There are many reasons why organizations of all sizes and types are adopting this utility model of Information Technology.
Removal / reduction of capital expenditure
Cloud computing offers a simple operational expense that is easier to budget for month-by-month, and prevents money being wasted on depreciating assets. Additionally, customers do not need to pay for excess resource capacity in-house to meet fluctuating demand.
Reduced administration costs
IT solutions can be deployed extremely quickly and managed, maintained, patched and upgraded remotely by cloud service providers. Technical support is provided around the clock by reputable providers for no extra charge, reducing the burden on IT staff. This means that they are free to focus on critical tasks, and organizations can avoid incurring additional manpower and training costs.
Improved resource utilization
Combining resources into large clouds reduces costs and maximizes utilization by delivering resources only when they are needed. Organizations needn’t worry about over-provisioning for a service whose use does not meet their predictions, or under-provisioning for one that becomes unexpectedly popular. Moving more and more applications, infrastructure, and even support into the cloud can free up precious time, effort and budgets to concentrate on the real job of exploiting technology to improve the mission of the organization. It really comes down to making better use of your time – focusing on your organization and allowing cloud service providers to manage the resources to get you to where you need to go.
Economies of scale
Cloud computing customers can benefit from the economies of scale enjoyed by cloud service providers, who typically use very large-scale data centers operating at much higher efficiency levels, and multi-tenant architecture to share resources between many different customers. This model of IT provisioning allows them to pass on savings to their customers.
Scalability on demand
Scalability and flexibility are highly valuable advantages offered by cloud computing, allowing customers to react quickly to changing IT needs, adding or subtracting capacity and users as and when required and responding to real rather than projected requirements.
Quick and easy implementation
Without the need to purchase hardware, software licenses or implementation services, a company can get its cloud computing arrangement off the ground in minutes.
Helps smaller organizations
Historically, there has been a huge disparity between the IT resources available to small organizations and to enterprises. Cloud computing has made it possible for smaller companies to compete on an even playing field with much bigger competitors. ‘Renting’ IT services instead of investing in hardware and software makes them much more affordable, and means that capital can instead be used for other vital projects.
Quality of service
Your selected vendor should offer 99.99% SLA and an immediate response to emergency situations.
Guaranteed uptime, SLAs.
Always ask a prospective cloud service provider about reliability and guaranteed service levels – ensure your applications and/or services are always online and accessible.
A good cloud computing provider will offer robust technical support. Provider customers, for instance, are assigned one of our support teams, and all subsequent contact is then handled by the same group of skilled engineers. This type of support model allows a provider to build a better understanding of your organization requirements, effectively becoming an extension of your team.
Disaster recovery / backup
Recent research has indicated that around 90% of organizations do not have adequate disaster recovery or business continuity plans, leaving them vulnerable to any disruptions that might occur. Hosted Desktops (or Hosted VDI) for example, means you don’t have to worry about data backup or disaster recovery, as this is taken care of as part of the service.
When your organization grows, your IT needs grow too. The scalability and speed of deployment offered by cloud computing means you can expand your IT system instantly to meet increased requirements, and you can also scale it down again whenever situations require it, eliminating the costs. Security is typically greatly enhanced in cloud computing. Cloud computing reduces the waste of time, personnel and money, allowing you to do more with less. This provides you a leaner, more efficient IT Utility model, available on demand.