Cloud Computing

In: Computers and Technology

Submitted By chrome591
Words 1864
Pages 8
Cloud computing can offer small businesses significant cost-saving benefits namely, pay-as-you-go access to sophisticated software and powerful hardware while at the same time offering a host of other advantages
1. Fully utilized hardware
Cloud computing brings natural economies of scale. Your workloads will share server infrastructure with other organizations' computing needs. This allows the cloud-computing provider to optimize the hardware needs of its data centers, which means lower costs for you.
2. Lower power costs
Cloud computing consumes less electricity. That's an inevitable result of the economies of scale I just discussed: Better hardware utilization means more efficient power use. When you run your own data center, your servers won't be fully-utilized (unless yours is a very unusual organization). Idle servers waste energy. So a cloud service provider can charge you less for energy used than you're spending in your own data center.
3. Lower people costs
Whenever I analyze organizations' computing costs, the staffing budget is usually the biggest single line item; it often makes up more than half of the total. Why so high? Good IT people are expensive; their salaries, benefits, and other employment costs usually outweigh the costs of hardware and software. And that's even before you add in the cost of recruiting good staff with the right experience.
When you move to the cloud, some of the money you pay for the service goes to the provider's staffing costs. But it's typically a much smaller amount than if you did all that work in-house. Yet again, we have to thank our old friend: economies of scale.
(In case you worry that moving to the cloud means firing good workers, don't. Many organizations that move to cloud computing find they can redeploy their scarce, valuable IT people resources to areas that make more money for the business.)
4. Zero…...

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