Cloud Computing: Latest Buzzword?

In the business arena, cloud computing is gaining momentum as companies seek applications that are easier and cheaper to implement, use, and maintain. Providers are introducing a steady stream of cloud based services for enterprise resource planning (ERP), web conferencing, data backup, and other key applications. Some cloud applications come from established companies, such as Salesforce.com, a leader in customer relationship management applications. These companies use cloud computing is a competitive weapon against old-line companies selling conventional products and services. Intacct, for example, is an on-demand financial management and accounting system.

"A really interesting and perhaps counter-intuitive phenomenon is that there is a huge demand for SaaS services from enterprises that are firmly committed to the on-premise model," observed Phil Wainewright, ZDNet's SaaS expert. "Perhaps even more surprising is that IT departments are some of the most avid buyers of SaaS services — and they’re turning to SaaS to help them manage their on-premise infrastructure." Security services, email management and security, Help Desk and service management are among the applications that IT managers are handing over to external SaaS providers, Wainewright noted.