The business world is slowly transitioning to cloud computing, and the recent recession has only accelerated this move away from traditional on-premises systems. The enormous economic advantages of cloud computing coupled with other benefits – such as nearly ubiquitous access to applications and data, device independence, etc. – make it a very attractive option for businesses of all sizes and shapes.
Cloud computing is particularly advantageous, however, for Small and Medium Businesses (SMBs) because of its low Total Cost of Ownership (TCO). In a way, SaaS and cloud based offerings level the playing field for SMBs, putting them on par with larger enterprises when it comes to technology access.
Simply put, cloud computing is the delivery of computing resources as a service over the internet. This goes a long way to relieving the user of the complexity of IT.
The key differentiators between cloud computing and traditional on-premises systems are:
• Economics – With no capital expenses and reduced operating expenses, cloud computing users can save significant money on IT costs.
• Scalability and Elasticity – Cloud Computing is infinitely scalable and offers an easy way to scale up and scale down based on demand.
• Ubiquitous Access – Device, Location and Time independence. You can use the system 24×7 from anywhere you can find an Internet connection.
• Self Provisioning – The computing resources can be provisioned by users without requiring human intervention on the side of the vendor.
• Metering – Billing is based on consumption, a pay as you use model.