You may have already heard of the next generation of computer technology, and you may even be using it. It’s called “Cloud computing,” and it is rapidly redefining they way we use computer technology. Cloud computing is the third major generation of computer technology.

The first was what was commonly referred to as “main-frame,” where one main computer did all the heavy computing on a network and others connected to it via “dumb terminals” with very limited functionality. The second generation came with the advent of the personal computer (PC) and is still something we all use today. It is referred to as “client/server technology” where client software like Microsoft Outlook is installed on a PC and then reaches out onto a network (or the Internet) to connect to a server computer to retrieve or send data. With the proliferation of the Internet the next, or third generation of computer technology is poised to revolutionize the industry once again. Cloud computing is a simple idea that operates on principles similar to those of main-frame computing—put all software and services onto the Internet and when people need them they will simply access the web with what is essentially a dumb terminal. In the Cloud, all a user needs is a computer or a smartphone with a web browser and no other installed software.

Cloud computing means distributed software for email, word processing, spread sheets, and many other computer programs is going the way of the dodo bird. High-end, specialized programs such as CAD (Computer-Aided Design) software, digital art programs, accounting packages, and others will likely remain as they are for the foreseeable future, but any other program that can be delivered faster, cheaper, and easier via the Internet will most certainly end up as a service available only online. Doubt what I am saying? If you use Gmail, Hotmail, Facebook, Flicker, Youtube and/or a host of other online services, you and your data are already in the Cloud, and the only thing you need to gain access is an ID and password.

The advent of Netbooks is also a harbinger of this fundamental shift. It was only a few short years ago a computer was well on its way to becoming obsolete the day it hit the stores, with the next generation always increasing in speed and power. Now, Netbooks are designed specifically to get online, reducing the need for vast computing power and storage, increasing battery life, reducing size, weight, and cost. The ubiquitous smartphone has replaced the cellphone—small, powerful, and always online.

Cloud computing replaces the distributed software model with what is commonly referred to as Software-as-a-Service (SaaS). No more buying and installing the software you need; now you simply pay to use the services you want. When it comes to dollars and cents it becomes easy to see why Cloud computing is becoming the de facto standard. For businesses, Cloud computing means large savings of time and money maintaining and licensing software, better security, and increased productivity. For technology companies, the issues of software piracy and licence non-compliance are largely mitigated, and customer support is vastly reduced as all customers will be working on the same version at the same time. The only real support questions they will face will be related to their product and not the user’s operating system or other third party software. For end-users, complicated software installation is eliminated, and there are no version conflicts, no security issues, no system conflicts, no more software patches, and it does not matter what computer operating system they use – the only things users need are a web browser and Internet connection. When a user is connected to Cloud services, if their computer crashes, is stolen, or broken they can simply buy another one and connect to the web and they are back in business with minimal down-time. System “bug fixes” and upgrades become easier and faster for service providers to complete and roll out to benefit all users.

Cloud computing is something fundamentally beneficial to individuals, businesses, and web development companies. In a time when people demand increasingly more complex technology services, cloud computing provides a way for technology companies to deliver these high-powered services at affordable prices. All you have to do is look at the cell phone market to see this new business model in action—powerful and complex cell phones are either free or very cheap with the vendors making money on the monthly service fee.

As Mark Twain once said, history never repeats itself, but it often rhymes. Cloud computing is the next generation of technology and it’s something all businesses should be seriously evaluating. The cost and time savings and improvements in communication and operations can substantially improve the bottom line. Having an open mind and working with a technology partner that is not afraid to challenge the status quo are keys to understanding the many benefits cloud computing can offer. CPT

Joe Perraton is president of Point One Media, Inc. and can be reached at 877.755.2762 or jperraton@pointonemedia.com .