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September 23, 2010

Cloud Computing: A Viable Business Market Offering

By Deepika Mala, TMCnet Contributor

Cloud computing has helped a number of businesses, in saving significant operating and capital expenses. This is the reason that many of the companies today have adopted and moved to cloud computing. Apart from the cost, cloud computing also offers many strategic business benefits to small, medium-sized and enterprise companies. The prime objective of this paper is to address the potential business concerns of cloud computing and to help interested businesses make informed decisions.

It is very important that the businesses, before choosing a cloud computing solution, should have a more thorough understanding of cloud computing capabilities and limitations. “Cloud computing is a model enabling convenient, on demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.” T

he key to the core concept and value of cloud computing is the delivery of computing resources. Many customers, until recently relied on computing resources needed to buy, install, and maintain their computer equipment and software, regardless of the type of computing they needed to accomplish. Till today, this model is prevalent at most businesses around the world.

In the late 1990s, as ecommerce and Internet businesses ramped up success depended on serving a large number of online customers and processing thousands of transactions and hundreds of applications simultaneously. Internet companies, to handle this pressure developed more dynamic computing infrastructures and software applications. Businesses, with the prime motivation to save money have moved to cloud computing. 

It offers the companies with cutting-edge tools, which help them to become more competitive. In addition to this, companies, through cloud computing are also offered business advantages that are difficult to realize in any other fashion. This helps companies to respond quickly to unexpected increases in demand rather than wait for infrastructure upgrades. In business data centers, computer hardware such as CPU, disk, memory, and network I/O is mostly under-utilized. In stark economic terms, this means that roughly $4400 of every $5000 server investment is idle. Owing to this, a huge percentage of their hardware is wasted by the business data centers. In an ideal cloud computing environment, companies would pay only for the hardware resources they use, when they use them.

Some of the common concerns of Cloud computing include lack of direct control, uncertain security, utility pricing, supplier viability and reliability and data lock-in.

Click here to view the Joyent whitepaper: “Cloud Computing, a Viable Business Market Offering.”


Deepika Mala is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Erin Monda

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