Part 2 Demystifying the Cloud – an overview for the Business Owner
When is using a cloud platform the best choice?
What business benefits can this technology provide?
The answers to these questions can be grouped into four areas:
- The CapEx to OpEx Shift – A more efficient use of IT spending
- Rapid Deployment
- Low Risk Innovation
The CapEx to OpEx shift:
Consistent with most organizations, IT managers or outsourced service providers have direct responsibility for IT budgeting and spending. While the business owner ultimately approves the expenditure – after all it’s your money and, IT reports to you – Cloud platforms can help your organization spend this money more efficiently.
Often, IT budgets are split into two categories: basic IT needs – infrastructure and applications like email and spending on applications that provide enhanced or new business capabilities that typically drive efficiencies and revenue. Stating the obvious – the second is more desirable – cloud infrastructure and services help to achieve this in the following ways:
Businesses do not incur the heavy capital expenditures associated with building and maintaining their in-house IT services. The need for on premise IT infrastructure such as software, servers, storage & UPS are removed as these requirements move to the cloud. A businesses IT spend is linked to its usage of the cloud infrastructure turning the IT spend into a utility based monthly operating expense while allowing business to scale their requirements up and down based upon needs. This ‘pay for use’ billing model can yield considerable savings compared to traditional infrastructure purchases and provide the business owner with greater flexibility and use of capital resources
Cloud platforms provide clear visibility into your IT spending. Rather than ongoing lump sum charges based on your organizations fixed investment in servers, storage and ongoing maintenance, you get detailed insight into your
At its core, cloud computing provides on-demand provisioning and allows for the delivery of scalable and elastic IT services, that can simply be ramped up and ramped down dependent upon demand.
As an example, suppose you create an innovative Web offering for your customers or deploy a new application for your employees. If the application that supports it is running on your own servers, making that application scale to handle a rapidly growing load can be a significant challenge. Cloud servers and the infrastructure they run on are built to make this easy to do. Adding extra capacity can be as easy as a few mouse clicks to add processing speed and disk capacity allowing businesses to instantly respond to customer demands without incurring additional capital costs and delays associated with purchasing, provisioning and managing additional company owned IT infrastructure.
In our next post we’ll review the Rapid Deployment and Low Risk of Innovation benefits of using the cloud.
HostedBizz is a Canadian company based in Ottawa specializing in Cloud based Hosted IT services for business.
The company provides a suite of cloud based managed IT products consisting of Virtual Private Servers, Backup and Disaster Recovery & Virtual Desktops built on an enterprise grade cloud infrastructure.
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