A Clear Way to Understand Cloud Computing versus Virtualization

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When it comes time to replace an ERP system, CFOs are often charged with a huge responsibility. On one side, they have to interpret the tech speak they get from their IT departments, and on the other side, they must take into consideration the tremendous financial impact (positive and negative) that a new ERP software system can have.


 The financial implications of ERP implementation vary depending on the business, but the tech jargon is pretty universal. We may not be able to help you with the former, but we can certainly shine some light on the latter.


Two tech terms that are currently big in business technology are “cloud computing” and “virtualization”. Sometimes the two are mistakenly used interchangeably, and often times, CFOs approve or deny funding for new technology that uses these terms without fully understanding them. So here is a straightforward explanation:




IT companies love virtualization because it allows them to save physical space, power, and ultimately money. If your company does not have its own data center, virtualization may not directly affect you, but if you subscribe to a service provider that uses it, they will pass the savings on to you.


In the simplest terms, virtualization allows the system administrator to run multiple virtual machines within a single server. Instead of one ERP implementation on a single server, virtualization allows for the possibility of multiple implementations, each running in their own isolated environments and operating systems.

When is server virtualization the right choice? It may be right for your organization when: 


  • it's time to replace your servers
  • you're adding a new application
  • you're seeking improved performance
  • you need a Disaster Recovery solution


Cloud Computing


The definition of cloud computing is not quite as precise as virtualization. Essentially, any service, platform, device, or other technology that is hosted off-site by someone else could fall under the umbrella of cloud computing.


In most cases, those who speak of cloud computing are referring to “software as a service”, an implementation model where the software is hosted and maintained by a service provider. The customer can access it from a remote location, on demand, and usually pays for the service on a subscription basis.


 If you are an Alabama company that wants to better understand the business benefits of virtualization and cloud computing, contact Jackson Thornton Technologies at 334-834-7660.


By Jackson Thornton Technologies, Alabama Microsoft Partner providing Accounting Software, Managed IT Services, Virtualization, Collaboration and IT Security. 








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