One of the biggest draws of cloud computing is that it enables enterprises to save quite a bit of money. However, in order to attain these savings there is usually an initial outlay that might discourage would be cloud-based businesses. Still, cloud computing helps businesses become more efficient in regard to their otherwise expensive computing needs. The cloud is not a new methodology, nor is it a new technology. It is not even a new architecture. Instead, cloud computing is a new way of conducting business. It addresses some of the key challenges faced by many enterprises’ information systems managers.
Businesses need to move quickly in order for it to adequately respond to fast shifting business realities and market demands. Businesses need to quickly seize opportunities as they appear. Technology helps businesses speed up its processes so it can respond to new business realities and capture opportunities. The problem is that while technology can speed up business processes, the technology needed to boost those processes might take longer than expected due to IT department specifications, planning, equipment and software purchases, customization and set up, and testing. All told, this delay might make the enterprise lose out on the opportunities it was trying to capture in the first place.
Cloud computing helps businesses use their resources at hand while lowering costs and avoiding the hassle of setting up or reconfiguring their data center. Moreover, cloud computing enables the enterprise to empower their staff with the tools they need, when they need it and where they need it. Due to its distributed architecture, cloud computing cuts down on location-based costs and keeps hardware infrastructure layouts to a minimum. This enables enterprises to achieve substantial efficiencies in speed and scalability. These are precisely the two elements businesses need in chasing down new opportunities or adapting to rapidly developing business conditions.
One key factor that helps companies and organizations save money with cloud computing is that costs are not divided up after a huge initial outlay and continuing monthly costs are piled on. Instead, the pay only for what you use model for cloud computing enables companies to tap the resources they need and avoid paying for resources they aren’t using. IT has become a service that is metered and served in portions depending on the scale the client wants. Moreover, the supply is scalable. There is less opportunity for waste and costs can be tracked more closely for optimal ROI.