Introduction
Cloud computing commonly referred as "cloud" is a type of Internet-based computing that allows users to use hosted services other than using local servers or a personal computer (In Murugesan & In Bojanova, 2015). As a result, users can access the required services on a pay-as-you-go pricing. Cloud computing offers numerous services to the clients. Consequently, there are also numerous advantages that accompany the use of the service.
Benefits
First, there is reduced initial capital cost since cloud computing offers the necessary infrastructure. Business startups can store the information without incurring huge costs of buying servers and the necessary network infrastructure. Additionally, existing businesses can reduce the overall cost of maintaining the network infrastructure by using the already developed infrastructure. For instance, the use of online Google Docs or Office Live can help a startup company reduce the cost of buying Word Applications (Kling, 2014).
Further due to the reduction in overall mandate of maintaining the network infrastructure, there is reduced workforce required. Therefore, this reduces the overall cost of running the business due to reduced salaries and benefits of employees. Information Technology specialist have high salary demands for an organization to maintain. As a result, it translates to a reduction in cost incurred by the business. Therefore, implementation of cloud storage such as Microsoft’s One Drive or Google Drive reduces the need for an IT backup technician (Weinman, 2012).
Cloud computing reduces the cost of recurring expenses such as electricity cost from the business. Therefore, the reduction in electricity cost is of significance to a business.
Cloud computing utilizes the economies of scale allowing for an efficient hardware utilization (Ruparelia, 2016). Therefore, clients enjoy reduced prices of accessing the services. Consequently, the reduced prices offer the business lower running cost. Additionally, there is an increased processing power. As an example using the Amazon EC2 or Abicloud computing environment higher processing power can be utilized.
Cloud computing offers reliable access to information. Lack of access information to a business directly affects the amount of revenue of an organization or business. Further, a business maintaining its Information Technology infrastructure has the risk of equipment failure. Therefore, cloud computing covers the risk of revenue loss in case the equipment fails.
Conclusion
Cloud computing offers cost-effective business solutions for all types of business that rely on Information Technology. The various benefits realized with cloud computing makes it effective to use for businesses.
References
In Murugesan, S., & In Bojanova, I. (2015). Encyclopedia of cloud computing.
Kling, A. A. (2014). Cloud computing. New York: McGraw-Hill.
Ruparelia, N. (2016). Cloud computing. Cincinnati, Ohio: Premier Press.
Weinman, J. (2012). Cloudonomics: The business value of cloud computing. Hoboken, N.J: Wiley.
