Cloud computing is a computing model in which services and storage are provided in real time via the Internet. Many of the biggest names in information technology are involved in it, such as Google, Microsoft and Sage. This contrasts to the more traditional model of software and storage being held and provided locally. It is a growing and evolving approach for companies of all sizes.

Cloud based accounts packages are an example of this. Rather than an upfront fee to purchase the software, the service typically is based on a monthly rental model. The advantages of this are typical of cloud computing: There is a lower upfront capital investment; technical problems are looked after by outside experts; and there is security as regards storage of data, as that also is handled by experts. Particularly important for small and medium-sized businesses is the fact that the staff is freed up to focus on the core tasks of the business.

There are potential issues and question marks surrounding this approach, which involve the usual reservations around outsourcing tasks, i.e., data security, availability of service, and execution by the supplier. Cloud computing is a relatively new methodology, and it is important to research it, as it could be useful for your business. Business.com is an excellent source of articles on the topic.