The Business Benefits of Cloud Computing

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The Business Benefits of Cloud Computing


From a business perspective, cloud computing offers the following benefits.


  • Lower Costs and Less Risk- In comparison to traditional on-premise hardware and software, the upgrade and migration costs are reduced including the time and effort to manage the processes as well as the up-front need to over purchase infrastructure in order to handle the peak demands. Additionally , consumers pay by the user so as a consumer you can adjust the number of users up and down as business needs change versus up-front long-term committed license and infrastructure costs as with on-premise solutions. On-premise upgrade introduce the potential risk for business interruption and will definitely consume valuable resources during the process, which is not the case with cloud computing. You don’t spend time away from running the business to worry about hardware and software issues, performance upgrades, and the need for infrastructure service packs/patches to ward of security threats. This is very applicable if you have made customization to your on-premise solutions because of the need for regression testing against  the upgrade as well as integration testing with other systems  

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  • Simplification-The cloud computing model is based on standardization which can bring significant efficiencies and lower costs - mainly simplification. This translates into lower implementation time and cost as well as less risk for an extended project implementation 


  • Payment-  Many service providers and their channel partners will take payment via a credit card. While purchasing software is not necessarily new, the ability to order the service on-line and having it available ( running) almost immediately is. This payment method is mainly used for standard configurations with the ability to make minor configurations changes to the application 


  • Trials- With cloud computing, some providers offer trials so you can “ test drive” the service for a fixed period of time, some allow you to configure the trial service to meet your specific business requirements and then the ability to migrate your environment to production if you elect to subscribe to the service