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The Forecast is Cloudy: 3 Benefits of Cloud Computing, Part I

March 27th, 2012 at 10:55 am

cloud dollar signIt seems as though everyone is talking about cloud computing these days. High-profile companies like Google, Apple, Microsoft, and Amazon are heavily promoting the cloud-based services they offer to consumers and businesses. While the concept of cloud computing isn’t exactly new, it only recently became a hot topic for the general public. Indeed, a report conducted by Dell and Intel reveals that 35% of small businesses were unaware as to how cloud computing could affect their companies. Over the next week, Tech Talk will provide further detail about three of the benefits cloud computing can offer. We begin with cost savings.

The use of cloud computing offers a number of financial advantages over traditional business practices. Amazon allows for the rental of its supercomputing cloud services by the hour, which is a significantly less expensive endeavor for businesses than creating and maintaining their own supercomputer. Similarly, businesses using the cloud do not have to worry about purchasing and maintaining servers or software for its employees. Servers can be accessed in the cloud, and instead of providing expensive licenses for various software programs, business leaders can have their employees use the equivalent cloud-based applications for the same results.

Cloud storage services allow for cost effective backup solutions. Files and other data can be stored securely in the cloud, which eliminates the need to purchase excess hardware to serve the same function. A lower dependency on local hardware means that there is less of a need for a large IT team to perform maintenance on faulty devices.

Switching to cloud computing doesn’t automatically result in cost savings, however. A survey conducted by business technology company CSC shows that while moving to the cloud saves a majority of businesses money, the savings are relatively small. In order to take full advantage of the cost benefits of the cloud, you need to effectively pool the resources of the cloud to serve as many customers as possible according to the demand they put on your business. Failure to do so may result in your company not seeing the expected amount of savings.

Of course, the cloud computing is useful for more than just cutting costs. Check back Friday when Tech Talk discusses another benefit of cloud computing.

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