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Cloud computing is the practice of storing and managing data on a network of remotely located servers through the Internet, instead of personal computers or local servers. For most people, cloud computing or "The Cloud" has become such an ambiguous term that it has made it appear more complex or mysterious than it really is. The reality is that cloud computing is not all that different from a typical, on-site computer network -- it simply uses the internet to accomplish it's goals.

One of the biggest benefits of cloud computing touted by providers is cost savings. But is the cloud really less expensive than traditional network solutions?

Yes and no. Here's why...

Most cloud solutions operate on a subscription based Software-as-a-Service (SaaS) model, which means companies pay an ongoing, monthly fee instead of an upfront fee. When looking at the longevity of cloud use, the total fees may not be cheaper but the operational payment structure (as opposed to upfront capital expense) makes it much more manageable. Ultimately, the potential for substantial cost savings comes down to an organization's needs and what those needs require from a networking standpoint.