Posted by: lizawelch
in Internet on Aug 11, 2011
Cloud computing technology is a way to increase Information Technology or IT capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. Cloud computing encompasses any subscription based or pay per use service that, in real time over the Internet, extends IT's existing capabilities.
Cloud computing service providers offer storage and virtual servers that Information Technology or IT staff of a small or medium size company can access on demand. Enterprises are increasingly using Cloud computing technology for business critical needs. Cloud computing technology is quickly replacing the local Information Technology (IT) infrastructure managed and run by small and medium size businesses (SMBs) themselves. Cloud offers capabilities which enable small and medium size businesses (SMBs) to stitch together IT, storage, and computational capacity as a virtualized resource pool available over the network.
In today’s competitive economic environment, as businesses are trying their best to balance and optimize their information technology or IT budgets, Cloud computing can be an effective strategy to reduce the information technology operations and management costs, and to free up critical resources and budget for discretionary innovative projects. Typically, a business organization has a 80 by 20 split between regular ongoing information technology or IT operations cost which includes hardware, software licensing costs, development, data center maintenance, etc. versus new investment for solving needs which are critical for a business to survive in these challenging times. Cloud computing technology can have a significant impact on this by reducing the footprint of information technology operations by taking out the upfront capital investments needed for hardware and software. It enables a new model viz. - use what is needed and pay for what is used model. This entails businesses to invest on innovative solutions that will help them address key customer challenges instead of worrying about cumbersome operational details.
