Define cloud and explain the three key terms in your definition. Using Figure 6-3 (below) as a guide, compare and contrast cloud-based and in-house hosting. In your opinion, explain the three most important factors that make cloud-hosting preferable to on-site hosting.

Figure 6-3 Comparison of Cloud and In-House Alternatives Cloud In-House Positive: Small capital requirements Control of data location Speedy development In-depth visibility of security and disaster preparedness Superior flexibility and adaptability to growing or fluctuating demand Known cost structure Possibly best-of-breed security/disaster preparedness No obsolescence Industry-wide economies of scale, hence cheaper Negative Dependency on vendor Loss of control over data location Little visibility into true security and disaster preparedness Significant capital required Significant development effort Annual maintenance costs capabilities Ongoing support costs Staff and train personnel Increased management requirements Difficult (impossible?) to accommodate fluctuating demand Cost uncertainties Obsolescence