Cloud Computing Can Help You Realize Savings
by George Hadjiyanis
Cloud Computing Can Help You Realize Savings
Cloud computing concept might be too difficult to grasp as it is a relatively new concept. However, it is basically something which can eliminate the constraints from budget limits or lack of technical capability for the smaller organizations.
While straightforward economics rarely determine the true design process, the question of how specific “cloud financials” represent potential savings for the purchasing organization are nevertheless important. In addition to having more efficiencies when it comes to and organization’s IT operations and benchmarks in operations, an organization will have to make sure that savings on resources will be planned on a medium to long-term range.
Traditionally, an organization has relied on external hosting solutions to handle its data accessibility and distribution needs or building this massive, complex, and expenses infrastructure itself. The traditional IT services are inherently inflexible.
It has been difficult to deal with spikes and troughs in data needs, according to a client’s complex operations or the quick movement of seasonal buying. It has been necessary for a company to deploy viable resources, both human and otherwise, to ramp up an additional capacity. This is now changing as cloud computing can help the company establish its growth needs or have additional capacity up and running in no time. Cloud financial analysis will make a lot of sense after understanding what cloud computing could replicate and what it tries to make redundant.
Quite simply, the company needs not worry about hardware complexities any longer, human capital, or pure operating capital. By definition, cloud computing has data which is managed, stored and distributed across a hardware resource network which is infinitely scalable.
The reality of cloud financials is such that an organization can cut its costs in these areas by, in some cases, as much as 80%. Essentially, none of which are is the concern of the purchasing organization of the cloud computing resources.
The worry of downtime caused by asset failure is negated when cloud computing solutions are adopted. Through strategic selection, an organization will work in tandem with a cloud computing management partner, ensuring that any such asset failure “in the cloud” somewhere is irrelevant to the security and ongoing operation of its business.
If an organization is reliant on self-hosted, managed, and purchased IT solutions and hardware, it must realize that the sheer logistical issues associated with the procurement, installation, commissioning, and subsequent operation of these assets is hard to justify against the cloud benefits. Cloud computing allows an organization to gain access to the power of these assets within minutes and, of course, saves the significant capital costs associated.
Any time that an organization makes a capital investment, it is to a certain extent taking a leap of faith, never 100% sure that the purchased assets will be used to the optimal level. This level of risk may have been historically acceptable, but cloud financial analysis point to a much more sensible solution.
Depreciation may be viewed as an accounting headache and it can often mean the difference between complete visibility and understanding of a project purchase. Cloud financial analysis do not recognize the need for depreciation, as assets are paid for, on an “as needed” basis.
enStratus is a cloud infrastructure management solution for deploying and managing enterprise-class applications in the cloud. enStratus has a multi-cloud architecture that focuses on security and high availability for mission-critical web applications. Learn more at http://www.enstratus.com
