Cost Effective And Flexible Solution For Companies To Meet Their IT Needs – Part 1

Cloud Computing – Cost Effective and Flexible Solution for Companies – Part 1

What is Cloud Computing

Cloud computing is gaining popularity since last few years. It is a computing model that uses shared infrastructure to provide computing resources to companies dynamically over a cloud, such as internet. It enables companies to use data storage, software applications, and computer processing power owned and maintained by cloud service providers through the internet or proprietary network of the service provider.

The cloud computing services are broadly divided into three categories:

1. Infrastructure-as-a-Service (IaaS)

2. Platform-as-a-Service (PaaS)

3. Software-as-a-Service (SaaS)

Alternatively, some providers use some different nomenclature, e.g. Hardware-as-a-Service (HaaS) for IaaS and only SaaS for later two categories.

Cloud computing allows enterprises and small businesses to user a shared infrastructure as a service. It brings freedom from maintaining and configuring local servers by allowing the usage of distributed servers and computers maintained and configured by cloud computing service providers. These service providers are essentially well equipped and capable of operating distributed computing infrastructure than a small business or enterprise that does not specialize in IT infrastructure and services thereby allowing them to concentrate on their core business.

The cloud also allows companies to use the computing resources as needed by making them a service. For example, a retail business that requires more computing resources say the number of servers for certain months of a year due to the high volume of business while its needs drop to a few servers for the rest of the year. By using cloud from a cloud service provider, such retail business can save capital investment that remains idle most the year.

The same is true about ‘Software as a Service’ (SaaS) provided by cloud computing providers. Companies can purchase monthly or quarterly subscriptions instead of purchasing complete license and become worry free from its becoming obsolete in a few months or a year. Traditionally, newer versions of software require companies to purchase them again, and sometimes these newer versions also need enhanced infrastructure due to added functionalities, and thus add up to investments in infrastructure. Cloud services, both infrastructure and software allow companies to cut cost on repurchase of newer versions and upgrading of infrastructure.

How Companies Benefit from Cloud Computing

Companies can readily benefit from cloud computing. Some of the benefits cloud offers to companies are:

1. Time to start using the infrastructure and services is significantly reduced. Since cloud providers can extend services quickly, companies do no longer need lead time for bidding, purchasing, installation, and configuration of hardware and software

2. Costs on software licensing are reduced as companies can use online services in the cloud

3. Companies no longer need dedicated human resources for IT infrastructure and thus save administrative costs

4. Since cloud service providers specialize in infrastructure and software, they can offer more availability and reliability than a small in-house IT team could provide

5. Companies no more need to maintain their servers. This reduces maintenance cost

By Krishan Lal Khatri,

Krishan is a technology researcher and writer with over 12 years experience in telecommunication industry. He has a masters degree in Electronic Engineering and is member of IEEE and ISOC. He has worked with leading telecommunication service providers in Pakistan and United Arab Emirates for 10 years and then switched to teaching and research by joining a public sector university. He is currently pursuing PhD in Electrical Engineering.

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

Sorry, comments are closed for this post.

Comic
Cloud Services Providers – Learning To Keep The Lights On

Cloud Services Providers – Learning To Keep The Lights On

The True Meaning of Availability What is real availability? In our line of work, cloud service providers approach availability from the inside out. And in many cases, some never make it past their own front door given how challenging it is to keep the lights on at home let alone factors that are out of…

Choosing IaaS or a Cloud-Enabled Managed Hosting Provider?

Choosing IaaS or a Cloud-Enabled Managed Hosting Provider?

There is a Difference – So Stop Comparing We are all familiar with the old saying “That’s like comparing apples to oranges” and though we learned this lesson during our early years we somehow seem to discount this idiom when discussing the Cloud. Specifically, IT buyers often feel justified when comparing the cost of a…

Digital Transformation: Not Just For Large Enterprises Anymore

Digital Transformation: Not Just For Large Enterprises Anymore

Digital Transformation Digital transformation is the acceleration of business activities, processes, and operational models to fully embrace the changes and opportunities of digital technologies. The concept is not new; we’ve been talking about it in one way or another for decades: paperless office, BYOD, user experience, consumerization of IT – all of these were stepping…

5 THINGS TO CONSIDER ABOUT YOUR NEXT ENTERPRISE FILE SHARING SOLUTION

5 THINGS TO CONSIDER ABOUT YOUR NEXT ENTERPRISE FILE SHARING SOLUTION

Enterprise File Sharing Solution Businesses have varying file sharing needs. Large, multi-regional businesses need to synchronize folders across a large number of sites, whereas small businesses may only need to support a handful of users in a single site. Construction or advertising firms require sharing and collaboration with very large (several Gigabytes) files. Financial services…

Part 1 – Connected Vehicles: Paving The Way For IoT On Wheels

Part 1 – Connected Vehicles: Paving The Way For IoT On Wheels

Connected Vehicles From cars to combines, the IoT market potential of connected vehicles is so expansive that it will even eclipse that of the mobile phone. Connected personal vehicles will be the final link in a fully connected IoT ecosystem. This is an incredibly important moment to capitalize on given how much time people spend…

Which Is Better For Your Company: Cloud-Based or On-Premise ERP Deployment?

