What is Cloud Computing?
Cloud computing is the combination of storage, bandwidth, and internet all combined into one. The ability to having data and applications stored and run remotely with an abundance of resources that can be added on at any time makes cloud computing a power tool for enterprises seeking efficient use of memory, bandwidth, and storage.
One of the chief benefits of cloud computing is having resources readily available without the need for physical infrastructure investment. Typically enterprises lack the ability for flexibility and scalability because they require actual physical machines dedicated to different storage and processes, but physical servers are expensive and often under-utilized at significant amounts of time. The cloud aspect allows you to upgrade when you need it, and downgrade when you don't need it, thus saving cost by preventing server sprawl, and providing essentially "Just In Time" Computing.
Why Not Host Everything In-House?
There are many factors to keeping things in house, which might be the ability to control everything and know where your data is, what its running on, and how it is running. However, that same ability is also the cause of a significant amount of problems, because for the same reasons, when something goes wrong, it's you managing it as well. Cloud computing in this way, provides you with the resources you need, and installs all the safeguards necessary for you while giving you many if not most of the important controls you need. In addition, the added benefit of utilizing specialized technology provides in fact greater control because enterprises can now outsource the infrastructure management and technology to expert providers while focusing on what's really important: the product and services itself.