subject: Enhance Flexibility with Cloud Economics for Your Business [print this page] Enhance Flexibility with Cloud Economics for Your Business
Internet technology has evolved in an unprecedented rate within a very short span of time, so called the Web 2.0 revolution, which has brought forth various drivers for companies to reform or totally divert directions. Along with these drivers of change are pressures emanating from the need for companies to keep up with the change and seize opportunities and risks that comes with it. That includes the need for key executives to review the promises offered by new innovations like cloud economics, which brings forward promises of reliability, security, and flexibility for the demands of this time and the future.We are at a point where we are so much dependent on the power of the internet to bring cheaper, faster, and easier modes of communication.0 revolution, to an age where we will expect an almost instantaneous distribution and assimilation of knowledge. The new age will make it far simpler to communicate with each other, individually and collectively and for organizations to access and utilize important and strategic data. People are beginning to understand the options available to them and to understand how they can access and manipulate data in the "cloud" without having to rely on complex, expensive and difficult to maintain internal systems. As they explore this new world, they want to know how cloud economics can benefit them and whether they should buy into the concept of a cloud economy, or not.The great recession certainly gave corporate decision-makers cause for concern and made them think even longer and harder about capital purchases than ever before. In many respects, this hastened the arrival of the cloud economy, as cloud computing offers the typical organization many economies of scale. It simply was not easy to access lines of credit to facilitate the purchase of capital equipment and many decision-makers found that they had to consider leasing their access to this information and data through cloud computing. As we enter the second decade of the new millennium the lessons learned by the great recession are likely to linger. This is indeed likely to hasten the arrival of the cloud economy, as cash flow issues and limited availability of funds for expansion determine a way forward.When information technology issues are handled in house, the organization must be sure that it has employees able to operate and handle the hardware and software products needed. The employees must be in a fairly constant state of training to ensure that the organization does not miss out on any important updates, strategically. In-house applications are notoriously resource heavy and can drain the company's operating budgets. As an alternative for some organizations, one option is to choose using the services of an external organization as an integral part of a managed services solution. In this case, the company will need to purchase a set contract with the company, as a managed services company itself must of course meet the demands of its own internal costing structure.The beauty of cloud computing and the point at which cloud economics really starts to drive the message home is that it is ultimately flexible and scalable. In the old world, a company that envisaged a major project with a huge uptake in server use would have to budget, receive and install capacity ahead of time, with associated capital costs and depreciation issues. Should a company wish to use a managed external service, it should allocate budget for operating costs consequent of that company's pricing. While it would not have to go through the process of budgeting and configuration, it would have to pay direct costs to the management company in place. Cloud economics wins big here, as the cost to access the server capacity as and when needed for the project in question is miniscule by comparison. The company does not have to budget and plan, but simply requests the capacity as and when it is needed.It's not difficult to imagine how cloud economics can represent a smarter alternative, due to its accessibility, reliability, flexibility and manageability. The client can be much leaner and fitter if it does not have to worry about internal scaling, maintenance, development and training of personnel. Cloud economics promises the advantage of organization to become more timely in catching up not just with the changes brought about by internet revolution, but also in taking advantage of its almost limitless opportunities.
