vacy, security, and loss of control over applications. Cloud computing is now widely recognized by organizations of all sizes as a legitimate way of managing and developing applications. However, there are still concerns over security. There are additionally challenges involved in moving applications to the cloud and controlling runaway usage costs associated with the cloud. Private vs. Public Cloud Service Depending on their privacy and security requirements, organizations choose private or public cloud services. With private cloud service, the organization's server is not shared with any other organization. This ensures customers that there is no interference from other customers' applications, which might have large amounts of traffic into the server. With public cloud service organizations, applications are on servers used by other customers. They share the capacity of the physical server with other customers. This is more commonly used than private cloud service, which is more costly. www.TechnicalPDF.com Cloud Computing Fees The pricing structure for most cloud-computing providers is typically based on the number of transactions and the number of users for a given application. Customers that contract with providers for e-mail or other data applications pay by the hour or by the gigabyte for CPU (computer processing unit) gigabytes consumed. In addition, cloud providers often charge an implementation fee, and might charge developers who use their platform to develop applications for bandwidth consumed on the provider's Internet connections. Rationale for Cloud Computing There are many reasons why organizations adopt a cloud-computing strategy. When cloud computing was first available, most of these reasons revolved around the desire to carry out IT functions more cost-effectively with fewer capital outlays. A small start-up company, for example, might not have the resources to hire staff and purchase computing hardware. No onsite software to maintain, fewer servers, and less technical staff required for main