Which Is Better For Your Company: Cloud-Based or On-Premise ERP Deployment?

Cloud-Based or On-Premise ERP Deployment? You know how enterprise resource management (ERP) can improve processes within your supply chain, and the things to keep in mind when implementing an ERP system. But do you know if cloud-based or on-premise ERP deployment is better for your company or industry? While cloud computing is becoming more and…

How You Can Improve Customer Experience With Fast Data Analytics

How You Can Improve Customer Experience With Fast Data Analytics

Fast Data Analytics In today’s constantly connected world, customers expect more than ever before from the companies they do business with. With the emergence of big data, businesses have been able to better meet and exceed customer expectations thanks to analytics and data science. However, the role of data in your business’ success doesn’t end…

Big Data and Financial Services – Security Threat or Massive Opportunity?

Big Data and Financial Services – Security Threat or Massive Opportunity?

Big Data and Financial Services Cloud Banking Insights Series focuses on big data in the financial services industry and whether it is a security threat or actually a massive opportunity. How does big data fit into an overall cloud strategy? Most FI’s have a positive mind-set towards cloud IT consumption as it not only enables…

Protecting Your Web Applications In A Hybrid Cloud Environment

Protecting Your Web Applications In A Hybrid Cloud Environment

Protecting Your Web Applications It’s no secret that organizations are embracing the cloud and all the benefits that it entails. Whether its cost savings, increased flexibility or enhanced productivity – businesses around the world are leveraging the cloud to scale their business and better serve their customers. They are using a variety of cloud solutions…

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility A CIO friend of mine once told me that a hybrid cloud model enables him to “own the base, rent the spike” when it comes to unplanned events. Let’s face it – maintaining unused infrastructure for rare or random IT events is expensive and unnecessary in a cloud…

Infographic: IoT Programming Essential Job Skills

Infographic: IoT Programming Essential Job Skills

Learning To Code As many readers may or may not know we cover a fair number of topics surrounding new technologies such as Big data, Cloud computing , IoT and one of the most critical areas at the moment – Information Security. The trends continue to dictate that there is a huge shortage of unfilled…

Low Cost Cloud Computing Gives Rise To Startups

Low Cost Cloud Computing Gives Rise To Startups

Balancing The Playing Field For Startups According to a Goldman Sachs report, cloud infrastructure and platform spending could reach $43 billion by 2018, which is up $16 billion from last year, representing a growth of around 30% from 2013 said the analyst. This phenomenal growth is laying the foundation for a new breed of startup…

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Cloud Compliance  Regulatory compliance is an issue that has not only weighed heavily on the minds of executives, security and audit teams, but also today, even end users. Public cloud adds more complexity when varying degrees of infrastructure (depending on the cloud model) and data fall out of the hands of the company and into…

Using Private Cloud Architecture For Multi-Tier Applications

Using Private Cloud Architecture For Multi-Tier Applications

Cloud Architecture These days, Multi-Tier Applications are the norm. From SharePoint’s front-end/back-end configuration, to LAMP-based websites using multiple servers to handle different functions, a multitude of apps require public and private-facing components to work in tandem. Placing these apps in entirely public-facing platforms and networks simplifies the process, but at the cost of security vulnerabilities. Locating everything…

Big Data’s Significant Role In Fintech

Big Data’s Significant Role In Fintech

Data Banking Fintech covers a range of financial fields such as retail banking, investments, and lending and thanks to the mobile and internet innovations of late is a thriving sector. Offering improvements which drive customer satisfaction and education in an area previously inscrutable and dictated by gigantic inflexible corporations, fintech is helping put the power…

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Multi-Instance vs. Multi-Tenant The cloud is part of everything we do. It’s always there backing up our data, pictures, and videos. To many, the cloud is considered to be a newer technology. However, cloud services actually got their start in the late 90s when large companies used it as a way to centralize computing, storage,…

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Business Intelligence (BI) Software  How does your company track its data? It’s a valuable resource—so much so that it’s known as Business Intelligence, or BI. But using it, integrating it into your daily processes, that can be significantly difficult. That’s why there’s software to help. But when it comes to software, there are lots of…

Cukes and the Cloud

Cukes and the Cloud

The Cloud, through bringing vast processing power to bear inexpensively, is enabling artificial intelligence. But, don’t think Skynet and the Terminator. Think cucumbers! Artificial Intelligence (A.I.) conjures up the images of vast cool intellects bent on our destruction or at best ignoring us the way we ignore ants. Reality is a lot different and much…