By: Chris Ferneyhough – SVP Technology Practice – Vision Critical

If you are a regular reader of tech blogs, chances are you’ve noticed the term “cloud computing” being thrown around with increasing frequency. So, what is cloud computing and why is receiving so much attention lately?

Generally speaking, cloud computing is service delivery over the Internet. If you’ve got a webmail account, like Gmail or Hotmail, you are using a cloud computing service. Continuing with the email example, the traditional approach to email is an email program installed on your computer (like Microsoft Outlook) that you open, download email to, send emails from, and when you are done, you close the program. But with cloud computing, you don’t need to have an email application installed on your computer. The email application is Internet based, the send and receive functions are Internet based, and all of your information is stored on remote servers that could be thousands of kilometers from where you are located.

While this an example of cloud computing at the consumer level, the concept of cloud computing is receiving increasing buzz due to the concept gaining significant traction with business. For example, a recent report from the Yankee Group suggests that “a quarter of large US enterprises expect at least a third of their infrastructure to shift to cloud computing in the services in the next 12 months”. This is a significant proportion, and suggests that cloud computing is on the verge of becoming mainstream in businesses (if it isn’t already so).

A business example of cloud computing is our Sparq online research platform. Our clients leverage cloud computing to manage research data from thousands of respondents quickly and conveniently. Users of Sparq can deploy surveys, review results, and communicate with panelists with nothing more than an Internet connection, and a web browser.

As is the case with Sparq, the benefits of cloud computing are largely economic. Paying a monthly fee for a cloud computing application can be much less costly than having to purchase software licenses, install software on multiple computers, and then deal with technical issues. Furthermore, the increased prevalence of smartphones among professionals means that many cloud computing services can be accessed from anywhere, at anytime.

However, cloud computing is not without its disadvantages, and chief among them is security. Some of the services being ported to cloud computing (remote collaboration, for example) can include highly sensitive information that companies would be loathe to have stolen and shared with the public. Indeed, an example of this occurred last summer when a Twitter employee had her Gmail account hacked, which allowed the hacker to access confidential company information that was contained within Google Apps (a cloud computing service). The hacker then shared this information with Techcrunch, and Techcrunch shared much of this information with readers.

Granted, as we’ve seen with even the most sophisticated of security systems, there are always going to be hackers gaining access to confidential company data, regardless of where this information is housed. However, for IT decision makers who are already cautious with the concept of sensitive company information existing “in the cloud”, the Twitter experience certainly gives them a “told you so” argument.

Despite the concern around security, it is clear that cloud computing is only going to continue gaining momentum, largely because the economics are favourable. Concerns around security will continue to be an obstacle for many, so the onus will be on cloud computing providers to work hard to ensure that these risks are minimized.

So how about you? What market research cloud computing services do you use?