Many people wonder what is it that propelled cloud
computing to its current zenith? Technologists all over the world feel that
economics has been the catalyst for the phenomenal growth of cloud computing and
its adoption around the world. In 2011 it looks like cloud is in the radar of
the entire top notch CIOs or Chief Information Officers across the globe. The
biggest benefit of cloud that has been cited is the cost savings but there is a
way to maximize these savings. So how exactly can your business maximize the
profit? Let us take a look at the key areas.
There is a significant reduction in labor costs- Once an organization plans to move to a public cloud their IT department becomes more efficient. Earlier the main focus of the staff was on automated services which are now taken care in the cloud. Due to these standardization and automation manpower is put to better utilization as they are freed from these automated tasks.
Value for money and faster processing- With physical resources the time and money spent on the installation is usually high. But when you invest in cloud it is just a matter of a few hours and the entire equipment is setup for you. Another advantage is that the entire processing happens in a short duration of time. This kind of elasticity and installation process is what seems to be the high points for people who opt for cloud computing.
Pay per use model- When organizations invest in public cloud they know they just need to rent the services. This way companies can save on unused resources, postpone the purchase part and also the testing options without worrying about the payment. Public cloud is based on pay per use, for example, you pay for the number of mailbox per month, the amount of terabyte storage, or how many virtual hours you require and have utilized.
Simplify capital investment- Cloud computing is also useful when it comes to business process simplification. When organizations plan to move to clouds they save a lot on annual IT budgets that include salaries, maintenance and upgrade cost.
Energy savings and reduced real estate- When you move into cloud an entire data center is removed altogether. This helps in saving up energy as well. There are companies that have lot of servers spread in many data centers. This definitely takes up space. These servers add to energy consumption. When you consolidate these servers and move to cloud computing you know that not only the real estate is reduced but also you contribute to the environment by cutting down on the heat.
When companies setup data centers they acquire expensive equipment that add to their capital expenditure. This amount is always on the higher end. But the cost of the equipment depreciates over a timeframe. When a company invests in cloud their one time expense is spread across different operation cycle. This way the company is able to get value for their money.
So from the entire discussion once can conclude that cloud savings are way
higher than the ones organizations achieve via their data centers
There is a significant reduction in labor costs- Once an organization plans to move to a public cloud their IT department becomes more efficient. Earlier the main focus of the staff was on automated services which are now taken care in the cloud. Due to these standardization and automation manpower is put to better utilization as they are freed from these automated tasks.
Value for money and faster processing- With physical resources the time and money spent on the installation is usually high. But when you invest in cloud it is just a matter of a few hours and the entire equipment is setup for you. Another advantage is that the entire processing happens in a short duration of time. This kind of elasticity and installation process is what seems to be the high points for people who opt for cloud computing.
Pay per use model- When organizations invest in public cloud they know they just need to rent the services. This way companies can save on unused resources, postpone the purchase part and also the testing options without worrying about the payment. Public cloud is based on pay per use, for example, you pay for the number of mailbox per month, the amount of terabyte storage, or how many virtual hours you require and have utilized.
Simplify capital investment- Cloud computing is also useful when it comes to business process simplification. When organizations plan to move to clouds they save a lot on annual IT budgets that include salaries, maintenance and upgrade cost.
Energy savings and reduced real estate- When you move into cloud an entire data center is removed altogether. This helps in saving up energy as well. There are companies that have lot of servers spread in many data centers. This definitely takes up space. These servers add to energy consumption. When you consolidate these servers and move to cloud computing you know that not only the real estate is reduced but also you contribute to the environment by cutting down on the heat.
When companies setup data centers they acquire expensive equipment that add to their capital expenditure. This amount is always on the higher end. But the cost of the equipment depreciates over a timeframe. When a company invests in cloud their one time expense is spread across different operation cycle. This way the company is able to get value for their money.
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