The nice thing about online e-mail accounts, such as Hotmail or Yahoo, is that users can pull up the Web site, log in and send and receive e-mail from wherever they are and no matter what kind of computers they're using.

Now think about using that type of system for all of your work applications — word processing and spreadsheet files, presentation programs, and even customized software specific to your business. Everything you access is stored on a secure server and accessed online.

Log on, and it's like working on a Windows desktop, even if Windows isn't installed on your computer.

That is the idea behind Cloudworks, a Thousand Oaks company that started about 11 years ago to provide information technology service for small- to medium-sized companies. Now, the company is interested in helping companies outsource all their computing needs.

"A lot of people just don't even know it's a possibility," said President Mike Eaton.

A big chunk of the company's sales pitch is making people aware of the possibilities, he said.

Cloudworks has a staff of fewer than 25, most of them system engineers who work with customers and do the behind-the-scenes technical work. The company has about 30 servers at its data center in Agoura Hills, and has offices in Thousand Oaks and Seattle.

Eaton said the early years of the company were spent setting up network systems for customers. To do it well, companies were faced with hefty costs for hardware and software, as well as having to constantly maintain and upgrade them.

About two and a half years ago, it became apparent that Cloudworks could host the necessary software and data on servers. It would be better than what clients could afford individually, yet cost them less to use because they would be one of several businesses using parts of the system.

Eaton likens it to a co-operative of farmers getting together to build a bigger and better grain silo.

It's an idea that takes a little getting used to for clients, Eaton said. Many worry about losing access or data security.

"The big challenge here is even though they may have a rickety old server, it's their rickety old server," Eaton said. "When you talk about putting data somewhere else, you get a lot of questions."

Convincing a client

In the case of one client with sensitive data, the company went through an extensive review that included a tour of the secure server room where the data would be housed, a look at the backup generators, and a review of systems in place to make sure the information would always be available. There were even background checks on Cloudworks' executives.

Cloudworks got the account.

"We take as much time as necessary to make sure they're comfortable," Eaton said.

The company's basic hosted Exchange package for three users starts at $45 a month and includes 1 gigabyte of storage, remote access, virus protection, spam filtering and free Microsoft Outlook or Entourage e-mail programs.

A small-business package with a dedicated server starts at $895 a month for five users and includes a Windows environment, Microsoft Office Professional, the hosted Exchange service and accounting software. For 50 users, that package costs $5,295 a month.

The company also provides customized packages for businesses with more than 100 users.

ISWest, another local company, houses Cloudworks' data center at its facility in Agoura Hills. The companies have worked together for years, and Eaton said it's important to work with a company where he knows he can get immediate help with any client's issues.

Companies can be anywhere

While Cloudworks' initial business was mostly in Ventura and Los Angeles counties, the virtual aspect of the service removes physical boundaries.

There are a lot of companies looking at "cloud computing" — and defining it in different ways — which Eaton worries will further confuse people.

Often the idea of a "cloud" refers to something outside of a network that plays a role but often isn't thought about much. Take the connection from a computer network to the Internet, Eaton said. It's a whole complex process that involves fiber-optic cable, switches, telephone poles and various other equipment. But unless you're the Internet service provider, you probably don't lose too much sleep over how all that works together.

"Most people shouldn't need to know or care" what goes on in that "cloud," he said.

In the case of Cloudworks, stuff that used to be done locally is now being done somewhere else on the company's behalf. So a user doesn't need the latest desktop computer or even a computer that runs Windows to be able to pull up a Microsoft Office document, work with it and then save it.

Less need to upgrade hardware

That opens up opportunities for companies to do more with older computers — instead of having to replace them every three or four years — or even use dumb terminals that have nothing loaded on them.

The only time employees would need an application on a computer is if they wanted to work offline: for example, if an executive wanted to download a PowerPoint presentation before boarding a plane and then work on the presentation during the flight.

Cloudworks' customers include companies in manufacturing and services, plus companies with multiple locations.

Peter Iannone, a certified public accountant who contracts out as a chief financial officer for small companies, started working with Cloudworks when it was more focused on information technology service

When Cloudworks moved to hosted services about two years ago, Iannone was working with a startup energy drink company called Drinks That Work.

Drinks That Work was not interested in having its own IT department or dealing with network issues and overhead for its own servers, he said.

Best price and a growth plan

Iannone sought proposals from three companies, and Cloudworks came in with a good price and a plan for how to structure and handle the setup — and how it would change as Drinks That Work grew.

Drinks That Work has multiple locations around the U.S., including an office in Westlake Village and warehouse in Oxnard, which makes the hosted approach even more appealing.

"Although I think it works for somebody that doesn't have the geographical peculiarities this client does, it works extremely well when you do have the diverse locations," Iannone said. "It's a great way to bring them all together."

It also makes sense for smaller companies because Cloudworks handles the virus protection, data encryption, backup and other means of keeping the information secure. Those are things small companies often don't do or don't do well, he said.

"This is where the industry is going," he said. "More and more, the applications you run will reside elsewhere ... I would not be surprised if, 20 years from now, it is the majority rather than the minority of how business applications are deployed across companies."

On the Net:

http://www.cloudworks.com