Organisations can gain a number of benefits by engaging with a Cloud Computing model or supplier.
- Cost reduction. Because of the business model used with Cloud Computing it is possible to pay only for services used or as they are needed.
- No or reduced Capital Expenditure. (CAPEX). By renting or paying on demand for software and other services, it means that an organisation will not have to pay ‘up front’ for software licences and infrastructure required to run the system. The charges can be made on a ‘per usage’ model or an agreed monthly charge. (Flat monthly fee).
- Scalability. Using the cloud model means that companies can scale up or down projects as they can use only the services required for a period of time.
- Budgeting. This allows for predictable IT expenditure. If a pre-agreed price has been set, then it easier to stick within pre agreed budgets.
- Flexibility. Personnel can work from home, hotels or anywhere where there is internet access. It’s easy to access vital information such as documents, email and even applications that reside on service providers’ server.
- It is not necessary to carry a laptop to continue working. It is possible to gain access to an organisation’s network via any third party PC or other device so this can negate to need to carry a laptop all the time.
- Netbooks and other low cost devices can be used in exactly the same way that people use PCs or notebooks but with the added advantage of being far cheaper and lighter but will still have access to applications and storage albeit via the web.
- Storage. Cost reductions can be achieved because data can be saved on-line and paid for by how much storage is being used rather than by having to pay up-front for disk space that may not be used.
- Quality of service. It is also possible in some instances to improve service quality through being able to have more resources and better qualified personnel by using a specialist third party service provider. Quite often it is possible that these organisations will have access to potentially wider ranges of skill sets therefore benefiting your company in the longer term as well.
- Productivity improvements. It allows senior IT executives and management to focus on the core or critical functions of the business rather than having to worry about software deployments and storage.
- Allocation of resources. It can in some instances free up resources that might be used more effectively elsewhere. This may be a move from tactical projects to more strategic areas which can have a positive impact upon the organisations’ longer term use of technology in order to remain competitive.
- Improved service levels. It is most unlikely that a small, in-house IT department will have the resources that allow for 24 hour support. Using Cloud based services will generally lead to a 24/7 support capability.
- Quality of service. It is also possible in some instances to improve service quality through being able to have more resources and better qualified personnel.
- Productivity improvements. It allows executives and management to focus on the core or critical functions of the business rather than IT issues.
- Fast and easy implementation. Reduced time to deploying new applications can be achieved through cloud based services.
What type of Companies would benefit from Cloud Computing?
Most companies can benefit from some form Cloud implementation regardless of size and scale. In fact, many large enterprises are adopting this model because of the many benefits that can be achieved. Many people and companies initially didn’t feel inclined to do so because they feel uncomfortable perhaps with contracting some IT services to a third party. It is also taking a new attitude that rather than having tangible products on site such as DVDs and storage, the need is to accept that much if not all of the IT function can be run via the cloud. Furthermore, it is much easier to manage and budget for growth as you pay on demand without having to pay upfront licence fees. This will also have an impact upon the way which a company manages resources as well as removing the worry about whether they have all necessary licences paid for and are therefore compliant and not potentially breaking the law.