A shop with a very busy December
Ember Gifts sells candles online. In November it has ten staff and a quiet shop. In December it needs forty people and ten times the computer power.
Buying servers for December would waste money for eleven months. Cloud technology offers another way. Today you learn how to judge its worth.
By the end of this lesson
Note
I can judge what a cloud service is worth to a business by looking at growth, security, hardware and cost.
Key words
| Word | What it means |
|---|---|
| Cloud computing | using computers and storage owned by someone else over the internet |
| Scalability | how easily a system grows or shrinks with demand |
| Hardware independence | not needing to own or look after the machines |
| Provider | the company that runs the cloud service |
| Capital cost | a large one-off payment, such as buying servers |
| Running cost | a regular payment for what you use |
| Competitiveness | how well a business can match or beat its rivals |
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Starter: what you already know
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Starter: what you already know
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Scalability and cost go together
With scalability, the business uses more in December and less in January, and pays for what it uses. Owning servers means paying for the busiest day all year.
Owned servers are a capital cost: a big payment now. Cloud is mostly a running cost: a regular bill. A running cost is easier to start, but over many years it may add up to more.
Two ways to pay
| Question | Own the servers | Use the cloud |
|---|---|---|
| What do you pay at the start? | A large amount | Little or nothing |
| What do you pay later? | Power, repairs, staff time | A regular bill that follows use |
| What if demand doubles? | Buy and fit more machines | Ask for more, often within minutes |
| What if demand falls? | The machines sit idle | Use less and pay less |
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A common mistake
Warning
Many people think cloud is always cheaper. It is cheaper when demand goes up and down, or when you have no staff to look after servers. For steady, heavy use over many years, owned machines can cost less. Compare both before choosing.
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3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.