Business Value of Cloud Computing Essay

The signifi bottomt evolution of information technology over old fewer years has led to the increasing demand of resources, extra bandwidth and computational power. Small and medium business companies with their limited bud engage are determination themselves in the middle of balancing between its client/employee needs and maintaining good work surroundings. In todays economy the answer for the in a higher place problem is fog Computing. Cloud computing offers software and computer hardware resources and in some cases human serve over a distributed environment that jakes be shared and utilized on demand by internet.Business owners substructure use these resources as per their requirement even if that is for few hours a day or few days a month and chip in to pay only for that actual use. Thus this relatively virgin concept is becoming exceedingly popular among IT organizations because of its flexibility and cost effectiveness. It is highly scalable and also can span q uickly according to the requirements of somebody organization yet still sharing the same resources. Classification of Cloud servicesThe broad concept of Cloud computing can be classified into the following categories1)Software as a Service (SaaS) In this salmagundi traditional or custom made software coats can be served over the internet rather than purchasing the licensed version individually. For utilisation companies like Salesforce.com which provide CRM software to various business owners, Google Apps (word processors, spreadsheet applications) etc which are normally used. All these are relatively cheaper than purchasing licensed versions and installing them in the internal infrastructure. Here the provider is responsible for updating the product and troubleshoot in case of any consequents.2)Platform as a Service (PaaS) This service intromits providing the accurate framework and all necessary products to support an entire Software development life cycle (SDLC). Starting wi th Analysis going all the direction through design, coding, testing and deployment of the terminus product. The leading providers of this service are Microsoft sapphire platform, Google App Engine. A classic example is SharePoint application from Microsoft where users from different location can collaborate to develop a common application that can be customized and shared individually according to the requirement of individually client.3)Infrastructure as a Service (IaaS) This classification focuses on renting storage equipments (servers and high end networking devices) as well as processing devices (CPUs) to clients who founding fathert respect to invest in buying dedicated devices as per their requirement. Companies are account for these resources as per their actual use and can conserve lots of money. IaaS providers include Amazon S3 serving storage needs, EC2 for computation services and SQS for networking needs. The providers infrastructure is pre-setup and can scale up and down according the each clients needs based on real-time situations. These resources can cater occasional peaks in the situations where thither is sudden increase in data or can scale down when the data fuse is less.A nonher small classification that can also be mentioned is of go Peoples skills as a service, e.g. Programmers with knowledge of Cloud services can be provided per hour basis which can help organization in developing the application as well as integrating in the existing cloud services rented by the organization. This scales down cost of hiring a software engineer and also usefulnessting by using his/her services to merge the application with the infrastructure. (Motahari-Nezhad, Stephenson, Singhal, 2009) Werner Vogels, CTO of Amazon.com has quoted if you widen your services inside the company, utilization becomes an issue.It amortizes your cost over number of cycles. If you cannonball along services outside, on a public service, it is no longer an issue f or you. (Mache, 2009, p.55) This could be supplemented by Guy Rosen, CEO of Vircado. A starter degenerate in cloud computing, according to him Cloud computing can benefit a organization in many ways1)The company does not have to pay anything upfront, instead they are billed only for the services they use. This is a huge advantage of small organizations which have budget constraints and cannot render large payments initially. Even in the annual balance sheet there would be no assets to declare, that could be a huge relief to be department. 2)Secondly if you dont own huge infrastructure, the cost of maintaining it also comes down. there could be marginal savings in electricity which can be a significant factor in budgetory expense. 3)If the company recieves cloud services, they dont have to worry slightly recruiting and maintaining IT personnel, they can concentrate on their core business goals without worrying about constructing server rooms, purchasing pricy software and maint ainence contracts. (Rosen, 2010)Companies dont have to worry about vocation or bandwidth, they even dont have to worry about advertising on the internet by developing their web application inhouse. They can take help of SaaS and once deployed in the cloud they can wait till the time customers start hitting the webpage. Till then(prenominal) all the resources are not optimally utilized thus they have to pay only for that actual utilization. In a recent stack by Guy Rosen, he used market analytics vendor Quantcast to get the list of companies using cloud and their service provider. The results are displayed below in graphical formatFigure1. Adapted from The business of Clouds by G. Rosen, 2010, Crossroads 16(3), p 26.As per the graphic, Amazon EC2 is highest provider of cloud services hosting amongst sample of 500k. With more and more companies using cloud computing and the providers constantly adding services, businesses can save lot of money while the management can concentrate on achieving core goals.