Cloud computing is where all of the applications for various things are stored on servers in a location that is out of the way of normal society, and computers all over the world are able to access the programs an services that are in it remotely via the internet for a relatively small cost per usage.
Cloud computing is likely to have a massive impact on e commerce, as at the current moment in time many firms are having to fork out huge amounts of money to pay for the licenses to the various software suites they need to use in order for the business to function, and also need to have servers on site for the software to be installed in, which again adds to the costs of cooling, the actual place they are stored in and the maintenance charges for looking after them. Having it set out this way does have its advantages however, such as them having full control over the programs and the servers so they can change and modify them to exactly suit the firms needs.
If businesses where to start to use the cloud they would firstly save a lot of money on the actual cost of the software, as it can then be paid per usage or rented from the cloud websites for a relatively small amount of money, the software can then be used like it installed on the machine the person is using, it also means that the firm would only be paying for what they use. This would also save on the costs of storage, cooling and maintenance as the servers are owned and run by the government, so it would be very reliable and close to 100% uptime.
Over time I think that cloud computing will become the standard way to use applications as it will be cheaper in the long run for most users, as well as the software always being up to date and very reliable.Things may also become more of a standard so there will be less compatibility issues as users will be able to use the same software package no matter what computer they are using. It also has large environmental benefits, as the excess heat the servers make can be used to make electricity, or due to the location will be cooled using natural resources, which then saves on electricity.
