Did you know that there are approximately 50 million physical servers located throughout the world? Servers are how businesses and people store all types of data, software and more.

In the past several years, cloud computing has risen in popularity as an option for storing data. Unlike previous data solutions — which involved an on site hardware setup, and IT team — cloud takes place remotely. Businesses, instead, access hardware and software through a service, such as the internet. Cloud solutions allow businesses greater flexibility, which can be useful for when businesses want to expand, or to accommodate fluctuating demand (a toy store, for instance, would see the majority of site access occurring in the two months surrounding the winter holiday season).

Cloud might be a newcomer on the market, but it’s no small thing. As of 2012, about 60% of server workloads have been virtualized, and more and more companies are expressing interest in using cloud. By 2018, the market for cloud is expected to reach almost $80 billion in revenue.

What else is worth knowing about cloud? Here are three things conversation tends to focus on right now.

1. Cloud Security

Considering some of the big name breaches that have recently occurred — namely, those surrounding P.F. Chang’s, Target, and others — security has continued to be one of the top concerns companies have had regarding cloud adoption. Security is a real concern, and hackers are not just a myth. For this reason, businesses should only invest in cloud solution providers that have an experienced team handling data security concerns. Data encryption is important.

2. Legal Concerns

You may not have realized it, but cloud has been to court — multiple times. Why? Many sections of cloud computing’s legality remains in gray areas as courts continue to play catch-up with adapting the legal system to address internet issues. If, for example, customer data is stolen, who is responsible if they sue — you as the business, or your cloud provider? Courts are answering questions like this right now. Sometimes court cases deal with errant companies, such as Aereo, which lost their bid to stream cable shows to customers without paying the associated broadcast fees.

3. Cloud in Healthcare

Cloud hosting services have been instrumental in helping healthcare organizations, like hospitals, access and exchange patient data quickly and securely. Cloud-accessed medical software helps make it easier for these organizations to stay HIPAA compliant since there is less room for human error.

What are your thoughts on cloud computing? Let us know in the comments. More information like this.