hosted at a third-party location and accessed via the Internet, as opposed to being stored on your computer.

Cloud Backup:  Using the servers on the Internet to store computer files rather than storing information on a nearby computer, external hard drive, server or other backup device.

Cloud Provider:  A company that owns and maintains servers on the Internet for the storage of information and programs and that offers people and businesses access to these servers.

Private Cloud:  A collection of servers accessed via the Internet that is established and managed for use within one organization. Private clouds are typically run by an IT department within a company’s firewall. Also called an “Internal Cloud,” it can help companies manage security issues and regulatory compliance.

Private Cloud Storage:  Information placed on a private cloud that is created by a company’s technical team and managed within a company’s protective firewall.

Public Cloud:  Cloud services available to a variety of customers. These services may be available for free or for a fee.

Public Cloud Storage:  Information storage via the cloud offered by a third party to another company or companies.

Redundancy:  To ensure that a cloud storage system company can deliver on its promise to make information accessible at any time, information is typically stored on multiple machines. This redundancy of information means that if a given computer is unavailable for any reason, the information on it is still available to clients.

Consumption-Based Pricing Model:  An approach to pricing, common with cloud computing, in which customers pay only for what they use or “consume”—as opposed to paying a flat fee per month or other time period.


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