To Cloud Host, or Not to Cloud Host

September 7, 2011

Hi All

I’m James, The Dairy’s new intern for the next two weeks and would like to welcome you to our blog. I would like to first thank Nigel for giving me the chance to join his team for this short time and learn the life of a marketer. Having graduated from University last year and getting my best marks in marketing modules I have always been trying to get work in this area. I stumbled across The Dairy- with their trendy website- whilst searching through Nottinghamshire marketing firms and once I realised they encouraged internships I had to apply. When Nigel replied to my e-mail I was enthralled and jumped at the chance to gain some first hand experience. This is my first piece for the company, so here goes…

Today’s topic is Cloud Hosting. Do you really know what it is?

Cloud hosting can be referred to as many names, cloud computing, clustered hosting or cloud storage to name a few. Whatever you want to call it cloud hosting is the process by which tangible hardware can make way for virtual storage of data in external companies servers. With companies set up solely to deliver high levels of computing power you can purchase as much or as little as you like, giving you scalability that could only be dreamed about previously. This also works well for businesses where they use only a small percentage of their server’s capability for the majority of the year and utilise the rest for those small peak times. A good example is an online greetings card company. Around Christmas, Valentines, Fathers and Mothers day they are hectic and servers are at the maximum capacity, but for the rest of the year this is a wasted resource.

As you can imagine this is a very fast growing industry with many new players joining each year. To date the main market leader is Rackspace. Having begun in Texas, US in 1998, they have expanded to the UK, Australia and Hong Kong. Becoming a multi-national in late 2009, Rackspace has gone on to earn revenues in excess of $780 million in 2010. This is not surprising knowing they host data for organisations like Vodafone, Confused.com and The MoD. For large companies with employees all over the world it is a brilliant stride forward. For example if a Vodafone executive arranged to meet a client for lunch to discuss future work, or went to a meeting to make a speech you would not need to take a USB pen or an external hard drive with the work saved on. Simply turn up, switch on and log in. The figures above show business’ are warming to the idea and as more people realise the advantages I believe this can only grow. Other major companies that have joined the market more recently than Rackspace are Google Cloud Connect, Amazon S3 and Microsoft Sharepoint.

Hope you enjoyed the blog

James

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