Cloud Computing provides a simple way to access servers, storage, databases and a broad set of application services over the internet. Services are offered via a subscription instead of via a purchase or lease. Here’s why you would be wise to consider a cloud computing model when you need to replace or upgrade your technology.
The technology is offered as a subscribed service. The subscription cost is often offered on a monthly basis and covers all use, hosting, maintenance and support, as well as technology upgrades. Therefore, you do not have a large upfront (or recurring) capital expense. Because the technology is typically installed and running at the technology provider’s data center, you will not have to maintain a large data center facility and staff. Instead, you have a recurring operating expense which can often be more cost effective than a purchase/lease and support model.
Your primarily access cloud technology services via the internet. The connectivity access methods and security are provided with your subscription. Your access to those services can be from virtually anywhere you have an internet connection. Therefore, you can securely access your technology from your office, a client site, hotel or even when you are at home. Your user experience is the same from all locations.
As your needs change, your use of technology will change. In a service offering model, you contract for what you need when you need it. When you add staff, you add software licenses at that time. When you take on that big project, you subscribe for short-term use software licenses, servers and infrastructure for use through the project life-cycle. Then, eliminate that short-term cost from your subscription at the completion of the project.
One of the best ways to accelerate innovation is to invite a new technology into your organization. For some, this could be a new way for teams to work. Teams that reside in several locations can easily communicate and collaborate as if they are in the same office. For others, cloud computing will allow your organization to prototype new technologies. Without a big cost commitment, you can effectively find the best technology to give your organization a competitive advantage
With a cloud computing implementation, you will see that you will always contract for the optimal amount of needed technology and support. You will no longer have under utilized servers and an excess of purchased licensing. Your IT assets are utilized at a level that will yield the greatest effect for your organization, while your IT staff are able to focus on key business initiatives.
Because of the benefits stated above, cloud computing has the ability for organizations to innovate new products, services and business models that decrease time to market, create operational efficiencies and engage customers in new ways. The cloud can impact your entire enterprise: strategy, finance, operations, governance, culture and technology.
Cloud-based services are ideal for businesses with growing or fluctuating demands. If your needs increase, it’s easy to scale up your capacity. As you need to scale down again, the flexibility is included in your subscription. This level of flexibility, along with the efficiencies and potential cost savings, can give your business a real advantage over your competitors.
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