Unless you’re pretty tech savvy, chances are, you might not actually know what the cloud is. It’s one of those words that’s been tossed around a lot for the last year, and if you’re still unsure of what it means, how it works, and why you should care you probably aren’t alone. The thing is, cloud computing is the future and will become more and more common, and it could be beneficial for small businesses trying to increase their bottom line. Here are three things every small business owner should know about cloud computing.

1. What the Cloud Actually Is
The cloud is called that because, like the white fluffy things, it something that’s there but that isn’t a tangible thing you can actually touch. The cloud is a network of servers, which stores information. Some of these cloud servers are just for the purpose of storing data and some of them are for providing a service.

2. How Small Businesses Can Benefit
Some businesses use cloud hosting servers for storing information for a couple of different reasons. One of the main benefits for small businesses is that a cloud hosting service actually saves money, since the cloud is more efficient and scalable (meaning businesses only pay for what they use) than regular in-house servers. Additionally, not having a server in the business means that there are less utility costs and less maintenance and staffing needed.

3. What Server Colocation Is
For businesses that don’t want to have a dedicated server in house, server colocation is always an option. Colocation basically means that one or more businesses put their servers together to save on bandwidth. The facility will offer the space, security, cooling, and power for the server, which means that the company doesn’t have to worry about that cost itself.

Do you have any questions about the cloud or how small businesses can benefit from using it? Feel free to ask us in the comments section.