Economic Benefits of Cloud Computing
Cloud computing entails a delivery program of various services via the internet, and its resources may include application and tools like networking, software, data storage and servers. It has gained popularity among businesses and also individuals people. It has several advantages that render it attractive, like enhanced productivity, efficiency, speed, cost savings, security and performance. In addition, cloud computing is efficient due to its capabilities of lowering computing costs.
Cloud computing saves costs in various ways. The cloud service providers can boost the needs of the hardware in their data centres, leading to economies of scale. This ensures effective utilization of hardware resources based on the workload. Due to economies of scale, the high-efficiency levels contribute to reduced costs accrued to the cloud provider, lowering the costs.
Power consumption when using an in house IT infrastructure may exceedingly high, mainly if the servers are under entire operation. Running such a system portrays that IT resource utilization may not be optimal despite the increased energy consumption rate. On the other hand, cloud computing proves to be efficient by consuming less energy. Optimal utilization of server leads to power usage efficiency. Hence cloud provider costs are cut down considerably (Benefits of cloud computing., 2017).
In enterprises, cloud computing also leads to the economic benefits of cutting computing costs. In individual business setups, cloud services lead to reduced overall charges of the equivalent computing services. It also increases the strategic flexibility in meeting opportunities in the market by eliminating the cost spent on forecasting and maintaining on-site volume. It also contributes towards parallel processing methods, instant scalabilities that mitigate the time spent processing various tasks and response latency. Furthermore, it increases reliability and enhances the abilities of the computer systems in avoiding botnet attacks. Public vendors dealing with the cloud can scale their volumes in addressing the aggregate demands of various enterprises with differing periods of peak demands. Therefore unit costs are reduced, and a higher rate for server utilization is achieved (Talukder et al., 2010).
Talukder, A. K., Zimmerman, L., & A, P. H. (2010). Cloud Economics: Principles, Costs, and Benefits. Cloud Computing, 343–360. doi:10.1007/978-1-84996-241-4_20
Benefits of cloud computing. (2017, 21). Retrieved from https://www.business.qld.gov.au/running-business/it/cloud-computing/benefits