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The basic idea behind cloud computing is to outsource one or more of your networked computing resources to the Internet. “The cloud” represents a new way of handling common computer tasks. Following are just a few examples of how the cloud way differs from the traditional way:

 Email servicesTraditional: Provide email services by installing Microsoft Exchange on a local server computer. Then your clients can connect using Microsoft Outlook to connect to the Exchange server to send and receive email.Cloud: Contract with an Internet-based email provider, such as Google Mail (Gmail) or Microsoft’s Exchange Online. Cloud-based email services typically charge a low monthly per-user fee, so the amount you pay for your email service depends solely on the number of email users you have.

 Disk storageTraditional: Set up a local file server computer with a large amount of shared disk space.Cloud: Sign up for an Internet file storage service and then store your data on the Internet. Cloud-based file storage typically charges a small monthly per-gigabyte fee, so you pay only for the storage you use. The disk capacity of cloud-based storage is essentially unlimited.

 Accounting servicesTraditional: Purchase expensive accounting software and install it on a local server computer.Cloud: Sign up for a web-based accounting service. Then all your accounting data is saved and managed on the provider’s servers, not on yours.