The growth of cloud computing is nothing short of astounding the market research firm international data corporation projects that the market for cloud computing will grow at an annual rate of 21.6%. The reasons for this phenomenal growth are many; cloud computing is one of those classic changes that over time becomes part of how a company operates. For growing companies limited by finances, cloud computing brings some down-to-earth benefits.
One of the most important is that cloud computing helps businesses cut costs by sharing resources. Most businesses have a high degree of variability in their use of IT resources yet when you manage these resources in-house you must allow for the highest expected requirements or fail to meet the demands of your customers and the needs of your employees. The result is that typically businesses use only five to fifteen percent of the capacities of their servers but in the cloud you don’t pay for idle capacity so you don’t need to provide full-time resources to meet spikes and demand, this cuts costs. You’ll also be able to reduce the headache of maintaining your current in-house IT infrastructure. With cloud computing, the majority of this maintenance will now be done at and by your cloud service provider.
You can Convert Capital Investments to Operating Expenses
Furthermore, because you are in effect renting instead of buying technology you convert capital investments into operating expenses. Capital expenditures are reduced because you no longer need to buy hardware to update obsolete servers and because there are no longer large upfront expenses in the form of hefty software licenses. Instead, you pay a much smaller and more predictable monthly service fee typically thirty to fifty percent less in your total cost of IT today; this allows you to spread out your costs and eases your cash flow. Learn more.
When needed you can scale your capacity up or down according to your needs without having to worry about purchasing or disposing of servers or storage in the cloud. Storage and processing power are not issues as the cloud computing providers add servers or shift load from one server to another to provide additional capacity thus as your business grows your systems will scale smoothly from a handful of people to hundreds or more.
Both server data and that on your desktops and laptops will be backed up automatically and securely on a consistent and timely basis. This ensures increased reliability and saves users from the threat of losing unrecoverable data on their computers. When you add mobile computing to smartphones and tablets you’ll see why on-premise applications and data have a shrinking audience. With cloud computing, your employees can work with your information from wherever they are and from any device your data and systems will be accessible to your entire staff from anywhere they have internet access at work, at home, or on the road.
Cloud Computing Also Uses Less Energy Than Traditional Server Rooms
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