The Lighter Side Of The Cloud – WIFI
The Lighter Side Of The Cloud – Jamerson
The Lighter Side Of The Cloud – The Personal Computer

Which Type of Businesses Benefit Most from Cloud Computing?

Which Type of Businesses Benefit Most from Cloud Computing?

“A rising tide lifts all boats.”

This quote, mistakenly attributed to President John F. Kennedy who used it often, is associated with the idea that improvements in the general economy will benefit all participants in that economy. Extending this to technology, it is but natural that an innovation like cloud computing will benefit businesses, all and sundry. However, even as George Orwell wrote that some animals are more equal than others, some businesses do benefit more than others from cloud computing – startups.

According to Richard Soley, CEO and chairman of the Object Management Group (OMG), believes that integration issues prevent larger enterprises from taking full advantage of the cloud whereas cash-strapped startups benefit from the access and elasticity that the technology provides. OMG is an international, open membership, not-for-profit computer industry consortium founded in 1993 and involved in setting industry standards. With lack of standards being a common complaint with cloud computing (See: Cloud Computing Standards: How Important Are They? ), OMG has a critical role to play in the industry’s future.

The issue is the legacy. And it’s not just moving your legacy applications to the cloud – it’s how to integrate what’s running on public cloud with the computing resources that are still in your own shop, either because of the legacy or the security concerns, or you just haven’t had the time to move them. So you have more connections between the cloud implementation and the in-house implementation. There are starting to be available software solutions to help with that move, but we’re not entirely there yet,

Soley said in a recent interview with Tech Target.

Here’s my take on the issue under discussion. I had already enumerated the several ways cloud computing can help businesses (See: Which Cloud Computing Quality Works for you?); however, the question of which businesses can make use of which benefits, and to what extents, have not been discussed. This article is an attempt to remedy that.

While cost savings, as projected by moving to the cloud, are definitely important for all businesses, they are more important, at least initially, to smaller cash-strapped startups than enterprise companies with positive cash flows. What is more important to the latter, in fact, is the ability to continue doing business. Now, this ability to function continuously will obviously be hampered by any transition, even if it be to better technologies like cloud computing. Moreover, since such enterprises already have considerable data on legacy systems, they need to be migrated to the cloud – a time-consuming and expensive activity. However, startups, by their very natures, do not have preexisting data to move to the cloud but can start operations on the cloud itself. In this respect, larger enterprises are like the old dogs that are loath to be taught new tricks as the English proverb goes.

Finally, the flexibility to increase or decrease scale of operations that cloud computing provides is not that big a concern for enterprises, secure as they are in long-term contracts that guarantee business. For a startup looking to grow exponentially, this is a major advantage, especially if coupled with the fact that not much capital expenditure is required. Again, for enterprises, this is important but not as important as to just continue functioning uninterrupted.

The resistance to change is the reason why large financial institutions continue to use COBOL, a 1960s technology in spite of recent improvements, instead of modern technologies like .NET and SAP that can do the same work faster. However, the cost to replace all legacy COBOL-based systems would be so great that it won’t justify the subsequent cost savings.

Taking everything into account, it is clear that startups benefit more from cloud computing than do enterprises.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Recent

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market  We’ve talked a fair bit about e-Learning and MOOCs (Massive Open Online Courses) technologies here on CloudTweaks over the past number of years. The industry is expected to continue to grow at a brisk pace as more and more firms and educational institutions start to adopt cloud based services.  Docebo has an excellent…

Big Data, Business Intelligence And The Programming Language “R”

Big Data, Business Intelligence And The Programming Language “R”

Why Your Next Business Intelligence Hire Will Use R As anyone working in the field knows, business intelligence is an evolving landscape. New technologies, combined with a rapidly expanding marketplace, are disrupting legacy solutions and established platforms. Despite such growth, however, there have been a few constants, such as the R programming language. As other…

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

Popular

Five Cloud Questions Every CIO Needs To Know How To Answer

Five Cloud Questions Every CIO Needs To Know How To Answer

The Hot Seat Five cloud questions every CIO needs to know how to answer The cloud is a powerful thing, but here in the CloudTweaks community, we already know that. The challenge we have is validating the value it brings to today’s enterprise. Below, let’s review five questions we need to be ready to address…

Unusual Clandestine Cloud Data Centre Service Locations

Unusual Clandestine Cloud Data Centre Service Locations

Unusual Clandestine Cloud Data Centre Service Locations Everyone knows what the cloud is, but does everybody know where the cloud is? We try to answer that as we look at some of the most unusual data centre locations in the world. Under the Eyes of a Deity Deep beneath the famous Uspenski Cathedral in the…

2014 Future Of Cloud Computing Survey Results

2014 Future Of Cloud Computing Survey Results

Engine Yard Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil 2014 Future of Cloud Computing Survey Results SAN FRANCISCO, CA–(Marketwired – Jun 25, 2014) – Engine Yard, the leading cloud application management platform, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey,…

4 Different Types of Attacks – Understanding the “Insider Threat”

4 Different Types of Attacks – Understanding the “Insider Threat”

Understanding the “Insider Threat”  The revelations that last month’s Sony hack was likely caused by a disgruntled former employee have put a renewed spotlight on the insider threat. The insider threat first received attention after Edward Snowden began to release all sorts of confidential information regarding national security. While many called him a hero, what…

5 Surprising Ways Cloud Computing Is Changing Education

5 Surprising Ways Cloud Computing Is Changing Education

Cloud Computing Education The benefits of cloud computing are being recognized in businesses and institutions across the board, with almost 90 percent of organizations currently using some kind of cloud-based application. The immediate benefits of cloud computing are obvious: cloud-based applications reduce infrastructure and IT costs, increase accessibility, enable collaboration, and allow organizations more flexibility…

Sponsored Posts

Skin Based Technology – The Intelligent Tattoo

Skin Based Technology – The Intelligent Tattoo

The Intelligent Tattoo I’ve got you under my skin: the rise of the intelligent tattoo As the Internet of Everything expands its reach to embrace many new areas of life, the race continues to develop more robust and accessible tools. Wearables are being whittled down from clunky watches to smart clothes and wrist bands, but…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising