What is information technology (IT)?

One of the most difficult aspects of IT is its inclusiveness. IT extends across the physical hardware and through the software that runs on it.

IT software consists of applications and systems software. Applications include email servers, web servers, databases, transactional systems, and customer management systems. System software includes operating systems, boot programs, basic input/output systems, and device drivers. IT software consists of the programs, in all of their forms, that run on IT hardware.

Hardware consists of the physical devices that run the software. Hardware can also be abstracted, incorporating virtualization and cloud computing to meet application requirements. Hardware includes input/output devices, processing devices, and storage. Hardware servers communicate with one another through computer networks and via the internet.

Within the last decade or so, business IT has experienced a revolution in the form of cloud computing. The most fundamental difference between cloud and on-prem IT is where it is located. As the name suggests, on-premises IT is fully based on site, managed locally on the business' own hardware. Cloud software is hosted on the vendor’s server where it can be accessed remotely at any time and from anywhere through a secure internet connection.

For smaller businesses with less-complex IT needs, maintaining an in-house solution may be the easier approach. Likewise, because on-premises IT excludes outside vendors, the organization in question maintains complete control over every aspect. They have final say and responsibility over security and uptime, and they tend to see a lower total cost of ownership.

However, in most cases these benefits are offset by certain disadvantages. Initial CapEx for on-premises solutions can be extremely high, and ongoing maintenance and repairs bring with them their own expenses. Additionally, on-premises IT means longer implementation times. Simply put, on-prem IT demands that the businesses themselves handle every aspect of IT on their own, as well as account for any and all associated costs. This can lead to an increased need for IT personnel, increased installation, maintenance, and repair costs, and make it difficult to scale effectively as the business grows.

Cloud-based IT is seeing increasingly widespread use throughout essentially every industry and market. This is because cloud computing offers a number of clear advantages over on-premises options.

Cloud IT allows businesses to use a pay-as-you-go model, paying only for the cloud resources they use, and easily maintaining established budgets. Organizations can also free up professionals to focus on other essential tasks and considerations, rather than forcing them to invest their valuable time into maintenance, repairs, security, and IT management. Cloud IT solutions are also extremely scalable; instead of having to purchase, install, and configure new IT hardware to account for business growth—or deactivate and remove hardware in the event of negative growth—organizations can work with their cloud vendor to scale available resources to meet business needs.

As for the downsides to cloud computing, they are few and far between. These include the risks of sub-par cloud security and undependable cloud accessibility. When a company chooses to work with a cloud provider, they rely on the provider to secure their data and ensure that their service meets minimum up-time requirements. That said, given the increasingly competitive cloud landscape, cloud vendors know that their continued existence relies heavily on their ability to meet client expectations, and take their responsibilities accordingly.