The fundamental difference between Cloud-based IT and a more traditional setup is the location of your server.
With a traditional IT setup, you use capital expenditure to buy a server, and it sits in your office – perhaps in the basement – working away. Just like any other hardware, it eventually fails and needs to be replaced, using up another chunk of your capital. Until Cloud services came along, that was essentially your only option.
With Cloud computing, you can use operating expenditure to pay per user, per month to keep your data and run your software on someone else’s server. Your data is stored on your provider’s servers, not on your site, and it’s their responsibility to keep the servers maintained and running smoothly. Your provider buys the server, and you rent the space and the power you use straight from them. You can still stay informed about where your data is: Riverbank client data is stored at our data centre in Newbury.
A huge attraction of the Cloud for businesses is the prospect of never having to buy or maintain a server again.