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Benefits of Cloud

Computing
IT SALES ASSIGNMENT



2014
VRUTA CHOTALIA
13030241136
DIV C, SCIT
Cloud computing is fast transitioning from an alternative delivery system for applications,
infrastructure and platforms to a necessary component of the business technology infrastructure.
Nearly every enterprise is using at least one cloud-computing service today, and expectations are
for rapid expansion of cloud-service adoption over the next five years. Enterprises want to source
cloud-computing from reliable, flexible, scalable, secure and affordable application and
infrastructure service providers. Service providers need to make choices about their cloud
strategy, applications and delivery infrastructure to capitalize on this multi-billion-dollar
opportunity.
FROM THE PERSPECTIVE OF BUSINESS OWNERS

Cloud computing has been around for some years now, initially as a somewhat hazy concept to
describe the move from on-premise to off-premise IT, and in more recent times, as a more
defined hosted service delivery model. Greater numbers of businesses - both large and small - are
now choosing to embrace the cloud, eager to make the most of their IT budgets and maximise
return on investment. Cloud computing can benefit companies in a number of ways, depending
upon their size, scale, sector and strategic goals. Here are five of the top advantages of sourcing
IT services in the cloud:

Project Portfolio Management
Getting the compute resources whenever needed, shortens the time to deliver, better quality,
lowered costs brings competitive advantage for the organization.

New business models
It has become much easier to start business innovation initiatives, often enabled by readily
available cloud services. Utilizing or combining these services can result in new and innovative
business models, generating new value propositions and resulting in new revenue streams. There
are even companies that are building entirely new business models and value propositions solely
using cloud services.

Less operational issues
Utilizing standardized services can significantly reduce issues and defects. This increases
business continuity and reduce time spent on operational issues, focusing more on the things that
matter. Cloud computing allows you to deploy the same service or topology of services
repetitively, with the same result every time. This allows organizations to predicatively deploy
pre-build server images; application services or entire application landscapes defined
using design patterns.
Document control
If a company doesnt use the cloud, workers have to send files back and forth over email,
meaning only one person can work on a file at a time and the same document has tonnes of
names and formats.Cloud computing keeps all the files in one central location, and everyone
works off of one central copy. Employees can even chat to each other whilst making changes
together. This whole process makes collaboration stronger, which increases efficiency and
improves a companys bottom line.
Better use of resources
On the other side of the business agility model, more efficient projects and less operational
issues allow employees to spend their time on other more useful activities that may offer a
greater potential value to business. This benefit is different for every organization and harder to
quantify, but people are an organizations biggest asset and this allows you to better utilize this
asset.

Less expense
This can be achieved by:
Lower power cost
Lower people cost
Zero capital cost
Fully utilized hardware
Minimizing licensing of software
Compliance and Corporate Governance
Compliance and corporate governance are facilitated by cloud computing. Compliance and
governance now take up more time and attention for IT and business teams alike, and the risks of
being out of compliance or operating outside of corporate governance standards carry a heavy
weight. Using an experienced cloud computing partner helps to share the burden for ensuring
that all IT practices and data-handling procedures conform to industry, geographic and
governmental requirements.
Business continuity
Protecting your data and systems is an important part of business continuity planning. Whether
organization experience a natural disaster, power failure or other crisis, having their data stored
in the cloud ensures it is backed up and protected in a secure and safe location. Being able to
access your data again quickly allows you to conduct business as usual, minimizing any
downtime and loss of productivity.
Security
Rather than weakening IT security, there is a case for saying that cloud computing improves
companies' defenses. This is because of the huge amount of money cloud providers spend on
securing their data center infrastructure, and keeping their customers' data safe. Vendors benefit
from economies of scale - they can afford to invest in the latest solutions and preventative
approaches, whereas relatively few individual businesses can to the same degree.
Go Global In Minutes
With Cloud Computing, organization can easily deploy their application in multiple regions
around the world with just a few clicks. This means they can provide a lower latency and better
experience for their customers simply and at minimal cost.
Environmentally friendly
Businesses using cloud computing only use the server space they need, which decreases their
carbon footprint. Using the cloud results in at least 30% less energy consumption and carbon
emissions than using on-site servers. And again, SMEs get the most benefit: for small
companies, the cut in energy use and carbon emissions is likely to be 90%.

FROM THE PERSPECTIVE OF INDIVIDUALS (EMPLOYEES AND CUSTOMERS)
Flexibility of work practices
Cloud computing allows employees to be more flexible in their work practices. For example, you
have the ability to access data from home, on holiday, or via the commute to and from work
(providing you have an internet connection). If needed access to their data while off-site, they
can connect to their virtual office, quickly and easily.
Access to automatic updates
Access to automatic updates for your IT requirements may be included in your service fee.
Depending on your cloud computing service provider, your system will regularly be updated
with the latest technology. This could include up-to-date versions of software, as well as
upgrades to servers and computer processing power.
Backup and Recovery
Allows individuals to back-up their critical applications & data and make it available without any
additional costs.
Lower Costs
By the Consumption-based computing individuals can meter their use of IT applications and
resources in a fashion similar to utilities.
Ease of access to advanced technology
Cloud computing brings in benefits for domestic users:
It is clearly evident, one of the obvious advantages of cloud computing is getting fast and
effective email for free. However, email is just the tip of the iceberg. Being a power user of
Google Apps, one can create spreadsheets and presentations as well, also for free. Whats more,
one can easily share and collaborate on such files.
Perhaps the second most popular cloud computing service enjoyed by end consumers are cloud-
based photo-sharing services like Flickr and Picasa.
Nowadays, cloud computing is not restricted to documents, spreadsheets, presentations and
photographs only music and video is also part of the deal.
Also, due to cloud computing, access to huge amounts of information is no longer restricted to
computer, but is possible with your phone. This brings in mobility.

FROM THE PERSPECTIVE OF SERVICE PROVIDERS
Generate profits
Service providers charge huge amount from the organizations for providing the services. Their
cloud services being innovative have higher market value resulting in high amount of
investments from the organizations. Profit margin from end customer remains low but they do
contribute to the revenue generation of service providers.
Market positioning and value retention
Earlier cloud services were not providing much of innovation into services. But now with cloud
being most emerging technology provides a greater market and scope to providers to create their
market position. By providing better services they can retain their current customers.