Video: Cloud Computing

In this lesson, Nick Palazzolo, CPA, demystifies cloud computing by explaining it as a flexible business model that provides on-demand access to computing resources over the internet. This engaging explanation of cloud computing makes the concept digestible by relating it to everyday online activities such as using iCloud for storage or playing online video games. Furthermore, Nick unpacks the benefits and risks associated with utilizing such third-party services, such as cost reduction, maintenance, and issues surrounding security and control. Emphasizing points that are not only vital for day-to-day business operations but also pivotal for the exam, he delivers this comprehensive overview with the ease and familiarity that makes complex topics approachable. The lesson concludes with an upbeat note from Nick, reinforcing the progress being made and the enjoyment in learning.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Cloud computing is best described as a business model that allows organizations to use the Internet to rent computing resources on demand, operated on remote third-party technology infrastructure. What a mouthful, right? So when you're accessing your iCloud, that's using cloud computing. When you're reading your email, that's stored on Gmail servers. When you're logging into maybe play video games, that is probably stored in a server somewhere. If you're entering into a big old chat room, that's stored on the server somewhere. Servers can be used for everything, storing files, storing client data; all of this you can again rent computing processing power, those CPUs, GPUs. You can rent a virtual machine and might have dealt with this at work or something like that, where you have to log in separately and you'll remote access another computer. That is cloud computing.

Now, the exam wants you to know, what are the benefits and the risks of cloud computing. I've had people look at me and say, "I don't really understand this." I mean, I'm going to explain it to you how the exam wants you to know it, but this is what the exam wants you to know. So generally, this reduces costs, specifically upfront equipment costs. And this makes sense, right? Because we're not having to buy our own computers. It's like, instead of buying a house, we're just renting a house, which is generally much cheaper, especially upfront. You don't have to worry about maintaining those computers; it's maintained by a larger company that has economies of scale. Amazon Web Services is going to deal with all that for you. We're not going to have to buy our own technology infrastructure.

It uses public communication channels, which ties into some of the risks, because security is in

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