Cloud computing

Definition

Cloud computing is the delivery of various services over the internet, including storage, processing power, and software. It allows organizations to access and manage data remotely through servers hosted on the internet instead of local servers or personal computers.

5 Must Know Facts For Your Next Test

1. Cloud computing can significantly reduce IT costs by eliminating the need for physical hardware and maintenance.
2. It enhances scalability, allowing businesses to easily adjust their resource usage based on demand.
3. Cloud computing ensures data availability and disaster recovery since data is stored in multiple locations.
4. It provides real-time access to financial data, improving decision-making for accountants and managers.
5. Security measures in cloud computing include encryption, multi-factor authentication, and regular security audits.

Review Questions

• How does cloud computing help reduce IT costs for businesses?
• What are some security measures used in cloud computing?
• Why is cloud computing important for real-time access to financial data?

Related terms

Accounting Information System (AIS): A system that collects, processes, and reports financial information for decision making.

Data Encryption: The process of converting information into a secure format that can only be read by someone with the correct decryption key.

Scalability: The ability of a system to handle increased loads without compromising performance or efficiency.