Economic Uncertainty is the Perfect Time To Switch To Cloud Computing

November 9, 2011 Off By David
Object Storage
Grazed from Business 2 Community.  Author: Preetam Kaushik.

IT outsourcing has been a boon for companies going through tremendous amounts of economic pressure over the last few years. In addition to benefiting from outsourcing, enterprises these days, can further alleviate the costs of business technology needs, by tapping into Cloud Computing. Surprisingly, Cloud Computing, which has only found a wider market and application in recent years, traces its roots as far back as the 60s, when computer scientist John McCarthy began working on its earliest form, known as Utility Computing. Mr.McCarthy has peered into an IT crystal ball, and had predicted rather accurately that computer resources would be abundant and competitively priced in the future…

Today, Cloud Computing has a growing number of proponents who list its various benefits for not just businesses operating in a competitive marketplace but also increasingly cash-strapped government bodies. Among the many advantages cloud computing offers its users, foremost is easy access to latest application software. Given that softwares are constantly being upgraded and modified, almost all enterprises account for a steady stream of investment in this area, which may or may not be optimized. In addition to financial investment, storing software also costs ‘space’ in an enterprise’s IT ecosystem, resources for maintenance and upgrades are also essential.

For the first time, companies now have a solution in sight, to stem the outflow of precious resources on the purchase and maintenance of application software. A growing body of service providers allow easy access to a host of enterprise software that can be accessed from just about anywhere with a web browser. The providers maintain the software, with regular upgrades and store them on their data servers, which makes cloud computing an incredibly attractive benefit for a growing pool of companies across sectors. Small and Medium Enterprises, attempting to grow in a challenging economic climate, can especially benefit from services of providers like workbooks.com, Cloudmore, e sales track and others. By paying a subscription fee that matches their allocated funds, they can access a whole suite of business applications, paralleling the software range used by big companies, thus making their businesses more competitive. Service providers like Workbooks eliminate the need for Small and Medium business owners to invest in expensive hardware or allocate resources to maintain software. Further, Software-as-a-Service has also come to mean round-the-clock upkeep, service, and troubleshooting, without business owners worrying about downtime or maintenance from their end.

The increased effective and efficient use of servers is another all-round benefit of Cloud Computing. Since the access of software and applications is far more fluid and flexible than it has ever been before, servers can be shared by many number of users without affecting security or service. The overall benefit for enterprises is the cost-effectiveness of the service model, wherein they pay only for the computing resources they access. The hailed pay-per -use model of Cloud Computing offers a world of flexibility to users by letting them try IT applications that suit their needs the most and freeing up resources for businesses in a big way. In an increasingly competitive and evolving market, which remains unpredictable, easy and affordable access to software applications can make a world of difference.

Enterprises and government bodies can benefit from three distinct types of Cloud Computing services: Public, Private and Hybrid Cloud. All the three types are offered by service providers, however, they’re distinct in the way users can access the services.

Public Cloud Computing was the earliest forms of SaaS, and lets users access computing services from their service provider, from just about anywhere. It is great for users looking for flexibility; typically, they could also be users of the pay-per-use method, wherein they only pay transaction fee.

For those concerned with security, Private clouds have emerged as an option that is considered safer than Public Cloud Computing, as it restricts access. Users pay for the increased security by having to buy, build and maintain the system.

Hybrid Cloud services are a combination of Private and Public Cloud Computing, where the work load is processed at an enterprise data center, while the remainder of services are offered via a Public cloud. This delicate, wonderful and beneficial balance of virtualization and load balancing fuels the growth of cloud computing, enabling businesses to focus on their growth, and allowing public-funded bodies to divert tax payers’ money to other, more demanding areas.

The entry of many big players into the field of cloud computing, like Amazon Web Services, Microsoft United States, Google Apps, IBM  is a testimony to the growth and future potential of cloud computing.

In addition to service providers like Workbooks, other companies such as Capgemini offer Software-as-a-Service for many small and medium enterprises. Capgemini, however, is not an exclusive SaaS provider, but is a global IT company that has been around for decades, and leverages its existing network presence in over 30 countries to offers its cloud computing services. Workbooks, however, exclusively offers cloud computing services, and its clients could benefit from the company’s focused approach in the area. While Capgemini does cater to a number of big companies, including IKEA, Volvo and Swedish Government agencies, Workbooks is exclusively dedicated to small scale and medium enterprises, and is among the fastest growing Cloud Computing companies, in the space, in the UK. However, the very nature of Cloud Computing, which allows access from anywhere, makes the reach of Workbooks, global. It is perhaps also important to note here, that Capgemini offers cloud computing through a subsidiary, Sogeti. The Company offers Infostructure Services (ITS) that promises cost-reductions from cloud solutions to both small enterprises and public bodies.

An article, here clearly demonstrates how organizations are benefitting by going the ‘Cloud’ way.

While highlighting the benefits of Cloud Computing, one also must mention that the growth of Software-as-a-Service has been hampered by some setbacks. The security of users has always been questioned, since data and information, along with software applications, is stored on servers that are outside of the direct reach of enterprises. Many legal issues have also arisen, due to the perceived disconnect between ownership of the data, and the servers. However, the advantages of Cloud Computing, particularly for businesses striving to remain competitive in a tough economic climate, outweigh many of the drawbacks pointed out by critics.